Core Viewpoint - PetroTal Corp. is adjusting its operational strategy and capital budget for 2026 in response to challenges faced in 2025, prioritizing liquidity and production reliability over immediate growth [3][4]. 2026 Guidance Overview - The approved capital budget for 2026 is between $80 million and $90 million, with approximately $18 million carried over from 2025 [4]. - The capital investments are expected to support an annual average production of approximately 12,000 barrels of oil per day (bopd) [4][6]. - The company aims to maintain a minimum unrestricted cash liquidity of $60 million throughout the year [4][6]. Operating Strategy & Drilling Update - A tender process for a third-party drilling contractor has been initiated to mitigate scheduling risks encountered in 2025, with a contractor expected to be selected by the end of Q1 2026 [5][8]. - The first development well is targeted to be spudded by October 1, 2026, as part of a plan to restore production capacity to over 20,000 bopd [5][8]. Production & Sales Guidance - The production guidance for 2026 is set at 11,750 to 12,250 bopd, aligning with previous forecasts [11]. - Sales guidance assumes that 100% of Bretaña production will be sold through the Brazil route, fulfilling minimum volume requirements under crude oil marketing agreements [12]. Financial Discipline & Cost Structure - Adjusted EBITDA guidance for 2026 is $30 million, based on an annual average Brent oil price of $60.00 per barrel [13]. - The company is implementing a cost reduction program targeting significant reductions in operating expenses, general and administrative expenses, and capital expenditures [13]. - A total of $33 million has been allocated for erosion control in 2026, with $18 million expensed and $15 million capitalized [13].