CALGARY, AB, Sept. 21, 2021 /CNW/ - Alvopetro Energy Ltd.
(TSXV: ALV) (OTCQX: ALVOD) announces that our Board of Directors
has declared a quarterly dividend of US$0.06 per common share, payable in cash on
October 15, 2021 to shareholders of
record on September 29, 2021. This
dividend is designated as an "eligible dividend" for Canadian
income tax purposes. Alvopetro's cash flows are linked to US
dollars and as such, dividends are being paid in US dollars.
Alvopetro has also given our lender notice of an additional
US$1.0 million repayment of our
credit facility that will bring the amount outstanding under the
loan to US$6.5
million.
Corey C. Ruttan, President and
Chief Executive Officer, commented:
"We have had a long-standing objective of implementing a
disciplined model that balances reinvestment in organic growth
opportunities with stakeholder returns. With the repayment of
over half of our initial debt project financing and with ongoing
strong production and financial results we are pleased to be
implementing quarterly dividends to our shareholders, six months
ahead of our previous indication."
Non-resident Shareholders
Dividend payments to non-residents of Canada will be subject to withholding taxes at
the Canadian statutory rate of 25%. Shareholders may be
entitled to a reduced withholding tax rate under a tax treaty
between their country of residence and Canada. For further
information, see the Investor section of Alvopetro's website at
www.alvopetro.com.
Capital Program
In July, we commenced construction on our 8.5 kilometer
Gomo/Murucututu pipeline that will connect our 183(1) well to
our Caburé transfer pipeline. Over 46% of the pipe has
now been welded and 15% has been installed and buried. We expect
that construction will be completed and the 183(1) well to be
tied-in and on production early in 2022.
We also plan to drill our 182-C1 and 183-B1 natural
gas exploration wells. Based on the status of rig
maintenance we do not expect to commence drilling the first of
these wells before the end of November.
2021 EBITDA Guidance
Alvopetro anticipates sales to continue to the end of 2021 at
average rates between 1,900 boepd and 2,400 boepd. Assuming
GLJ Ltd.'s July 1, 2021 commodity
price and a Brazilian Real exchange rate
of 5.25BRL:1USD for the
remainder of the year, we now expect to generate
EBITDA of over $23 million for 2021, a
15% increase from our prior 2021 guidance of US$20 million and a 35% increase from our
original 2021 guidance of $17 million.
Corporate Presentation
Alvopetro's updated corporate
presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation.
Social Media
Follow Alvopetro on our social media channels at the following
links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn -
https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube:
https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w
Alvopetro Energy Ltd.'s vision is
to become a leading independent upstream and midstream operator in
Brazil. Our strategy is to unlock
the on-shore natural gas potential in the state of Bahia
in Brazil, building
off the development of our Caburé natural gas field and our
strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
All amounts contained in this new release are in
United States dollars, unless
otherwise stated and all tabular amounts are in thousands of
United States dollars, except as
otherwise noted.
Abbreviations:
|
boepd
|
=
|
barrels of oil
equivalent ("boe") per day
|
BRL
|
=
|
Brazilian
Real
|
EBITDA
|
=
|
earnings before
interest, taxes, depreciation and amortization
|
BOE Disclosure. The term barrels of oil
equivalent ("boe") may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet per
barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is
based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead. All boe conversions in this news
release are derived from converting gas to oil in the ratio mix of
six thousand cubic feet of gas to one barrel of oil.
Forward-Looking Statements and Cautionary
Language. This news release contains "forward-looking
information" within the meaning of applicable securities laws. The
use of any of the words "will", "expect", "intend" and other
similar words or expressions are intended to identify
forward-looking information. Forward–looking statements
involve significant risks and uncertainties, should not be read as
guarantees of future performance or results, and will not
necessarily be accurate indications of whether or not such results
will be achieved. A number of factors could cause actual results to
vary significantly from the expectations discussed in the
forward-looking statements. These forward-looking statements
reflect current assumptions and expectations regarding future
events. Accordingly, when relying on forward-looking statements to
make decisions, Alvopetro cautions readers not to place undue
reliance on these statements, as forward-looking statements involve
significant risks and uncertainties. More particularly and
without limitation, this news release contains forward-looking
information concerning the plans relating to the Company's
operational activities, the expected gas sales and gas deliveries
under Alvopetro's long-term gas sales agreement, forecasted
earnings and EBITDA, and the Company's plans for dividends in the
future. The forward–looking statements are based on certain
key expectations and assumptions made by Alvopetro, including but
not limited to the timing of regulatory licenses and approvals, the
success of future drilling, completion, testing, recompletion and
development activities, the outlook for commodity markets and
ability to access capital markets, the impact of the COVID-19
pandemic, the performance of producing wells and reservoirs, well
development and operating performance, general economic and
business conditions, weather and access to drilling locations, the
availability and cost of labour and services, environmental
regulation, including regulation relating to hydraulic fracturing
and stimulation, the ability to monetize hydrocarbons discovered,
the regulatory and legal environment and other risks associated
with oil and gas operations. The reader is cautioned that
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
incorrect. Actual results achieved during the forecast period will
vary from the information provided herein as a result of numerous
known and unknown risks and uncertainties and other factors.
Although Alvopetro believes that the expectations and assumptions
on which such forward-looking information is based are reasonable,
undue reliance should not be placed on the forward-looking
information because Alvopetro can give no assurance that it will
prove to be correct. Readers are cautioned that the foregoing list
of factors is not exhaustive. Additional information on factors
that could affect the operations or financial results of Alvopetro
are included in our annual information form which may be accessed
on Alvopetro's SEDAR profile at www.sedar.com. The
forward-looking information contained in this news release is made
as of the date hereof and Alvopetro undertakes no obligation to
update publicly or revise any forward-looking information, whether
as a result of new information, future events or otherwise, unless
so required by applicable securities laws.
Non-GAAP Measures. This news release contains
financial terms that are not considered measures under
International Financial Reporting Standards ("IFRS"), including
earnings before interest, tax, depreciation and amortization
("EBITDA"). EBITDA is used to measure the Company's operating
performance and the cash available for reinvestment and
distribution to stakeholders. Its most comparable GAAP measure is
the Company's net loss and is reconciled to such by adding back
depletion and depreciation, impairment, interest and taxes, as
presented on the Company's Statement of Operations and
Comprehensive Loss. The non-GAAP measures within this news release
may not be comparable to those reported by other companies nor
should they be viewed as an alternative to measures of financial
performance calculated in accordance with IFRS. For more
information with respect to financial measures which have not been
defined by GAAP, including reconciliations to the closest
comparable GAAP measure, see the "Non-GAAP Measures" section of the
Company's MD&A which may be accessed through the SEDAR
website at www.sedar.com.
SOURCE Alvopetro Energy Ltd.