Alvopetro unit arranges $20-million (U.S.) loan

Mr. Corey Ruttan reports ALVOPETRO ANNOUNCES $20 MILLION CREDIT FACILITY Alvopetro Energy Ltd.'s wholly owned subsidiary, Alvopetro SA Extracao de Petroleo e Gas Natural, has entered into a $20-million (U.S.) loan agreement with Itau BBA International PLC. The credit facility has a two-year term and bears interest at a fixed rate of 7 per cent per annum (payable quarterly), including all applicable charges and fees. The credit facility has a 12-month grace period upon which the loan is to be repaid in quarterly instalments commencing on Nov. 30, 2026, and ending on Nov. 29, 2027. In connection with the credit facility, Alvopetro SA has entered into a standby letter of credit with Itau Unibanco SA in Brazil and Alvopetro has agreed to enter into a guarantee agreement, guaranteeing the obligations of Alvopetro SA under both the credit facility and the standby letter of credit. Proceeds from the credit facility will be used to finance planned capital programs and for general corporate purposes. The credit facility includes customary financial covenants relating to the payment of dividends by Alvopetro, which are not expected to impact Alvopetro's current stakeholder return and capital allocation model. President and chief executive officer Corey C. Ruttan commented: "This credit facility provides Alvopetro with significant additional financial flexibility, allowing us to accelerate our capital programs focused on high-rate-of-return growth opportunities in Brazil and the Western Canadian sedimentary basin. These opportunities underpin our disciplined capital allocation model, balancing growth and returns to stakeholders." Alvopetro Energy is deploying a balanced capital allocation model, where the company 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 the company is building off the strength of its Cabure and Murucututu natural gas fields and the related strategic mid-stream infrastructure. We seek Safe Harbor.