Alvopetro Announces September 2025 Sales Volumes, Quarterly Natural Gas Price Update, Non-Core Disposition and Western Canadian Expansion

Executive Summary

• Alvopetro reported September 2025 total sales volumes of 2,231 boepd (Brazil 2,069 boepd; Canada 162 boepd) and highlighted strong early production from the 183‑D4 well (5.8 MMcfpd gas & 97 bopd condensate).
• The company updated its long‑term natural‑gas price to BRL 1.81/m³ (≈ $10.27/Mcf) effective 1 Nov 2025, a 3% decrease versus Q2 2025 realized pricing.
• Alvopetro entered an agreement to fund 100% of drilling two earning wells in Western Saskatchewan, earning a 50% working interest in an additional 46.9 sections (15,010 net acres) and expanding its Mannville Stack inventory to 74.4 sections (23,810 net acres).
• An assignment agreement was signed to dispose of the Bom Lugar and Mãe da Lua oil fields in Brazil for up to $0.6 M (including deferred consideration).

Key Details

• September 2025 Sales Volumes – Brazil: 2,069 boepd (11.3 MMcfpd gas, 180 bopd NGLs, 9 bopd oil); Canada: 162 bopd oil from two new multi‑lateral wells at Big Gully.
• 183‑D4 Well Performance – First 30 days produced average 5.8 MMcfpd (165 e³m³/d) gas and 97 bopd condensate; total IP30 production ≈ 1,071 boepd.
• Natural‑Gas Pricing Update – New contract price BRL 1.81/m³ → $10.27/Mcf (net of taxes), covering up to 400,000 m³/d (≈ 13.1 MMcfpd) from 1 Nov 2025 to 31 Jan 2026; spot sales above this volume remain on a discount basis.
• Mannville Stack Expansion – Funding agreement for two earning wells; after drilling Alvopetro will hold 50% working interest in an additional 46.9 sections (15,010 net acres), bringing total Mannville Stack acreage to 74.4 sections (23,810 net acres). Drilling expected late 2025.
• Non‑Core Asset Disposition – Assignment of Bom Lugar and Mãe da Lua fields for up to $0.6 M (including deferred consideration); purchaser assumes all abandonment liabilities; fields produced ~8 bopd in 2025.
• Reserves Summary (GLJ Assessment) – For the disposed fields: 4 Mboe proved developed producing reserves (NPV10BT −$0.4 M), 150 Mboe proved reserves (NPV10BT $3.3 M), 463 Mboe proved + probable (NPV10BT $7.8 M).
• Q3 2025 Results & Webcast – Financial results to be released 5 Nov 2025 after markets close; webcast on 6 Nov 2025 at 08:00 am MT (link provided).

Notable Quotes

• “Alvopetro is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders.” – CEO/President Corey C. Ruttan

Materiality Assessment: Non‑Material – Neutral (operational update without disclosed earnings impact).