Investor Presentation May 2019 A Peru Focused Oil Company Delivering production growth and high impact exploration Ticker TSXV: TAL AIM: PTAL 0 Summary A balanced portfolio with ongoing production growth & high impact exploration ■ London AIM and TSX-V listed Peruvian oil and gas company Company Overview Ecuador Colombia ■ Strong balance sheet with no debt, crude prices off Brent, favorable fiscal regime ■ Achieved first production in June 2018 Saramuro under budget and ahead of schedule Yurimaguas BLOCK 95 ■ Currently producing >3,000 bopd from Significant Progress two wells Brazil to Date ■ Third oil producer spud April 21st to reach 5,000 bopd by June, already at TD BLOCK 133 Pucallpa Tingo ■ Low cost production with >10,000 bopd María by early 2020 Huanuco Cerro Pacific de BLOCK 107 Pasco Ocean Tarma ■ Bretaña Field - Potential to increase 2P recovery factor from 12% to 24% Lima Substantial Upside Petrotal Blocks ■ Block 107 - four leads that, combined Lima –Pucallpa Road Potential River System with Osheki prospect, have an unrisked Oil Pipe Gas Pipe high estimate of prospective resources of Gas Pipe (construction) 4.6 billion barrels of oil Liquids Pipe LEGEND Bolivia Blocks under Contract Area under TEA Bolivi a ■ Management and technical team with in Available Blocks Area Approved for TEA- Contract Management depth expertise and proven track record Area under Evaluation for TEA – Contract Area for TEA Experience in Peru TEA = Technical Evaluation Agreement 1 Peru: Country Overview Talara Refinery: Key Market for Bretaña Oil ■ Stable & Growing Pro-Business Country – 5.9% average GDP growth over the past decade • Projected 3.8% average over next two years – Democratic, investment grade government with stable / positive outlook: A3 (Moody’s) / BBB+ (S&P and Fitch) – Standardized contracts signed into law by supreme decree – Excellent fiscal/royalty terms and tax regime • Royalty 5-20% based on production (est. 8.25% at peak) • Corporate tax 32% (>$310mm in NOL’s to offset tax ~$3B expansion & upgrade, expected completion 2020 liability for next 4-5 years) Peru Oil Consumption ■ Established Oil & Gas Industry 300 – Domestic production of 127kbopd with domestic 250 consumption of 259kbopd (2017, Source:BP) 200 – Established infrastructure with capacity and transparent pricing kbopd 150 – Operators include Pluspetrol, CNPC, Repsol, Hunt, CEPSA, 100 Perenco, Ecopetrol, Anadarko, Tullow, Shell, GeoPark 50 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 – Oilfield services: Baker Hughes, Parker Drilling, Halliburton, Peru oil consumption (kbopd) Schlumberger, Weatherford, ENI / Petrex Source: BP Statistical Review of World Energy (2018) 2 Portfolio Overview A balanced portfolio with ongoing production growth & high impact exploration Bretaña (Block 95) (100% WI) ■ 17.9 MMBO 1P reserves(1) from OOIP of 199 MMBO (9% RF) ■ 39.4 MMBO 2P reserves(1) from OOIP of 330 MMBO (12% RF) ■ 78.7 MMBO 3P reserves(1) from OOIP of 500 MMBO (16% RF) ■ 2P reserves NPV-10 increased by ~90% to $535 million – Mostly due to optimizing operations, with additional potential savings identified ■ Initial five oil producers will target approximately 25 MMBO of 2P reserves(1) ■ Production estimated to reach 5,000 bopd by mid 2019, and exceed 10,000 bopd in early 2020 Block 107/133 (100% WI) ■ 534 MMBOE(2) at Osheki prospect located in the Ucayali basin – On trend with several large fields ■ Several leads to be de-risked by Osheki that combined could contain 4.6 BBO(3) of unrisked prospective recoverable resources ■ Farmout process underway – targeting first exploration well in early 2020 1) NSAI Assessment, effective date of December 31, 2018, gross including oil used in the field in each category 2) Mean Prospective estimate NSAI Resource Assessment, effective date of June 30, 2018 3 3) Forecast only. Actual results may differ due to a number of factors. See “Disclaimers – Forward-Looking Information”. Bretaña, Single Location Next to River Minimizes Costs 4 Bretaña: Large Oil Field Under Development ■ Large oil field with recent first production – 100% oil production with nominal gas – First production as of June 2018, ahead of schedule and under budget – Second oil producer initial rate of 2,250 bopd, on time and on budget (IP 20 days 2,400 bopd) – Third oil producing well expected online in June 2019 BN 95-2-2-2XD – 2P development targeting plateau >10,000 bopd from 11 oil producing wells by 2020 – While 3P development approaches 20,000 bopd with 18 oil wells in a 3P case – Export routes and commercial contracts in place ■ Development plan in phases – Increases plant capacity • 6,000 bopd by YE 2018 • 12,000 bopd by YE 2019 • 24,000 bopd by YE 2020 – As production targets are met* • YE 2018 production of 2,000 bopd • YE 2019 production of 10,000 bopd • YE 2020 production of 20,000 bopd* *Assumes ongoing drilling and increased recovery beyond 2P case 5 Bretaña Processing Capacity Phases for 2P Case LTT 5KBOPD & 9KBWPD CPF1 10KBOPD & 40KBWPD CPF2 20KBOPD & 80KBWPD CPF3 20KBOPD & 120KBWPD 6 Bretaña’s Existing Two Wells FastTrack LTT Production 7 Bretaña Field: Limited Number of Wells Needed(2) ■ Seven wells now define structure and continuity of reservoir – Consistent correlations across the field – No variation in petrophysical properties ■ Latest 2XD well net pay of 18.7 meters, as per prognosis(1) – Net-to-Gross (NTG) pay estimate of 78% – NSAI’s NTG pay estimates for the 1P, 2P, and 3P categories are 50%, 68%, and 86%, respectively – The higher the NTG the larger the OOIP ■ Modern 3D seismic acquired in 2014 – Simple 4 way closing anticline – Good velocity control for depth conversion ■ Consistent oil-water contact (OWC) across the structure – Consistent OWC supported by petrophysics and pressure data First Five Well Will Allow Us to Prove Up +22 MMBO of Reserves 1) Internal estimate of net pay and NTG 2) Company plans to install ESP’s in all its horizontal oil wells, starting with the BN95-3H well 8 Optimum Bretaña Production Plan 12,000 Commissioning 3WD Expected Well Completion Third Week Nov CPF1 All Wells 2XD: mid-April 3H: mid-June 10,000 2WD: mid-July 2XD-ST+4H+1XD 1WD(wo): August 4H: October 2XD-ST: mid-November 8,000 3WD: mid-December 1XD(wo): December 2WD 3H 4H+1XD 6,000 LTT OIL 4H+1XD 1XD+2XD+3H 1WD(wo)+1XD+2XD+3H 4,000 1XD+2XD 2,000 Production Facilities Capacity LTT: 6 MBOPD x 9 MBWPD (until Jul-2019) LTT+2WD: 6 MBOPD x 20 MBWPD (Jul to Nov-2019) CPF1: 12 MBOPD x 40 MBWPD (from Dec-2019) 0 01-Apr 01-May 01-Jun 01-Jul 01-Aug 01-Sep 01-Oct 01-Nov 01-Dec BOPD Plan to Exit 2019 at >10,000 BOPD 9 3H Well: Continue Executing and Optimizing Timeline 10 Schematic Structural Cross Section Bretaña Field Bretaña Oilfield is ~15 km long Envidia Prospect with 5.6 MMBO(2) of Mean Prospective Resources Bretaña’s OOIP (*) OOIP NSAI (1) 1P 199 MMBO 2P 329 MMBO 3P 500 MMBO (*) OOIP = Original Oil In Place PetroTal’s Internal Updated Estimate of Bretaña’s OOIP is ~367 MMBO 1) NSAI Assessment, effective date of December 31, 2018, gross including oil used in the field in each category 2) Mean Prospective estimate NSAI Resource Assessment, effective date of June 30, 2018. 11 Bretaña Detailed Structural Cross Section NW SE 3H BN-2XD BN 1WD BN-1XD B SUR 1X (current wáter disposal well) 487 m 717 m 785 m 6437 m OWC -2609 m Cross Section Shows Continuity of Vivian Formation and Excellent Oil Sands in 1WD Well 12 Bretaña’s Analog Fields Point at Higher Recoveries ■ Bretaña estimated 2P recovery factor of 12% is based on data set of three wells & one core ■ Every analog field in region has achieved >12% recovery factor (ranging from 19.1% to 41.6%(1)) ■ NSAI has already increased the 1P recovery factor by 23%, from 7.4% to 9.1%(2) ■ These analog fields benefitted from horizontal reservoir barriers that slowed down the water coning – also seen in Bretaña’s core ■ Management believes that Bretaña has similar reservoir barriers and could deliver >24% Recovery Factor Reservoir Transmissibility #1 #2 #3 #4 #5 #6 Bretaña Analog Table(1,2) Capahuari N. Shiviyacu Carmen Yanayacu San Jacinto Jibaro/Jibarito API (o Gravity) 19.4o 35.2o 20.2o 19.7o 19.0o 12.5o 10.8o OOIP (MMBO) 330 48 331 45 65 209 414 EUR / 2P (MMBO) 39.4 20.0 120.8 13.5 23.6 46.3 103.2 Recovery (%) 12.0% 41.6% 36.4% 29.9% 36.1% 22.2% 24.9% 1) Perupetro S.A. databank for all analog fields 2) NSAI Reserves Report (December 31, 2018) for Bretaña 13 3) Reservoir Transmissibility = Permeability x Net Thickness / Oil Viscosity. Larger font projection layout Netback per Barrel at $65 Brent 70 60 50 40 $/bbl 30 bopd 20 bopd 11,000 11,000 bopd 10 4,500 1,000 0 Brent Brent Transport Royalty Lifting G&A Netback Target 2019 Target 2020 Discount 4Q2018 Netback Netback With Increased Volumes Unit Lifting and G&A Will be Reduced 14 Export Route Optionality for Bretaña Oil 1. Iquitos Refinery (1,200 bopd): barging distance of 370 km. Delivery: 3 days. Ecuador Colombia 2. Bayovar Port (20,000 bopd, to reach Talara Refinery, La Pampilla Refinery in Lima, or export markets): 4 1 7 a. Barging 460 km to Saramuro, 856Km through the Peruvian Saramuro Northern Pipeline (ONP) to Bayovar Port. Delivery: 4 days. 5 Yurimaguas BLOCK 95 b. Barging 740 km to Yurimaguas and trucking 940Km to 2 Bayovar Port. Delivery: 10 days. Brazil 6 3. Conchan Refinery in Lima (1,500 bopd): barging 700 km to Pucallpa and trucking 750 km to Lima.