CALGARY,
AB, Aug. 4, 2023 /CNW/ - Alvopetro Energy Ltd.
(TSXV: ALV) (OTCQX: ALVOF) announces July 2023 sales volumes, our August 1, 2023 natural gas price redetermination,
an operational update and timing for release of our Q2 2023 results
and earnings call.
July
2023 Sales Volumes
July sales volumes averaged 2,018 boepd, including natural
gas sales of 11.6 MMcfpd and associated natural gas liquids
sales from condensate of 90 bopd, based on field estimates.
Operational Update
On July 11th we spud
our 183-A3 well on our Murucututu natural gas field. The 183-A3
well is targeting shallower exploration potential in the Caruaçu
Formation and the Gomo member of the Candeias Formation. We expect
to finish drilling in the third quarter. We also expect to complete
our recently drilled Bom Lugar well (BL-06) and have the well on
production in the third quarter.
Semi-Annual Natural Gas Price
Redetermination
Effective August 1, 2023, our
natural gas price under our long-term gas sales agreement ("GSA")
with Bahiagás has been adjusted to BRL1.99/m3
or $13.25/Mcf (based on our average heat content to date,
the July 31, 2023 BRL/USD
foreign exchange rate of 4.74 and enhanced sales tax credits
applicable in 2023). The contracted price is based on the adjusted
ceiling price of $10.52/MMBtu which
increased 3% from the February 1,
2023 price due to US inflation adjustments. With the
appreciation in the BRL relative to the USD over the first half of
2023 compared to the second half of 2022, the BRL contracted price
decreased slightly from BRL2.00/m3 as
of February 1, 2023 to BRL 1.99/m3 as of August
1, 2023. The new contracted price will be applicable for all
natural gas sales from August 1, 2023
to January 31, 2024.
Upcoming Q2 2023 Results and Live
Webcast
Alvopetro anticipates announcing second quarter 2023 results on
August 9, 2023, after markets close,
and will host a live webcast to discuss the results at 9:00 am Mountain time, on August 10, 2023. Details for joining the event
are as follows:
Date: August 10,
2023
Time: 9:00 AM
Mountain/11:00 AM Eastern
Link: https://us06web.zoom.us/j/83723796296
Dial-in numbers: https://us06web.zoom.us/u/kcmVqG8cd9
Webinar ID: 837 2379 6296
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:
|
bbls
|
=
|
barrels
|
boepd
|
=
|
barrels of oil
equivalent ("boe") per day
|
bopd
|
=
|
barrels of oil and/or
natural gas liquids (condensate) per day
|
BRL
|
=
|
Brazilian
real
|
m3
|
=
|
cubic metre
|
MMBtu
|
=
|
million British thermal
units
|
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.
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 the expected timing of certain of Alvopetro's testing
and operational activities including the expected timing of
drilling the 183-A3 well and testing the BL-06 well, expected
timing of production commencement from the BL-06 well, exploration
and development prospects of Alvopetro, expected natural gas
allocations from the Caburé unit, and the
expected natural gas price, gas sales and gas deliveries under the
Company's long-term gas sales agreement. 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 BL-06 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 and other significant worldwide events, 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.sedarplus.ca. 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.