PetroTal (TAL) Status Update summary

2025 Production and Financial Guidance

• Targeting average daily production of 21,000–23,000 barrels, a 24% increase over 2024 levels, with a midpoint implying 24% growth.

• 2025 EBITDA projected at $240–$250 million at $75/bbl Brent, net of $30 million in non-recurring erosion control OpEx.

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

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

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

Capital Expenditure and Infrastructure Plans

• 2025 capex budget set at $140 million, including four development wells and major upgrades to fluid handling and well cellars.

• $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 Community Investment

• Erosion control project at Bretaña totals $65–$75 million over 2024–2026, with $35–$40 million allocated in 2025 (75% to OpEx).

• 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.

• $8.5 million of 2025 capex allocated to erosion control.

• 2.5% of fiscalized production contributed to a social trust fund, totaling ~$20 million to date.