PetroTal Maintains Reserve Levels but Asset Valuations Fall on Weaker Oil Price Assumptions

PetroTal Corp. (LSE:TAL), an oil producer focused on Peru with key operations at the Bretaña and Los Angeles fields, reported largely unchanged reserves at the end of 2025. Proved (1P) reserves stood at 66.4 million barrels, while proved-plus-probable (2P) reserves totalled 110.2 million barrels, broadly flat compared with the previous year. Estimates for original oil in place at the Bretaña field were also maintained at 377 million barrels on a 1P basis and 494 million barrels on a 2P basis, reinforcing the long-term scale of the company’s main producing asset.

Although no development wells were drilled during 2025, PetroTal achieved reserve replacement of 106% for 1P reserves and 76% for 2P reserves at Bretaña through updates to its development strategy. The revised plan incorporates additional future production and water disposal wells, expanding the company’s drilling inventory. However, reserve valuations declined significantly, with after-tax PV10 for 1P reserves falling 39% year on year, primarily reflecting lower Brent crude price assumptions and rising projected development and infrastructure costs, highlighting increased valuation sensitivity to a softer commodity price outlook.

Management indicated a more disciplined capital allocation approach for 2026, with investment activity expected to slow while maintaining flexibility to accelerate spending if oil prices strengthen. Drilling is currently planned to resume in October 2026, with Bretaña’s sizeable reserve base and reserve life indices of 5.2 years for PDP reserves and 9.3 years for 1P reserves positioned to support future production and reserve growth under improved market conditions.

More about PetroTal Corp

PetroTal Corp. is an oil and gas company focused on developing onshore crude oil assets in Peru, primarily the Bretaña field on Block 95 and the Los Angeles field on Block 131. The company targets conventional oil resources and is listed on the TSX, AIM and OTCQX exchanges, providing access to both North American and UK capital markets.