CALGARY,
AB, June 29, 2023 /CNW/ - Alvopetro Energy
Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces that we have completed
drilling our BL-06 well on our 100% owned and operated Bom Lugar
field in the Recôncavo Basin. Based on open-hole wireline logs
the well has discovered a total of 35.4 metres of potential net oil
pay, with an average porosity of 11.2% and average water
saturation of 39.2%.
President & CEO, Corey C. Ruttan commented:
"We are very pleased with the initial results from our first
Bom Lugar oil development well. Based on logs, the well encountered
thicker than anticipated Caruaçu sands and, with successful
production testing, is expected to lead to an expanded development
drilling program."
The BL-06 well was spud on April 30,
2023 and drilled to a total measured depth ("MD") of
3,244 metres. The primary target was the Caruaçu Member of the
Maracangalha Formation with additional targets in the deeper Gomo
Member of the Candeias Formation and the Agua Grande Formation.
Based on open-hole logs, the BL-06 well encountered 35.4 metres of
potential net oil pay in the Caruaçu Member at total vertical depth
("TVD") between 2,390 metres and 2,509 metres with an average
porosity of 11.2% and an average water saturation of 39.2%, using
an 8% porosity cut-off, 50% Vshale cut-off and 50% water saturation
cut-off. The Gomo Member of the Candeias Formation was encountered
between 2,509 and 3,097 metres TVD. Hydrocarbon shows were evident
while drilling the Gomo Member, but no net pay was calculated based
on open-hole logs. Drilling was concluded prior to reaching
the Agua Grande Formation, however we still plan to target the
Agua Grande Formation in future wells.
Based on these drilling results, we plan to undertake a testing
program of the BL-06 well with a service rig, subject to equipment
availability. This testing will assess the productive capability of
this well and help define the field development plan. After
testing, the well is expected to be tied into the existing Bom
Lugar production facility in the third quarter.
After casing our BL-06 well, we plan to mobilize the drilling
rig to our Murucututu natural gas field to drill our next two
planned fit-for-purpose wells, the first of which is expected to be
spud in July.
Corporate Presentation
Alvopetro's updated corporate presentation is available on our
website at:
http://www.alvopetro.com/corporate-presentation.
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links:
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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.
Testing and Well Results. Data obtained from
the BL-06 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 BL-06
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.
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 BL-06 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
BL-06 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 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 availability and cost of labour and services, environmental
regulation, including regulation relating to hydraulic fracturing
and stimulation, the ability to monetize hydrocarbons discovered,
expectations regarding Alvopetro's working interest and the outcome
of any redeterminations, 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.