CALGARY, Nov. 26, 2018 /CNW/ - Alvopetro Energy Ltd. (TSX-V:ALV) has awarded the contract for the construction of our 11-kilometre transfer pipeline. Alvopetro has also retained the services of Renmark Financial Communications Inc. ("Renmark") to assist with investor relations activities.
Alvopetro has contracted Tecmaster Engenharia e Construções Ltda ("Tecmaster") to construct our 11-kilometre transfer pipeline from the Caburé unit to our Gas Treatment Facility being constructed by Enerflex Ltd. Tecmaster is a local construction company with over 15 years of on-shore pipeline construction experience in Brazil. Alvopetro has also ordered all the required pipe for the project, and the total pipeline project is budgeted to cost US$3.5 million. Pipeline construction is expected to be completed over a 6-month period and under the terms of the agreement Tecmaster has provided warranties over the completion date of the project. Alvopetro estimates that we will commence construction in March 2019 and that the pipeline will be fully operational by September 2019.
Our share of natural gas from the Caburé unit will be shipped via this 11-kilometre transfer pipeline to our natural gas processing facility and sold to Bahiagás under the terms of our May 2018 long-term Gas Sales Agreement. In September 2018, we executed the Gas Treatment Agreement with Enerflex. Under the terms of the Gas Treatment Agreement, Enerflex will construct and own the natural gas processing facility (the "Facility"), provide ongoing operations and maintenance, and warranty the delivery schedule and on-stream performance of the Facility. The Facility is scheduled to begin commissioning in November 2019 and be fully operational by the end of 2019. Alvopetro plans to be in a position to deliver first gas at the end of 2019.
Alvopetro has retained the services of Renmark to assist with our investor relations activities. This is a transformational time for Alvopetro and we are pleased to announce that we have selected Renmark to reinforce our profile in the financial community and enhance the visibility of our company.
In consideration of the services to be provided, the monthly fees incurred by Alvopetro will be cash consideration of $8,000 CAD, starting December 1, 2018 for a period of six months ending on May 31, 2019 and monthly thereafter.
Renmark Financial Communications does not have any interest, directly or indirectly, in Alvopetro Energy Ltd. or its securities, or any right or intent to acquire such an interest.
Updated Corporate Presentation
Alvopetro's updated corporate presentation is available at: http://www.alvopetro.com/corporate-presentation.
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 Gomo natural gas assets and the construction of 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.
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. More particularly and without limitation, this news release contains forward-looking information concerning the anticipated use of proceeds from the private placement, anticipated outcomes and timing of regulatory determinations, future results from operations, projected financial results and financing requirements, future capital and operating costs, future production rates, proposed exploration and development activities, sources and availability of capital, and capital spending levels. 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, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, 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 these and other factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed through the SEDAR website 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.
For further information: 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; Or for Renmark Financial Communications Inc., Barry Mire: [email protected], Tel.: (416) 644-2020 or (514) 939-3989, www.renmarkfinancial.com