Highlights

  • 2026 average production targeted at 11,750–12,250 barrels of oil per day
  • Capital investment planned at US$80–90 million, including carried-over 2025 spending
  • Adjusted EBITDA guidance of US$30 million at US$60 Brent oil price assumption

PetroTal Corp. (TSX:TAL) has issued its 2026 guidance update, setting out production targets, capital allocation priorities, and financial assumptions for the year ahead. All figures are reported in US dollars unless otherwise stated.

The company expects average production volumes of between 11,750 and 12,250 barrels of oil per day in 2026. This outlook reflects a cautious approach following operational challenges in 2025, including issues related to rig availability and production reliability. PetroTal has structured its capital program to prioritize liquidity, with a stated objective of maintaining minimum unrestricted cash balances of approximately US$60 million throughout the year.

The Board of Directors has approved a capital budget of US$80–90 million, which includes around US$18 million carried over from 2025 commitments. Planned spending includes approximately US$45 million for drilling activities, rig mobilization, and well facilities, assuming the completion of two development wells at the Bretaña field by the end of 2026. Additional allocations include US$16 million for operational continuity projects, US$15 million in capitalized erosion control investments, and US$10 million for other initiatives such as water handling upgrades, infrastructure at the Ucawa field, and exploration work.

To reduce execution risk, PetroTal has initiated a tender process for a third-party drilling contractor, with contractor selection targeted by the end of the first quarter of 2026. The first development well is expected to spud by October 1, 2026. The company has also begun discussions to exit its current rig leasing arrangement, with provisions included in the 2026 budget for potential termination-related costs.

Production guidance assumes that new drilling in 2026 will have limited impact on average annual output, given the anticipated timing of drilling activities. Sales guidance is based on routing all Bretaña production through Brazil, while Los Angeles field volumes are expected to continue under short-term arrangements.

Financial guidance includes Adjusted EBITDA of approximately US$30 million, based on average sales volumes of 12,000 barrels per day and a Brent price of US$60 per barrel. The company plans to implement cost-reduction measures across operating expenses, general and administrative costs, and capital spending, alongside continued investment in erosion control projects scheduled for completion by the fourth quarter of 2026.

TAL closed at CAD 0.41 on January 19, 2026.