Alvopetro Announces May 2025 Sales Volumes and an Operational Update including 183-D4 Well Results

Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces May 2025 sales volumes and an operational update, including results from our 183-D4 well. Based on cased hole logs and logs while drilling, the well encountered 61 metres total vertical depth ("TVD") potential net natural gas pay in the Caruaçu Formation 106 metres updip of our 183-A3 well.

President & CEO, Corey C. Ruttan commented:

"May sales included the first full month of production from our first two wells drilled in Western Canada averaging 346 bopd gross (173 bopd net), exceeding our pre-farmin expectations and we are looking forward to drilling our next two wells here starting this summer. We are also encouraged by our 183-D4 results and expect to have this well on production in Q3 to fuel continued production growth in Brazil ."

May Sales Volumes

Natural gas, NGLs and crude oil sales:	May 2025	April 2025	Q1 2025
Brazil:
Natural gas (Mcfpd), by field:
Caburé	10,800	12,636	11,710
Murucututu	1,500	844	2,093
Total natural gas (Mcfpd)	12,300	13,480	13,803
NGLs (bopd)	111	126	135
Oil (bopd)	-	-	10
Total (boepd) – Brazil	2,161	2,373	2,446
Canada:
Oil (bopd) – Canada	173	90	-
Total Company – boepd ⁽¹⁾	2,334	2,463	2,446

(1)

Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.

May sales volumes in Brazil averaged 2,161 boepd, including natural gas sales of 12.3 MMcfpd and associated natural gas liquids sales from condensate of 111 bopd, based on field estimates. Sales volumes decreased 9% compared to April due to turnarounds at both Alvopetro facilities and Bahiagás end user plants, which impacted demand in the month. In Canada , with a full month of production in May, Alvopetro's net 50% share of oil sales volumes increased to 173 bopd, bringing the Company's total sales to 2,334 boepd, based on field estimates.

Operational Update

183-D4 Well Results

We have now completed the sidetrack and drilling of our 183-D4 well on our 100% Murucututu natural gas field. The well was drilled to a total measured depth of 3,072 metres and has been cased and cemented. The well encountered the Caruaçu Member of the Maracangalha Formation 106 metres structurally updip of our 183-A3 success.

Based on cased-hole gamma ray logs and normalized gas while drilling, the well encountered potential natural gas pay in the Caruaçu Member of the Maracangalha Formation, with an aggregate 61 metres of potential natural gas pay between 2,439 and 2,838 meters TVD.

Based on these drilling results, we plan to complete the well in up to 5 intervals and expect the well to be on production to the field production facility in the third quarter.

Caburé Unit Development Drilling Program

Our planned Caburé Unit development drilling program has commenced. The first well has now been spud and we expect to have four wells drilled by the end of the third quarter.

Western Canadian Capital Plan

In Western Canada , well pad construction for our next two wells has commenced and we expect the wells to be drilled in the third quarter.

Annual General Meeting

Alvopetro's annual general and special meeting (the "Meeting") will be held on Wednesday, June 18, 2025 at the offices of Torys LLP (Suite 4600, 525 8 ^th SW, Calgary, Alberta ) beginning at 9:30 a.m. Mountain time. The management information circular and all related materials are available on our website and www.sedarplus.ca .

All interested parties are invited to attend the Meeting. We will also be broadcasting the meeting via live webcast for the interest of all shareholders. Please be advised that shareholders will not be able to vote any shares through this webcast format. Details for joining the event are as follows:

DATE: June 18, 2025
TIME : 9:30 AM Mountain/ 11:30 AM Eastern
LINK: https://us06web.zoom.us/j/89512204386
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kenh5nLlte
WEBINAR ID : 895 1220 4386

Corporate Presentation

Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter - https://x.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd

Alvopetro Energy Ltd. 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. 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 we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Abbreviations:
boepd	=	barrels of oil equivalent ("boe") per day
bopd	=	barrels of oil and/or natural gas liquids (condensate) per day
BRL	=	Brazilian Real
Mcf	=	thousand cubic feet
Mcfpd	=	thousand cubic feet per day
MMcf	=	million cubic feet
MMcfpd	=	million cubic feet per day
NGLs	=	natural gas liquids (condensate)

BOE Disclosure

The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Well Results

Data obtained from the 183-D4 well identified in this press release, including hydrocarbon shows, cased-hole logging data, and potential net pay should be considered preliminary until testing, detailed analysis and interpretation has been completed. Hydrocarbon shows can be seen during the drilling of a well in numerous circumstances and do not necessarily indicate a commercial discovery or the presence of commercial hydrocarbons in a well. There is no representation by Alvopetro that the data relating to the 183-D4 well contained in this press release is necessarily indicative of long-term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.

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", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning potential net natural gas pay in the 183-D4 well and expectations regarding future completion plans for the well as well as timing of production commencement from the well, future production and sales volumes, plans relating to the Company's operational activities, and other exploration and development activities in both Canada and Brazil and the timing for such activities. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and 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. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. 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. 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 factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca . 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.

SOURCE Alvopetro Energy Ltd.

View original content: http://www.newswire.ca/en/releases/archive/June2025/10/c2914.html

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Alvopetro Energy

Integrated natural gas and energy growth platform in Brazil and Canada

Integrated natural gas and energy growth platform in Brazil and Canada Keep Reading...

Investor Insight

Alvopetro Energy is building a diversified energy growth platform anchored by its high-margin integrated natural gas business in Brazil and an expanding heavy oil position in Western Canada. Supported by strategic infrastructure, premium-linked gas pricing and disciplined capital allocation, the company combines production growth, strong cash flow generation and shareholder returns.

Overview

Alvopetro Energy ( (TSXV:ALV;OTCQX:ALVOF) is an independent energy company focused on developing high-value natural gas assets in Brazil while expanding into complementary heavy oil opportunities in Western Canada. The company has established a differentiated business model through the integration of upstream production, owned infrastructure and long-term gas sales agreements, positioning it as a leading participant in Brazil’s emerging onshore natural gas market.

Map of Brazil and Canada showing Alvopetro Energy projects

Alvopetro’s core operations are located in the Recôncavo Basin in the state of Bahia, one of Brazil’s most established hydrocarbon-producing regions. The area benefits from attractive fiscal terms, low royalty rates and proximity to major industrial demand centers. Through its long-term gas sales agreement with Bahiagás, the company receives pricing linked to Brent oil and Henry Hub natural gas benchmarks, supporting premium realized natural gas pricing and stable cash flow generation.

The company has delivered strong operating and financial performance since commencing production in 2020. In Q1 2026, Alvopetro generated $17.4 million in revenue and $12.5 million in funds flow from operations while maintaining an operating netback margin of 84 percent. Its disciplined capital allocation model balances reinvestment into growth projects with direct shareholder returns through dividends, debt reduction and share repurchases.

Map showing Alvopetro Energy's pipelines, fields, and facilities in Brazil with labels like Bahia Gas City Gate and Murucututu Project.

Alvopetro is also advancing a Western Canadian heavy oil growth platform targeting the Mannville Stack fairway across Saskatchewan and Alberta. The company is applying open-hole multilateral drilling technology to improve drilling efficiencies and project economics across a large inventory of development opportunities. Backed by an experienced management team with extensive international operational expertise, Alvopetro is positioned for long-term production and cash flow growth across both Brazil and Canada.

Company Highlights

Integrated Brazilian Gas Platform: Alvopetro is Brazil’s first integrated onshore natural gas producer, combining upstream production, owned midstream infrastructure and long-term gas commercialization.
Strong Financial Performance: Q1 2026 production averaged 3,128 boepd, generating $17.4 million in revenue and $12.5 million in funds flow from operations.
High-Margin Operations: The company achieved a Q1 2026 operating netback of $52.12/boe and an operating netback margin of 84 percent.
Large Reserve and Resource Base: Alvopetro reported 2P reserves of 13.1 MMboe with a before-tax NPV10 of $393.6 million and after-tax NPV10 of $312.4 million.
Premium Gas Pricing Exposure: Natural gas pricing under the company’s long-term sales agreement is linked to Brent and Henry Hub benchmarks, supporting premium realized pricing. Forecasted natural gas prices of over $11/Mcf, increasing to over $13/Mcf in August 2026.
Strategic Infrastructure Ownership: Alvopetro owns an 11-kilometre transfer pipeline and the UPGN gas processing facility with capacity exceeding 18 MMcfpd.
Canadian Growth Platform: The company holds a 50 percent interest in 101 sections (32,273 net acres) in the Mannville Stack heavy oil fairway with over 100 Tier 1 drilling locations identified.
Disciplined Shareholder Returns: Since July 2020, 47 percent of funds flow from operations has been returned to stakeholders through dividends, debt reduction and share repurchases.

Key Projects

Caburé Gas Field

Map showing pipelines with highlighted fields and pathways.at Alvopetro Energy's Cabure field

Caburé is Alvopetro’s flagship natural gas asset and historically the company’s largest producing field. The project is a joint development across four blocks, with Alvopetro holding a 56.2 percent working interest following the 2024 redetermination process. The unitized development currently includes 12 wells and associated production infrastructure.

Gross field production capacity at Caburé has increased by 33 percent to 21.2 MMcfpd (600 e3m3/d), supported by ongoing development drilling and infrastructure expansion. Four additional wells were drilled in 2025, and the 2026 development program includes plan to sidetrack the CBEL-1D well.

Caburé is strategically connected to Alvopetro’s owned transfer pipeline and UPGN gas processing facility, enabling efficient gas processing and commercialization. The field generates premium-priced natural gas sales under the company’s long-term agreement with Bahiagás, supporting stable cash flow and high operating margins.

Murucututu Gas Project

A map showing the boundary for Alvopetro Energy's Murucututu with existing Pipeline, Existing PAD, Existing Well, Future Pipeline, Future PAD, Future Well, Murucututu.

Murucututu is a 100 percent-owned Alvopetro natural gas asset located immediately north of Caburé and represents the company’s primary organic growth platform in Brazil. Independent evaluators assigned the project 2P reserves of 8.9 MMboe, risked best estimate contingent resources of 3.8 MMboe and risked best estimate prospective resources of 12.1 MMboe as of December 31, 2025.

The project continues to demonstrate strong development potential through successful drilling results. Following the success of the 183-A3 and 183-D4 wells, Alvopetro is currently drilling the 183-D1 Caruaçu development well as part of a broader multi-year development strategy targeting the Caruaçu and Gomo formations.

To support future production growth, Alvopetro is expanding Murucututu field infrastructure capacity to 600 e3m3/d (21.2 MMcfpd). Planned upgrades include pipeline looping, expansion of field production facilities and construction of the G-Pad development area to support multiple future drilling locations.

Western Canadian Growth Platform

Alvopetro’s Western Canadian business targets the Mannville Stack heavy oil fairway in Saskatchewan and Alberta. The company holds a 50 percent interest in 101 sections representing 32,273 net acres alongside an experienced operating partner.

The Mannville Stack fairway offers shallow drilling depths, lower geological risk and attractive drilling economics enhanced by open-hole multilateral drilling technology. Alvopetro currently has seven gross wells on production and has identified more than 100 Tier 1 drilling locations across its acreage position.

The company reported Canadian 2P reserves of 735 Mboe with a before-tax NPV10 of C$12.1 million and eight undeveloped drilling locations booked at year-end 2025 (4.0 net to Alvopetro). The Canadian platform complements Alvopetro’s Brazilian gas business by adding long-term production growth and commodity diversification.

Management Team

Corey C. Ruttan - President, CEO and Director

Corey C. Ruttan has over 30 years of oil and gas industry experience and previously served as president and CEO of Petrominerales until its acquisition by Pacific Rubiales Energy in 2013 and also held senior executive positions at Petrobank Energy and Resources. Ruttan brings extensive experience in international oil and gas operations, finance and corporate growth strategy.

Alison Howard - CFO

Alison Howard is a chartered accountant with more than 20 years of experience in taxation, accounting and finance across Canadian and international energy markets. Before joining Alvopetro, she held senior finance and tax roles at Petrominerales and Petrobank Energy and Resources.

Adrian Audet - Vice-president, Asset Management

Adrian Audet has held progressively senior operational roles with Alvopetro since 2013. He has extensive experience overseeing operations in Bahia, Brazil, with a strong focus on operational efficiency, production optimization and cost management.

Nanna Eliuk - Exploration Manager

Nanna Eliuk is a professional geophysicist with more than 23 years of international petroleum exploration and development experience. Her expertise spans conventional and unconventional reservoirs across multiple global basins.

Darcy Reynolds – Western Canada Business Unit Lead

Darcy Reynolds is a professional geoscientist with over 20 years of subsurface and asset evaluation experience across Western Canada. He has a strong track record in leading large-scale drilling programs, driving acquisitions and divestitures, providing subsurface technical assurance, and shaping strategic decision-making.

Frederico Oliveira - Brazil Country Manager

Frederico Oliveira has held senior leadership roles with Alvopetro since 2008, overseeing operations, regulations, partnerships and strategic execution in Brazil. His background includes operational efficiency improvements, project implementation and corporate management.