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Alvopetro  Provides Operational Update and December sales volumes


Alvopetro Energy announces December sales volumes of 2,457 boepd, including natural gas sales of 14.1 mmcfpd and associated natural gas liquids sales from condensate of 101 bopd, based on field estimates. December sales volumes bring estimated fourth quarter average daily sales to 2,432 boepd, a decrease of 1% from the third quarter average sales of 2,459 boepd, and the Company's average daily sales in 2021 to 2,358 boepd, an increase of 27% from the average daily sales of 1,857 boepd in the second half of 2020.

Operational Update

Alvopetro has initiated the commissioning period for the drilling rig that will be used on the exploration drilling campaign for our two natural gas prospects, the 182-C1 well on Block 182 and the 183-B1 well on Block 183. Alvopetro have begun transporting equipment to the 182-C1 well site and, once the rig has been fully commissioned at the rig operator's base, the rig will be mobilized to the location. Subject to successful commissioning and final rig acceptance, we expect to spud the 182-C1 well later this month.

Alvopetro is also in final stages of completion of the Gomo/Murucututu pipeline to connect their 183-1 well in the Murucututu/Gomo field to our Caburé pipeline, and we will conduct final pressure testing at the end of the month. The Company have initiated site construction for the field production facility and expect to have the 183(1) well online near the end of the first quarter of this year.

The Company's project to increase the operational capacity of their gas processing facility to 500,000 m3/d under the terms of their existing Gas Treatment Agreement is progressing according to schedule and Alvopetro expect that the additional firm capacity will be available by June 1, 2022. The additional available capacity will allow the Company to have flexibility to process additional volumes from Caburé and their Murucututu field with initial production from our 183 Gomo well and further capital plans in 2022, including stimulation and tie-in of the 197(1) well and follow-up fit-for-purpose development wells.

President and CEO, Corey Ruttan commented:
"We have closed out 2021 with another strong quarter of production performance, and at the same time our growth-oriented operations are progressing. In the coming weeks we will commence our exciting 2-well exploration drilling program and will complete our Murucututu/Gomo pipeline to enable the start of production and the broader development of the field.

I am also delighted to announce the latest increase in our gas sales price, which will be above $10/mcf effective February 1. This further enhances our industry-leading operating margins and supports our strategy to both re-invest cash flow into organic growth opportunities and to provide direct returns to shareholders through ongoing quarterly dividends."

KeyFacts Energy: Alvopetro Brazil country profile

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