CALGARY,
AB, June 6, 2022 /CNW/ - Alvopetro Energy Ltd.
(TSXV: ALV) (OTCQX: ALVOF) announces May sales volumes of 2,111
boepd, including natural gas sales of 12.1 MMcfpd, associated
natural gas liquids sales from condensate of 81 bopd and oil sales
of 9 bopd, based on field estimates. At the end of May, we
completed a five-day shutdown of our production to complete all the
necessary advance work for our Caburé gas processing facility
expansion resulting in lower overall production in May compared to
prior months. At the same time, we completed the plant
turnaround and inspection work required by Brazilian regulations
every three years, to avoid any downtime later in 2022. All work
was completed ahead of schedule and production resumed without
issue. Based on field estimates, our production averaged 2,494
boepd during the first five days of June, consistent with
production levels prior to the shutdown. The gas plant
expansion is on schedule to be completed in early July and all the
equipment for the expansion can now be installed efficiently
without interrupting production. Following the expansion, our
available processing capacity is expected to increase by 25% to at
least 500,000 cubic metres per day (18 MMcfpd).
Operational Update
In April, we completed drilling our 182-C1 well on Block 182
and, based on open-hole wireline logs, the well discovered 25
metres of potential net natural gas pay in the Agua Grande
formation with an average 34% water saturation and average porosity
of 8.2%. The 182-C1 well encountered net pay in the Agua
Grande Formation but the well crossed the bounding fault before
reaching the secondary target in the Sergi Formation. We plan
to commence testing the well near the end of June to assess
productive capability and define a field development plan.
On June 5, 2022, following
required rig maintenance, we spud our second 2022 exploration well
(183-B1) on the fault block immediately east to our 182-C1
discovery. The 183-B1 location is also a multi-zone pre-rift
prospect targeting both the Agua Grande and Sergi Formations.
Our independent reserve evaluator (GLJ Ltd.) assessed the
183-B1 prospect and assigned prospective resource of:
|
|
Gross Lease
Unrisked
Prospective
Resources
(MBOE)
|
Gross Lease
Risked
Prospective
Resources
(MBOE)
|
Prospect
|
|
|
|
Low
Est.
|
Best
Est.
|
High
Est.
|
Low
Est.
|
Best
Est.
|
High
Est.
|
Block 183 – B1
Prospect
|
|
|
|
2,065
|
5,901
|
13,429
|
901
|
2,574
|
5,859
|
|
|
|
|
|
|
|
|
|
|
|
The 183-B1 well is expected to take approximately 44 days to
drill. After this well, we plan to drill the follow-up well
on Block 182 to: 1) test the lateral extent of our 182-C1 Agua
Grande discovery; 2) assess Agua Grande porosity further away from
the bounding fault; and 3) target the Sergi Formation further east
from the bounding fault.
On our Murucututu project, we have completed construction of the
pipeline to connect the 183(1) well to our Caburé pipeline and
are in the final stages of construction of our field production
facilities. We expect our 183(1) well to be on production in
July.
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
bopd
=
barrels of oil and/or natural gas liquids (condensate) per
day
MBOE
=
thousands of barrels of oil
equivalent
MMcf
=
million cubic
feet
MMcfpd
=
million cubic feet per day
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, potential natural gas pay in the 182-C1 well, the
expected natural gas price, gas sales and gas deliveries under
Alvopetro's long-term gas sales agreement, exploration and
development prospects of Alvopetro, the expected timing of certain
of Alvopetro's testing and operational activities and future
results from operations. The forward‐looking statements are based
on certain key expectations and assumptions made by Alvopetro,
including but not limited to equipment availability, the timing of
testing of the 182-C1 well and the results from such testing, 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 and other
significant worldwide events, the performance of producing wells
and reservoirs, well development and operating performance, foreign
exchange rates, 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.
Test Results. Data obtained from the
182-C1 well identified in this press release, including hydrocarbon
shows, open-hole logging, net pay and porosities, should be
considered to be preliminary until testing, detailed analysis and
interpretation has been completed. Hydrocarbon shows can be seen
during the drilling of a well in numerous circumstances and do not
necessarily indicate a commercial discovery or the presence of
commercial hydrocarbons in a well. There is no representation by
Alvopetro that the data relating to the 182-C1 well contained in
this press release is necessarily indicative of long-term
performance or ultimate recovery. The reader is cautioned not to
unduly rely on such data as such data may not be indicative of
future performance of the well or of expected production or
operational results for Alvopetro in the future.
Prospective Resources – This news release
discloses estimates of certain of Alvopetro's prospective resources
as evaluated by GLJ Ltd. with an effective date of July 31, 2020 (as announced by Alvopetro on
September 8, 2020). There is no
certainty that any portion of the prospective resources will be
discovered and even if discovered, there is no certainty that it
will be commercially viable to produce any portion.
Estimates of prospective resources involve additional risks over
estimates of reserves. The accuracy of any resources estimate is a
function of the quality and quantity of available data and of
engineering interpretation and judgment. While resources presented
herein are considered reasonable, the estimates should be accepted
with the understanding that reservoir performance subsequent to the
date of the estimate may justify revision, either upward or
downward. Prospective resources have both a chance of
discovery and a chance of development, which combined represent for
any undiscovered accumulation its chance of commerciality.
Please refer to the noted news releases dated September 8, 2020 for additional information as
well as supplementary information contained in the Company's annual
information form which has been filed on SEDAR.
SOURCE Alvopetro Energy Ltd.