PetroTal (TAL) Guidance summary

Opening remarks and agenda

• Webcast introduced by operator, with CEO and CFO presenting and Q&A session planned.

• CEO notes this year's webcast differs from prior years, focusing on a discipline reset rather than growth.

Guidance on key objectives

• 2026 guidance targets average production of 11,750–12,250 barrels per day, down from 19,000 in 2025, due to deferred drilling.

• Capital expenditure budget set at $80–$90 million, including allocations for drilling, well facilities, erosion control, and water handling.

• Minimum unrestricted cash balance of $60 million to be maintained as an operating floor throughout 2026.

• Adjusted EBITDA guidance set at $30–$40 million, assuming cost reductions and $60 Brent oil price.

• Budget aligned with internal cash flows, with no material external financing assumed.

Strategic initiatives and plans

• Aggressive cost reductions in OpEx, G&A, and capex, including significant headcount cuts and $33 million allocated to erosion control.

• Drilling campaign to resume in Q4 2026, with two wells planned and six more in 2027, aiming to restore production above 20,000 barrels per day by mid-2027.

• Initiating a tender process for a third-party drilling contractor, with selection expected by end of Q1 2026 and first well spud by October 1, 2026.

• Planning to exit the Amazonia-1 rig lease, with conservative budget provisions for associated costs.

• Erosion control and water handling capacity investments to maximize oil recovery and support future growth, with water handling capacity to increase from 170,000 barrels/day to 240,000 by end-2027 and 320,000 by end-2028.