CALGARY,
AB, May 29, 2023 /CNW/ - Alvopetro Energy Ltd.
(TSXV: ALV) (OTCQX: ALVOF) announces production commencement from
our 197(1) well on our Murucututu natural gas field and an
operational update.
197(1) Production Commencement
(100% Alvopetro)
Earlier this month, we completed stimulation operations at our
197(1) well on our Murucututu natural gas field. We successfully
stimulated four intervals in the well, injecting a total of 125
tonnes of sand into the formation. Following the stimulation, we
completed a 63-hour clean-up flow period and recovered 1,156 bbls
of frac fluid and flowed a total of 3.8 MMcf of natural gas.
Following the clean-up flow period and confirmation of natural gas
composition, we initiated natural gas sales through the Murucututu
extension pipeline through to our Caburé natural gas plant
("UPGN"). The well is now flowing at a restricted rate of 1.3
MMcfpd through a 20/64 inch choke at a flowing well-head pressure
of 873 psi with 24 bpd of 53 degree API natural gas liquids
(condensate) and 57 bpd of frac fluid. We have now delivered
natural gas sales to the UPGN for a total of 30 hours, averaging
1.3 MMcfpd (220 boepd) and we plan to continue to flow the well at
this rate.
President & CEO, Corey C.
Ruttan commented:
"The completion and stimulation of our 197(1) well represents
a major milestone for our Murucututu natural gas field development
and we are looking forward to drilling our first two
fit-for-purpose Murucututu development wells in the second half of
this year."
Operational Update
On our Bom Lugar field, we spud our first development well
(BL-06) on April 30th and we have
currently drilled 2,017 metres of the expected 3,400 meters
and expect drilling to be completed in June. The BL-06 well is
targeting the Caruaçu Formation with additional potential in the
deeper Gomo and Agua Grande Formations.
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:
bbls
=
|
barrels
|
bpd
=
|
barrels per
day
|
boepd
=
|
barrels of oil
equivalent ("boe") per day
|
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.
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 anticipated natural gas sales volumes from the 197(1)
well, anticipated timing of drilling the BL-06 well, anticipated
natural gas sales and gas deliveries under the Company's long-term
gas sales agreement and plans relating to the Company's 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 the performance
of producing wells and reservoirs, foreign exchange rates, well
development and operating performance, the timing of regulatory
licenses and approvals, equipment availability, the success of
future drilling, completion, testing, recompletion and development
activities, expectations regarding Alvopetro's working interest and
the outcome of any redeterminations, 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, general economic and business conditions, the impact of
the COVID-19 pandemic, 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. 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.