CALGARY,
AB, April 25, 2024 /CNW/ - Alvopetro Energy
Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro") announces that it has
filed a request for an emergency arbitration (the "Emergency
Arbitration Application") before the International Court of
Arbitration of the International Chamber of Commerce ("ICC") in
connection with the redetermination of working interests in the
unitized area which includes Alvopetro's Caburé natural gas
field (the "Unit").
As announced by Alvopetro on April 5,
2024, the independent expert (the "Expert") appointed by
Alvopetro and our third-party partner (the "Partner") found in
favour of Alvopetro's proposal, thereby increasing Alvopetro's
working interest in the Unit from 49.1% to 56.2%. On April 11, 2024, Alvopetro received a notice of
dispute from the Partner with respect to the Expert decision
seeking to stay the redetermination procedure. Following the
receipt of the decision of the Expert, the Partner had requested
additional clarifications with respect to the decision. The Expert
has now provided an additional formal response expanding on the
technical justifications for their final decision, reiterating the
decision in favour of Alvopetro, and noting that they consider the
matter closed.
As previously announced, Alvopetro strongly disagrees with the
Partner as all provisions of the Unit Operating Agreement ("UOA")
and related agreements between the parties provide that the
decision of the Expert is binding. Alvopetro has now filed the
Emergency Arbitration Application before the ICC. Pursuant to the
Application, Alvopetro has requested that an emergency arbitrator
be appointed in order to make the Expert decision effective, as
provided for in the UOA.
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.
Abbreviations:
ANP: Agência Nacional do
Petróleo, Gás Natural e Biocombustíveis (The National Agency
of Petroleum, Natural Gas and Biofuels of Brazil)
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
emergency arbitration procedures. The forward–looking statements
are based on certain key expectations and assumptions made by
Alvopetro, including but not limited to expectations and
assumptions concerning the success of future drilling, completion,
and testing, equipment availability, the timing of regulatory
licenses and approvals, recompletion and development activities,
the outlook for commodity markets and ability to access capital
markets, the impact of global pandemics 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 outcome of any future
redeterminations, 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.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.