CALGARY,
AB, Aug. 11, 2022 /CNW/ - Alvopetro Energy
Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces a restatement of the
Company's financial statements for the years ended December 31, 2021 and 2020.
All references herein to $ refer to United States dollars, unless otherwise stated
and all tabular amounts are in thousands of United States dollars, except as otherwise
noted.
Restatement of Financial Statements for the
Years ended December 31, 2021 and
December 31, 2020
The Company has identified an error with respect to the carrying
value of certain assets acquired by the Company in 2012 and the
foreign currency translation of such amounts which requires the
Company to make a restatement to the audited consolidated financial
statements for the years ended December 31,
2021 and December 31, 2020.
The Company has filed restated financial statements for these
periods (the "Restated Financial Statements") together with the
restated management's discussion and analysis (the "Restated
MD&A") and a restated annual information form for the year
ended December 31, 2021 (the
"Restated AIF").
Users of the Company's financial statements should note that
the restatement and the associated adjustments are not as a
result of any change to the Company's operations or the Company's
business. For any and all of the aforementioned periods there is no
impact on the overall cash position, net cash flows from operating,
investment or financing activities on the statement of cash flows
or on any of the inputs or management assumptions used to determine
the Company's recoverable reserves. The adjustments are
required to reflect the carrying value of the assets acquired in
2012 in Brazilian real ("BRL") and adjust the carrying value with
changes in the BRL relative to the US dollar over time. As a
portion of the original purchase price was incorrectly maintained
in US dollars since the time of acquisition, and given the
deprecation of the BRL to USD since that time, there is an overall
decrease in the carrying value of the Company's exploration and
evaluation assets and property, plant and equipment to correct for
the misstatement, an associated increase in the deferred tax asset
as well as an decrease in depletion expense and impairment in the
years ended December 31, 2021 and
2020 as well as years prior to December 31,
2020. All adjustments are non-cash in nature.
A summary of the restatement is described in further detail
below. More details can be found in the Restated Financial
Statements, the Restated MD&A and the Restated AIF, all of
which are on our website at www.alvopetro.com and will be available
on the System for Electronic Document Analysis and Retrieval
(SEDAR) website at www.sedar.com.
|
December 31,
2019
(Previously
Reported)
|
Adjustment
|
January 1,
2020
(Restated)
|
|
E&E
|
35,971
|
(5,255)
|
30,716
|
|
PP&E
|
30,984
|
(2,576)
|
28,408
|
|
Retained Earnings
(Deficit)
|
(76,878)
|
3,562
|
(73,316)
|
|
Accumulated Other
Comprehensive Loss
|
(26,393)
|
(11,393)
|
(37,786)
|
|
As at and for the
year-ended December 31,
|
|
2021
|
2020
|
|
Previously
Reported
|
Adjustment
|
Restated
|
Previously
Reported
|
Adjustment
|
Restated
|
|
Impact on
Consolidated Statements of Financial Position
|
|
E&E
|
3,713
|
-
|
3,713
|
32,262
|
(6,498)
|
25,764
|
|
PP&E
|
48,748
|
(8,968)
|
39,780
|
25,843
|
(2,953)
|
22,890
|
|
Deferred tax
asset
|
3,938
|
1,367
|
5,305
|
4,576
|
3,213
|
7,789
|
|
Retained Earnings
(Deficit)
|
9
|
6,477
|
6,486
|
(71,172)
|
7,496
|
(63,676)
|
|
Accumulated Other
Comprehensive Loss
|
(32,445)
|
(14,078)
|
(46,523)
|
(35,294)
|
(13,734)
|
(49,028)
|
|
Impact on
Consolidated Statements of Operations and Comprehensive Income
(Loss)
|
|
Depletion and
depreciation expense
|
(8,606)
|
899
|
(7,707)
|
(2,070)
|
181
|
(1,889)
|
|
Impairment
expense
|
-
|
-
|
-
|
(1,455)
|
369
|
(1,086)
|
|
Deferred tax (expense)
recovery
|
(4,001)
|
(1,918)
|
(5,919)
|
3,745
|
3,384
|
7,129
|
|
Net Income
|
6,614
|
(1,019)
|
5,595
|
5,706
|
3,934
|
9,640
|
|
Exchange gain (loss) on translation of foreign
operations
|
2,849
|
(344)
|
2,505
|
(8,901)
|
(2,341)
|
(11,242)
|
|
Comprehensive Income
(loss)
|
9,463
|
(1,363)
|
8,100
|
(3,195)
|
1,593
|
(1,602)
|
|
|
|
|
|
|
|
|
Net income per share
amounts:
|
|
|
|
|
|
|
|
Basic
|
0.20
|
(0.03)
|
0.17
|
0.17
|
0.12
|
0.29
|
|
Diluted
|
0.19
|
(0.03)
|
0.16
|
0.16
|
0.11
|
0.27
|
|
|
Impact on
Consolidated Statements of Cash Flows
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income
|
6,614
|
(1,019)
|
5,595
|
5,706
|
3,934
|
9,640
|
|
Adjustments for
non-cash items:
|
|
|
|
|
|
|
|
Depletion
and depreciation
|
8,606
|
(899)
|
7,707
|
2,070
|
(181)
|
(1,889)
|
|
Impairment
|
-
|
-
|
-
|
1,455
|
(369)
|
1,086
|
|
Deferred
tax
|
4,001
|
1,918
|
5,919
|
(3,745)
|
(3,384)
|
(7,129)
|
|
Funds flow from
operations
|
24,637
|
-
|
24,637
|
6,216
|
-
|
6,216
|
|
Cash flow from
operating activities
|
24,291
|
-
|
24,291
|
3,061
|
-
|
3,061
|
|
|
|
|
|
|
|
|
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.
SOURCE Alvopetro Energy Ltd.