CALGARY,
AB, Oct. 4, 2022 /CNW/ - Alvopetro Energy Ltd.
(TSXV: ALV) (OTCQX: ALVOF). We are pleased to announce drilling
results from our 182-C2 well. We completed drilling the
182-C2 well to a total measured depth ("MD") of 3,185 metres
on our 100% owned and operated Block 182 in the Recôncavo
basin.
Based on open-hole wireline logs, at 2,607 metres total vertical
depth ("TVD"), the well encountered 10.9 metres of potential
net hydrocarbon pay in the Agua Grande Formation, with an
average porosity of 8.9% and average water saturation of 25.1%,
using a 6% porosity cut-off, 50% Vshale cut-off and 50% water
saturation cut-off.
The 182-C2 well also encountered a 223.7-metre-thick section in
the Sergi Formation with 121.3 metres of sand estimated above 6%
porosity in the sand-dominated interval between 2,704.1 and 2,927.8
metres TVD. Caliper logs indicate that a significant amount of the
wellbore in the Sergi interval contains washouts from drilling and
is out of gauge, making open-hole log analysis challenging. As
such, hydrocarbon potential in the Sergi will be validated through
formation testing.
Based on these drilling results, we plan to case the well and
undertake a multi-zone testing program of the 182-C2
well. This testing will assess the extent, if any, of
commercial hydrocarbons associated with the well, the productive
capability of the well and will help define the field development
plan.
Operational Update
On our Murucututu project, we are completing the commissioning
of our 183-1 field production facility and expect to have
commercial natural gas and condensate sales from the 183-1 well
this month.
We are completing service rig inspection and acceptance testing
and expect to commence a multizone production test of our 183-B1
well later this week.
September Sales Volumes
September sales volumes averaged 2,686 boepd, including natural
gas sales of 15.4 MMcfpd and associated natural gas liquids sales
from condensate of 124 bopd, based on field estimates. Our
sales volumes averaged 2,642 boepd in the third quarter of 2022, an
increase of 12% from the second quarter of 2022.
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
MBOE
=
thousands of barrels of oil equivalent
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 182-C2 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-C2
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. 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-C2 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-C2 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 183-C2 well,
anticipated production commencement on our Murucututu project,
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 183-B1 well and the 182-C2 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.