• Production Volume: 26% higher than the same period last year and 22% higher than the prior quarter.

• Average Production: Over 23,000 barrels per day so far in 2025.

• EBITDA: Flat at $72 million despite a $7 per barrel decline in Brent prices compared to Q1 2024.

• Free Funds Flow: Over $48 million in Q1, the second highest quarterly free cash flow since inception.

• Erosion Control Expense: $1.8 million in Q1 compared to $10 million in Q4 2024.

• Term Loan Agreement: $65 million credit facility with two Peruvian banks, with a four-year repayment schedule and an 8.65% annual interest rate.

• Warning! GuruFocus has detected 4 Warning Sign with QSCGF.

Release Date: May 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PetroTal Corp (PTALF) has secured a term loan agreement with two Peruvian banks, providing $65 million to finance their erosion control project.

• The company's production volumes in Q1 2025 were 26% higher than the same period last year, demonstrating strong operational performance.

• PetroTal Corp (PTALF) generated over $48 million in free funds flow in Q1 2025, marking it as the second highest quarterly free cash flow since inception.

• The company has flexibility in its drilling program, allowing it to adjust operations based on oil price fluctuations.

• PetroTal Corp (PTALF) has successfully excluded diluent from its operations in Q1 for the first time, optimizing operational efficiency.

Negative Points

• The decline in Brent oil prices to the low $60s per barrel range could negatively impact the company's EBITDA, which was initially projected based on $75 per barrel.

• Flooding in the Port of Pucallpa and the yard in Pucallpa has delayed the erosion control project by a few weeks.

• The company is facing higher than usual discounts for Bretana oil, impacting revenue.

• PetroTal Corp (PTALF) is unable to use tax losses from Block 131 until the associated company starts delivering profits.

• The company has not yet finalized terms with Petroperu for the ONP pipeline, which could affect future operations.

Q & A Highlights

Q: Is there any progress made in regards to the ONP, and when can we expect a new framework with Petroperu? A: Manuel Zuniga-Pflucker, President and CEO, stated that discussions with Petroperu are ongoing, but terms are not yet finalized. The aim is to have a framework before the dry season, although it is unlikely to be completed by the end of May.

Q: What quarter are most of the OpEx/CapEx costs falling due, and when will the majority of OpEx costs be paid? A: Camilo McAllister, CFO, explained that the capital program is approximately $40 million per quarter. OpEx remains stable, except for the erosion control project, which depends on its execution pace.