CALGARY,
AB, Sept. 7, 2023 /CNW/ - Alvopetro Energy
Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces August 2023 sales volumes and an operational
update.
August
2023 Sales Volumes
August sales volumes averaged 1,852 boepd, including
natural gas sales of 10.6 MMcfpd, associated natural gas liquids
sales ("NGLs") from condensate of 84 bopd, and oil sales of
8 bopd, based on field estimates. Of the total natural gas
sales of 10.6 MMcfpd, 9.9 MMcfpd was from our
Caburé field, with 0.7 MMcfpd from our Murucututu field.
Natural gas production from our Murucututu field declined from 0.9
MMcfpd in July to 0.7 MMcfpd in August and we are evaluating
alternatives to improve the productive capability of the field.
Natural gas,
NGLs and crude oil sales:
|
August
2023
|
July 2023
|
Q2 2023
|
Natural gas (Mcfpd), by
field:
|
|
|
|
Caburé
|
9,891
|
10,697
|
10,759
|
Murucututu
|
665
|
872
|
510
|
Total Company natural
gas (Mcfpd)
|
10,556
|
11,568
|
11,269
|
NGLs (bopd)
|
84
|
90
|
92
|
Oil (bopd)
|
8
|
-
|
5
|
Total Company
(boepd)
|
1,852
|
2,018
|
1,975
|
In connection with a temporary reduction in end user
consumption, our offtaker, Bahiagás, has provided notice to reduce
natural gas nominations for the remainder of September to
approximately 8.5 MMcfpd, and as such, we are expecting a reduction
in September natural gas sales.
Operational Update
In July we spud our 183-A3 well on our Murucututu natural gas
field. Alvopetro initially drilled to a total measured depth of
1,614 metres but encountered hole stability problems drilling the
intermediate section within the Pojuca Formation in the
intermediate 12 1/4" hole section. We were able to successfully
recover the directional drilling assembly and return it to surface
and we then initiated a sidetrack from 800 metres. We completed
drilling this sidetracked intermediate section to 1,707 metres and
we are in the process of cementing this section in place. Our plan
is to drill the well to 3,600 metres and we now expect to complete
drilling operations in October.
On our Bom Lugar field, following an extended maintenance
program on our contracted completions rig, we have now initiated
completion operations of our BL-06 well. We expect to have the well
on production later this month.
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:
bbls
|
=
barrels
|
boepd
|
=
barrels of oil equivalent ("boe") per
day
|
bopd
|
=
barrels of oil and/or natural gas liquids
(condensate) per day
|
BRL
|
=
Brazilian real
|
m3
|
=
cubic metre
|
MMBtu
|
=
million British thermal units
|
Mcf
|
=
thousand cubic feet
|
Mcfpd
|
=
thousand cubic feet per day
|
MMcf
|
=
million cubic feet
|
MMcfpd
|
=
million cubic feet per day
|
Q2
2023
|
=
three months ended June 30, 2023
|
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 expected timing of certain of Alvopetro's testing
and operational activities including the expected timing of
drilling the 183-A3 well and testing the BL-06 well, expected
timing of production commencement from the BL-06 well, exploration
and development prospects of Alvopetro, and expected natural gas
sales and gas deliveries under the Company's long-term gas sales
agreement. The forward‐looking statements are based on certain key
expectations and assumptions made by Alvopetro, including but not
limited to expectations and assumptions concerning testing results
of the BL-06 well, equipment availability, 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 global pandemics 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,
expectations regarding Alvopetro's working interest and the outcome
of any redeterminations, 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.sedarplus.ca. 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.
SOURCE Alvopetro Energy Ltd.