Alvopetro Announces Q3 2026 Financial Results and an Operational Update Including 183-G2 Well Results

CALGARY, AB, Nov. 5, 2026 /CNW/ -- Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro" or the "Company") announces an operational update including initial results from our 183-G2 well, our financial results for the three and nine months ended September 30, 2026, and updated details for our Q3 2026 earnings call. 

All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.

President & CEO, Corey C. Ruttan commented:

"We delivered another strong quarter with sales volumes of 2,966 boepd, revenues of $19.3 million and funds flow from operations of $14.3 million. With a realized natural gas price of $11.49/Mcf we posted an operating netback of $60.87/boe with an 86% operating netback margin. Based on open hole logs our most recently drilled Murucututu well, 183-G2, has encountered 97 metres of potential net pay, 65 metres updip of our highly successful 183-D4 well. We plan to complete the well concurrent with our facility expansions that will position us to unlock our longer-term growth potential at Murucututu."

Operational Update

Development Activities and Recent Updates - Brazil

On our 100% Murucututu natural gas field, we have now completed drilling the 183-G2 well on our 100% owned Murucututu natural gas field. The 183-G2 well was drilled to a total measured depth of 3,189.8 metres. Based on open-hole logs, the well encountered potential net natural gas pay in the Caruaçu Member of the Maracangalha Formation, totaling 96.9 metres total vertical depth of potential natural gas pay, with average porosity of 11.7% and average water saturation of 29.7%, using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cutoff.  The well was drilled from our newly constructed 183-G well pad which is being tied into our Murucututu field production facility. The tie in is expected to be completed in early 2027 at which point we will complete the well in up to 13 intervals with a plan to bring the well on production in Q1 2027.

We completed the 183-H2 well on our Murucututu field in five intervals. The well went through an initial 4-day cleanup period, flowing at an average rate of 17.2 e³m³/d (0.6 MMcfpd, 101 boepd) at a 3,146 kPa (457 psi) flowing wellhead pressure, recovering 2,280 barrels of completions fluids and 102 barrels of natural gas liquids. After this initial cleanup period the well was aligned to our field production system, where we have flowed into our gas gathering system for 14 days at a constant 28/64" choke at an average rate of 19.1 e³m³/d (0.7 MMcfpd, 112 boepd) with a 4,445 kPa (645 psi) flowing wellhead pressure. During this period, we also recovered a total of 1,179 barrels of completions fluids and 725 barrels of natural gas liquids. Average natural gas liquids (condensate) production during the flow period was 52 boepd. To-date, we have recovered 24% of completions fluids with 11,141 of 14,600 barrels left to recover.

In parallel, we have been advancing our Murucututu facilities upgrades to expand the field's production facility and pipeline offtake capacity from 150 e³m³/d to 600 e³m³/d and are expecting the project to be completed in early 2027.

At Caburé, we plan to sidetrack one unfinished well from the 2025 capital program later this quarter.

In October Alvopetro was awarded four blocks in the 6^th Cycle of the Permanent Concession Offer of the ANP in Brazil, agreeing to minimum work commitments totaling BRL 8.3 million ($1.7 million) and aggregate signing bonuses of BRL 0.6 million ($0.1 million). The four blocks cover over 462 km² and are all located in the Tucano Basin north of our core operating area increasing Alvopetro's acreage in Brazil by over 700%. The blocks acquired include three exploration blocks with work commitments to be completed over six years and one mature field with work commitments to be completed over three years.

Development Activities and Recent Updates – Canada

In Canada, our original partner has now drilled, completed and equipped two planned multi-lateral wells in Saskatchewan. Alvopetro's working interest is 50% in the first well and 30% in the second well. Both wells are now on production.

On our 2026 farmin agreement (the "2026 Farmin") announced in September we expect to commence drilling the first of five earnings wells (the "Earning Wells") in the coming days and are targeting completion of all wells by early 2027. Alvopetro is responsible for 100% of the costs of the five Earning Wells, estimated at C$8.5 million. As the Earning Wells are drilled, Alvopetro will earn a 50% interest in surrounding undeveloped lands. Once all Earning Wells have been drilled, the 2026 Farmin is expected to add a 50% working interest in 28 gross (14 net) sections of land, increasing Alvopetro's total land position in Canada to 133.5 gross sections (43,829 net acres).

October Sales Volumes

October sales volumes averaged 3,200 boepd (based on field estimates), including 3,095 boepd from Brazil (with natural gas sales of 17.3 MMcfpd, associated natural gas liquids from condensate of 178 bopd and oil sales of 35 bopd) and 105 bopd from oil sales in Canada.

Natural gas, NGLs and crude oil sales:	October 2026	September 2026	Q3 2026
Brazil:
Natural gas (Mcfpd), by field:
Caburé	13,115	10,279	12,256
Murucututu	4,179	3,797	3,663
Total natural gas (Mcfpd)	17,294	14,076	15,919
NGLs (bopd)	178	162	178
Oil (bopd)^(1)	35	-	3
Total (boepd) – Brazil	3,095	2,508	2,834
Canada:
Oil (bopd) – Canada	105	119	132
Total Company – boepd^(2)	3,200	2,627	2,966

(1)	Oil sales volumes in Brazil relate to the Bom Lugar and Mãe da lua fields. Alvopetro has entered into an assignment agreement to dispose of the fields, the closing of which is subject to standard regulatory approvals, including approval of the ANP.
(2)	Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.

Quarterly Natural Gas Pricing Update

Effective November 1, 2026, our natural gas price under our long-term gas sales agreement was adjusted to BRL1.97/m³ on the first 400e³m³/d (14.1 MMcfpd) reference volumes ("QDC1") with the incremental 100 e³m³/d (3.5 MMcfpd) reference volumes ("QDC2") adjusted to BRL1.84/m³.

Based on our average heat content to-date and the October 30, 2026 BRL/USD exchange rate of 5.42, our weighted average realized price (QDC1 + QDC2) on firm natural gas sales during the November 1, 2026 to January 31, 2027 period is expected to be $11.10/Mcf, a decrease of 3% from our Q3 2026 realized price of $11.49/Mcf. Amounts ultimately received in equivalent USD will be impacted by exchange rates in effect during the relevant period.

Financial and Operating Highlights – Third Quarter of 2026

• Average daily sales in Brazil in Q3 2026 were 2,834 boepd⁽¹⁾ (+29% from Q3 2025 and -2% from Q2 2026). Brazil sales volumes were impacted by a scheduled shutdown to complete a planned upgrade of our gas processing facility. In Canada, daily sales averaged 132 bopd⁽¹⁾ (+4% from Q3 2025 and -24% from Q2 2026). Overall, total daily sales averaged 2,966 boepd (+27% compared to Q3 2025 and -3% compared to Q2 2026).
• Our average realized natural gas price was $11.49/Mcf (+4% from Q3 2025 and +5% from Q2 2026). Our overall average realized sales price was $70.62/boe (+7% from Q3 2025 and +3% from Q2 2026).
• Our natural gas, oil and condensate revenue increased to $19.3 million, an increase of 36% from Q3 2025 due to higher sales volumes and higher realized sales prices. Our natural gas, oil and condensate revenue increased $0.1 million from Q2 2026 despite the 2% reduction in sales volumes due to higher realized sales prices.
• Our operating netback⁽²⁾ in the quarter was $60.87 per boe, increases of $4.97 per boe compared to Q3 2025 and $1.79 per boe compared to Q2 2026. 
• We generated funds flow from operations⁽²⁾ of $14.3 million ($0.38 per basic share and $0.37 per diluted share), increases of $3.9 million compared to Q3 2025 and $0.2 million compared to Q2 2026. The increase relative to Q3 2025 was driven by higher sales volumes and higher realized sales prices. The increase relative to Q2 2026 was due to higher realized sales prices.
• We reported net income of $8.5 million ($0.23 per basic share and $0.22 per diluted share), an increase of $3.9 million compared to Q3 2025 and a decrease of $1.2 million compared to Q2 2026.
• Capital expenditures in Q3 2026 of $16.1 million were focused on drilling, completion and facilities projects on our 100% owned Murucututu natural gas field as well as initial drilling costs for our share of two wells drilled on our existing land base in Saskatchewan.
• Our working capital⁽²⁾ was $2.5 million as of September 30, 2026 and our net debt⁽²⁾ was $1.5 million.
• In September 2026, Alvopetro announced the 2026 Farmin wherein Alvopetro agreed to fund 100% of the costs to drill, complete and equip the five Earning Wells commencing in the fourth quarter of 2026 to earn a 50% working interest in 28 sections (14 net) of land in Western Canada.

(1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.

(2) See "Non-GAAP and Other Financial Measures" section within this news release.

The following table provides a summary of Alvopetro's financial and operating results for the periods noted. The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca.

	As at and Three Months Ended September 30,			As at and Nine Months Ended September 30,
	2026	2025	Change (%)		2026	2025	Change (%)
Financial
($000s, except where noted)
Natural gas, oil and condensate sales	19,271	14,175	36		55,843	42,198	32
Net income	8,548	4,613	85		26,371	17,513	51
Per share – basic ($)^(1)	0.23	0.12	92		0.70	0.47	49
Per share – diluted ($)^(1)	0.22	0.12	83		0.69	0.46	5
Cash flows from operating activities	16,101	12,153	32		40,737	31,443	30
Per share – basic ($)^(1)(2)	0.43	0.33	30		1.08	0.84	29
Per share – diluted ($)^(1)(2)	0.42	0.32	31		1.06	0.83	28
Funds flow from operations^(2)	14,307	10,448	37		40,910	30,036	36
Per share – basic ($)^(1)(2)	0.38	0.28	36		1.09	0.81	35
Per share – diluted ($)^(1)(2)	0.37	0.28	32		1.07	0.79	35
Dividends declared	4,483	3,673	22		13,368	10,976	22
Per share^(1)	0.12	0.10	20		0.36	0.30	20
Capital expenditures	16,084	11,249	43		28,752	28,610	-
Cash and cash equivalents	32,628	12,081	170		32,628	12,081	170
Working capital^(2)	2,517	2,209	14		2,517	2,209	14
Working capital, net of debt (net debt)^(2)	(1,483)	2,209	(167)		(1,483)	2,209	(167)
Weighted average shares outstanding
Basic (000s)^(1)	37,866	37,263	2		37,676	37,273	1
Diluted (000s)^(1)	38,489	37,851	2		38,303	37,801	1
Operations
Average daily sales volumes^(3)
Brazil:
Natural gas (Mcfpd), by field:
Caburé (Mcfpd)	12,256	8,735	40		11,998	10,741	12
Murucututu (Mcfpd)	3,663	3,558	3		4,242	2,286	86
Total natural gas (Mcfpd)	15,919	12,293	29		16,240	13,027	25
NGLs – condensate (bopd)	178	147	21		174	137	27
Oil (bopd)	3	9	(67)		7	8	(13)
Total (boepd) - Brazil	2,834	2,205	29		2,887	2,315	25
Canada:
Oil (bopd) - Canada	132	138	(4)		166	93	78
Total Company (boepd)	2,966	2,343	27		3,053	2,408	27
Average realized prices^(2)
Natural gas ($/Mcf)	11.49	11.04	4		10.87	10.69	2
NGLs – condensate ($/bbl)	97.60	74.16	32		95.09	75.83	25
Oil ($/bbl)	68.40	50.42	36		66.84	49.36	35
Total ($/boe)	70.62	65.76	7		66.99	64.19	4
Operating netback ($/boe)^(2)
Realized sales price	70.62	65.76	7		66.99	64.19	4
Royalties	(3.68)	(3.54)	4		(3.97)	(4.71)	(16)
Production expenses	(5.92)	(6.10)	(3)		(5.51)	(5.58)	(1)
Transportation expenses	(0.15)	(0.22)	(32)		(0.19)	(0.12)	58
Operating netback	60.87	55.90	9		57.32	53.78	7
Operating netback margin^(2)	86 %	85 %	1		86 %	84 %	2

Notes:
(1)	Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share.
(2)	See "Non-GAAP and Other Financial Measures" section within this news release.
(3)	Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.

Q3 2026 Results Webcast

Alvopetro will host a live webcast to discuss our Q3 2026 financial results on Friday, November 6, 2026. We have adjusted the start time of the webcast to 9:00 am Alberta time (8:00 AM Mountain Time (Denver)/10:00 am Eastern Time). Details for joining the webcast are as follows:

DATE: November 6, 2026
TIME: 9:00 AM Alberta Time/8:00 AM Mountain Time (Denver)/10:00 AM Eastern Time
LINK: https://us06web.zoom.us/j/83624380517
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kb4IkSIh5X
WEBINAR ID: 836 2438 0517

The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to [email protected].

Long-term Incentive Grants

In connection with our long-term incentive compensation program, Alvopetro's Board of Directors (the "Board") has approved annual rolling grants to officers, directors and certain employees under Alvopetro's Omnibus Incentive Plan. A total of 142,200 restricted share units ("RSUs") and 36,500 deferred share units ("DSUs") were approved by the Board and are expected to be granted on November 10, 2026. Of the total grants, 97,500 RSUs and 36,500 DSUs will be granted to officers and directors. Each RSU and DSU entitles the holder to purchase one common share. All RSUs and DSUs granted expire five (5) years from the date of the grant.

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:

X - https://x.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd

Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related 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.

Abbreviations:

$ or USD	=	United States dollars
$000s	=	thousands of USD
boepd	=	barrels of oil equivalent ("boe") per day
bopd	=	barrels of oil and/or natural gas liquids (condensate) per day
BRL	=	Brazilian Real
C$	=	Canadian dollars
e^3m^3/d	=	thousand cubic metres per day
m^3	=	cubic metres
m^3/d	=	cubic metres per day
Mcf	=	thousand cubic feet
Mcfpd	=	thousand cubic feet per day
MMcf	=	million cubic feet
MMcfpd	=	million cubic feet per day
NGLs	=	natural gas liquids (condensate)
Q2 2026	=	three months ended June 30, 2026
Q3 2025	=	three months ended September 30, 2025
Q3 2026	=	three months ended September 30, 2026
GAAP or IFRS	=	IFRS Accounting Standards

Non-GAAP and Other Financial Measures

This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this news release should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are used by management in assessing the Company's financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. 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 and Other Financial Measures" section of the Company's MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca.

Non-GAAP Financial Measures

Operating Netback

Operating netback is calculated as natural gas, oil and condensate revenues less royalties, production expenses, and transportation expenses. This calculation is provided in the "Operating Netback" section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.

Non-GAAP Financial Ratios

Operating Netback per boe

Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent ("boe"). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company's producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the "Operating Netback" section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca.

Operating Netback Margin

Operating netback margin is a non-GAAP ratio calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2026	2025	2026	2025
Operating netback - $ per boe	60.87	55.90	57.32	53.78
Average realized price - $ per boe	70.62	65.76	66.99	64.19
Operating netback margin	86 %	85 %	86 %	84 %

Funds Flow from Operations Per Share and Cash Flows from Operating Activities Per Share

Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. Cash flows from operating activities per share is a supplementary financial measure computed as cash flows from operating activities divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share are as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
$ per share	2026	2025	2026	2025
Per basic share:
Cash flows from operating activities	0.43	0.33	1.08	0.84
Funds flow from operations	0.38	0.28	1.09	0.81
Per diluted share:
Cash flows from operating activities	0.42	0.32	1.06	0.83
Funds flow from operations	0.37	0.28	1.07	0.79

Capital Management Measures

Funds Flow from Operations 

The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company's ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2026	2025	2026	2025
Cash flows from operating activities	16,101	12,153	40,737	31,443
Changes in non-cash working capital	(1,794)	(1,705)	(173)	(1,407)
Funds flow from operations	14,307	10,448	40,910	30,036

Working Capital

Working capital is computed as current assets less current liabilities. Working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows: 

		As at September 30,
		2026	2025
Total current assets		41,217	18,582
Total current liabilities		(38,700)	(16,373)
Working capital		2,517	2,209

Working Capital, Net of Debt (Net Debt)

Working capital net of debt is computed as working capital decreased by the non-current portion of the loan. Working capital net of debt (net debt) is used by management to assess the Company's overall financial position.

		As at September 30
		2026	2025
Working capital		2,517	2,209
Loan, non-current		(4,000)	-
Working capital, net of debt (net debt)		(1,483)	2,209

Supplementary Financial Measures

"Average realized natural gas price - $/Mcf" is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company's natural gas sales volumes.

"Average realized NGL – condensate price - $/bbl" is comprised of condensate sales as determined in accordance with IFRS, divided by the Company's NGL sales volumes from condensate.

"Average realized oil price - $/bbl" is comprised of oil sales as determined in accordance with IFRS, divided by the Company's oil sales volumes.

"Average realized price - $/boe" is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company's total natural gas, NGL and oil sales volumes (barrels of oil equivalent).

"Dividends per share" is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.

"Royalties per boe" is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).

"Production expenses per boe" is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).

"Transportation expenses per boe" is comprised of transportation expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).

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 (6 Mcf/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 of six thousand cubic feet of gas to one barrel of oil.

Contracted Natural Gas Volumes

The contracted daily firm volumes under Alvopetro's long-term gas sales agreement of 500 e³m³/d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro's natural gas is approximately 8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 463e³m³/d (16.4MMcfpd).

Well Results

Data obtained from the 183-G2 well identified in this press release, including potential net pay should be considered preliminary. In addition, initial production data from the 183-H2 well included in this press release should also be considered preliminary. There is no representation by Alvopetro that the data relating to the 183-G2 or 183-H2 wells 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.

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", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" 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 statements concerning the expected natural gas sales price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, future production and sales volumes, expected timing of production commencement from certain wells, plans relating to the Company's operational activities, proposed exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, anticipated timing for upcoming drilling and testing of other wells, projected financial results and the Company's expected land position in Canada. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of  redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global conflicts, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and 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. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. 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. 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 AIF 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.

FOR FURTHER INFORMATION, PLEASE CONTACT: Corey C. Ruttan, President, Chief Executive Officer and Director, or Alison Howard, Chief Financial Officer, Phone: [phone], Email: [email protected], www.alvopetro.com, TSX-V: ALV, OTCQX: ALVOF