Update on Illegal River Blockade

PetroTal Corp.

09 June 2023

 

PetroTal Announces Update to the AIDECOBAP Illegal River Blockade

Calgary, AB and Houston, TX - June 9, 2023-PetroTal Corp. ("PetroTal" or the "Company") (TSX: TAL, AIM: PTAL and OTCQX: PTALF) announces the following updates related to the illegal river blockade.

Illegal River Blockade Update

As of June 8, 2023, The Indigenous Association for Development and Conservation of Bajo Puinahua ("AIDECOBAP") seized and are holding two oil transport convoys.  The first is an empty Brazilian convoy, with a crew of six and a total capacity of 70,000 barrels of oil that was traveling to the Bretana field.  The second was a Peruvian convoy which contained approximately 40,000 barrels of oil and was destined for the Iquitos refinery.  It has a crew of eight Peruvian nationals, none of whom are PetroTal employees.  The Company does not own or operate either convoy, both of which are being held near the town of 7 de Junio.  During the hostile takeover of the convoys, a Navy sailor was injured in the head with a spear requiring minor medical attention.  The Peruvian navy has been activated and will remain nearby to monitor the integrity of the vessels and health of the crew. 

AIDECOBAP continues to prevent the transit of ships in the Puinahua channel with a group of approximately sixty people and ten boats.  The residents of Bretana have expressed their strong opposition to the blockade of the river system which has halted PetroTal's operations.  On June 8, 2023, The Presidency of the Council of Ministers ("PCM") and the Ministry of Energy and Mines held a meeting with AIDECOBAP to better understand their claims and reasons for engagement.  PetroTal was also invited to this meeting and a de-escalation plan has been actioned which is a positive step towards reaching resolution. 

The Company has, and always will, strive for full alignment between all working table and social fund members to achieve the social fund's objectives.  PetroTal is working with all parties to help the Government of Peru generate a rapid, peaceful, and safe resolution to the blockade.  The Company's 2023 oil production forecast included planned downtime and a 5% social downtime contingency in its 2023 guidance to allow for social disruption.

ABOUT PETROTAL

PetroTal is a publicly traded, tri‐quoted (TSX: TAL, AIM: PTAL and OTCQX: PTALF) oil and gas development and production Company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru.  PetroTal's flagship asset is its 100% working interest in Bretana oil field in Peru's Block 95 where oil production was initiated in June 2018.  In early 2022, PetroTal became the largest crude oil producer in Peru.  The Company's management team has significant experience in developing and exploring for oil in Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretana oil field. It is actively building new initiatives to champion community sensitive energy production, benefiting all stakeholders.

For further information, please see the Company's website at www.petrotal-corp.com, the Company's filed documents at www.sedar.com, or below:

Douglas Urch

Executive Vice President and Chief Financial Officer

[e-mail]

T: [phone]

Manolo Zuniga

President and Chief Executive Officer

[e-mail]

T: [phone]

PetroTal Investor Relations

[e-mail]

Celicourt Communications

Mark Antelme / Jimmy Lea

[e-mail]

T : 44 (0) 208 434 2643

Strand Hanson Limited (Nominated & Financial Adviser)

Ritchie Balmer / James Spinney / Robert Collins

T: 44 (0) 207 409 3494

Stifel Nicolaus Europe Limited (Joint Broker)

Callum Stewart / Simon Mensley / Ashton Clanfield

T: [phone]

Auctus Advisors LLP (Joint Broker)
Jonathan Wright
T: [phone]

READER ADVISORIES

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