Alvopetro Announces February 2022 Sales Volumes, Commencement of 2022 Drilling Program and Additional Debt Repayment

CALGARY, AB, March 3, 2022 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces February sales volumes of 2479 boepd, including natural gas sales of 14.3 mmcfpd and associated natural gas liquids sales from condensate of 99 bopd based on field estimates. All natural gas sales in February are at our new contracted price of BRL1.94/m3 or $11.28/mcf (based on our average heat content to date of 107% and the average February foreign exchange rate of 5.1966 , a 48% increase from our previous contracted price of BRL1.31/m3.  This price is effective for all natural gas sales from February 1 to July 31, 2022.

2022 Drilling Program

Following a thorough process to commission the drilling rig, on March 2, 2022, we spud the 182-C1 well on Block 182, the first of two conventional natural gas exploration wells planned for 2022. We anticipate that the well will take approximately 42 days to drill. The 182-C1 well is targeting unrisked best estimate prospective recoverable resource of 4.6 mmboe (risked best estimate prospective resource of 2.2 mmboe). Thereafter, the rig will move onto the 183-B1 well on the adjacent Block 183. This well is expected to take approximately 45 days to drill. 

Following our two-well conventional exploration program we plan to drill our first fit-for-purpose Murucututu Gomo development well (MURS-1).

Debt Repayment

With continued strong production levels and our increased natural gas price effective February 1, 2022, we repaid an additional $1.5 million of our outstanding credit facility on February 18, 2022, which brings our outstanding balance down to $5.0 million.

Social Media

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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:

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.

Prospective Resources ? This news release discloses estimates of certain of Alvopetro's prospective resources as evaluated by GLJ Ltd. with an effective date of July 31, 2020 (as announced by Alvopetro on September 8, 2020). There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Estimates of prospective resources involve additional risks over estimates of reserves. The accuracy of any resources estimate is a function of the quality and quantity of available data and of engineering interpretation and judgment. While resources presented herein are considered reasonable, the estimates should be accepted with the understanding that reservoir performance subsequent to the date of the estimate may justify revision, either upward or downward. Prospective resources have both a chance of discovery and a chance of development, which combined represent for any undiscovered accumulation its chance of commerciality. Please refer to supplementary information contained in the Company's annual information form for the year-ended December 31, 2020 which has been filed on SEDAR.

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 plans relating to the Company's operational activities and the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement. The forward?looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to 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, 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, 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.

www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF

SOURCE Alvopetro Energy Ltd.