Slide 1: August 2022 EnerCom (Denver)
August 2022 EnerCom f (Denver) TSXV: TAL AIM: PTAL OTCQX: PTALF
Slide 2: Corporate Overview
Corporate Overview PetroTal corporate and technical summary (USD millions)1-6 Assets and key offtake locations Corporate Summary Share price (July 29, 2022) $0.67 (CAD) Ecuador Basic share count (millions) 852 Iquitos Refinery Market cap ($1.28 CAD/USD) $455 (USD) Net debt (cash) ($9) Talara Refiner
Slide 3: Delivering our value proposition
Delivering our value proposition Simultaneous growth and yield without overcapitalization Asset running room1 Best in class capital +11 wells 2P ( ~3 years drilling) efficiency2 +18 wells 3P (~5 years drilling) <$5,000 per flowing bbl IP 365 Unbooked infill locations Total capex deployed of ~$250 Ot
Slide 4: Company History
Company History 15,000 – 16,000 bopd 8,956 bopd Free cash flow focused 5,675 bopd Operational 2023 4,131 bopd excellence Recalibration (20,000 bopd 0 to 958 bopd1 and alignment achieved) Demonstrated due to COVID-19 operational Source asset and credibility initial capitalization an asset prep Larges
Slide 5: Bretaña Reserves summary
Bretaña Reserves summary Reserves summary (mmbbl)1-3 2P 147.0 • 2P and 3P recovery factors of 22% and 25%, delivered in four Possible 106.1 years from zero production 75.8 84.8 69.1 55.1 • Booked 2P well count at 22 wells allowing continuous multi 38.3 37.1 year development programs 77.9 37.5 47.7 5
Slide 6: ESG Leadership in Peru
ESG Leadership in Peru Environmental(1) Social (Shared Values)(1) ✓ Carbon monitoring quality certificate ✓ 2.5% social trust ✓ 2021 carbon footprint of 38,086 tCO2e (scope 1-2) leading to 11.6 kg of CO2 per ✓ Delivery of agri/aqua educational bbl produced in 2021 information and training ✓ Approval
Slide 7: PetroTal facilitates community empowerment
PetroTal facilitates community empowerment SDG # 3 SDG # 4 & 5 SDG # 6,7,9 Medical Education Technology Water Power Bridge construction Landmarks Funded and installed X-ray, > 40 student pre and post Computers and Clean water Diesel for power Significant dock work Bretaña library upgrades odontology
Slide 8: PetroTal led solution to social unrest issues
PetroTal led solution to social unrest issues PetroTal Working table (group) Comprised of community reps and supported by Ministry of Energy and Mines 2.5% of fiscalized production Third party trust directors 90 day working group to help outline policies, Operations management and accountability pro
Slide 9: Low risk development plan with solid subsurface characteristics
Low risk development plan with solid subsurface characteristics Technical characteristics Current drilled locations in structure map Full field development in structure map2 • Well defined four-way structure bounded by a reverse fault to the east – prolific geologic trap system • Field size of 6,000
Slide 10: Estimated 2022 forward drilling schedule
Estimated 2022 forward drilling schedule Rig maintenance and move Well 11H Well 13H Start date: Early Feb 15 producing days > 140,000 bbls Spud date: Q4 2022 January February March April May June July August September October November December Estimated ONP maintenance Well 14H completion Start date
Slide 11: 2022 Guidance
2022 Guidance Low capital intensity development plan generating robust yield and growth profiles1-6 Free cash flow matrix in USD millions1-7,* Yearly production (bopd) Summary in USD millions 2020 2021 2022 B0 2022 B1 15,000 17,500 20,000 22,500 25,000 actual actual Jan 28 May 26 $110 $261 $317 $371
Slide 12: Significant storage capacity and offtake options mitigate ONP risk
Significant storage capacity and offtake options mitigate ONP risk Northern Peruvian Pipeline (“ONP”) Iquitos Refinery Talara Refinery 350 km by river Pump station 1 355 km by river Bretaña Bayovar 900 km by pipeline 2,100 km by river Block 95 (Bretaña) Access to: Storage # of days Cuml. # of days A
Slide 13: Extensive facility investments in place
Extensive facility investments in place Significant scalable infrastructure in place Build history from 2018 - 2021 • Investment of >$100 million achieves processing capacity of ~26,000 bopd1 Incremental Oil Incremental Water Full field Environmental Impact Assessment (EIA) approved for continued de
Slide 14: 2022 shareholder return strategy
2022 shareholder return strategy Subject to board approval and economic viability Share buybacks (subject to exchange rules) No refinancing needed Completed 15,500 bopd Q4 2022/2023 April 1, 2022 Deliver Retire Pay back $20 consistent remaining $80 million in production Dividends million bond bonds
Slide 15: Well Performance
Well Performance Cumulative oil profiles1 Key type curve economic indicators(2, A-F) Production vs days online Low Mid High PetroTal Hz wells (ave) 2,200 Technical parameters ~2.0 million bbls in 950 days EUR mmbbls 2.8 3.1 3.8 4 – 4.5 (extrapolated) 2,000 Recovery Factor 12% 16% 20% 21%-26% 1,800 C
Slide 16: Delivered financial performance to date
Delivered financial performance to date Historical production (bopd) Historical Production (bopd) ~14,500 11,746 • 9.4 million bbls produced in 4 years 9,686 10,147 8,838 9,508 7,767 7,331 4,760 6,410 • 7 straight quarters of production growth 4,185 3,010 2,444 757 1,158 904 • Record daily productio
Slide 17: Financial summary
Financial summary Balance sheet strength (USD millions)1-4 2022 cash flow waterfall (USD millions)1-4 Potential cash for dividends Key financial figures 2018 2019 2020 2021 Q1 2022 2022 (estimated) 13 23 and or buybacks 20 Cash 26.3 21.1 9.1 74.5 52.9 130.0-140.0 Minimum cash balance Total receivabl
Slide 18: Netback contribution by sales route
Netback contribution by sales route EBITDA/bbl sensitivity (USD/bbl)1-5 ONP derivative 2022 income Netback Brazil Iquitos Saramuro 2022 Summary $/bbl $/bbl $/bbl $/bbl $/bbl At Dec 31, 2021 Sales (bopd) 13,300 1,300 1,200 15,500 37 million gain in 2022 Contracted Brent $102.0 $105.0 $99.0 $102.0 Dif
Slide 19: 1-3 year strategic initiatives
1-3 year strategic initiatives Debt free balance sheet • Management philosophy of being debt free near top of the pricing cycle • Derisks balance sheet long term • Maximizes free cash flow1 to investors at top of pricing cycle • Allows PetroTal to source debt (if needed) near bottom of pricing cycle
Slide 20: 3-10 year strategic initiatives
3-10 year strategic initiatives Achieve Bretaña production plateau • Done via consistently drilling 4-5 wells per year with little to no social related downtime • Post production plateau, maintain a production level that optimizes infrastructure • Be the gold standard in Peru for operational excelle
Slide 21: Appendix
Appendix TSXV: TAL AIM: PTAL 21 OTCQX: PTALF
Slide 22: Bretaña regional geology
Bretaña regional geology Technical specs Measure Pressure 3,942 PSI Temp 214 0F API 18.6 GOR 25 scf/bbl Pb 320 psia Oil FVF 1.056 µo 23.6 Density 0.895 g/cc BRETAÑA FIELD Perm 2,000 md Porosity 22.6 % Saturation 38.0 Sw Thickness 59 feet Field size 15,028 acres Key highlights • The Marañon basin is
Slide 23: Bretaña structural trap
Bretaña structural trap BRETAÑA STRUCTURE Key highlights • The trap is induced by an inverted basement fault that does not reach the Vivian Fm. and is defined by subtle low relief, 4 way closure, and NW-SE elongated structure • Part of the field spans into the Pacaya-Samiria National Reserve TSXV: T
Slide 24: Bretaña geology and petrophysics
Bretaña geology and petrophysics • Vivian Fm: Fluvial deposits consisting mainly of a channel complex in a braided river system, with little or no evidence of plain deposits. The channels represent fining upward systems • Core deposits show irreducible water saturation is lower than thought = more m
Slide 25: 3D geological model
3D geological model Block 95 Bretaña Field 1 2 Top of Vivian 3 3 km 5 8 4 Image references 6 1) Block 95 boundaries & prospective resources 2) Current structural interpretation of Bretaña field 7 3) Intersection with surface topography Ucayali River (puinahua channel) 4) Inline of sseudo-3D seismic
Slide 26: Completion description
Completion description Hangar Casing 7” Shoe Less water intrusion less water disposal less power draw less carbon footprint Pipe 4-1/2” Inflatable packing Inflatable packing Guide show tights 250 um tights 250 um Open hole 6-1/8” AICD ✓ Sand control via mesh ✓ Water entry restrictions via AICD Key h
Slide 27: Technology application to reduce emissions
Technology BENEFITS application to reduce emissions Significant reduction in water production of up to 2.0 MMbls H2O/well with a related reduction in energy use and tCO2e emissions MW 6 Source: energy report 28.02.2022 2,000 Accumulated Oil, Mbls 5 1,800 1,600 4 1,400 1,200 3 1,000 800 2 600 50% les
Slide 28: Building a factory to process fluids
Building a factory BENEFITS to process fluids VARIABLE SPEED DRIVE CURVES J12000N - POZO 8H 6,000 Date 23-May-22 Horizontal Well: 8H Total BFPD 9,200 Building a factory to process fluids is required because Bretaña will eventually Oil BOPD 3,772 5,000 Wcut 59.0% produce crude oil with large water cu
Slide 29: A blowdown analysis
A blowdown analysis Blowdown development production profile (USD millions) (bopd)1-5 Highlights1-5 9,936 8,965 7,063 Blowdown NPV 10 - $430 5,674 5,411 4,131 4,222 3,358 2,723 2,248 1,888 1,611 1,395 1,224 5 Yr free cash flow - $414 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 20
Slide 30: 2P development analysis
2P development analysis Internal 2P development production profile for optimal returns (USD millions) (bopd)1-5 Highlights1-5 25,409 23,935 21,432 19,368 2P Total NPV 10 - $1,239 15,524 15,753 12,887 10,600 8,965 8,777 7,319 5,674 6,149 4,131 5 Yr free cash flow - $1,340 2019 2020 2021 2022 2023 202
Slide 31: 3P development analysis
3P development analysis Internal 3P development production profile for maximum returns (USD millions) (bopd)1-5 Highlights1-5 35,426 37,933 33,749 31,648 28,322 25,910 23,868 NPV 10 - $1,858 20,216 17,324 17,213 14,741 8,965 5,674 4,131 5 Yr free cash flow - $1,751 2019 2020 2021 2022 2023 2024 2025
Slide 32: Situation analysis – Block 95 extension
Situation analysis – Block 95 extension Opportunity to create another Bretaña1-5 Time structure map (top of Vivian) • Technical estimate of >25 locations @ $10-$14 million per drill using 3.0 mmbbls EUR per well in Iberia Lead Bretaña expected case and 1.0 mmbbls EUR in conservative case Field • Tot
Slide 33: Osheki-Kametza technical overview
Osheki-Kametza technical overview Osheki-Kametza development concept Location and structure map • 100% owned and operated block with > 252,000 hectares (> 622,000 acres), located in the Ucayali basin • 3D geologic model supports Cretaceous reservoirs with oil charge from high quality Permian source
Slide 34: Situation analysis – Osheki Kametza at 50% WI
Situation analysis – Osheki Kametza at 50% WI Minimum case overview1-5 Success case overview (Delineated development)1-5 • Gross WI technical estimate of ~80 locations @ $8-$10 million per drill using 3.5 • Gross WI technical estimate of ~80 locations @ $8-$10 million per drill using 3.5 mmbbls EUR
Slide 35: Situation analysis – PetroTal potential
Situation analysis – PetroTal potential Risked cases + 2P Bretaña1-5 Expected success cases + 2P Bretaña1-5 • Modeled 2P Bretaña case (22 gross locations) • Modeled 2P Bretaña case (22 gross locations) • Modeled risked case for Osheki 50% WI • Modeled expected case in Osheki 50% WI • Modeled risked
Slide 36: Delivering on the 2017 value proposition
Delivering on the 2017 value proposition *2017 Investor Presentation Snip-it Key highlights • 2P production plateau now at > 25,000 bopd • 3P production plateau now at > 35,000 bopd • PetroTal delivers on target and is on track to significantly outperform its original 2017 investor forecast • PetroT
Slide 37: Type curve summary
Type curve summary PetroTal (actual) well data (normalized time) (bopd) Well metrics1-3 7,000 Summary Horizontal Estimated 2P Ave (NSAI) Deviated (actual data to Feb 2022) (actual data to Feb 2022) 6,500 Horizontal Well Data 6,000 IP 90 (bopd) 5,000 3,830 2,019 5,500 Deviated Well Data 5,000 2P Rese
Slide 38: Priority of Sales
Export routes Multiple export routes preserving pricing optionality1 Export Routes1 25,000 bopd Iquitos Refinery 1. Brazilian Route • Sold FOB Bretaña at forward 3 month ICE Brent Talara Refinery ~16,600 bopd • Strong netbacks Pump stn 1 • Cargos upsized to 400k-500k+ bbl per shipment • Access to At
Slide 39: Oil Sales Commercialization Agreements with Petroperu
Oil Sales Commercialization Agreements with Petroperu Petroperu sales contract illustration (example) Derivative summary March 31, 2022 Summary Volume Initially paid to True-up due to (Pump station #1) (Bayovar) Start Mbbl PetroTal PetroTal End USD millions USD millions Sales in the ONP 3,063 $47.7
Slide 40: Peru fiscal overview
Peru fiscal overview Talara Refinery (upgrade completed) BBB/BBB+/Baa1 stable outlook (Fitch/S&P/Moody’s) • $4 billion in new notes issued late in 2020 • Country risk rating (EMBIG) of 143, the lowest in all Latin America1 • $5 billion upgrade completed in April 2022 • Materially increasing in count
Slide 41: Share ownership and volume
Share ownership and volume Tal and Ptal daily average trading volume by month (millions) PetroTal ~16 month trailing share price (CAD/share) GTE exit3 0.80 9.3 Social downtime 0.70 0.60 May 2022 5.0 8.2 0.50 8H completion 3.5 3.6 3.3 3.1 2.9 3.3 0.40 2.6 2.5 2.1 2.2 2.1 2.1 1.8 2.3 2.7 2.8 1.8 1.1 1
Slide 42: Management’s macro oil view for generalist capital
Management’s macro oil view for generalist capital PetroTal’s key data points PetroTal decision making impact Management teams are now incentivized by deleveraging, returning capital, maintaining production, and ESG PetroTal will not grow for the sake of growth. Type curve performance with one rig i
Slide 43: Senior management
Senior management Experienced and seasoned management team Manolo Zúñiga – Director, President & Chief Executive Officer • Native Peruvian with >30 years of experience in petroleum engineering • Started career with Occidental Petroleum Corp (“Occidental”) in Bakersfield & Block 192 in Peru • Founder
Slide 44: Board of directors
Board of directors Highly experienced governance1 Mark McComiskey – (Non-Executive Director and Chairman) • Partner of Avaiocapital with a focus on energy and digital infrastructure • Founding Partner of Vanwall Capital and Managing Partner of Prostar Capital • Former Principal of Clayton, Dubilier
Slide 45: DISCLAIMERS
DISCLAIMERS Forward-Looking Information Certain information included in this presentation constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate”, “believe”, “expect”, “plan”, “intend”,
Slide 46: DISCLAIMERS (CONTINUED)
DISCLAIMERS (CONTINUED) Oil and Gas Advisories Crude Oil. All references to “oil” or “crude oil” production, revenue or sales mean “heavy crude oil” as defined in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Brent refers to Intercontinental Exchange
Slide 47: DISCLAIMERS (CONTINUED)
DISCLAIMERS (CONTINUED) Analogous Information. Certain information in this document may constitute "analogous information" as defined in NI 51-101, including, but not limited to, information relating to areas, wells and/or operations that are in geographical proximity to or on-trend with lands held
Slide 48: DISCLAIMERS (CONTINUED)
DISCLAIMERS (CONTINUED) Non-GAAP Financial Measures, Oil and Gas Metrics and Other Key Performance Indicators This presentation contains certain financial measures, as described below, which do not have standardized meanings prescribed by generally accepted accounting principles (“GAAP”). In additio
Slide 49: Footnotes
Footnotes Slide 2 1. Market capitalization as at July 29, 2022 using a 1.28 CAD/USD exchange rate 2. Net debt estimated as at March 31, 2022(not calculated for bond covenant purposes)(all long and short term liabilities excluding decommissioning less total cash, all receivables, and short and long t
Slide 50: Footnotes
Footnotes Slide 12 1. With CPF-2, Bretaña has 90k bbl of crude storage 2. Up to eighteen barges available between 10k and 30k bbls capacity to supply ONP and Iquitos refinery 3. Iquitos and Brazil markets are on a monthly basis, thus allowing for maximum recurring sales of 16,600 bopd of average pro
Slide 51: Footnotes
Footnotes Slide 32 1. Best estimate = 26 mmbbls (modeled assumption 100% of best estimate and 40% of mean) 2. Production and cash flow profiles are internal management estimates and have not been confirmed or reviewed by a third party reserve evaluator and are subject to change based on management c
Slide 52: Contact
Manolo Zuniga Douglas Urch (713) 609-9101 (713) 609-9101 mzuniga@petrotal-corp.com durch@petrotal-corp.com PetroTal Suite 500 11451 Katy Freeway Houston, TX 77079 Legal Counsel (Canada): Stikeman Elliott LLP Independent Reservoir Engineering Firm: Netherland Sewell & Associates, Inc. Audit Firm: Del