PetroTal Corp. (TSX: TAL, AIM: PTAL, OTCQX: PTALF) is once again putting its money where its management believes the value is, in its own shares. The company has announced the renewal of its normal course issuer bid (NCIB), a move that signals confidence in the underlying worth of its business and a commitment to delivering long-term value to shareholders.
The NCIB, which received the green light from the Toronto Stock Exchange, allows PetroTal to repurchase up to 45.8 million common shares over the next 12 months. That’s about 5% of the company’s issued and outstanding shares as of late May 2025. The buyback period kicks off on June 3, 2025, and will run through June 2, 2026. The plan is flexible: PetroTal can buy shares on the open market, on the TSX, alternative Canadian trading systems, or London’s AIM, depending on what’s allowed under the rules.
Why does a company buy back its own shares? For PetroTal, the answer is straightforward. Management believes that, at times, the market price doesn’t reflect the true value of the company. By repurchasing shares and canceling them (or holding them for employee awards), the company can improve key metrics like earnings per share and, in turn, boost the value of the remaining shares for investors.
There are, of course, rules to follow. On the TSX, PetroTal can’t buy more than 163,942 shares in a single day, that’s a quarter of the average daily trading volume over the past six months. But the company does get a bit of flexibility, it’s allowed one block purchase per week that can exceed that daily limit.
To make the process smoother, PetroTal has renewed its buyback agreement with Stifel Nicolaus Europe Limited. Stifel will continue to handle the NCIB on PetroTal’s behalf, and the two have set up an automatic share purchase plan (ASPP). This plan is especially useful during blackout periods, times when PetroTal’s management can’t buy or sell shares due to regulatory restrictions or internal policies. With the ASPP in place, PetroTal can give Stifel instructions before a blackout starts, and Stifel can then execute purchases within set parameters. This ensures the buyback can continue even when the company’s hands are tied.
All purchases made under the ASPP will count toward the NCIB’s total. Outside of blackout periods, PetroTal’s management will decide when and how many shares to buy, always in line with exchange rules and securities laws.
Looking back at the previous NCIB, which ran from May 2024 to May 2025, PetroTal was allowed to buy up to 14.6 million shares. By May 20, 2025, the company had repurchased just over 5.36 million shares at an average price of about $0.47 per share.
PetroTal is more than just a share buyback story, though. The company is a leading oil and gas producer in Peru, with a 100% working interest in the Bretaña Norte oil field in Block 95. Since starting production in June 2018, PetroTal has grown to become the largest crude oil producer in Peru by early 2022. The management team has deep experience in the region and is focused on developing assets safely, efficiently, and in a way that benefits local communities.
This latest move to renew and expand the share buyback program is a clear signal that PetroTal’s management sees value in the company’s shares and wants shareholders to benefit from that value.
