{"id":14632,"date":"2025-02-05T14:53:17","date_gmt":"2025-02-05T14:53:17","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/05\/alvopetro-announces-january-2025-sales-volumes-quarterly-natural-gas-pricing-an-operational-update-and-a-strategic-entry-into-the-western-canadian-sedimentary-basin\/"},"modified":"2025-02-05T14:53:17","modified_gmt":"2025-02-05T14:53:17","slug":"alvopetro-announces-january-2025-sales-volumes-quarterly-natural-gas-pricing-an-operational-update-and-a-strategic-entry-into-the-western-canadian-sedimentary-basin","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/05\/alvopetro-announces-january-2025-sales-volumes-quarterly-natural-gas-pricing-an-operational-update-and-a-strategic-entry-into-the-western-canadian-sedimentary-basin\/","title":{"rendered":"Alvopetro Announces January 2025 Sales Volumes, Quarterly Natural Gas Pricing, an Operational Update and a Strategic Entry into the Western Canadian Sedimentary Basin"},"content":{"rendered":"<\/p>\n
\n
\n

Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces January 2025 sales volumes of 2,457 boepd, including natural gas sales of 13.8\u00a0MMcfpd, associated natural gas liquids sales from condensate of 141 bopd and oil sales of 18 bopd, based on field estimates. This represents a 41% increase from Q4 2024.<\/p>\n

\n
\n

Natural gas, NGLs and crude oil sales: <\/span><\/span><\/p>\n

January <\/span><\/p>\n

2025 <\/span><\/p>\n

December <\/span><\/p>\n

2024 <\/span><\/p>\n

Q4
2024 <\/span><\/p>\n

Natural gas (Mcfpd), by field: <\/span><\/p>\n

Cabur\u00e9 <\/span><\/p>\n

11,450 <\/span><\/p>\n

7,565 <\/span><\/p>\n

7,474 <\/span><\/p>\n

Murucututu <\/span><\/p>\n

2,338 <\/span><\/p>\n

2,687 <\/span><\/p>\n

2,233 <\/span><\/p>\n

Total Company natural gas (Mcfpd) <\/span><\/p>\n

13,788 <\/span><\/p>\n

10,252 <\/span><\/p>\n

9,707 <\/span><\/p>\n

NGLs (bopd) <\/span><\/p>\n

141 <\/span><\/p>\n

110 <\/span><\/p>\n

109 <\/span><\/p>\n

Oil (bopd) <\/span><\/p>\n

18 <\/span><\/p>\n

9 <\/span><\/p>\n

11 <\/span><\/p>\n

Total Company (boepd) <\/span><\/span><\/p>\n

2,457 <\/span><\/p>\n

1,828 <\/span><\/p>\n

1,738 <\/span><\/p>\n<\/div>\n<\/div>\n

Quarterly Natural Gas Price Update <\/p>\n

As announced on December 17, 2024 <\/span> , our updated long-term gas sales agreement came into effect on January 1, 2025 <\/span> increasing Alvopetro\u2019s contracted firm volumes starting January 1, 2025 <\/span> by 33% up to 400 e 3 m 3 \/d. The updated natural gas pricing model is recalculated quarterly based on Brent oil equivalent prices and Henry Hub natural gas prices resulting in quicker adjustments for commodity price and foreign exchange rate fluctuations. Effective February 1, 2025 <\/span> , our natural gas price under our long-term gas sales agreement with Bahiag\u00e1s has been adjusted to BRL1.95 <\/span> \/m 3 , a 6.5% increase from the January 2025 <\/span> price of BRL1.83 <\/span> and consistent with the Q4 2024 price of BRL1.94 <\/span> \/m 3 . All natural gas sales from February 1, 2025 <\/span> to April 30, 2025 <\/span> will be sold at BRL1.95 <\/span> \/m 3 ( $10.55 <\/span> \/Mcf, based on average heat content to date, the January 31, 2025 <\/span> BRL\/USD exchange rate of 5.83, net of expected sales taxes applicable). <\/p>\n

Operational Update <\/p>\n

In the fourth quarter we attempted an optimization project on our 183-B1 well on Block 183 which was originally drilled and tested in 2022. The plan included sidetracking from the existing wellbore and re-entering the Sergi Formation horizontally. Unfortunately, we encountered challenges during the project that resulted in the loss of the bottom hole assembly and the abandonment of the operation with costs totalling approximately $4.0 million <\/span> . <\/p>\n

On our Murucututu field, based off the successful recompletion of our 183-A3 well in the third quarter we plan to spud 183-D4 location this week. The 183-D4 location is targeting the Carua\u00e7u Member approximately 110 metres up-dip of the 183-A3 location. This location also has an uphole exploratory target in the Marfin Formation. We expect to announce results from the 183-D4 well near the end of the first quarter. <\/p>\n

Following this Murucututu well, we plan to drill and complete five development wells at our Cabur\u00e9 Unit as part of the agreed development plan with our partner.\u00a0 During the month of January, we also completed the commissioning phase of our recently installed compression system at Cabur\u00e9 increasing our productive capacity from the Unit. <\/p>\n

Strategic Entry into Western Canadian Growth Opportunity <\/p>\n

Alvopetro has been pursuing additional growth opportunities to complement our existing asset base to continue our disciplined capital allocation model where we look to reinvest approximately half our cash flow into organic growth and return the other half to stakeholders. The Western Canadian Sedimentary Basin (\u2018 WCSB \u2018) offers high-quality assets with large resources in place with access to a high-quality service industry, and leading-edge technology deployment. With our past experiences and our headquarters in Calgary <\/span> , we are well positioned to create a complementary growth platform with the opportunity to deliver attractive returns for shareholders. <\/p>\n

Initial Focus Area \u2013 Mannville Heavy Oil Fairway <\/p>\n

The Mannville <\/span> multi-zone heavy oil fairway targets the Colony, McLaren, Waseca <\/span> , Sparky, GP, Rex, Lloydminster <\/span> , and Cummings formations containing a large amount of original oil in place and providing attractive economics through the application of multilateral drilling and other technologies. <\/p>\n

Farmin \u2013 Partner with Proven Track Record <\/p>\n

Alvopetro is partnering with Durham Creek Energy Ltd., an established operator with a proven track record.\u00a0 Alvopetro has agreed to fund 100% of two earning wells at an estimated total cost of C$4.5 million <\/span> in exchange for a 50% working interest in 19.13 sections (12,243 acres) of land in western Saskatchewan <\/span> . With success, the land position could support upwards of 100 development drilling locations. <\/p>\n

President & CEO,\u00a0Corey C. Ruttan\u00a0commented: <\/p>\n

\u2018Alvopetro\u2019s strong financial position and cash flows from operations help position the Company to maximize shareholder returns from our combined asset base. With exposure to projects in Brazil <\/span> and now also in Canada <\/span> , it allows us to allocate capital across a growing inventory of high rate of return opportunities and to continue our disciplined capital allocation model.\u2019 <\/p>\n

Corporate Presentation <\/p>\n

Alvopetro\u2019s updated corporate presentation is available on our website at:
http:\/\/www.alvopetro.com\/corporate-presentation . <\/p>\n

Social \u00a0 Media <\/p>\n

Follow Alvopetro on our social media channels at the following links:
Twitter \u2013 https:\/\/twitter.com\/AlvopetroEnergy
Instagram \u2013 https:\/\/www.instagram.com\/alvopetro\/
LinkedIn \u2013 https:\/\/www.linkedin.com\/company\/alvopetro-energy-ltd
YouTube \u2013 https:\/\/www.youtube.com\/channel\/UCgDn_igrQgdlj-maR6fWB0w <\/p>\n

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. <\/p>\n

All amounts contained in this new release are in United States <\/span> dollars, unless otherwise stated and all tabular amounts are in thousands of United States <\/span> dollars, except as otherwise noted. <\/p>\n

Abbreviations: <\/p>\n

\n
\n

boepd <\/span><\/p>\n

= <\/span><\/p>\n

barrels of oil equivalent (\u2018boe\u2019) per day <\/span><\/p>\n

bopd <\/span><\/p>\n

= <\/span><\/p>\n

barrels of oil and\/or natural gas liquids (condensate) per day <\/span><\/p>\n

C$ <\/span><\/p>\n

= <\/span><\/p>\n

Canadian dollar<\/span><\/p>\n

e 3 <\/span> m 3 <\/span> \/d <\/span><\/p>\n

= <\/span><\/p>\n

thousand cubic metre per day <\/span><\/p>\n

m 3 <\/span><\/span><\/p>\n

= <\/span><\/p>\n

cubic\u00a0metre <\/span><\/p>\n

m 3 <\/span> \/d <\/span><\/p>\n

= <\/span><\/p>\n

cubic\u00a0metre per day <\/span><\/p>\n

Mcf <\/span><\/p>\n

= <\/span><\/p>\n

thousand cubic feet <\/span><\/p>\n

Mcfpd <\/span><\/p>\n

= <\/span><\/p>\n

thousand cubic feet per day <\/span><\/p>\n

MMcfpd <\/span><\/p>\n

= <\/span><\/p>\n

million cubic feet per day <\/span><\/p>\n

NGLs <\/span><\/p>\n

= <\/span><\/p>\n

natural gas liquids <\/span><\/p>\n<\/div>\n<\/div>\n

BOE Disclosure .\u00a0The term barrels of oil equivalent (\u2018boe\u2019) 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. <\/p>\n

Contracted firm volumes . \u00a0 The 2025 contracted daily firm natural gas volumes of 400 e 3 m 3 \/d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Note that Alvopetro\u2019s reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro\u2019s natural gas is approximately 7.8% \u00a0 higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e 3 m 3 \/d (13.1MMcfpd). <\/p>\n

Forward-Looking Statements and Cautionary Language. This news release contains \u2018forward-looking information\u2019 within the meaning of applicable securities laws. The use of any of \u00a0 the words \u2018will\u2019, \u2018expect\u2019, \u2018intend\u2019 and other similar words or expressions are intended to identify forward-looking information. Forward\u2010looking 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 future production and sales volumes, the expected natural gas price and expected sales volumes under the Company\u2019s long-term gas sales agreement, and future capital plans and potential development opportunities associated with the WCSB farmin. \u00a0 Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. \u00a0 Forward \u00a0 -looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, \u00a0 expectations and assumptions concerning \u00a0 forecasted demand for oil and natural gas, \u00a0 the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations regarding Alvopetro\u2019s working interest and the outcome of any redeterminations, the outcome of any disputes, the timing of regulatory licenses and approvals, equipment availability,\u00a0 environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, general economic and business conditions, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, the regulatory and legal environment and other risks associated with oil and gas operations \u00a0 . \u00a0 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\u2019s 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. <\/p>\n

www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF <\/p>\n

SOURCE Alvopetro Energy Ltd.<\/p>\n<\/p>\n

View original content: http:\/\/www.newswire.ca\/en\/releases\/archive\/February2025\/05\/c0962.html <\/p>\n<\/div>\n<\/div>\n

News Provided by Canada Newswire via QuoteMedia<\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces January 2025 sales volumes of 2,457 boepd, including natural gas sales of 13.8\u00a0MMcfpd, associated natural gas liquids sales from condensate of 141 bopd and oil sales of 18 bopd, based on field estimates. This represents a 41% increase from Q4 2024. Natural gas, NGLs and crude oil […]<\/p>\n","protected":false},"author":0,"featured_media":14633,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-14632","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14632","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=14632"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14632\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/14633"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=14632"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=14632"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=14632"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}