Alvopetro finds 61 m of potential gas pay at 183-D4

Executive Summary

• Alvopetro Energy reported strong initial production results from its 100%-owned Murucututu 183-D4 well in Brazil, achieving record daily natural gas production levels.
• The company provided an operational update on its Brazil unitized area (including Cabure field), where four wells have been drilled and completion programs have commenced, with additional production expected by the end of Q3.
• In Western Canada, two new multilateral wells were completed and have commenced production, with oil sales to begin following a cleanup flow period.

Key Details

• Murucututu 183-D4 Well (Brazil):
  • Drilled in Q2 to a total measured depth of 3,072 metres.
  • Encountered potential natural gas pay in the Caruacu member of the Maracangalha formation, with an aggregate 61-metre total vertical depth of potential pay between 2,439 and 2,838 metres TVD.
  • Well completed in seven intervals.
  • Initial 116-hour cleanup recovered 2,620 barrels of completion fluid and 132 barrels of natural gas liquids.
  • Post-cleanup flow period (70 hours) at a constant 32/64th-of-an-inch choke yielded an average rate of 162,000 cubic metres per day (5.7 MMcfpd, 953 boe/d) with 1,401 psi flowing wellhead pressure.
  • During this flow period, 995 barrels of completion fluid and 174 barrels of natural gas liquids were recovered.
  • Average natural gas liquids (condensate) production during the flow period was 60 boe/d.
  • Current flow rate: 161,000 cubic metres per day (5.7 MMcfpd, 947 boe/d) with 1,384 psi flowing wellhead pressure.
  • 12,190 barrels of completion fluid remain to be recovered (note: text mentions "12,190 barrels of 15,806 barrels", likely indicating a range or typo, but 12,190 is the stated remaining amount).
  • Field is currently limited by facility capacity; company is evaluating options to improve production capacity.
• Brazil Unitized Area (Cabure/Murucututu):
  • Joint development commenced in Q2.
  • Four wells (2.2 net) have been drilled.
  • Completion program has commenced; additional production expected online by end of Q3.
  • Fifth development well (0.6 net) timing subject to regulatory approvals.
• Western Canada Operations:
  • Land expanded in June to 17,780 gross acres (8,890 net acres).
  • Two additional multilateral wells (1.0 net) drilled in July with over 19 kilometres of open-hole reservoir contact.
  • Both wells completed, equipped, and have commenced production.
  • Oil sales to commence following cleanup flow period.
• Corporate Strategy:
  • Balanced capital allocation model: reinvesting ~50% of cash flows into organic growth and returning the other 50% to stakeholders.
  • Focus on geologic prospectivity and fiscal regime in Canada and Brazil.

Notable Quotes

• "The initial results from our 183-D4 well are extremely encouraging and have allowed us to post record daily natural gas production levels from our 100-per-cent-owned Murucututu asset. This result reinforces our vision for Murucututu and our long-term growth objectives." — Corey C. Ruttan, President and CEO