Calgary, Alberta and Houston, Texas– PetroTal Corp. (TSXV: TAL) (AIM: PTAL) (“PetroTal” or the “Company“) is pleased to announce that the Company’s board of directors has declared an interim dividend in respect of the common shares in the capital of PetroTal (the “Common Shares”) to shareholders of record at the close of business on December 20, 2019 (the “Record Date”).
The interim dividend will be CAD$0.0017 (£0.001) cash for each Common Share, subject to applicable withholding taxes for non-Canadian resident shareholders, and will be paid on January 20, 2020. Based on the number of shares currently outstanding, this represents a total dividend payment of approximately CAD$1.14 million (£0.66 million).
As announced at the time of the Company’s most recent equity placing on May 31, 2019, the Company intends to pay a total dividend in respect of the half year period from July 1, 2019 to December 31, 2019 equivalent to an annualized yield of 4% (based on the £0.15 per share placing price). The interim dividend of CAD$0.0017 (£0.001) per share declared today represents one-third of the expected total dividend for that period and it remains the Company’s intention, subject to the ongoing satisfactory performance of the Company’s operations in Peru, to declare the final two-thirds of the total dividend alongside the Company’s final results for the year ending December 31, 2019, which are expected to be released in April, 2020.
Common Shares will commence trading on an ex‐dividend basis on December 19, 2019 (as of which date the Common Shares will no longer have the attaching entitlement to this dividend).
Manolo Zuniga, President and Chief Executive Officer stated:
“We’re pleased to honor our commitment to declare a dividend for the second half of 2019. To date, operations in Bretaña have exceeded expectations and we’re delighted to be in a position to share that success with our dedicated shareholders. Additional development of the oil field will continue over the next few years, and PetroTal expects to maintain this minimum level of dividend obligation. Going forward, we expect to declare an interim dividend representing one third of the annual entitlement in August of each year, based on the first half year results, with the remaining two thirds payable, based on the Company’s full year results, declared when annual results are published.”
PetroTal’s transfer agent, Computershare, will send registered shareholders either CAD$0.0017 or £0.001 cash for each Common Share held as of the Record Date, less any applicable withholding taxes for non-Canadian resident shareholders. Holders of Common Shares who hold their shares in the name of a nominee (i.e. deposited with a securities broker, bank or other institution) will not receive payment and instead will need to contact their nominee for further information as to their entitlement to the dividend.
The dividend is designated by PetroTal to be an “eligible dividend” for purposes of the Income Tax Act (Canada) and any similar provincial or territorial legislation. An enhanced dividend tax credit applies to an eligible dividend paid to Canadian resident individuals.
Notice to all Non-Canadian Resident Shareholders
In 2012, the Canada Revenue Agency (“CRA”) changed how the tax withholding rate applied to dividend payments made to non-residents is determined. The CRA now requires a certification of residency from each non-resident shareholder so that the preferred tax treaty rate can be applied where applicable to persons resident in countries which have a tax treaty with Canada. In order to receive the preferred treaty rate, non-Canadian resident shareholders must complete and mail back a completed form NR301. Failure to so will result in Computershare withholding the statutory 25% withholding tax rate on any payments to registered non-Canadian resident shareholders. The form may be downloaded at www.canada.ca/en/revenue-agency/services/forms-publications/forms/nr301.html.
About PetroTal
PetroTal is a publicly‐traded, dual‐quoted (TSXV: TAL) (AIM: PTAL) oil and gas development and production company domiciled in Calgary, Alberta, focused on the development of oil assets in Peru. PetroTal’s flagship asset is the Bretaña oil field in Peru’s Block 95 where oil production was initiated in June 2018, six months after acquisition. Additionally, the Company has large exploration prospects and is engaged in finding a partner to drill the Osheki prospect in Block 107. The Company’s management team has significant experience in developing and exploring for oil in Northern Peru and is led by a Board of Directors that is focused on safely and cost effectively developing the Bretaña oil field.
For further information, please see the Company’s website at www.petrotal-corp.com or the Company’s filed documents at www.sedar.com.
