PetroTal Announces 2025 Year-End Oil Reserves

Executive Summary

• PetroTal released its 2025 year‑end reserve evaluation (NSAI Report) showing 66.4 MMbbl proved and 110.2 MMbbl proved + probable reserves, essentially unchanged YoY.
• Reserves replacement was 106% (1P) and 76% (2P) despite a 6.9 MMbbl production run in 2025; the increase stems from revisions to the Bretaña field development plan rather than new drilling.
• Net present value (NPV‑10) after tax fell sharply year‑over‑year (e.g., total proved NPV‑10 down ~39% to $0.48 per share) due primarily to lower oil price assumptions and higher future development capital estimates.

Key Details

• Reserve Volumes (YE 2025):
• Proved (1P): 66.4 MMbbl (−1% YoY)
• Proved + Probable (2P): 110.2 MMbbl (−3% YoY)

• Proved + Probable + Possible: 185.5 MMbbl (−13% YoY)

• Reserve Replacement:

• 1P replacement: 106% of prior year’s 1P reserves

• 2P replacement: 76% of prior year’s 2P reserves

• PV10 After‑Tax per Share:

• Proved: US$0.48 (C$0.66, £0.36) – down from $0.89 last year

• Proved + Probable: US$0.75 (C$1.03, £0.56) – down from $1.24

• Reserve Life Index (RLI):

• Proved Developed Producing: 5.2 years (down from 7.0)

• Proved (total): 9.3 years (down from 10.3)

• Future Development Costs:

• Total future capex for proved reserves increased to $534 M (↑178% YoY).

• Cost per barrel for proved reserves rose to $8.04/bbl (up 180%).

• Field‑Specific Updates:

• Bretaña: Added 5 new production wells to the 1P plan and 6 to the 2P plan; total inventory now 37/46 wells respectively, plus 10 water‑disposal wells in the 2P case.

• Los Angeles (Block 131): Proved reserves fell 1.2 MMbbl; reductions driven by workover and stimulation data incorporated into the development plan.

• NPV Summary (Discounted at 10% – After Tax):

• Total proved NPV‑10: $687 M (down 39%)
• Proved + Probable NPV‑10: $1,167 M (down 32%)

• Total proved + probable + possible NPV‑10: $1,838 M (down 33%)

• Oil Price Assumptions:

• Brent price forecast for YE 2026 averaged $72.23/bbl (5‑year average), down from $79.85/bbl used in the prior year’s evaluation.

• Management Commentary:

• CEO Manuel Pablo Zuniga‑Pflucker emphasized that despite lower commodity prices, the technical foundation of Bretaña remains strong and the company will resume drilling in October 2026.

Notable Quotes

“PetroTal's 2025 year‑end reserves evaluation highlights the underlying strength of our asset base… We remain confident in the long‑term outlook for Bretaña and its ability to deliver future reserve growth.” – Manuel Pablo Zuniga‑Pflucker, President & CEO

Materiality Assessment: Material – Neutral (the release provides substantive updates on reserves, valuation metrics, and development plans that are material to investors, though the overall tone is informational rather than indicating a positive or negative shift).