Alvopetro Announces September Sales Volumes And Gas Plant Expansion
CALGARY, AB, Oct. 5, 2021 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces September sales volumes of 2,536 boepd based on field estimates, including natural gas sales of 14.5 mmcfpd and associated natural gas liquids sales from condensate of 113 bopd. This brings our average third quarter sales volumes to an estimated 2,459 boepd, an increase of 4% from our second quarter sales volumes of 2,361 boepd. On August 1, 2021, our natural gas price was adjusted to BRL1.31/m3, an increase of 24% from our February 1, 2021 contracted natural gas price of BRL1.06/m3. We are forecasting a further increase, to the ceiling within our contract, effective February 1, 2022, to BRL1.81/m3. This has been estimated using commodity prices to-date in 2021, GLJ Ltd.'s October 1, 2021 commodity price forecast and US CPI inflation up to August 31, 2021. Assuming the average heat content of Alvopetro's gas to-date of 107% and the September 30, 2021 BRL/USD foreign exchange rate of 5.44 this equates to US$10.07/mcf effective February 1, 2022.
Gas Plant Expansion
We have notified Enerflex Ltd. to increase the operational capacity of our gas processing facility to 500,000 m3/d under the terms of our existing Gas Treatment Agreement. We expect that the additional firm capacity will be available by June 1, 2022. The additional available capacity will allow us to have flexibility to process additional volumes from our Murucututu field with initial production from our 183(1) Gomo well expected early in 2022 with further capital plans commencing in 2022, including stimulation and tie-in of the 197(1) well and follow-up development wells.
Upcoming Live Webcast
Corey C. Ruttan, President and Chief Executive Officer, will present live at VirtualInvestorConferences.com on October 7th beginning at 11:00 am Mountain Time. VirtualInvestorConferences.com is a live, interactive online event where investors are invited to ask the company questions in real-time. If attendees are not able to attend the event live on the day of the conference, an archived webcast will also be made available after the event. Details for joining the event are as follows:
DATE: October 7th, 2021
TIME: 1:00 PM Eastern / 11:00 AM Mountain
LINK: https://bit.ly/2XDPsP9
It is recommended that investors pre-register and run the online system check to expedite participation and receive event updates.
Learn more about the event at www.virtualinvestorconferences.com.
OTCQX Trading Symbol
In connection with the September 7th Share Restructuring, Alvopetro was temporarily assigned trading symbol ALVOD on the OTCQX. Our trading symbol has now reverted to our original symbol of ALVOF.
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 |
BRL | = | Brazilian Real |
m3 | = | cubic metre |
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, the expected gas sales, gas deliveries and forecasted natural gas prices under Alvopetro'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 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.
SOURCE Alvopetro Energy Ltd.
Corey C. Ruttan, President, Chief Executive Officer and Director, or Alison Howard, Chief Financial Officer, Phone: 587.794.4224, Email: [email protected], www.alvopetro.com, TSX-V: ALV, OTCQX: ALVOF
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