Alvopetro Energy

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.

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.

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

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

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.