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PetroTal Announces Year-end 2018 Oil Reserves

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New report shows NPV-10 growth of 90% to $535 million for 2P
Reserves and $1.25 billion for 3P Reserves

CALGARY and HOUSTON, April 11, 2019 /CNW/ - PetroTal Corp. ("PetroTal" or the "Company") (TSXV:TAL) is pleased to provide a summary of the Company's 2018 year-end reserves in the Bretaña field in Northern Peru.  Reserves numbers presented herein were derived from an independent reserves report (the "NSAI Report") prepared by Netherland, Sewell & Associates, Inc. ("NSAI") effective December 31, 2018. Unless otherwise noted, all figures referred to in this press release are denominated in U.S. Dollars.

2018 Year-end Reserve Highlights

  • Proved ("1P") Reserves estimated at approximately 17.9 million(1) barrels ("bbl") of oil gross;
  • Proved + Probable ("2P") Reserves estimated at approximately 39.4 million(1) bbl of oil gross;
  • Proved + Probable + Possible ("3P") Reserves estimated at approximately 78.7 million(1) bbl of oil gross;
  • NPV-10 of approximately $535 million for 2P Reserves and $1.25 billion for 3P Reserves; and
  • 2P Reserves NPV-10 increase of 70%.

Note:

1.

Reserves include a total of approximately 2,963.6 Mbbl (3P) of oil for surface facility use across all categories (960.7 Mbbl (1P) and 1,818.2
Mbbl (2P)). See "Summary of Oil Reserves and Net Present Values as of December 31, 2018" for a summary of Company reserves, which
exclude these amounts.

 

The Company has certified total 2P reserves of 39.4 million barrels of recoverable oil at the Bretaña field. The net present value of before tax future net revenues discounted at 10 percent ("NPV-10") of 2P oil reserves is approximately $535 million.  On a 1P Reserves basis, reserves increased by 22% to 17.9 million bbl from 14.7 million bbl gross, with an associated NPV-10 increasing three-fold to $151 million from $38 million.  Additionally, the NPV-10 of the 3P Reserves increased by 58%. 

Manolo Zuniga, PetroTal's President and Chief Executive Officer, stated:

"The increased NPV-10 is a result of lower than expected development costs, partly as a result of using produced oil to power the field.  The lower development costs truly drive the NPV-10 of the project, where we see a major increase from $282 million to $535 million.   Even more important is the NPV-10 of the 3P reserves, estimated at $1.25 billion, which underpins our future value, which could primarily be obtained by increasing the field's recovery factor."

2018 Year-end Reserves Summary

The summary below sets forth PetroTal's reserves as at December 31, 2018, as presented in the NSAI Report.  The figures in the following tables have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and the reserve definitions contained in National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). In addition to the summary information disclosed in this press release, more detailed information will be included in PetroTal's annual information form for the year ended December 31, 2018 (the "AIF") to be filed on SEDAR (www.sedar.com) and posted on PetroTal's website (www.Petrotal-corp.com) in April 2019.

The reserves estimated by NSAI on the charts below exclude up to three million barrels that are expected to be used for power generation in the field.

Summary of Oil Reserves and Net Present Values as of December 31, 2018



Company


Future Net Revenue



Heavy Oil Reserves(2)


Before Income Taxes (USM$)(4)(5)(6)



(Mbbl)(1)


Discounted


Discounted


Discounted


Discounted


Discounted

Category


Gross


Net(3)


at 0%


at 5%


at 10%


at 15%


at 20%
















Proved Developed Producing


1,559.0


1,559.0


75,696.3


61,506.5


51,624.6


44,472.9


39,112.0

Proved Undeveloped


15,378.5


15,378.5


202,879.9


143,618.9


99,380.2


66,606.6


42,129.6
















Total Proved


16,937.5


16,937.5


278,576.2


205,125.4


151,004.8


111,079.5


81,241.6
















Probable Undeveloped


20,597.8


20,597.8


772,240.6


523,525.2


384,528.6


299,631.9


243,749.6
















Proved + Probable


37,535.4


37,535.4


1,050,816.8


728,650.6


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