CALGARY,
AB, July 7, 2022 /CNW/ - Alvopetro Energy Ltd.
(TSXV: ALV) (OTCQX: ALVOF) We are pleased to announce a multizone
discovery on our 183-B1 exploration location. We completed
drilling the 183-B1 exploration well on our 100% owned and operated
Block 183 in the Recôncavo basin and, based on open-hole wireline
logs and fluid samples confirming hydrocarbons, the well has
discoveries 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%.
President and CEO, Corey
Ruttan commented:
"Preliminary drilling results from both of our 2022
conventional exploration wells represent significant steps forward
in our organic growth strategy. Our gas processing facility
expansion is nearly complete, and we look forward to production
testing our latest discovery at 183-B1 as well as our earlier
success at the 182-C1 location. These tests will help define
the full development and production growth potential of these
exciting new discoveries."
The 183-B1 well was spud on June 5,
2022 and drilled to a total measured depth ("MD") of
2,917 metres. Based on open-hole logs and collected fluid
samples, the 183-B1 well encountered multiple zones of interest
with an aggregate 34.3 metres of potential net hydrocarbon pay,
using a 6% porosity cut-off, 50% Vshale cut-off and 50% water
saturation cut-off:
Candeias Formation
A 5.3-metre-thick sand in 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 was also collected with a dual packer wireline tool
recovering 37.1-degree API oil with no water to surface from 2,580
metres depth at a formation pressure of 4,317 psi.
Agua Grande Formation
A 19.8 metre-thick Agua Grande Formation sand was encountered at
2,677 to 2,697 metres total vertical depth with 11.4 metres of
potential net natural gas pay, at an average 25.5% water saturation
and average porosity of 11.9%. Of the 11.4 metres of potential net
natural gas pay, 2.6 metres were encountered within the upper Agua
Grande section the Agua Grande Formation, at an average 18.5% water
saturation and an average porosity of 17.2%. A fluid sample
was collected from this upper section at 2,679 metres with a dual
packer wireline tool recovering dry natural gas and no water to
surface at a formation pressure of 3,984 psi.
Sergi Formation
In the Sergi Formation, a 78.4 metre thick sand-dominated
interval was encountered at 2,809 to 2,887 metres total vertical
depth. Hydrocarbon shows were present throughout drilling the
entire section. Open-hole logs indicate 17.5 metres of
potential light oil pay at an average 29.4% water
saturation and average porosity of 8.3%. A fluid sample was
collected from this section during modular formation dynamic
testing ("MDT"), confirmed by lab analysis, recovered 40.7-degree
API oil and no water to surface from 2,822 metres depth with a
formation pressure of 4,740 psi. Within the 78.4 metre Sergi
interval there is an additional 29.9 metres of Sergi sand that
experienced significant wellbore washouts with possible net pay
that is expected to be validated through testing. As such, this
29.9-metre interval is currently being excluded from calculated
potential net hydrocarbon pay.
Based on these drilling results, we plan to undertake a
multi-zone testing program of the 183-B1 well, subject to customary
regulatory approvals and equipment availability. This
additional 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.
Operational Update
Our Caburé gas plant expansion is scheduled to be completed
later in July. Following the expansion, our available processing
capacity is expected to increase by 25% to at least 500,000 cubic
metres per day (18 MMcfpd).
On our Murucututu project, we expect to commence commissioning
of our field production facility at our 183(1) location later in
July. We have also commenced field installation of the
pipeline extension to tie-in our 197(1) well and expect
construction to be completed in approximately three months.
June Sales Volumes
June sales volumes averaged 2,480 boepd, including natural gas
sales of 14.2 MMcfpd, associated natural gas liquids sales from
condensate of 102 bopd and oil sales of 5 bopd, based on field
estimates. Our sales volumes averaged 2,359 boepd in the
second quarter of 2022, consistent with sales volumes in the second
quarter of 2021 and a decrease of 6% from the first quarter of 2022
due to our planned five-day shutdown in May scheduled to complete
advance work for our gas plant expansion.
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:
boepd
|
=
|
barrels of oil
equivalent ("boe") per day
|
bopd
|
=
|
barrels of oil and/or
natural gas liquids (condensate) per day
|
MBOE
|
=
|
thousands of barrels of
oil equivalent
|
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,
should be considered to be preliminary until testing, detailed
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 nor the 182-C1 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.
Cautionary statements regarding the filing of a Notice of
Discovery. We have submitted a Notice of Discovery
of Hydrocarbons to the Agência Nacional do Petróleo, Gás Natural e
Biocombustíveis (the "ANP") with respect to the 183-B1 well. All
operators in Brazil are required
to inform the ANP, through the filing of a Notice of Discovery, of
potential hydrocarbon discoveries. A Notice of Discovery is
required to be filed with the ANP based on hydrocarbon indications
in cuttings, mud logging or by gas detector, in combination with
wire-line logging. Based on the results of open-hole logs, we have
filed a Notice of Discovery relating to our 183-B1 well. These
routine notifications to the ANP are not necessarily indicative of
commercial hydrocarbons, potential production, recovery or
reserves.
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-C1 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,
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.