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Alvopetro Energy Ltd. (TSXV: ALV,OTC:ALVOF) (OTCQX: ALVOF) announces September sales volumes of 2,231 boepd (based on field estimates), our updated quarterly natural gas pricing, the disposition of our Bom Lugar and Mãe da Lua marginal oil fields in Brazil an expansion of our inventory of Mannville Stack focused opportunities in Western Saskatchewan and details of the expected timing of the release of our Q3 2025 financial results and our Q3 2025 earnings call.
September 2025 Sales Volumes
In Brazil , September sales volumes averaged 2,069 boepd, including natural gas sales of 11.3 MMcfpd, associated natural gas liquids sales from condensate of 180 bopd and oil sales of 9 bopd. The large contribution of production from our 100% Murucututu field in September relates to our 183-D4 well which commenced production later in August. Over the first 30 days of production (IP30), the 183-D4 well produced at an average rate of 5.8 MMcfpd (165 e 3 m 3 /d) and 97 bopd of condensate, for aggregate production from the well of 1,071 boepd. Our sales were mainly driven by reduced demand from Bahiagas in September. As a result, we reduced our Caburé production levels during this period in response to this level of demand and the results from the 183-D4 well. Starting October 1 st , Alvopetro has agreed to a spot contract to facilitate increased flexible demand from Bahiagas at variable discounts to our firm natural gas price. Natural gas deliveries in Brazil from October 1 st to 6 th averaged 17.3 MMcfpd (490 e 3 m 3 /d), a 54% increase from September levels. Natural gas demand is currently being impacted by recent electricity interruptions in Bahia's main industrial complex and we expect October natural gas deliveries to average closer to our firm contracted volumes of 14 MMcfpd (400 e 3 m 3 /d).
In Canada , September sales volumes averaged 162 bopd. We commenced early production from our most recently drilled two multi-lateral wells (1.0 net) at Big Gully that were drilled with an aggregate of over 19 kilometers of open hole reservoir contact.
| Natural gas, NGLs and crude oil sales: | September 2025 | August 2025 | Q3 2025 | Q2 2025 |
| Brazil: | | | | |
| Natural gas (Mcfpd), by field: | | | | |
| Caburé | 5,457 | 9,515 | 8,762 | 11,811 |
| Murucututu | 5,818 | 3,183 | 3,531 | 1,191 |
| Total natural gas (Mcfpd) | 11,275 | 12,698 | 12,293 | 13,002 |
| NGLs (bopd) | 180 | 132 | 147 | 128 |
| Oil (bopd) | 9 | 9 | 9 | 3 |
| Total (boepd) – Brazil | 2,069 | 2,257 | 2,205 | 2,298 |
| Canada: | | | | |
| Oil (bopd) – Canada | 162 | 118 | 138 | 138 |
| Total Company – boepd (1) | 2,231 | 2,375 | 2,343 | 2,436 |
| |
| (1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
Quarterly Natural Gas Pricing Update
Effective November 1, 2025 , our natural gas price under our long-term gas sales agreement was adjusted to BRL1.81 /m 3 and will apply to firm (up to 400,000 m 3 /d) natural gas sales from November 1, 2025 to January 31, 2026 . Based on our average heat content to date and the September 30, 2025 BRL/USD exchange rate of 5.32, our expected realized price at the new contracted price is $10.27 /Mcf, net of applicable sales taxes, a decrease of 3% from the Q2 2025 realized price of $10.62 /Mcf due mainly to lower Henry Hub prices in the third quarter. Amounts ultimately received in equivalent USD will be impacted by exchange rates in effect during the period November 1, 2025 to January 31, 2026 . Natural gas sales above 400,000 m 3 /d are currently being sold on a flexible basis under spot contracts at discounts to our firm contracted price.
Mannville Stack Expansion – Western Saskatchewan
Alvopetro has entered into a new agreement to expand our current area of mutual interest ("AMI") with our existing partner. Under the terms of the expanded AMI, Alvopetro has agreed to fund 100% of the drilling of two earning wells to earn a 50% working interest in an additional 46.9 sections of land (15,010 net acres). These two earning wells are expected to be drilled near the end of the year and after drilling, Alvopetro will have a 50% interest in 74.4 sections of land (23,810 net acres) focused on the Mannville Stack heavy oil play fairway in Western Saskatchewan . This additional farmin significantly expands our inventory of open hole multilateral drilling opportunities and solidifies our multi-year business strategy for this technology and play fairway.
Non-Core Dispositions
Alvopetro has entered into an assignment agreement to dispose of its interests in the Bom Lugar and Mãe da Lua oil fields in Brazil for total consideration of up to $0.6 million , including deferred consideration. The effectiveness of the assignment is subject to standard regulatory approvals, including approval by the ANP.
Oil sales from these fields averaged 8 bopd to date in 2025. In the independent reserves and resources assessment and evaluation prepared by GLJ Ltd. ("GLJ") dated February 26, 2025 with an effective date of December 31, 2024 , GLJ assigned total proved developed producing reserves of 4 Mboe (NPV10BT of negative $0.4 million ), total proved reserves of 150 Mboe (NPV10BT of $3.3 million ), and total proved plus probable reserves of 463 Mboe (NPV10BT of $7.8 million ) to these fields. In connection with the disposition, the purchaser will assume all abandonment liabilities associated with the fields. As of June 30, 2025 , Alvopetro had recognized $0.3 million of decommissioning obligations related to these non-core assets.
Q3 2025 Results Webcast
Alvopetro expects to announce its Q3 2025 financial results on Wednesday, November 5, 2025 after markets close. Alvopetro will host a live webcast to discuss the results at 8:00 am Mountain time on Thursday November 6, 2025. Details for joining the event are as follows:
DATE: November 6, 2025
TIME: 8:00 am Mountain time / 10:00 am Eastern time
LINK: https://us06web.zoom.us/j/87150507093
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kdj0o8mYOS
The webcast will include a question and answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com .
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:
X - 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 |
| e 3 m 3 /d | = | thousand cubic metre per day |
| m 3 | = | cubic metre |
| m 3 /d | = | cubic metre per day |
| Mboe | = | thousand barrels of oil equivalent |
| 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) |
| NPV10BT | = | net present value before tax discounted at 10% |
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.
Contracted Firm Volumes
The 2025 contracted daily firm volumes of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents volumes based on contract referenced natural gas heating value. Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro's natural gas, which is approximately 7.8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371 e 3 m 3 /d (13.1MMcfpd).
Well Results
Initial production results from the 183-D4 well should be considered preliminary. There is no representation by Alvopetro that the initial production results relating to the 183-D4 well contained in this press release are 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.
Reserves
The reserves data referenced herein for the Bom Lugar and Mãe da Lua oil fields is based on an independent reserves and resources assessment and evaluation prepared by GLJ dated February 26, 2025 with an effective date of December 31, 2024 (the "GLJ Reserves and Resources Report"). The GLJ Reserves and Resources Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook" or "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 net present value of future net revenue attributable to Alvopetro's reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures, well abandonment and reclamation costs for only those wells assigned reserves and material dedicated gathering systems and facilities for only those wells assigned reserves by GLJ respectively. The reserves data included herein represents only a portion of Alvopetro reserves. Full disclosure with respect to the Alvopetro's reserves as at December 31, 2024 is included in the annual information form for the year-ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ). It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Alvopetro's reserves estimated by GLJ represent the fair market value of those reserves. Actual reserves may be greater than or less than the estimates provided herein.
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 the future expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, future production and sales volumes, plans relating to the Company's operational activities, proposed development activities and the timing for such activities, anticipated dispositions of certain assets, including conditions and timing of closing and proceeds anticipated to be received on such dispositions, as well as the expected timing of release of quarterly results. 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.
www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF
SOURCE Alvopetro Energy Ltd.
View original content: http://www.newswire.ca/en/releases/archive/October2025/07/c5381.html
