CALGARY,
AB, Nov. 29, 2022 /CNW/ - Alvopetro Energy
Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces results from the third
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
Candeias Formation, the third of three formations with hydrocarbons
shows during drilling of the well. We perforated a total of 3
metres in the Candeias Formation between 2,580 to 2,586 metres MD.
During the clean up period we swabbed 16 bbls of completion fluid
and 12 bbls of 36°API crude oil. Cumulatively, over the
duration of the 48-hour production test, we recovered 13 bbls of
35°API crude oil and 21 bbls of formation water.
Following this test, we will turn our focus back to the Sergi
Formation in this well where 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 Member.
We now plan to move to test multiple zones in our 182-C2 well,
commencing with the Sergi Formation where, as previously announced,
based on open-hole wireline logs, the well encountered a
223.7-metre-thick section with 121.3 metres of sand estimated above
6% porosity in the sand-dominated interval between 2,704.1 and
2,927.8 metres total vertical depth. 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. Following testing of
the Sergi Formation, testing will proceed up-hole to the Agua
Grande formation where, based on open-hole wireline logs, the well
encountered 10.9 metres of potential net hydrocarbon pay, 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. 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.
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:
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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 and the 182-C2 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 or 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.
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 and the
182-C2 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.