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

Mr. Corey Ruttan reports ALVOPETRO ANNOUNCES PRODUCTION RESULTS FROM MURUCUTUTU 183-D4 WELL AND AN OPERATIONAL UPDATE Alvopetro Energy Ltd. has released initial production results from its recently completed 183-D4 Murucututu well (100-per-cent working interest) and an operational update. President and chief executive officer Corey C. Ruttan commented: "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." Operational update Brazil On the company's 100-per-cent-owned Murucututu field, the 183-D4 well was drilled in the second quarter to a total measured depth of 3,072 metres. The well encountered the Caruacu member of the Maracangalha formation 106 metres structurally updip of its 183-A3 well, which has been on production since the fourth quarter of 2024. Based on cased-hole gamma ray logs and normalized gas while drilling, the well encountered potential natural gas pay in the Caruacu member of the Maracangalha formation, with an aggregate 61-metre total vertical depth of potential natural gas pay between 2,439 and 2,838 metres TVD. The company completed the well in seven intervals. The well went through an initial 116-hour cleanup period, recovering 2,620 barrels of completion fluid and 132 barrels of natural gas liquids. After this initial cleanup period, the company flowed the well for 70 hours at a constant 32/64th-of-an-inch choke at an average rate of 162,000 cubic metres per day (5.7 million cubic feet per day, 953 barrels of oil equivalent per day) with a 1,401-pound-per-square-inch flowing wellhead pressure. During this period, the company also recovered a total of 995 barrels of completion fluid and 174 barrels of natural gas liquids. Average natural gas liquids (condensate) production during the flow period was 60 boe/d. The flow rate over the past hour was 161,000 cubic metres per day (5.7 MMcfpd, 947 boe/d) with 1,384-pound-per-square-inch flowing wellhead pressure. There are 12,190 barrels of 15,806 barrels of completion fluid left to recover. Given these extremely strong production results, the company is currently producing the Murucututu field from this single well as it is limited by its current facility capacity at Murucututu. As it continues to monitor these initial flow results, it will be evaluating options to improve production capacity of the system to allow for more production from the Murucututu field. Its joint development on the unitized area, which includes its Cabure field, commenced in the second quarter, and four wells (2.2 net) have been drilled. The company has just commenced the completion program and expects to have the additional production on-line by the end of the third quarter. These development wells were primarily drilled to extend and enhance the productive plateau of the unit, and the results will also be incorporated into future unit working interest redeterminations. The timing of drilling the fifth development well (0.6 net) is subject to the receipt of all necessary regulatory approvals. Development activities -- Western Canada In June, the company further expanded its joint Mannville-focused land based on 17,780 gross acres (8,890 net acres), and, in July, two additional multilateral wells (1.0 net) were drilled with an aggregate of over 19 kilometres of open-hole reservoir contact. Both wells have been completed and equipped, and have just commenced production. Following a cleanup flow period, it will commence oil sales from these two new wells. Corporate presentation Alvopetro's updated corporate presentation is available on its website. Alvopetro is deploying a balanced capital allocation model where it seeks to reinvest roughly half its cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil, where it is building off the strength of its Cabure and Murucututu natural gas fields and the related strategic mid-stream infrastructure. We seek Safe Harbor.