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.