CALGARY,
AB, April 21, 2022 /CNW/ - Alvopetro
Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces that we have
completed drilling the 182-C1 well on our 100% owned and operated
Block 182 in the Recôncavo basin. Based on open-hole wireline logs
the well has discovered 25 metres of potential net natural gas
pay, with an average porosity of 8.2%.
President and CEO, Corey
Ruttan commented:
"Preliminary drilling results from our 182-C1 well represent
the first successful step in our organic growth strategy to expand
our natural gas business in Brazil. We are currently increasing the
capacity of our gas processing facility and we look forward to
testing this well to understand the full development and production
growth potential relating to this exciting new discovery."
The 182-C1 well was spud on March 2,
2022 and drilled to a total measured depth ("MD") of
2,926 metres. Two open-hole logging runs were completed and
based on the open-hole logs, the 182-C1 well encountered a
36-metre-thick Agua Grande Formation sand at 2,550 to 2,586 metres
total vertical depth with 25 metres of potential net natural gas
pay, at an average 34% water saturation and average porosity of
8.2%, using a 6% porosity cut-off, 50% Vshale cut-off and 50% water
saturation cut-off. Neutron-density crossover on logs is
interpreted to be reflective of natural gas pay but will be
confirmed with well testing.
The primary and secondary targets of the 182-C1 well were the
Agua Grande and Sergi Formations, respectively. Based on
preliminary drilling results, the 182-C1 well encountered net pay
in the Agua Grande Formation but did not encounter the Sergi
Formation, the secondary target, due to the well crossing a normal
fault before reaching the Sergi Formation. Data obtained from
drilling the 182-C1 well is expected to assist in drilling
follow-up development Agua Grande wells that will also be designed
to reach the Sergi Formation further east from the bounding fault.
Based on these drilling results, we plan to undertake a testing
program of the 182-C1 well with a service rig, subject to customary
regulatory approvals and equipment availability. This
additional testing will assess the productive capability of this
well and help define the field development plan.
After running casing, we plan to mobilize the drilling rig to
our next exploration location, the 183-B1 well, which is expected
to be spud in May. The 183-B1 well also targets the Agua Grande and
Sergi Formations as the primary and secondary targets,
respectively.
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.
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 182-C1 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 182-C1 well. These
routine notifications to the ANP are not necessarily indicative of
commercial hydrocarbons, potential production, recovery or
reserves.
Testing and Well Results. Data obtained
from the 182-C1 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 182-C1
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.
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 natural gas pay in the 182-C1 well,
exploration and development prospects of Alvopetro and the expected
timing of certain of Alvopetro's testing and operational
activities. The forward‐looking statements are based on certain key
expectations and assumptions made by Alvopetro, including but not
limited to expectations and assumptions concerning testing results
of the 182-C1 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 the COVID-19 pandemic, 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,
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.
www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF
SOURCE Alvopetro Energy Ltd.