CALGARY,
AB, Sept. 8, 2022 /CNW/ - Alvopetro Energy
Ltd. (TSXV: ALV); (OTCQX: ALVOF) announces a discovery at our 49.1%
Caburé Unit C well, record August sales volumes and an operational
update.
7-CARN-2D-BA Well ("Unit-C Well")
The Unit-C well at the Caburé Unit (49.1% Alvopetro) was
spud in July and drilled to a total measured depth ("MD") of 2,096
metres. Based on Alvopetro's analysis of open hole logs and fluid
samples confirming hydrocarbons, the well has potential net pay in
multiple formations using a 6% porosity cut-off, 50% Vshale cut-off
and 50% water saturation cut-off. The well was drilled with
development objectives in the Pojuca and Marfim sands that are
producing from, or tested hydrocarbons in, the offsetting Unit well
(IMET-10). The well was also drilled with exploratory
objectives in the deeper Maracangalha sands that are producing on
the eastern side of the bounding fault. The well encountered a
total of 52.6 metres of potential net hydrocarbon pay at an average
37.2% water saturation and average porosity of 16.8% in multiple
formations. Fluid samples were also collected using a formation
testing tool with natural gas being recovered from a sand in the
Maracangalha Formation at 1,443.5 metres total vertical depth
and oil from a deeper sand at 1,633.6 metres total vertical depth.
Potential net pay is summarized, by formation, as follows:
Formation
|
Objective
|
Net Pay
(metres)
|
Water Saturation
(%)
|
Porosity
(%)
|
Pojuca
|
Development
|
19.9
|
31.9
|
24.6
|
Marfim
|
Development
|
3.9
|
30.4
|
12.1
|
Maracangalha
|
Exploration
|
28.8
|
41.7
|
12.1
|
Total
|
|
52.6
|
37.2
|
16.8
|
August
2022 Sales Volumes
Our August daily sales volumes averaged 2,727 boepd,
including natural gas sales of 15.6 MMcfpd, and associated
natural gas liquids sales from condensate of 120 bopd, based on
field estimates. Our August sales volumes are a record for
Alvopetro, 8% above July sales volumes of 2,514 boepd and 16% above
average volumes in the second quarter of 2022 of 2,359 boepd.
Operational Update
On August 26th, we spud
our 182-C2 well on Block 182 (100% Alvopetro). The 182-C2
well is a follow-up well to our 182-C1 well drilled earlier this
year and targets the Agua Grande and Sergi Formations further east
from the bounding fault encountered during drilling of the 182-C1
well.
On our Murucututu project, the ANP inspection of our fiscal
meter station at our 183-1 location was completed last week and,
subject to receipt of all finalized reports, we expect to commence
production from our 183-1 well this month.
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
|
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.
Testing and Well Results. Data obtained from
the Unit C 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 Unit C
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.
Cautionary statements regarding the filing of a Notice of
Discovery. The unit operator has submitted a Notice of
Discovery of Hydrocarbons to the Agência Nacional do Petróleo, Gás
Natural e Biocombustíveis (the "ANP") with respect to the Unit C
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, a Notice of Discovery has been filed for the Unit C
well. These routine notifications to the ANP are not necessarily
indicative of commercial hydrocarbons, potential production,
recovery or reserves.
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 hydrocarbon pay in the Unit C 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 results of the
Unit C 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, expectations regarding
Alvopetro's working interest and the outcome of any
redeterminations, 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.