PetroTal (TAL) Status Update summary

2025 production and financial guidance

• 2025 production guidance set at 21,000–23,000 barrels per day, a 24% increase over 2024 levels.

• Expected 2025 EBITDA of $240–$250 million, assuming Brent at $75/bbl, with $60 million in free cash flow after $140 million in capex.

• After-tax cash flow projected at $200 million, supporting $60 million in free cash flow and a 13% dividend yield.

• Free cash flow covers base dividend ($55 million) and share buybacks, with potential for top-up dividends if cash flow exceeds forecasts.

• Maintaining $60 million in unrestricted cash liquidity, with a strong year-end 2024 cash position of $115 million.

Capital expenditure and infrastructure plans

• 2025 capex budget of $140 million includes four development wells at Bretaña and Los Angeles fields.

• $60 million allocated to infrastructure, mainly for completing the fourth train at Bretaña, raising processing capacity to 32,000 bbl/d.

• Construction of new drilling cellars and expansion of lease boundaries underway, pending environmental approvals.

• New drilling rig imported to Peru, expected to reduce per-well costs by 10–15% once operational mid-year.

• Capex flexibility allows deferral of up to $30 million if needed.

Erosion control project and cost allocation

• Erosion control project at Bretaña totals $65–$75 million over 2024–2026, with $30 million expensed as OpEx in 2025.

• First three breakwaters constructed in 2025 as OpEx, last two as CapEx in late 2025–2026.

• Project aims to provide a permanent solution for riverbank stability, benefiting both the field and local community.

• 75% of erosion control spend in 2025 allocated to OpEx.