CALGARY,
AB, Nov. 22, 2022 /CNW/ - Alvopetro Energy
Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces initial results from the
second interval tested in our 183-B1 well on our 100% owned and
operated Block 183.
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 Agua
Grande formation, the second deepest of three formations with
hydrocarbons shows during drilling of the well. We perforated a
total of 8.5 metres in the Agua Grande formation at various
intervals between 2,680 metres and 2,699 metres MD. During the
clean up flow period we recovered 16 bbls of completion fluid and 1
bbl of 52°API natural gas liquids (condensate). After a
short shut-in we initiated the production test on a 32/64" choke.
Cumulatively, over the duration of the 72-hour production test, we
recovered 2.4 bbls of 48°API natural gas liquids (condensate), 9.4
bbls of formation water and 2.4 MMcf of gas. During the test, the
flowing rate decreased from 5.7 MMcfpd to 0.3 MMcfpd, the average
gas rate during testing operations was 0.8 MMcfpd. At the
beginning of the testing operations the shut-in wellhead pressure
("SIWHP") was 2,555 psi, and the final flowing wellhead pressure
was 40 psi. After 32 hours of buildup the SIWHP was 610
psi.
These results indicate a high permeability zone that delivered
strong initial production flow rates but, based on pressure and
production declines over the flow period, and slow pressure build
up following the test, the Agua Grande reservoir appears to be
areally constrained in the high permeability zone and likely
sub-commercial in the remaining Agua Grande zones. We will now
proceed up-hole to test the Candeias Formation. Based on
open-hole logs, using a 6% porosity cut-off, 50% Vshale cut-off and
50% water saturation cut-off the Gomo member of the Candeias
Formation was encountered at 2,578 to 2,583 metres total vertical
depth, with 5.3 metres of potential net light oil pay, at an
average 35.0% water saturation and average porosity of 15.7%.
A fluid sample in this Candeias interval was also collected with a
dual packer wireline tool recovering 37.1°API oil with no water to
surface from 2,580 metres depth at a formation pressure of 4,317
psi.
We previously announced the results of 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 upper portion of 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 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. We are engineering a stimulation plan for
this upper Sergi section in this well and we have submitted
applications to drill two follow up wells from this 183-B1 surface
location targeting the full Sergi hydrocarbon column and the
potential in the deeper Boipeba Formation.
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,
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.