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PetroTal - PetroTal Provides Liquidity Update

Calgary and Houston - March 10,2020-PetroTal Corp. ("PetroTal" or the "Company") (TSX-V: TAL and AIM: PTAL), the Peruvian focused E&P company, notes the following in relation to the global retraction in oil prices, and global market decline. All currency amounts are in United States dollars.


Financial Impact


In response to the sudden reduction in the Brent oil price, PetroTal has completed a sensitivity assessment of funds available from operations ("netback") at varying oil price levels. As noted in our February corporate presentation ( available on the Company's website at www.petrotal-corp.com ) , Bretaña's netback at 15,000 barrels of oil per day ("bopd") was 55% of the Brent oil price at $65/bbl and decreases to 37% at the Brent oil price of $30/bbl.


In some of our contracts, as Brent oil prices drop below $50/bbl, PetroTal is entitled to negotiate lower fees and tariffs to stabilize netbacks. These graduated cost reductions (included in the above table) serve to increase netbacks by approximately $3/bbl at $30 Brent.


Each barrel of oil production contributes positively towards funding all administrative costs and the Company's capital investments. PetroTal has the benefit of not having any debt or interest expenses, and no concerns about loan covenants.


Since PetroTal maintains significant investment program flexibility, the Company has the ability to be resilient and ensure that it balances cash flow with expenditures. The Company's previously announced $99 million capital investment program is weighted to the last half of the year and will continue to be monitored closely in light of the reduced oil price environment. Furthermore, given the strong relationship PetroTal has with its key contractors, the Company has agreed to manage payments with a number of its contractors, allowing for ongoing operation of the contractors' crews.


Well 6H - Update


Drilling of the 6H oil well continues on schedule and on budget, and PetroTal expects to have this well on production before mid-April 2020. Being on trend with the 5H and 4H wells, and benefiting from the longer horizontal zone penetration, higher oil production is expected from the 6H well. Inclusive of the 6H well, we expect to achieve production of 15,000 bopd that, coupled with the ongoing positive netbacks, will strengthen our financial resources.


Manolo Zuniga, President and Chief Executive Officer, commented:


"PetroTal remains confident in its ability to manage oil price fluctuations through a disciplined financial approach. Our assessments show that, based on current projections and pricing environment, the Company will remain cash flow positive this year. Importantly, if the global oil price retraction continues for an extended period, PetroTal has the flexibility to defer capital investment. At this stage, our 2020 oil production guidance remains in effect and the expected success of the 6H well will contribute significantly towards our target.


On behalf of our valued shareholders, please be assured that we'll make the right decisions, at the right time, to ensure we maintain the financial flexibility to be cash flow positive. I would like to sincerely thank our team for their continued laser-focus on all costing aspects, as well as our contractors for their ongoing support of PetroTal's financial resources."

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