Alvopetro Announces Q3 2025 Financial Results and an Operational Update Including Record October Sales

Executive Summary

• Alvopetro reported record October sales of 2,923 boepd (2,766 boepd Brazil + 157 boepd Canada), a new company high.
• Q3 2025 revenue rose to $14.2 M (+10% YoY) with funds from operations of $10.4 M and net income of $4.6 M, despite a $2.5 M decline versus Q3 2024 due to impairment losses.
• Operational highlights include the 183‑D4 well at Murucututu delivering 1,071 boepd IP30, a 199% increase in Murucututu gas sales YoQ, and completion of three Caburé wells with two additional earning wells slated for late‑2025.

Key Details

• Sales Volumes (October 2025)
• Brazil: 2,766 boepd (15.3 MMcfpd gas, 206 bopd NGLs, 18 bopd oil)
• Canada: 157 boepd oil
• Q3 2025 Average Daily Sales: 2,343 boepd (+11% YoY, –4% QoQ)
• Well Performance
• Murucututu 183‑D4 IP30: 1,071 boepd (well‑test)
• Caburé field: 3 of 4 wells completed and on production; fifth well pending regulatory approval.
• Financial Highlights (Three Months Ended Sep 30, 2025)
• Revenue: $14.175 M (+10% YoY)
• Net Income: $4.613 M (‑36% YoY) – impairment losses cited.
• Funds flow from operations: $10.448 M (+6% YoY) → $0.28 per share basic/diluted.
• Operating netback: $55.90/boe (‑6% YoY).
• Capital expenditures: $11.249 M (↑ 137% YoY), primarily well completions and development costs in Brazil & Saskatchewan.
• Pricing
• Realized natural gas price Q3 2025: $11.04/Mcf (+1% YoY)
• Adjusted contract price effective 1 Nov 2025: BRL 1.81/m³ → $10.15/Mcf (‑8% vs. Q3).
• Liquidity
• Working capital surplus: $2.209 M (down from $15.848 M YoY).
• Cash & cash equivalents: $12.081 M (‑51% YoY).
• Future Development
• Expanded AMI area: Alvopetro to fund 100% of two earning wells, earn 50% working interest in additional 46.9 sections (15,010 net acres); drilling expected late 2025.
• Planned fifth Caburé well sidetrack due to technical challenges; timing for sixth development well pending approvals.
• Webcast & Presentation
• Q3 2025 results webcast scheduled for 6 Nov 2025, 8:00 am MT.
• Updated corporate presentation available on company website.

Notable Quotes

“Our sales in Brazil in October averaged 2,766 boepd, a 34% increase from September… This result helps strengthen our longer‑term growth plans in Brazil.” – Corey C. Ruttan, President & CEO.