CALGARY,
AB, Oct. 11, 2023 /CNW/ - Alvopetro Energy
Ltd. (TSXV: ALV) (OTCQX: ALVOF) is pleased to announce that we have
now completed drilling the 183-A3 well on our 100% owned Murucututu
natural gas field. Based on open-hole logs, the well encountered
potential net natural gas pay across two separate formations
totaling 127.7 metres, with an average porosity of 10.3%.
President and CEO, Corey C.
Ruttan commented:
"The results from our uphole 183-A3 Caruaçu exploration
target has significantly exceeded our pre-drill expectations and
has the potential to open up a large stacked multi-zone development
opportunity in further support of our longer-term natural gas
growth objectives."
The 183-A3 well was drilled to a total measured depth ("MD") of
3,540 metres. Based on open-hole logs, the well encountered
potential net natural gas pay in both the Caruaçu Member of the
Maracangalha Formation and the Gomo Member of the Candeias
Formation, with an aggregate 127.7 metres total vertical depth
("TVD") of potential natural gas pay, using a 6% porosity cut-off,
50% Vshale cut-off and 50% water saturation cutoff.
Caruaçu Exploration Target
In the Caruaçu Member, a total of 116.1 metres TVD of potential
net natural gas pay was encountered between 2,542 metres and 3,062
metres, at an average 38.5% water saturation and an average
porosity of 10.4%. Alvopetro currently has no reserves or resources
assigned to this Target.
Candeias Formation
In the Gomo Member of the Candeias Formation, a total of 11.6
metres TVD of potential net natural gas pay was encountered between
3,085 metres and 3,270 metres, at an average water saturation of
30.6% and an average porosity of 9.1%. Our Proved reserves for this
development well had estimated 12.5 meters of net natural gas pay
with porosity of 11.0% and 17% water saturation.
Based on these drilling results, subject to regulatory approvals
and equipment availability, we plan to complete the well and put it
on production directly to the adjacent field production
facility.
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 and Murucututu natural gas fields
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.
Testing and Well Results. Data obtained from
the 183-A3 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 183-A3 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.
Cautionary statements regarding the filing of a Notice of
Discovery. We have submitted a Notice of Discovery
of Hydrocarbons to the Agência Nacional do Petróleo, Gás Natural e
Biocombustíveis (the "ANP") with respect to the 183-A3 well. All
operators in Brazil are required to inform the ANP,
through the filing of a Notice of Discovery, of potential
hydrocarbon discoveries. A Notice of Discovery is required to be
filed with the ANP based on hydrocarbon indications in cuttings,
mud logging or by gas detector, in combination with wire-line
logging. Based on the results of open-hole logs, we have filed a
Notice of Discovery relating to our 183-A3 well. These routine
notifications to the ANP are not necessarily indicative of
commercial hydrocarbons, potential production, recovery or
reserves.
Oil and natural gas reserves. This news release
includes certain information contained in the independent reserves
and resources assessment and evaluation prepared by GLJ Ltd.
("GLJ") dated February 27, 2023 with
an effective date of December 31,
2022 (the "GLJ Reserves and Resource Report"). Specifically,
this news release contains information concerning proved reserves
in the GLJ Reserves and Resource Report applicable to the 183-A3
well. The information included herein represents only a portion of
the disclosure required under NI 51-101. Full disclosure with
respect to the Company's reserves as at December 31,
2022 is included in the Company's annual information form for
the year ended December 31, 2022 which has been filed on
SEDAR+ (www.sedarplus.ca) The reserves definitions used in this
evaluation are the standards defined by COGEH reserve definitions
and are consistent with NI 51-101 and used by GLJ. The recovery and
reserve estimates of the Company's reserves provided herein are
estimates only and there is no guarantee that the estimated
reserves will be recovered. Actual reserves may be greater than or
less than the estimates provided herein
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 potential net natural gas pay in the 183-A3 well and
expectations regarding future development plans for the well and
the Murucututu natural gas field. The forward‐looking statements
are based on certain key expectations and assumptions made by
Alvopetro, including but not limited to expectations and
assumptions concerning results from completing the 183-A3 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.
