TSX Shariah screener · September 2026

Is PetroTal Corp. (TAL) Halal?

FAIL

PetroTal Corp. · TSX: TAL / AIM: PTAL / OTCQX: PTALF · Energy

The short answer

PetroTal Corp. (TSX: TAL; AIM: PTAL; OTCQX: PTALF) is a FAIL. The business gate passes: oil exploration and production in Peru (Bretaña Norte, Block 95) is a permissible activity, and the debt component passes with total debt of US$37.5M at ≈10.3% of the ~C$515.4M market cap. But the cash gate fails: total cash of US$136.9M (US$105.4M unrestricted + US$31.5M restricted) converts to ≈C$194.4M, about 37.7% of market cap — over the ~33% guideline. Musaffa independently classifies PTALF as not halal as of September 2026.

Gate 1 — Business activity: PASS

PetroTal Corp. explores for, appraises and develops oil in Peru. Its flagship asset is the Bretaña Norte oil field in Block 95 (100% working interest), alongside the producing Los Ángeles field in Block 131 and exploration acreage in Block 107. In Q2 2026 the company produced 12,557 barrels of oil per day and sold 11,969 bopd; first-half production averaged 13,726 bopd, about 3% ahead of budget. Oil exploration and production is a permissible business activity — no prohibited segments. Gate 1 passes.

Gate 2 — Debt and cash: FAIL

Debt: total debt was US$37.5M at June 30, 2026 (Q2 2026 MD&A, drawn under the COFIDE/BanBif loan agreement signed May 9, 2025) → about C$53.3M at US$1 = C$1.42 → ≈10.3% of the ~C$515.4M market cap — well under the ~33% ceiling. Cash: total cash was US$136.893M (US$105.388M unrestricted + US$31.5M restricted for the erosion control project, per the MD&A) → about C$194.4M → ≈37.7% of market cap — over the ~33% guideline. The debt component passes but the cash component fails, so Gate 2 fails. This matches Musaffa's September 2026 “not halal” classification of PTALF under its AAOIFI methodology (permissible business, low debt, excessive cash ratio).

Gate 3 — Non-compliant income: NOT DISCLOSED

The Q2 2026 MD&A does not disclose a separate interest or finance income line — it reports net finance expenses of US$1.797M for the quarter (a net finance cost). Gross interest income on cash balances is therefore not separately verifiable from published sources, so no non-compliant-income ratio can be computed. The FAIL result on this page rests on the verified cash gate above, not on an income estimate.

Key figures used

Q2 2026 oil revenue US$72.827M; H1 2026 US$138.776M (reported August 6, 2026).
Total debt US$37.5M at June 30, 2026 (Q2 2026 MD&A).
Total cash US$136.893M at June 30, 2026: US$105.388M unrestricted + US$31.5M restricted (MD&A).
Market cap ≈C$515.38M (C$0.56 per share, September 30, 2026; 920.328M shares outstanding).
Debt ≈ 10.3% of market cap (US$37.5M × 1.42 ÷ C$515.38M).
Cash ≈ 37.7% of market cap (US$136.893M × 1.42 ÷ C$515.38M) — over the ~33% guideline.
Net finance expenses US$1.797M in Q2 2026; gross interest income not separately disclosed.

Frequently asked questions

Is PetroTal (TAL) halal?

Our September 2026 screen gives PetroTal (TAL) a FAIL. The Peru oil production business is permissible and debt is modest (about 10.3% of market cap), but total cash of about US$136.9M converts to roughly C$194.4M - about 37.7% of the ~C$515.4M market cap - which exceeds the ~33% guideline for cash and interest-bearing securities. Musaffa independently classifies PetroTal (PTALF) as not halal as of September 2026.

What business is PetroTal in?

PetroTal is an oil exploration, appraisal and development company focused on Peru. Its flagship asset is the Bretaña Norte oil field in Block 95 (100% working interest), plus the producing Los Ángeles field in Block 131 and exploration acreage in Block 107. In Q2 2026 it produced 12,557 barrels of oil per day (13,726 bopd for the first half, about 3% ahead of budget). The company is also listed on AIM as PTAL and on OTCQX as PTALF.

Why does PetroTal fail the cash gate?

At June 30, 2026 PetroTal held total cash of US$136.893M - US$105.388M unrestricted plus US$31.5M restricted tied to its COFIDE/BanBif loan and the erosion control project (Q2 2026 MD&A). Converted at US$1 = C$1.42 (September 30, 2026), that is about C$194.4M, or roughly 37.7% of the ~C$515.4M market cap - over the ~33% guideline. Even though the restricted portion is earmarked, it sits on the balance sheet as interest-earning cash. Total debt of US$37.5M is about 10.3% of market cap and passes the debt ceiling.

How much interest income does PetroTal earn?

Gross interest or finance income is not separately disclosed. The Q2 2026 MD&A reports net finance expenses of US$1.797M for the quarter - a net finance cost - but does not break out a gross interest income line, so no non-compliant-income ratio can be computed from published sources. The FAIL result on this page rests on the verified cash gate, not on an income estimate.

What do Musaffa, Zoya or ShariaPortfolio say about PetroTal?

Musaffa classifies PetroTal (PTALF) as not halal as of September 2026 under its AAOIFI screening methodology, which corroborates this page's FAIL: the business is permissible and debt is low, so the cash ratio is the driver. No public Zoya rating was found for TAL, and ShariaPortfolio does not publish per-stock screening pages.

Sources

Screened 2026-09-30 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.