CALGARY,
AB, Nov. 7, 2022 /CNW/ - Alvopetro Energy Ltd.
(TSXV: ALV) (OTCQX: ALVOF) announces initial results from the first
interval tested in our 183-B1 well on our 100% owned and operated
Block 183 and October 2022 sales
volumes.
In July 2022, we completed
drilling the 183-B1 exploration well to a total measured depth
("MD") of 2,917 metres. Based on open-hole wireline logs and fluid
samples confirming hydrocarbons, the well discovered hydrocarbons
in multiple formations with a total of 34.3 metres of potential net
hydrocarbon pay, with an average porosity of 10.6% and average
water saturation of 29.0% using a 6% porosity cut-off, 50%
Vshale cut-off and 50% water saturation cut-off.
Alvopetro has completed the 183-B1 formation test in the Sergi
formation, the deepest of three formations with hydrocarbons shows
during drilling of the well. We perforated a total of 26.5 metres
in the Sergi formation at various intervals between 2,811 metres MD
and 2,886 metres MD. We initially swabbed 63 bbls of oil and 7 bbls
of completions fluid during the initially clean-up period. After a
short shut-in we then initiated the production test. Cumulatively,
over the duration of the 72-hour production test, we recovered 59
bbls of 43°API oil, 7 bbls of water identified as completion fluid,
and 0.28 MMcf of associated gas. The daily oil rate recovered
during swabbing operations averaged 20 bopd.
The 183-B1 well has now been shut-in to measure reservoir
pressure and obtain pressure build‑up data to undertake a pressure
transient analysis, which will help predict productivity of this
first zone. After completing the pressure build-up test, the first
interval will be suspended temporarily with a bridge plug and the
test will proceed up-hole to test the Agua Grande formation.
October Sales Volumes
October sales volumes averaged 2,720 boepd, including natural
gas sales of 15.6 MMcfpd and associated natural gas liquids sales
from condensate of 124 bopd, based on field estimates, an increase
of 3% over our average daily sales volumes in the third quarter.
October sales volumes include initial sales volumes from our 183(1)
well on our Murucututu project where we commenced production in
mid-October following completion of the commissioning of field
production facility. Our team continues to optimize the field
production facility at the wellsite. Since coming on production,
the well has averaged approximately 0.42 MMcfpd based on field
estimates.
Q3 2022 Results Webcast
Alvopetro anticipates announcing Q3 2022 results on November 15, 2022 after markets close and will
host a live webcast to discuss the results at 9:00 am Mountain time on November 16, 2022. Details for joining the event
are as follows:
Date: November
16, 2022
Time: 9:00 a.m. Mountain/11:00
a.m. Eastern
Link: https://us06web.zoom.us/j/83084021752
Dial-in Numbers: https://us06web.zoom.us/u/kgefFrJiJ
Webinar ID: 830 8402 1752
The webcast will include a question-and-answer period. Online
participants will be able to ask questions through the Zoom portal.
Dial-in participants can email questions directly to
socialmedia@alvopetro.com.
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:
API
|
=
|
American Petroleum
Institute
|
°API
|
=
|
an indication of the
specific gravity of crude oil measured on the API gravity
scale.
|
bbls
|
=
|
barrels
|
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 183-B1 well identified in this press release, including
hydrocarbon shows, open-hole logging, net pay and porosities and
initial testing data, should be considered to be preliminary
until detailed pressure transient and other 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 183-B1 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 hydrocarbon pay in the 183-B1 well,
anticipated production from 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.
www.alvopetro.com
SOURCE Alvopetro Energy Ltd.