ALVOPETRO ENERGY LTD.
The reserves data set forth herein is based on an independent reserve assessment and evaluation prepared by
Both proved reserves and proved plus probable reserves increased 30% to 4.9 mmboe and 7.9 mmboe respectively, primarily due to technical revisions on reserves from the Cabure unitized natural gas field to reflect results of the three new wells drilled in the unit in 2019.
Proved plus probable net present value before tax discounted at 10% increased 37% to
Year over year, net asset value per share increased by 21% to
Operational Update
The majority of Alvopetro's reserves are from the Cabure natural gas field (Alvopetro 49.1% working interest). There were three new wells drilled in 2019 and the field now has a total of seven wells. Six of the wells are now tied into recently expanded production facilities and are ready to deliver Alvopetro's share of natural gas into our
Our
Our natural gas will be sold under our long-term gas sales agreement with Bahiagas, the local distribution company for the
On our deep basin Gomo natural gas project, we completed the stimulation and initial production test of our 183(1) well in January. We expect to retrieve the downhole gauges and complete the pressure transient analysis from this initial test later in March. We are finalizing our permit application to extend our Transfer Pipeline eight kilometres to the north to tie-in the 183(1) well. We expect to commence construction on this pipeline extension in the second half of 2020.
2020 TSX Venture 50
Alvopetro was recently named to the TSX Venture 50, for the second year in a row. The TSX Venture 50 is an annual showcase of top performing companies from five industry sectors. Alvopetro was the top performer in the Energy sector in 2018, and the sixth best in 2019. Alvopetro's share price increased 137% in 2018 and 88% in 2019.
Net Asset Value
Following the
The GLJ Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook ('COGEH') that are consistent with the standards of National Instrument 51-101 ('NI 51-101'). GLJ is a qualified reserves evaluator as defined in NI 51-101. The GLJ Report was an evaluation of all reserves of Alvopetro including our Cabure and Cabure Leste natural gas fields (collectively referred to as our Cabure natural gas field), the Gomo natural gas from the drainage areas around our 183(1) and 197(1) wells, as well as our Bom Lugar and Mae-da-lua oil fields.
Future Development Costs
Under each reserve category, Alvopetro has elected to reflect 100% of the contractual obligations pursuant to our
Forward-Looking Statements and Cautionary Language
This news release contains 'forward-looking information' within the meaning of applicable securities laws. The use of any of the words 'will', 'expect', 'intend' and other similar words or expressions are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward-looking information concerning the plans relating to the Company's operational activities, the expected timing of commencement of gas sales under Alvopetro's long-term gas sales agreement, the Company's reserves, exploration and development prospects of Alvopetro and the expected timing and outcomes of certain of Alvopetro's testing activities. The forward looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to the timing of regulatory licenses and approvals, the success of future drilling, completion, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed through the SEDAR website at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Contact:
Tel: (587) 794-4224
Email: info@alvopetro.com
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