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Alvopetro Energy
Investor Insight
Brazil’s expanding natural gas market, supported by an attractive and stable regulatory framework and fiscal regime offers a unique opportunity for Alvopetro Energy to leverage its high-potential assets and growth opportunities as an innovative natural gas company in the state of Bahia.
Overview
Alvopetro Energy (TSXV:ALV;OTCQX:ALVOF) is a pioneering independent natural gas producer in Brazil. The company was the first to deliver sales-specified natural gas onshore to the local distribution network previously dominated by the state oil company. This milestone, achieved on July 5, 2020, marked the beginning of a new era in Brazil's gas market.
As an independent upstream and midstream operator, Alvopetro engages in the acquisition, exploration, development and production of natural gas and oil. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which cover an area of over 22,000 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy was incorporated in 2013 and is headquartered in Calgary, Canada.
State of Bahia – Reconcavo Basin
Alvopetro adheres to a balanced capital allocation model, reinvesting half of its funds flow from operations in organic growth opportunities while returning the remaining 50 percent back to stakeholders (through dividends, debt and interest payments and capital lease payments). Since production came online in July of 2020, funds flow from operations has reached ~$156 million with 43 percent being reinvested into capital expenditure initiatives, 48 percent being returned to stakeholders, and 9 percent going back to strengthening the company’s balance sheet.
Alvopetro continues to focus on minimizing its environmental impact, responsibly supplying energy, and having a positive influence on the communities where it operates. Alvopetro currently invests in various voluntary social programs that have been well received by the community. The company’s focus has been on the sustainable development of its rural communities, entrepreneurship, education, cultural and sporting activities, as well as biodiversity preservation.
Company Highlights
- Alvopetro is a leading independent upstream and midstream gas operator in the state of Bahia, Brazil.
- The company’s strategy is focused on unlocking Brazil’s on-shore natural gas potential, building off the development of its Caburé and Murucututu natural gas fields strategic midstream infrastructure.
- Over 95 percent of Alvopetro’s production is from natural gas and the company has a 2P reserve base of 9.6 MMboe.
- The company boasts high operating netbacks and profitability per unit of production, setting it apart from its Latin American and North American peers. The state of Bahia boasts a favorable fiscal regime with low royalties and a 15 percent income tax rate.
Key Projects
Caburé
The company’s flagship Caburé asset (56.2 percent Alvopetro) delivers the majority of Alvopetro’s current production. The project is a joint development (the unit) of a conventional natural gas discovery across four blocks, two of which are held by Alvopetro and two of which are held by its partner, with Alvopetro’s working interest being 56.2 percent following the first redetermination. The unit currently includes eight existing wells, with all production facilities already in place. The resource is well defined with 3D seismic surveys, particularly on the eastern side of a main bounding fault that runs roughly north-south through the Caruaçu formation. The company plans to drill an additional five wells in 2025 to further improve the productive capacity of the field.
Midstream – Infrastructure and marketing (100 percent Alvopetro)
All of Alvopetro’s natural gas produced from Caburé and Murucututu are shipped via 100 percent owned and operated natural gas pipelines to Alvopetro’s natural gas processing facility (UPGN). At the UPGN, the natural gas goes through a mechanical refrigeration process, with condensate and water removed during the process, and condensate then gets trucked out and sold at a premium to Brent. The natural gas gets delivered to a receiving station (city gate) that was built by the company’s offtaker, Bahiagás, the distribution company for the State of Bahia.
The gas then gets shipped via a newly built 15 km distribution pipeline to the Camacari industrial complex (~17.5 km away), where the vast majority of the natural gas in the state of Bahia gets consumed.
Natural gas is sold to Bahiagas under a long-term gas sales agreement, with pricing set quarterly based on Brent and Henry Hub benchmark prices. Alvopetro recently announced an updated gas sales agreement effective January 1, 2025, increasing firm sales volumes by 33 percent.
Organic Growth Opportunities
Maximizing the Gas Plant
In the near-to-mid term, Alvopetro has a goal to maximize its gas plant capacity to 18 million cubic feet per day (or 3,000 barrels of oil equivalent per day), with a plan to double its capacity in the coming years through both ongoing development at the Caburé Unit and a multi-year development of the Murucututu field.
Unit Development
Alvopetro’s working interest in the Caburé Unit was recently increased from 49.1 percent to 56.2 percent and as a result, Alvopetro is now entitled to higher production entitlements from the Unit. In addition, with the unit development drilling activities planned to commence in 2025, the overall productive capacity of the Unit is targeted to increase.
Murucututu Gas
Alvopetro’s Murucututu asset (100 percent owned) sits immediately north of Caburé. Independent reserve estimators, GLJ, highlight the potential for this field with 2P reserve totaling 4.6 million barrels of oil equivalent, risked best estimate contingent resource of 5.4 million barrels of oil equivalent and risked best estimate prospective resource of 9.6 million barrels of oil equivalent representing a significant addition to the company’s current 2P reserve base.
Alvopetro Energy finished the recompletion of its 183-A3 well in the third quarter of 2024. The well came on production in September prompting the company’s natural gas sales from the Murucututu field in Q4 2024 to increase by 262 percent compared to Q3 2024. The company has a follow-up well planned for the field in early 2025.
Management Team
Corey C. Ruttan – President, Chief Executive Officer and Director
Corey C. Ruttan is the president, chief executive officer and director of Alvopetro. He was the president and CEO of Petrominerales, from May 2010 until it was acquired by Pacific Rubiales Energy in November 2013. Prior to that, he was the vice-president of finance and chief financial officer of Petrominerales. From March 2000 to May 2010, Ruttan was the senior vice-president and chief financial officer of Petrobank Energy and Resources, and held increasingly senior positions with Petrobank since its inception in 2000. He also served as executive vice-president and chief financial officer of Lightstream Resources from October 2009 to May 2010; served as vice-president of Caribou Capital from June 1999 to March 2000; and manager financial reporting of Pacalta Resources from May 1997 to June 1999. He began his career at KPMG where he worked from September 1994 to May 1997. Ruttan obtained his Bachelor of Commerce degree majoring in accounting from the University of Calgary in 1994 and his chartered accountant designation in 1997.
Alison Howard – Chief Financial Officer
Alison Howard is a chartered accountant with over 20 years of experience in Canadian and international taxation, accounting and finance. Howard joined Petrominerales in July 2011 as a tax manager and was subsequently promoted to tax director. From May 2008 to July 2011, Howard was the tax manager at Petrobank Energy and Resources. Prior to that, Howard spent a number of years at Deloitte LLP in Calgary. She obtained her Bachelor of Commerce degree from the University of Saskatchewan in 1999.
Adrian Audet – VP, Asset Management
Adrian Audet joined Petrominerales in 2013 and has held increasingly senior roles with Alvopetro since its inception. Audet has spent extensive time in Bahia overseeing the operations, realizing extensive cost savings and improvements in efficiency. Previously, Audet held engineering roles with increasing responsibility in the oil and gas industry. Audet began his career in 2006 and completed his masters and undergraduate degrees in mechanical engineering at the University of Alberta. Audet is a professional engineer registered with APEGA and is a CFA charterholder.
Nanna Eliuk – Exploration Manager
Nanna Eliuk is a professional geophysicist (M.Sc.) with over 23 years of diversified petroleum exploration and development experience. She has expertise in conventional and unconventional plays in both carbonate and clastic reservoirs in different depositional and structural settings (including pre-salt) in various basins around the world. Prior to joining Alvopetro, Eliuk was the senior explorationist of Condor Petroleum (Kazakhstan) for two years, and prior thereto, she was the vice-president of geophysics and land for Waldron Energy. Eliuk started her career in 1997, holding progressively senior roles at Husky Energy for five years, and at Compton Petroleum for over six years. Her extensive experience includes geophysical evaluation and analysis for business development opportunities and new ventures in various international basins, along with regional mapping, play fairway analysis, petroleum system evaluation, prospect definition, and seismic attribute analysis. Eliuk holds a masters degree in geology and geophysics, and a BSc. in geology.
Frederico Oliveira – Country Manager
Frederico Oliveira has held increasingly senior roles since 2008 and has expertise in regulations, contracts, partnerships, management and cost efficiency. He has held management roles in large private companies in Brazil, performing strategic planning, project implementation, process restructuring, efficiency and productivity improvements, and cost control. Oliveira obtained an MBA from the Federal University of Minas Gerais in 2004 and a Bachelor of Science degree in Mechanical Engineering from the Pontificia Universidade Catolica de Minas Gerais.
Leading independent upstream and midstream gas developer in Brazil
Alvopetro Announces an Operational Update, Q1 2025 Financial Results and Details for our Upcoming AGM
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces an operational update, financial results for the three months ended March 31, 2025 and details for both our Q1 2025 earnings call and our upcoming annual general and special meeting.
All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
President & CEO, Corey C. Ruttan commented:
"A 41% increase in Q1 2025 sales volumes provides a strong start to the year and we are well positioned for an exciting organically funded 2025 capital program. We now have the ability to invest in high rate of return opportunities in Brazil and the Western Canadian Sedimentary Basin. Our first two wells in Canada are exceeding expectations and we are looking forward to an expanding capital program including a strong inventory of oil drilling locations. These new opportunities further strengthen our disciplined capital allocation model, balancing returns to stakeholders and organic growth."
Operational Update
April Sales Volumes
Natural gas, NGLs and crude oil sales: | April 2025 | March 2025 | Q1 2025 |
Brazil: | |||
Natural gas (Mcfpd), by field: | |||
Caburé | 12,532 | 12,652 | 11,710 |
Murucututu | 945 | 1,877 | 2,093 |
Total natural gas (Mcfpd) | 13,477 | 14,529 | 13,803 |
NGLs (bopd) | 126 | 146 | 135 |
Oil (bopd) | - | 12 | 10 |
Total (boepd) – Brazil | 2,372 | 2,580 | 2,446 |
Canada: | |||
Oil (bopd) – Canada | 90 | - | - |
Total Company – boepd (1) | 2,462 | 2,580 | 2,446 |
(1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
April sales volumes in Brazil averaged 2,372 boepd, including natural gas sales of 13.5 MMcfpd and associated natural gas liquids sales from condensate of 126 bopd, based on field estimates. Murucututu sales volumes were impacted by downtime on the 183-A3 well to complete an intervention to enhance productivity through the isolation of lower intervals. In Canada , the two wells drilled in the first quarter of 2025 came on production in April (50% working interest). After the initial clean-up period, oil sales commenced contributing an additional 90 bopd net to Alvopetro in April and bringing the Company's total sales to 2,462 boepd, based on field estimates, a decrease of 5% compared to March and an increase of 1% compared to Q1.
Quarterly Natural Gas Pricing Update
Effective May 1, 2025 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL2.08 /m 3 , a 7% increase from the February 2025 price of BRL1.95 /m 3 . All natural gas sales from May 1, 2025 to July 31, 2025 will be sold at BRL2.08 /m 3 ( $11.09 /Mcf, net of applicable sales taxes, based on average heat content to date and the April 30, 2025 BRL/USD exchange rate of 5.66).
Development Activities - Brazil
On our 100% Murucututu natural gas field, we spud the 183-D4 well targeting the Caruaçu Formation approximately 110 metres structurally updip of our 183-A3 success. Operational challenges associated with the drilling rig led to significant delays and while drilling the main target Caruaçu intervals we became differentially stuck ultimately resulting in the loss of the bottom hole assembly. We are currently drilling a sidetrack of the lower 680 metres of the well. We estimate total costs for the project of $7.7 million , of which $3.7 million was incurred in Q1 2025.
On the unitized area (the "Unit") which includes the Caburé natural gas field, we have five development wells planned for 2025, with the first wells expected to be drilled starting this quarter.
Western Canadian Strategic Entry
On February 5, 2025 , we announced a new strategic entry into Canada (the "Farmin"). Under the Farmin we agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres of land focused on the Mannville Stack heavy oil resource in Western Saskatchewan . This is currently one of the leading plays in the Western Canadian Sedimentary Basin with high original oil place reservoirs that are being effectively exploited using open hole multilateral drilling technology. Our objective with the strategic entry into Canada was to expand our inventory of highly prospective opportunities but with a differentiated risk profile. The early results from our first two earning wells in Western Canada demonstrate this vision. Within 45 days of finalizing the Farmin, with our partner, we had obtained two well licenses, surface access, constructed two well pads and drilled two multilateral wells with a total of over 15 kilometres of open hole reservoir contact. When we completed the Farmin we had established a gross initial production rate target of 100 to 120 bopd per well. Both earning wells were on production by early April and both are exceeding our pre-Farmin expectations. We have further expanded our joint Mannville focused land base up to 15,861 acres (7,931 acres net) and are looking forward to drilling up to an additional four (2.0 net) multilateral wells through the rest of 2025.
Financial and Operating Highlights – First Quarter of 2025
- Alvopetro's updated long-term gas sales agreement came into effect on January 1, 2025 increasing our contracted firm volumes by 33%. As a result, our average daily sales increased to 2,446 boepd (1) in Q1 2025 (+44% from Q1 2024 and +41% from Q4 2024).
- Our average realized natural gas price decreased to $10.44 /Mcf in Q1 2025 (-17% from Q1 2024 and -1% from Q4 2024), due mainly to the devaluation of the BRL relative to the USD, which depreciated 18% compared to the average rate in Q1 2024. Our overall averaged realized sales price was $63.67 per boe (-16% from Q1 2024).
- With higher sales volumes, our natural gas, oil and condensate revenue increased to $14.0 million (+19% from Q1 2024 and +37% from Q4 2024).
- Our operating netback (2) in the quarter was $50.77 per boe (- $15.39 per boe from Q1 2024 and - $4.32 per boe from Q4 2024), due mainly to additional royalties in the quarter as well as lower realized sales prices. Royalties in the quarter increased to $7.60 per boe due to the recognition of additional gross-overriding royalty ("GORR") applicable on certain properties held by Alvopetro. The computation of the GORR was in dispute with the GORR holders, mainly with respect to the computation on natural gas. Subsequent to March 31, 2025 , Alvopetro received the findings of the appointed arbitral tribunal wherein the tribunal found in favour of the GORR holders. Alvopetro has estimated the additional GORR owing pursuant to the decision and recognized such amount (including inflation) as additional royalties in Q1 2025 as well as the estimated interest owing on the balance outstanding as finance expense. The computation of the additional GORR remains subject to the approval of, and adjustment by, the tribunal.
- We generated funds flows from operations (2) of $9.2 million ( $0.25 per basic share and $0.24 per diluted share), increases of $0.7 million compared to Q1 2024 and $2.3 million compared to Q4 2024 due mainly to higher sales volumes, partially offset by higher royalties and lower realized sale prices.
- We reported net income of $6.1 million , an increase of $1.5 million compared to Q1 2024 due to higher revenues and foreign exchange gains (compared to foreign exchange losses in Q1 2024), partially offset by higher royalties and higher depletion and depreciation.
- On February 5, 2025 , we announced the terms of a Canadian farmin agreement (the "Farmin"), pursuant to which Alvopetro agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres (6,122 net acres) of land in Western Saskatchewan . The two earning wells were drilled in the quarter at a total cost to Alvopetro of $2.6 million . With completion of the two earning wells, Alvopetro's working interest share is now 50%.
- Capital expenditures totaled $8.4 million , including costs for the two wells drilled in Canada , final costs on the 183-B1 re-entry, and costs associated with drilling the 183-D4 well on Alvopetro's 100% Murucututu field.
- Our working capital (2) surplus was $9.7 million as of March 31, 2025 , decreasing $3.4 million from December 31, 2024 .
(1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
(2) Refer to the sections entitled " Non-GAAP and Other Financial Measures ". |
The following table provides a summary of Alvopetro's financial and operating results for the periods noted. The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca .
As at and Three Months Ended March 31, | ||||||
2025 | 2024 | Change (%) | ||||
Financial | ||||||
($000s, except where noted) | ||||||
Natural gas, oil and condensate sales | 14,013 | 11,752 | 19 | |||
Net income | 6,070 | 4,550 | 33 | |||
Per share – basic ($) (1) | 0.16 | 0.12 | 33 | |||
Per share – diluted ($) (1) | 0.16 | 0.12 | 33 | |||
Cash flows from operating activities | 8,817 | 8,213 | 7 | |||
Per share – basic ($) (1) | 0.24 | 0.22 | 9 | |||
Per share – diluted ($) (1) | 0.23 | 0.22 | 5 | |||
Funds flow from operations (2) | 9,222 | 8,513 | 8 | |||
Per share – basic ($) (1) | 0.25 | 0.23 | 9 | |||
Per share – diluted ($) (1) | 0.24 | 0.23 | 4 | |||
Dividends declared | 3,643 | 3,296 | 11 | |||
Per share (1) (2) | 0.10 | 0.09 | 11 | |||
Capital expenditures | 8,375 | 2,439 | 243 | |||
Cash and cash equivalents | 17,264 | 17,450 | (1) | |||
Net working capital (2) | 9,742 | 15,047 | (35) | |||
Weighted average shares outstanding | ||||||
Basic (000s) (1) | 37,312 | 37,282 | - | |||
Diluted (000s) (1) | 37,752 | 37,693 | - | |||
As at and Three Months Ended March 31, | ||||||
2025 | 2024 | Change | ||||
Operations | ||||||
Average daily sales volumes (3) : | ||||||
Natural gas (Mcfpd), by field: | ||||||
Caburé (Mcfpd) | 11,710 | 9,236 | 27 | |||
Murucututu (Mcfpd) | 2,093 | 430 | 387 | |||
Total natural gas (Mcfpd) | 13,803 | 9,666 | 43 | |||
NGLs – condensate (bopd) | 135 | 78 | 73 | |||
Oil (bopd) | 10 | 12 | (17) | |||
Total (boepd) | 2,446 | 1,701 | 44 | |||
Average realized prices (2) : | ||||||
Natural gas ($/Mcf) | 10.44 | 12.57 | (17) | |||
NGLs – condensate ($/bbl) | 81.05 | 87.89 | (8) | |||
Oil ($/bbl) | 64.96 | 65.06 | - | |||
Total ($/boe) | 63.67 | 75.94 | (16) | |||
Operating netback ($/boe) (2) | ||||||
Realized sales price | 63.67 | 75.94 | (16) | |||
Royalties | (7.60) | (2.02) | 276 | |||
Production expenses | (5.30) | (7.76) | (32) | |||
Operating netback | 50.77 | 66.16 | (23) | |||
Operating netback margin (2) | 80 % | 87 % | (8) | |||
Notes:
(1) | Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share. |
(2) | See "Non-GAAP and Other Financial Measures" section within this news release. |
(3) | Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. |
Q1 2025 Results Webcast
Alvopetro will host a live webcast to discuss our Q1 2025 financial results at 8:00 am Mountain time on Thursday May 8, 2025. Details for joining the event are as follows:
DATE: May 8, 2025
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/83279531812 https://us06web.zoom.us/j/84476502014
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kcHhjt9Duj
WEBINAR ID : 844 7650 2014
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 .
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 will be available on our website and www.sedarplus.ca later this month.
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/83279531812 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://twitter.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:
$000s | = | thousands of U.S. dollars |
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) |
Q1 2024 | = | three months ended March 31, 2024 |
Q1 2025 | = | three months ended March 31, 2025 |
Q4 2024 | = | three months ended December 31, 2024 |
USD | = | United States dollars |
GAAP or IFRS | = | IFRS Accounting Standards |
Non-GAAP and Other Financial Measures
This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure . Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are used by management in assessing the Company's financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the " Non-GAAP Measures and Other Financial Measures " section of the Company's MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca .
Non-GAAP Financial Measures
Operating Netback
Operating netback is calculated as natural gas, oil and condensate revenues less royalties and production expenses. This calculation is provided in the " Operating Netback " section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.
Non-GAAP Financial Ratios
Operating Netback per boe
Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent ("boe"). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company's producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the " Operating Netback " section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per boe basis.
Operating netback margin
Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:
Three Months Ended March 31, | ||||
2025 | 2024 | |||
Operating netback - $ per boe | 50.77 | 66.16 | ||
Average realized price - $ per boe | 63.67 | 75.94 | ||
Operating netback margin | 80 % | 87 % | ||
Funds Flow from Operations Per Share
Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:
Three Months Ended March 31, | ||||
$ per share | 2025 | 2024 | ||
Per basic share: | ||||
Cash flows from operating activities | 0.24 | 0.22 | ||
Funds flow from operations | 0.25 | 0.23 | ||
Per diluted share: | ||||
Cash flows from operating activities | 0.23 | 0.22 | ||
Funds flow from operations | 0.24 | 0.23 | ||
Capital Management Measures
Funds Flow from Operations
Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company's ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:
Three Months Ended March 31, | ||||
2025 | 2024 | |||
Cash flows from operating activities | 8,817 | 8,213 | ||
Changes in non-cash working capital | 405 | 300 | ||
Funds flow from operations | 9,222 | 8,513 | ||
Net Working Capital
Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows:
As at March 31 | |||
2025 | 2024 | ||
Total current assets | 25,090 | 24,149 | |
Total current liabilities | (15,348) | (9,102) | |
Net working capital | 9,742 | 15,047 | |
Supplementary Financial Measures
" Average realized natural gas price - $/Mcf " is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company's natural gas sales volumes.
" Average realized NGL – condensate price - $/bbl " is comprised of condensate sales as determined in accordance with IFRS, divided by the Company's NGL sales volumes from condensate.
" Average realized oil price - $/bbl " is comprised of oil sales as determined in accordance with IFRS, divided by the Company's oil sales volumes.
" Average realized price - $/boe " is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company's total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
" Dividends per share " is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.
" Royalties per boe " is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
" Production expenses per boe " is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
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 Natural Gas Volumes
The 2025 contracted daily firm volumes under Alvopetro's long-term gas sales agreement of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents contracted 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 natural gas. Alvopetro's natural gas 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 371e 3 m 3 /d (13.1MMcfpd).
Well Results
There is no representation by Alvopetro that the information contained in this news release with respect to initial production data from the wells drilled in Canada 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 the 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 exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, the anticipated outcome of the GORR dispute, the timing and taxation of dividends and plans for dividends in the future, anticipated timing for upcoming drilling and testing of other wells, and projected financial 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.
SOURCE Alvopetro Energy Ltd.
View original content: http://www.newswire.ca/en/releases/archive/May2025/07/c6827.html
News Provided by Canada Newswire via QuoteMedia
Alvopetro Announces March 2025 Sales Volumes
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces March sales volumes of 2,580 boepd, including natural gas sales of 14.5 MMcfpd, associated natural gas liquids sales from condensate of 146 bopd and oil sales of 12 bopd, based on field estimates, bringing our average daily sales volumes to 2,446 boepd in Q1 2025, up 41% from Q4 2024.
Natural gas, NGLs and crude oil sales: |
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://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube - https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w
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.
All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
Abbreviations:
boepd | = | barrels of oil equivalent ("boe") per day |
bopd | = | barrels of oil and/or natural gas liquids (condensate) per day |
Mcf | = | thousand cubic feet |
Mcfpd | = | thousand cubic feet per day |
MMcfpd | = | million cubic feet per day |
NGLs | = | natural gas liquids |
Q1 2025 | = | three months ended March 31, 2025 |
Q4 2024 | = | three months ended December 31, 2024 |
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 (6Mcf/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.
SOURCE Alvopetro Energy Ltd.
View original content: http://www.newswire.ca/en/releases/archive/April2025/03/c2450.html
News Provided by Canada Newswire via QuoteMedia
Alvopetro Announces Year End 2024 Financial Results, Q1 2025 Dividend of US$0.10/share and Filing of our AIF
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces an operational update, our financial results for the year ended December 31, 2024 a quarterly dividend of US$0.10 per common share and filing of our annual information form. We will be hosting a live webcast to discuss our Q4 2024 results on Wednesday March 19, 2025 at 8:00 a.m. Mountain time .
All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
President & CEO, Corey C. Ruttan commented:
"Through 2024 we increased our productive capacity both at the Caburé Unit and on our 100% interest Murucututu project. This allowed us to increase our firm natural gas sales volumes for 2025 resulting in a strong start to the year with a 37% increase in our sales volumes. We are increasing our base dividend to US$0.10 per share, consistent with our long-standing commitment to a more disciplined capital allocation model, balancing returns to stakeholders and organic growth."
Operational Update
As announced on December 17, 2024 , our updated long-term gas sales agreement came into effect on January 1, 2025 increasing Alvopetro's contracted firm reference volumes by 33%. As a result, Alvopetro's daily sales in January and February increased 37% from Q4 2024 sales to an average of 2,375 boepd, including 13.4 MMcfpd of natural gas, natural gas liquids sales from condensate of 129 bopd and oil sales of 10 bopd. Effective February 1, 2025 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL1.95 /m 3 , a 7% increase from the January 2025 price of BRL1.83 /m 3 and consistent with the Q4 2024 price of BRL1.94 /m 3 . All natural gas sales from February 1, 2025 to April 30, 2025 will be sold at BRL1.95 /m 3 ( $10.55 /Mcf, net of applicable sales taxes, based on average heat content to date and the January 31, 2025 BRL/USD exchange rate of 5.83).
On February 5, 2025 , we announced the terms of a farmin agreement in Canada , pursuant to which Alvopetro agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres (6,122 net acres) of land in Western Saskatchewan . The first two earning wells have now been drilled and are being completed and equipped. Both wells are expected to be on production within the next 30 days. Alvopetro's estimated total costs for the two earning wells is expected to be approximately C$4.0 million ( $2.8 million ). After these initial two earning wells Alvopetro's working interest will be 50%.
On the Company's Murucututu natural gas field, we spud the first of two development wells planned for 2025 in February. Drilling is underway. On the unitized area (the "Unit") which includes the Caburé natural gas field, Alvopetro has five development wells planned for 2025, with the first well expected to be drilled in April.
On February 26, 2025 , we announced our December 31, 2024 reserves based on the independent reserve assessment and evaluation prepared by GLJ Ltd. ("GLJ") dated February 26, 2025 with an effective date of December 31, 2024 (the "GLJ Reserves and Resources Report"). Highlights include:
- After 2024 production of 0.7 MMboe, 1P reserves increased 65% to 4.5 MMboe, representing a 1P production replacement ratio (1) of 372%. The increase was mainly due to the successful working interest redetermination at the Caburé field and increases of Caruaçu assigned reserves on our 100% Murucututu field following success on the 183-A3 well completion, somewhat offset by technical revisions related to the Gomo Formation.
- 2P reserve volumes increased 5% to 9.1 MMboe, representing a 2P production replacement ratio of 167% (1) . The increase in 2P volumes was due to the higher working interest on the Caburé field following the redetermination, partially offset by 2024 production of 0.7 MMboe. At Murucututu, additional reserves associated with the Caruaçu reservoir were offset by technical revisions reducing reserves assigned to the Gomo Formation.
- With increased reserve volumes, 1P net present value before tax, discounted at 10% ("NPV10") increased 53% to $177.7 million and 2P NPV10 increased 6% to $327.8 million .
- Risked best estimate contingent resources decreased by 0.8 MMboe from 5.4 MMboe to 4.5 MMboe at December 31, 2024 with a NPV10 of $110.0 million , decreases from December 31, 2023 of 15% and 13% respectively. The decreases were associated with the migration of volumes to reserves for the Caruaçu Formation.
- Risked best estimate prospective resources increased from 9.6 MMboe to 10.2 MMboe with a NPV10 of $208.9 million , increases of 6% and 13% respectively from December 31, 2023 .
Financial and Operating Highlights – Fourth Quarter of 2024
- Our average daily sales decreased to 1,738 boepd in Q4 2024 (-19% from Q4 2023 and -17% from Q3 2024) with reduced natural gas demand as well as shutdowns during the month of November for planned facility turnarounds and inspections.
- Our average realized natural gas price decreased to $10.51 /Mcf in Q4 2024 (-18% from Q4 2023 and -4% from Q3 2024), due mainly to the devaluation of the BRL relative to the USD, which depreciated 18% compared to the average rate in Q4 2023. Our overall averaged realized sales price was $63.88 per boe (-18% from Q4 2023 and -4% from Q3 2024).
- With lower sales volumes and lower prices, our natural gas, oil and condensate revenue decreased to $10.2 million (-33% from Q4 2023 and -21% from Q3 2024).
- Our operating netback (1) in the quarter was $55.09 per boe (- $14.60 per boe from Q4 2023) due mainly to the reduction in our realized sales price per boe as well as higher production expenses per boe with lower overall production.
- We generated funds flows from operations (1) of $7.0 million ( $0.19 per basic share and per diluted share), decreases of $5.4 million compared to Q4 2023 and $2.9 million compared to Q3 2024 due mainly to lower sales volumes and lower realized prices.
- We reported net income of $2.2 million in Q4 2024, an increase of $1.6 million compared to Q4 2023 despite lower sales volumes and realized prices due to impairment losses recognized in Q4 2023, offset by foreign exchange losses in Q4 2024 compared to foreign exchange gains in Q4 2023.
- Capital expenditures totaled $4.7 million , including costs to re-enter the 183-B1 well on our exploratory Block 183 and costs associated with the facilities upgrade at our Caburé field.
- Our working capital surplus was $13.2 million as of December 31, 2024 , increasing $0.1 million from December 31, 2023 and decreasing $2.7 million from September 30, 2024 .
Financial and Operating Highlights – Year Ended December 31, 2024
- Our annual sales volumes averaged 1,794 boepd (93% natural gas, 6% NGLs from condensate and 1% from crude oil production), a decrease of 16% compared to 2023.
- We reported net income of $16.3 million , compared to $28.5 million in 2023 (-43%).
- We generated funds flow from operations (1) of $33.3 million ( $0.89 per basic share and per diluted share), a decrease of $14.8 million compared to 2023.
- Capital expenditures totaled $15.3 million in 2024.
- Dividends declared totaled $0.36 per share in 2024 compared to $0.56 per share in 2023 (-36%).
(1) Refer to the sections entitled " Oil and Natural Gas Advisories – Other Metrics " and " Non-GAAP and Other Financial Measures ". |
The following table provides a summary of Alvopetro's financial and operating results for the periods noted. The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca .
As at and Three Months Ended December 31 | As at and Year Ended December 31, | ||||||
2024 | 2023 | Change (%) | 2024 | 2023 | Change (%) | ||
Financial | |||||||
($000s, except where noted) | |||||||
Natural gas, oil and condensate sales | 10,214 | 15,300 | (33) | 45,517 | 59,687 | (24) | |
Net income | 2,243 | 652 | 244 | 16,295 | 28,525 | (43) | |
Per share – basic ($) (1) | 0.06 | 0.02 | 200 | 0.44 | 0.77 | (43) | |
Per share – diluted ($) (1) | 0.06 | 0.02 | 200 | 0.43 | 0.76 | (43) | |
Cash flows from operating activities | 7,114 | 7,904 | (10) | 34,901 | 47,702 | (27) | |
Per share – basic ($) (1) | 0.19 | 0.21 | (10) | 0.94 | 1.29 | (27) | |
Per share – diluted ($) (1) | 0.19 | 0.21 | (10) | 0.93 | 1.26 | (26) | |
Funds flow from operations (2) | 6,966 | 12,393 | (44) | 33,275 | 48,030 | (31) | |
Per share – basic ($) (1) | 0.19 | 0.33 | (42) | 0.89 | 1.29 | (31) | |
Per share – diluted ($) (1) | 0.19 | 0.33 | (42) | 0.89 | 1.27 | (30) | |
Dividends declared | 3,283 | 5,127 | (36) | 13,170 | 20,462 | (36) | |
Per share (1) (2) | 0.09 | 0.14 | (36) | 0.36 | 0.56 | (36) | |
Capital expenditures | 4,682 | 4,934 | (5) | 15,305 | 27,449 | (44) | |
Cash and cash equivalents | 21,697 | 18,326 | 18 | 21,697 | 18,326 | 18 | |
Net working capital (2) | 13,181 | 13,117 | - | 13,181 | 13,117 | - | |
Weighted average shares outstanding | |||||||
Basic (000s) (1) | 37,315 | 37,262 | - | 37,289 | 37,121 | - | |
Diluted (000s) (1) | 37,566 | 37,963 | (1) | 37,558 | 37,770 | (1) | |
Operations | |||||||
Average daily sales volumes: | |||||||
Natural gas (Mcfpd), by field: | |||||||
Caburé (Mcfpd) | 7,476 | 11,699 | (36) | 9,228 | 11,742 | (21) | |
Murucututu (Mcfpd) | 2,231 | 546 | 309 | 928 | 487 | 91 | |
Total natural gas (Mcfpd) | 9,707 | 12,245 | (21) | 10,156 | 12,229 | (17) | |
NGLs – condensate (bopd) | 109 | 92 | 18 | 90 | 99 | (9) | |
Oil (bopd) | 11 | 10 | 10 | 12 | 6 | 100 | |
Total (boepd) | 1,738 | 2,143 | (19) | 1,794 | 2,142 | (16) | |
Average realized prices (2) : | |||||||
Natural gas ($/Mcf) | 10.51 | 12.85 | (18) | 11.42 | 12.64 | (10) | |
NGLs – condensate ($/bbl) | 75.95 | 89.45 | (15) | 84.84 | 86.29 | (2) | |
Oil ($/bbl) | 61.74 | 73.67 | (16) | 66.94 | 71.22 | (6) | |
Total ($/boe) | 63.88 | 77.60 | (18) | 69.31 | 76.33 | (9) | |
Operating netback ($/boe) (2) | |||||||
Realized sales price | 63.88 | 77.60 | (18) | 69.31 | 76.33 | (9) | |
Royalties | (2.15) | (2.07) | 4 | (1.99) | (2.13) | (7) | |
Production expenses | (6.64) | (5.84) | 14 | (6.33) | (5.38) | 18 | |
Operating netback | 55.09 | 69.69 | (21) | 60.99 | 68.82 | (11) | |
Operating netback margin (2) | 86 % | 90 % | (4) | 88 % | 90 % | (2) | |
Notes: | |
(1) | Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share. |
(2) | See "Non-GAAP and Other Financial Measures" section within this news release. |
Quarterly Dividend of US$0.10 per Share
With our updated gas sales agreement in effect as of January 1, 2025 and higher production levels forecasted in the first quarter of 2025 our Board of Directors determined it was appropriate to increase the declared quarterly dividend to US$0.10 per common share, payable in cash on April 15, 2025, to shareholders of record at the close of business on March 31, 2025. This dividend is designated as an "eligible dividend" for Canadian income tax purposes.
Dividend payments to non-residents of Canada will be subject to withholding taxes at the Canadian statutory rate of 25%. Shareholders may be entitled to a reduced withholding tax rate under a tax treaty between their country of residence and Canada. For further information, see Alvopetro's website at https://alvopetro.com/Dividends-Non-resident-Shareholders .
Annual Information Form
Alvopetro has filed its annual information form ("AIF") with the Canadian securities regulators on SEDAR+. The AIF
includes the disclosure and reports relating to oil and gas reserves data and other oil and gas information required
pursuant to National Instrument 51-101 of the Canadian Securities Administrators. The AIF may be accessed
electronically at www.sedarplus.ca and on our website at www.alvopetro.com .
2024 Results Webcast
Alvopetro will host a live webcast to discuss our 2024 financial results at 8:00 am Mountain time on Wednesday March 19, 2025. Details for joining the event are as follows:
DATE: March 19, 2025
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/84540021301
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kBRCh4fgE
WEBINAR ID : 845 4002 1301
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:
Twitter - https://twitter.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:
$000s | = | thousands of U.S. dollars |
1P | = | proved reserves |
2P | = | proved plus probable reserves |
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) |
NPV10 | = | net present value before tax, discounted at 10% |
Q3 2024 | = | three months ended September 30, 2024 |
Q4 2023 | = | three months ended December 31, 2023 |
Q4 2024 | = | three months ended December 31, 2024 |
USD | = | United States dollars |
GAAP or IFRS | = | IFRS Accounting Standards |
Non-GAAP and Other Financial Measures
This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure . Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are used by management in assessing the Company's financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the " Non-GAAP Measures and Other Financial Measures " section of the Company's MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca .
Non-GAAP Financial Measures
Operating netback
Operating netback is calculated as natural gas, oil and condensate revenues less royalties and production expenses. This calculation is provided in the " Operating Netback " section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.
Non-GAAP Financial Ratios
Operating netback per boe
Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent ("boe"). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company's producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the " Operating Netback " section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per boe basis.
Operating netback margin
Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:
Three Months Ended December 31, | Year Ended December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Operating netback - $ per boe | 55.09 | 69.69 | 60.99 | 68.82 |
Average realized price - $ per boe | 63.88 | 77.60 | 69.31 | 76.33 |
Operating netback margin | 86 % | 90 % | 88 % | 90 % |
Funds Flow from Operations Per Share
Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:
Three Months Ended December 31, | Year Ended December 31, | |||
$ per share | 2024 | 2023 | 2024 | 2023 |
Per basic share: | ||||
Cash flows from operating activities | 0.19 | 0.21 | 0.94 | 1.29 |
Funds flow from operations | 0.19 | 0.33 | 0.89 | 1.29 |
Per diluted share: | ||||
Cash flows from operating activities | 0.19 | 0.21 | 0.93 | 1.26 |
Funds flow from operations | 0.19 | 0.33 | 0.89 | 1.27 |
Capital Management Measures
Funds Flow from Operations
Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company's ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:
Three Months Ended December 31, | Year Ended December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Cash flows from operating activities | 7,114 | 7,904 | 34,901 | 47,702 |
Changes in non-cash working capital | (148) | 4,489 | (1,626) | 328 |
Funds flow from operations | 6,966 | 12,393 | 33,275 | 48,030 |
Net Working Capital
Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows:
As at December 31 | |||
2024 | 2023 | ||
Total current assets | 26,984 | 25,995 | |
Total current liabilities | (13,803) | (12,878) | |
Net working capital | 13,181 | 13,117 | |
Supplementary Financial Measures
" Average realized natural gas price - $/Mcf " is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company's natural gas sales volumes.
" Average realized NGL – condensate price - $/bbl " is comprised of condensate sales as determined in accordance with IFRS, divided by the Company's NGL sales volumes from condensate.
" Average realized oil price - $/bbl " is comprised of oil sales as determined in accordance with IFRS, divided by the Company's oil sales volumes.
" Average realized price - $/boe " is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company's total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
" Dividends per share " is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.
" Royalties per boe " is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
" Production expenses per boe " is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
Oil and Natural Gas Advisories
Oil and Natural Gas Reserves
The disclosure in this news release summarizes certain information contained in the GLJ Reserves and Resources Report but represents only a portion of the disclosure required under National Instrument 51-101 ("NI 51-101"). Full disclosure with respect to the Company's reserves as at December 31, 2024 is included in the Company's annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ). 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 NI 51-101. GLJ is a qualified reserves evaluator as defined in NI 51-101.
All net present values in this press release are based on estimates of future operating and capital costs and GLJ's forecast prices as of December 31, 2024 . The reserves definitions used in this evaluation are the standards defined by COGEH reserve definitions and are consistent with NI 51-101 and used by GLJ. The net present values of future net revenue attributable to Alvopetro's reserves estimated by GLJ do not represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of the Company's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
Cabur é Working Interest
Alvopetro's working interest in the Caburé natural gas field is 56.2% as of December 31, 2024 and the date hereof. This working interest is subject to redetermination, the first of which was completed in April 2024 . An independent expert (the "Expert") was engaged in connection with the first redetermination to evaluate the redetermination and the impact to each party's working interest. Following the Expert's decision, Alvopetro's working interest was increased from 49.1% to 56.2%. Alvopetro's partner filed a notice of dispute with respect to the Expert's decision, seeking to stay the redetermination procedure. Alvopetro subsequently filed a request for emergency arbitration before the International Chamber of Commerce ("ICC") seeking to make the Expert decision effective starting on June 1, 2024 . In May 2024 , Alvopetro received the decision of the emergency arbitrator ("the Order") wherein the arbitrator found in favour of Alvopetro, making the Expert decision effective June 1, 2024 until such time as the dispute is reviewed by and decided upon by an arbitral tribunal pursuant to the Rules of Arbitration of the ICC. The redetermination dispute has proceeded to a full arbitration under the Rules of the ICC, however the timing and outcome of the full arbitration is uncertain and the resulting impact on the reserves and the net present value of future net revenue attributable to such reserves as presented herein may be material. In addition, future redeterminations may also have a material impact on Alvopetro's reserves and future cash flows.
Contingent Resources
This news release discloses estimates of Alvopetro's contingent resources and the net present value associated with net revenues associated with the production of such contingent resources as included in the GLJ Reserves and Resources Report. There is no certainty that it will be commercially viable to produce any portion of such contingent resources and the estimated future net revenues do not necessarily represent the fair market value of such contingent resources. Estimates of contingent resources involve additional risks over estimates of reserves. Full disclosure with respect to the Company's contingent resources as at December 31, 2024 is included in the Company's annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ).
Prospective Resources
This news release discloses estimates of Alvopetro's prospective resources included in the GLJ Reserves and Resources Report. There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Estimates of prospective resources involve additional risks over estimates of reserves. The accuracy of any resources estimate is a function of the quality and quantity of available data and of engineering interpretation and judgment. While resources presented herein are considered reasonable, the estimates should be accepted with the understanding that reservoir performance subsequent to the date of the estimate may justify revision, either upward or downward. Full disclosure with respect to the Company's prospective resources as at December 31, 2024 is included in the Company's annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ).
Other Metrics
This new release contains references to "production replacement ratio", a metric commonly used in the oil and natural gas industry, which has been calculated by management. This term does not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.
"Production replacement ratio" is calculated by dividing the change in reserve volumes plus current year production by current year production. Alvopetro's 1P production replacement ratio and 2P production replacement ratio in 2024 is calculated as:
1P | 2P | |
Reserve volumes as at December 31, 2024 – Mboe | 4,512 | 9,148 |
Reserve volumes as at December 31, 2023 – Mboe | 2,727 | 8,711 |
Reserve additions – Mboe | 1,785 | 437 |
2024 production – Mboe | 657 | 657 |
Change in reserves before 2024 production - Mboe | 2,442 | 1,094 |
2024 production replacement ratio | 372 % | 167 % |
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 Natural Gas Volumes
The 2025 contracted daily firm volumes under Alvopetro's long-term gas sales agreement of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents contracted 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 natural gas. Alvopetro's natural gas 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 371e 3 m 3 /d (13.1MMcfpd).
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 expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, the timing and taxation of dividends and plans for dividends in the future, plans relating to the Company's operational activities, proposed exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, future production and sales volumes, the expected timing of production commencement in Canada , arbitration procedures associated with the redetermination of working interests of the Caburé natural gas field, anticipated timing for upcoming drilling and testing of other wells, and projected financial 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 regulation 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/March2025/18/c2211.html
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Alvopetro Announces February 2025 Sales Volumes
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces February sales volumes of 2,285 boepd, including natural gas sales of 13.0 MMcfpd and associated natural gas liquids sales from condensate of 115 bopd, based on field estimates.
Natural gas, NGLs and crude oil sales: |
Sales volumes in February were impacted by reduced demand for the final 7 days of February. Sales in March are expected to be consistent with January.
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://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube - https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w
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.
All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
Abbreviations:
boepd | = barrels of oil equivalent ("boe") per day |
bopd | = barrels of oil and/or natural gas liquids (condensate) per day |
Mcf | = thousand cubic feet |
Mcfpd | = thousand cubic feet per day |
MMcfpd | = million cubic feet per day |
NGLs | = natural gas liquids |
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 (6Mcf/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.
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. 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 information concerning future production and sales volumes and expected sales under the Company's long-term gas sales agreement. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. Forward -looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, expectations and assumptions concerning forecasted demand for oil and natural gas, 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 regarding Alvopetro's working interest and the outcome of any redeterminations, the outcome of any disputes, the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulation 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, general economic and business conditions, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, 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 factors that could affect the operations or financial results of Alvopetro are included in our annual information form 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/March2025/05/c4751.html
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Alvopetro Announces 2024 Year End Reserves Including a 65% Increase in 1P Reserves
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro" or the "Company") announces our reserves as at December 31, 2024 with total proved ("1P") reserves of 4.5 MMboe and total proved plus probable ("2P") reserves of 9.1 MMboe, increases of 65% and 5%, respectively, from December 31, 2023 . The before tax net present value discounted at 10% ("NPV10") of our 1P reserves increased 53% to $177.7 million and the NPV10 of our 2P reserves increased 6% to $327.8 million . We also announce risked best estimate contingent resources of 4.5 MMboe (NPV10 $110.0 million ) and risked best estimate prospective resources of 10.2 MMboe (NPV10 $208.9 million ). The reserves and resources data set forth herein is based on an independent reserves and resources assessment and evaluation prepared by GLJ Ltd. ("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 incorporates Alvopetro's working interest share of remaining recoverable reserves held by Alvopetro in the Caburé and Murucututu natural gas fields and the Bom Lugar and Mãe-da-lua oil fields as well as Alvopetro's working interest share of remaining recoverable resources held by Alvopetro in the Murucututu natural gas field. With respect to Murucututu, Bom Lugar, and Mãe-da-lua, Alvopetro's working interest share is 100%. With respect to the unitized area (the "Unit") which includes our Caburé and Caburé Leste fields (collectively referred to as "Caburé" in this news release) and two fields held by our third-party partner in the Unit, Alvopetro's working interest share as of December 31, 2024 was 56.2%, with the remaining 43.8% held by our partner.
All references herein to $ refer to United States dollars, unless otherwise stated.
President & CEO, Corey C. Ruttan commented:
"Our 2024 year end reserves reflect a strong year for Alvopetro resulting from our successful redetermination increasing our Caburé Unit working interest from 49.1% to 56.2% and strong results from our 183-A3 well in the Caruaçu Formation on our 100% interest Murucututu project. These successes allowed us to commit to a higher level of base committed firm sales volumes with our offtaker, Bahiagás, for 2025 and further strengthens our disciplined capital allocation model, balancing returns to stakeholders and organic growth."
December 31, 2024 GLJ Reserves and Resource Report:
- After 2024 production of 0.7 MMboe, 1P reserves increased 65% to 4.5 MMboe, representing a 1P production replacement ratio (1) of 372%. The increase was mainly due to the successful working interest redetermination at the Caburé field and increases on Caruaçu assigned reserves on our 100% Murucututu field following success on the 183-A3 well completion, somewhat offset by technical revisions related to the Gomo Formation.
- 2P reserve volumes increased 5% to 9.1 MMboe, representing a 2P production replacement ratio of 167% (1) . The increase in 2P volumes was due to the higher working interest on the Caburé field following the redetermination, partially offset by 2024 production of 0.7 MMboe. At Murucututu, additional reserves associated with the Caruaçu reservoir were offset by technical revisions reducing reserves assigned to the Gomo Formation.
- With increased reserve volumes, 1P NPV10 increased 53% to $177.7 million and 2P NPV10 increased 6% to $327.8 million .
- Risked best estimate contingent resources decreased by 0.8 MMboe from 5.4 MMboe to 4.5 MMboe at December 31, 2024 with a NPV10 of $110.0 million , decreases from December 31, 2023 of 15% and 13% respectively. The decreases were associated with the migration of volumes to Reserves for the Caruaçu Formation.
- Risked best estimate prospective resources increased from 9.6 MMboe to 10.2 MMboe with a NPV10 of $208.9 million , increases of 6% and 13% respectively from December 31, 2023 .
(1) Refer to the sections entitled " Oil and Natural Gas Advisories – Other Metrics " for additional disclosures and assumptions used in calculating production replacement ratio.
SUMMARY
December 31, 2024 Gross Reserve and Gross Resource Volumes : (1)(2)(3)(4)(5)(6)
December 31, 2024 Reserves (Gross) | Total Proved (1P) | Total Proved plus (2P) | Total Proved plus (3P) |
(Mboe) | (Mboe) | (Mboe) | |
Caburé Natural Gas Field | 2,147 | 4,121 | 5,465 |
Murucututu Natural Gas Field | 2,216 | 4,563 | 7,265 |
Bom Lugar Oil Field | 124 | 422 | 638 |
Mãe-da-lua Oil Field | 27 | 42 | 61 |
Total Company Reserves | 4,512 | 9,148 | 13,428 |
December 31, 2024 Murucututu Resources (Gross) | Low Estimate | Best Estimate | High Estimate |
(Mboe) | (Mboe) | (Mboe) | |
Risked Contingent Resource Risked Prospective Resource | 2,570 4,830 | 4,549 10,208 | 6,127 17,076 |
See 'Footnotes' section at the end of this news release |
Net Present Value Before Tax Discounted at 10% : (1)(2)(3)(4)(5)(6)(7)(8)
Reserves | 1P | 2P | 3P |
($000s) | ($000s) | ($000s) | |
Caburé Natural Gas Field | 106,514 | 185,164 | 234,176 |
Murucututu Natural Gas Field | 67,797 | 134,792 | 200,732 |
Bom Lugar Oil Field | 2,882 | 6,857 | 11,388 |
Mãe-da-lua Oil Field | 459 | 966 | 1,532 |
Total Company | 177,651 | 327,779 | 447,828 |
Murucututu Resource | Low Estimate | Best Estimate | High Estimate |
($000s) | ($000s) | ($000s) | |
Risked Contingent Resource Risked Prospective Resource | 58,505 88,427 | 109,951 208,880 | 146,405 351,902 |
See 'Footnotes' section at the end of this news release |
PRICING ASSUMPTIONS – FORECAST PRICES AND COSTS
GLJ employed the following pricing and inflation rate assumptions as of January 1, 2025 , in the GLJ Reserves and Resources Report in estimating reserves and resources data using forecast prices and costs.
Year | Brent Blend | NYMEX Henry Hub ($/MMBtu) | Alvopetro-Bahiagas $/MMBtu* (Current Year) | Alvopetro-Bahiagas $/MMBtu* (Previous Year) | Change from prior |
2025 | 75.25 | 3.19 | 9.23 | 10.08 | -8 % |
2026 | 77.50 | 3.85 | 10.11 | 10.44 | -3 % |
2027 | 80.08 | 4.16 | 10.55 | 10.51 | 0 % |
2028 | 82.69 | 4.25 | 10.66 | 10.48 | 2 % |
2029 | 84.34 | 4.33 | 10.47 | 10.63 | -2 % |
2030 | 86.03 | 4.42 | 10.71 | 10.82 | -1 % |
2031 | 87.76 | 4.50 | 10.96 | 11.04 | -1 % |
2032 | 89.50 | 4.60 | 11.22 | 11.26 | 0 % |
2033 | 91.20 | 4.69 | 11.48 | 11.48 | 0 % |
2034** | 92.94 | 4.78 | 11.74 | 11.71 | 0 % |
* Net of applicable sales taxes expected to apply |
**Escalated at 2% per year thereafter |
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 GLJ Reserves and Resources Report was an evaluation of all reserves of Alvopetro including our working interest share as of December 31, 2024 of the Unit (referred to herein as the Caburé natural gas field), our Murucututu natural gas project, as well as our Bom Lugar and Mãe-da-lua oil fields. The GLJ Reserves and Resources Report also includes an evaluation of the gas resources of our Murucututu natural gas field. In addition to the reserves assigned to our Murucututu field, contingent resource was assigned to the area in proximity to our existing Murucututu reserves, deemed to be discovered. The area mapped by 3D seismic west and north of the area defined as contingent was assigned prospective resource. Additional reserves and resources information as required under NI 51-101 will be included in the Company's Annual Information Form for the 2024 fiscal year which will be filed on SEDAR+ ( www.sedarplus.ca ) by April 30, 2025 .
December 31, 2024 Reserves Information:
Summary of Reserves (1)(2)(3)
Light & Medium Oil | Conventional Natural Gas | Natural Gas Liquids | Oil Equivalent | ||||||
Company Gross | Company | Company | Company | Company | Company | Company | Company | ||
(Mbbl) | (Mbbl) | (MMcf) | (MMcf) | (Mbbl) | (Mbbl) | (Mboe) | (Mboe) | ||
Proved | |||||||||
Producing | 4 | 4 | 14,874 | 14,323 | 190 | 183 | 2,673 | 2,574 | |
Developed Non-Producing | 146 | 136 | 1,396 | 1,342 | 10 | 10 | 389 | 369 | |
Undeveloped | - | - | 7,843 | 7,529 | 143 | 138 | 1,451 | 1,392 | |
Total Proved | 150 | 139 | 24,113 | 23,194 | 343 | 330 | 4,512 | 4,335 | |
Probable | 313 | 292 | 23,934 | 22,931 | 333 | 319 | 4,635 | 4,433 | |
Total Proved plus Probable | 463 | 431 | 48,047 | 46,124 | 677 | 649 | 9,148 | 8,768 | |
Possible | 235 | 219 | 22,302 | 21,352 | 328 | 313 | 4,280 | 4,091 | |
Total Proved plus Probable plus Possible | 699 | 650 | 70,349 | 67,476 | 1,004 | 962 | 13,428 | 12,859 | |
See 'Footnotes' section at the end of this news release |
Summary of Before Tax Net Present Value of Future Net Revenue - $000s (1)(2)(3)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | ||
Proved | ||||||
Producing | 145,792 | 134,892 | 125,270 | 116,873 | 109,547 | |
Developed Non-Producing | 19,256 | 15,218 | 12,375 | 10,316 | 8,780 | |
Undeveloped | 81,878 | 55,499 | 40,006 | 30,234 | 23,666 | |
Total Proved | 246,927 | 205,609 | 177,651 | 157,423 | 141,993 | |
Probable | 306,142 | 205,419 | 150,128 | 115,530 | 91,857 | |
Total Proved plus Probable | 553,069 | 411,027 | 327,779 | 272,953 | 233,849 | |
Possible | 348,169 | 184,292 | 120,049 | 86,800 | 66,442 | |
Total Proved plus Probable plus Possible | 901,238 | 595,319 | 447,828 | 359,753 | 300,291 | |
See 'Footnotes' section at the end of this news release |
Summary of After Tax Net Present Value of Future Net Revenue – $000s (1)(2)(3)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | ||
Proved | ||||||
Producing | 130,855 | 121,530 | 113,190 | 105,860 | 99,436 | |
Developed Non-Producing | 15,471 | 12,283 | 10,012 | 8,353 | 7,105 | |
Undeveloped | 61,008 | 42,127 | 30,708 | 23,341 | 18,293 | |
Total Proved | 207,334 | 175,939 | 153,910 | 137,554 | 124,834 | |
Probable | 234,053 | 160,795 | 119,072 | 92,190 | 73,390 | |
Total Proved plus Probable | 441,387 | 336,734 | 272,982 | 229,744 | 198,224 | |
Possible | 244,094 | 132,792 | 87,980 | 64,288 | 49,541 | |
Total Proved plus Probable plus Possible | 685,481 | 469,526 | 360,962 | 294,032 | 247,765 | |
See 'Footnotes' section at the end of this news release |
Future Development Costs (1)(2)(3)(7)(8)
The table below sets out the total development costs deducted in the estimation of future net revenue attributable to proved reserves, proved plus probable reserves and proved plus probable plus possible reserves (using forecast prices and costs), by field, in the GLJ Reserves and Resources Report. Total development costs include capital costs for drilling and completing wells and for facilities but excludes abandonment and reclamation costs.
The future development costs for the Caburé field include Alvopetro's working interest share (56.2%) for two development wells in the proved category and an additional three development wells in the probable and possible categories.
The future development costs for the Murucututu field in the proved category include three development wells and a stimulation project at the 183-1 well. The probable category includes an additional two development wells .
The future development costs for Bom Lugar in the proved category include costs to stimulate the BL-06 well. Costs in the probable category also include one development well and costs for facilities upgrade. Future development costs at the Mãe-da-lua field relate to a stimulation of the existing well.
Alvopetro's share of future development costs are summarized as follows:
$000s, Undiscounted | 2025 | 2026 | 2027 | 2027 | 2029 | Remaining | Total | |
Proved | ||||||||
Caburé Natural Gas Field | 3,443 | - | - | - | - | - | 3,443 | |
Murucututu Gas Field | 13,010 | 8,095 | - | - | - | - | 21,105 | |
Bom Lugar Oil Field | - | 500 | - | - | - | - | 500 | |
Mãe-da-lua Oil Field | - | 540 | - | - | - | - | 540 | |
Total Proved | 16,453 | 9,135 | - | - | - | - | 25,588 | |
Proved Plus Probable | ||||||||
Caburé Natural Gas Field | 8,743 | - | - | - | - | - | 8,743 | |
Murucututu Gas Field | 13,010 | 21,774 | - | - | - | - | 34,784 | |
Bom Lugar Oil Field | - | 5,967 | - | - | - | - | 5,967 | |
Mãe-da-lua Oil Field | - | 540 | - | - | - | - | 540 | |
Total Proved Plus Probable | 21,753 | 28,281 | - | - | - | - | 50,034 | |
Proved Plus Probable Plus Possible | ||||||||
Caburé Natural Gas Field | 8,743 | - | - | - | - | - | 8,743 | |
Murucututu Gas Field | 13,010 | 21,774 | - | - | - | - | 34,784 | |
Bom Lugar Oil Field | - | 5,967 | - | - | - | - | 5,967 | |
Mãe-da-lua Oil Field | - | 540 | - | - | - | - | 540 | |
Total Proved Plus Probable Plus Possible | 21,753 | 28,281 | - | - | - | - | 50,034 | |
See 'Footnotes' section at the end of this news release |
Reconciliation of Alvopetro's Gross Reserves (Before Royalty) (1)(2)(3)(8)
Proved | Probable | Proved Plus | Possible (Mboe) | Proved plus (Mboe) | |
December 31, 2023 | 2,727 | 5,983 | 8,711 | 6,497 | 15,208 |
Discoveries | - | - | - | - | - |
Extensions | 1,833 | (1,833) | - | - | - |
Technical Revisions | 611 | 486 | 1,097 | (2,217) | (1,120) |
Production | (660) | - | (660) | - | (660) |
December 31, 2024 | 4,512 | 4,635 | 9,148 | 4,280 | 13,428 |
See 'Footnotes' section at the end of this news release. |
December 31, 2024 Murucututu Contingent Resources Information:
Summary of Unrisked Company Gross Contingent Resources (1)(2)(5)(6)
Development Pending Economic Contingent Resources | Low Estimate | Best Estimate | High Estimate |
Conventional natural gas (MMcf) | 15,442 | 27,326 | 36,810 |
Natural gas liquids (Mbbl) | 282 | 500 | 673 |
Oil equivalent (Mboe) | 2,856 | 5,054 | 6,808 |
See 'Footnotes' section at the end of this news release. |
Summary of Before Tax Net Present Value of Future Net Revenue of Unrisked Contingent Resources- $000s (1)(2)(5)(6)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | |
Low Estimate | 194,005 | 104,907 | 65,035 | 43,899 | 31,279 |
Best Estimate | 395,351 | 197,993 | 122,199 | 84,357 | 62,149 |
High Estimate | 573,506 | 269,157 | 162,703 | 111,941 | 82,752 |
See 'Footnotes' section at the end of this news release . |
The GLJ Contingent Resource Report for Murucututu assumes capital deployment starting in 2026 for the drilling and completion of wells with total project costs of $27.6 million and first commercial production in 2026. The information presented herein is based on company net project development costs. The recovery technology assumed for purposes of the estimate is based on established technologies utilized repeatedly in the industry.
There can be no certainty that the project will be developed on the timelines discussed herein. The project is based on a pre-development study. Development of the project is dependent on several contingencies as further described in this news release. Significant positive factors relevant to the estimate include existing production in close proximity, proximity to infrastructure, existing long-term gas sales agreement and corporate commitment to the project. Significant negative factors relevant to the estimate include reservoir performance and the economic viability of the project (with sensitivity to low commodity prices), access to and amount of capital required to develop resources at an acceptable cost, and regulatory approvals for planned activities including stimulations and new infrastructure developments.
Summary of Development Pending Risked Company Gross Contingent Resources (1)(2)(5)(6)
The GLJ Reserves and Resources Report estimates the Chance of Development as the product of two main contingencies associated with the project development, which are: 1) the probability of corporate sanctioning, which GLJ estimates at 95%; 2) the probability of finalization of a development plan, which GLJ estimates at 95%. The product of these two contingencies is 90%. As there is no risk related to discovery, the Chance of Commerciality for the contingent resource is therefore 90% which is the risk factor that has been applied to the Development Risked company gross contingent resources and the net present value figures reported below.
Low Estimate | Best Estimate | High Estimate | |
Conventional natural gas (MMcf) | 13,898 | 24,593 | 33,129 |
Natural gas liquids (Mbbl) | 254 | 450 | 606 |
Oil equivalent (Mboe) | 2,570 | 4,549 | 6,127 |
See 'Footnotes' section at the end of this news release. |
Summary of Development Pending Risked Before Tax Net Present Value of Future Net Revenue of Contingent Resources- $000s (1)(5)(6)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | |
Low Estimate | 174,640 | 94,396 | 58,505 | 39,484 | 28,127 |
Best Estimate | 355,872 | 178,170 | 109,951 | 75,896 | 55,910 |
High Estimate | 516,214 | 242,218 | 146,405 | 100,721 | 74,453 |
See 'Footnotes' section at the end of this news release. |
December 31, 2024 Murucututu Prospective Resources Information:
Summary of Unrisked Company Gross Prospective Resources (1)(2)(4)(6)
Prospective Resources | Low | Best | High |
Conventional natural gas (MMcf) | 32,247 | 68,282 | 114,219 |
Natural gas liquids (Mbbl) | 588 | 1,222 | 2,045 |
Oil equivalent (Mboe) | 5,963 | 12,603 | 21,081 |
See 'Footnotes' section at the end of this news release. |
Summary of Before Tax Net Present Value of Future Net Revenue of Unrisked Prospective Resources - $000s (1)(4)(6)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | |
Low Estimate | 419,522 | 199,745 | 109,233 | 65,060 | 40,823 |
Best Estimate | 1,039,969 | 464,830 | 257,956 | 161,030 | 107,769 |
High Estimate | 1,897,537 | 800,305 | 434,532 | 270,057 | 181,411 |
See 'Footnotes' section at the end of this news release . |
The GLJ Reserves and Resources Report for Murucututu prospective resources assumes capital deployment starting in 2026 for the drilling and completion of wells and pipeline expansion costs, first commercial production in 2027 and with total project costs of $75.6 million in Low case, $90.3 million in the Best case and $97.7 million in the High case. The information presented herein is based on company project development costs. The recovery technology assumed for purposes of the estimate is based on established technologies utilized repeatedly in the industry.
There can be no certainty that the project will be developed on the timelines discussed herein. Development of the project is dependent on several contingencies as further described in this news release. The project is based on a conceptual study. Significant positive factors relevant to the estimate include existing production in close proximity, proximity to infrastructure, existing long-term gas sales agreement and corporate commitment to the project. Significant negative factors relevant to the estimate include reservoir performance and the economic viability of the project (with sensitivity to low commodity prices), access to and amount of capital required to develop resources at an acceptable cost, and regulatory approvals for planned activities including stimulations and new infrastructure developments.
Summary of Development Risked Company Gross Prospective Resources (1)(2)(4)(6)
The GLJ Reserves and Resources Report estimates the Chance of Commerciality as the product between the Chance of Discovery and the Chance of Development. The Chance of Discovery of the prospective resources has been assessed at 90%, while the Chance of Development has been assessed as the same as for the Contingent Resources described above at 90%. The resulting Chance of Commerciality is 81%, which has been applied to the company gross unrisked prospective resources and the net present value figures reported below.
Low | Best | High | |
Conventional natural gas (MMcf) | 26,120 | 55,309 | 92,517 |
Natural gas liquids (Mbbl) | 477 | 990 | 1,656 |
Oil equivalent (Mboe) | 4,830 | 10,208 | 17,076 |
See 'Footnotes' section at the end of this news release. |
Summary of Development Risked Before Tax Net Present Value of Future Net Revenue of Prospective Resources- $000s (1)(4)(6)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | |
Low Estimate | 339,934 | 161,755 | 88,427 | 52,651 | 33,026 |
Best Estimate | 842,544 | 376,454 | 208,880 | 130,380 | 87,246 |
High Estimate | 1,537,171 | 648,183 | 351,902 | 218,687 | 146,893 |
See 'Footnotes' section at the end of this news release. |
UPCOMING 2024 RESULTS AND LIVE WEBCAST
Alvopetro anticipates announcing its 2024 fourth quarter and year-end results on March 18, 2025 after markets close and will host a live webcast to discuss the results at 8:00am Mountain time , on March 19 , 2025. Details for joining the event are as follows:
DATE: March 19, 2025
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/84540021301
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kBRCh4fgE
WEBINAR ID : 845 4002 1301
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 .
FOOTNOTES
(1) | References to Company Gross reserves or Company Gross Resources means the total working interest share of remaining recoverable reserves or resources held by Alvopetro before deductions of royalties payable to others and without including any royalty interests held by Alvopetro. See the section entitled " Oil and Natural Gas Advisories – Cabur é Working Interest " at the end of this news release for additional details with respect to Alvopetro's working interest share of the Caburé natural gas field. |
(2) | The tables above are a summary of the reserves of Alvopetro and the net present value of future net revenue attributable to such reserves as evaluated in the GLJ Reserves and Resources Report based on forecast price and cost assumptions. The tables summarize the data contained in the GLJ Reserves and Resources Report and as a result may contain slightly different numbers than such report due to rounding. Also due to rounding, certain columns may not add exactly. |
(3) | Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. |
(4) | Prospective Resources are defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery as described in footnote 6. |
(5) | Contingent Resources are defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates as described in footnote 6 and may be subclassified based on project maturity and/or characterized by their economic status. The Contingent Resources estimated in the GLJ Reserves and Resources Report are classified as "economic contingent resources", which are those contingent resources that are currently economically recoverable. All such resources are further sub-classified with a project status of "development pending", meaning that resolution of the final conditions for development are being actively pursued. The recovery estimates of the Company's contingent resources provided herein are estimates only and there is no guarantee that the estimated resources will be recovered. There is uncertainty that it will be commercially viable to produce any portion of the resources. Actual recovered resource may be greater than or less than the estimates provided herein. |
(6) | Low Estimate: This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate. |
(7) | The net present value of future net revenue attributable to Alvopetro's reserves and resources are 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. The net present values of future net revenue attributable to Alvopetro's reserves and resources estimated by GLJ do not represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve and resource estimates of the Company's reserves and resources provided herein are estimates only and there is no guarantee that the estimated reserves and resources will be recovered. Actual reserves and resources may be greater than or less than the estimates provided herein. |
(8) | GLJ's January 1, 2025 escalated price forecast is used in the determination of future gas sales prices under Alvopetro's long-term gas sales agreement and for all forecasted oil sales and natural gas liquids sales. See https://www.gljpc.com/sites/default/files/pricing/Jan25.pdf for GLJ's price forecast. |
Alvopetro Energy Ltd.'s 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.
All amounts contained in this news release are in United States dollars, except as otherwise noted.
Abbreviations:
1P | = | proved reserves |
2P | = | proved plus probable reserves |
3P | = | proved plus probable plus possible reserves |
Mbbl | = | thousands of barrels |
Mboe | = | thousand barrels of oil equivalent |
MMbtu | = | million British Thermal Units |
MMcf | = | million cubic feet |
MMboe | = | million barrels of oil equivalent |
$000s | = | thousands of U.S. dollars |
Oil and Natural Gas Advisories
Oil and Natural Gas Reserves
The disclosure in this news release summarizes certain information contained in the GLJ Reserves and Resources Report but represents only a portion of the disclosure required under NI 51-101. Full disclosure with respect to the Company's reserves as at December 31, 2024 will be included in the Company's annual information form for the year ended December 31, 2024 which will be filed on SEDAR+ ( www.sedarplus.ca ) on or before April 30, 2025 .
All net present values in this press release are based on estimates of future operating and capital costs and GLJ's forecast prices as of December 31, 2024 . The reserves definitions used in this evaluation are the standards defined by COGEH reserve definitions and are consistent with NI 51-101 and used by GLJ. The net present values of future net revenue attributable to the Alvopetro's reserves estimated by GLJ do not represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of the Company's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
Cabur é Working Interest
Alvopetro's working interest in the Caburé natural gas field is 56.2% as of December 31, 2024 and the date hereof. This working interest is subject to redetermination, the first of which was completed in April 2024 . An independent expert (the "Expert") was engaged in connection with the first redetermination to evaluate the redetermination and the impact to each party's working interest. Following the Expert's decision, Alvopetro's working interest was increased from 49.1% to 56.2%. Alvopetro's partner filed a notice of dispute with respect to the Expert's decision, seeking to stay the redetermination procedure. Alvopetro subsequently filed a request for emergency arbitration before the International Chamber of Commerce ("ICC") seeking to make the Expert decision effective starting on June 1, 2024 . In May 2024 , Alvopetro received the decision of the emergency arbitrator ("the Order") wherein the arbitrator found in favour of Alvopetro, making the Expert decision effective June 1, 2024 until such time as the dispute is reviewed by and decided upon by an arbitral tribunal pursuant to the Rules of Arbitration of the ICC. The redetermination dispute has proceeded to a full arbitration under the Rules of the ICC, however the timing and outcome of the full arbitration is uncertain and the resulting impact on the reserves and the net present value of future net revenue attributable to such reserves as presented herein may be material. In addition, future redeterminations may also have a material impact on Alvopetro's reserves and future cash flows.
Contingent Resources
This news release discloses estimates of Alvopetro's contingent resources and the net present value associated with net revenues associated with the production of such contingent resources as included in the GLJ Reserves and Resources Report. There is no certainty that it will be commercially viable to produce any portion of such contingent resources and the estimated future net revenues do not necessarily represent the fair market value of such contingent resources. Estimates of contingent resources involve additional risks over estimates of reserves. Full disclosure with respect to the Company's contingent resources as at December 31, 2024 will be contained in the Company's annual information form for the year ended December 31, 2024 which will be filed on SEDAR+ ( www.sedarplus.ca ) on or before April 30, 2025 .
Prospective Resources
This news release discloses estimates of Alvopetro's prospective resources included in the GLJ Reserves and Resources Report. There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Estimates of prospective resources involve additional risks over estimates of reserves. The accuracy of any resources estimate is a function of the quality and quantity of available data and of engineering interpretation and judgment. While resources presented herein are considered reasonable, the estimates should be accepted with the understanding that reservoir performance subsequent to the date of the estimate may justify revision, either upward or downward. Full disclosure with respect to the Company's prospective resources as at December 31, 2024 will be contained in the Company's annual information form for the year ended December 31, 2024 which will be filed on SEDAR+ ( www.sedarplus.ca ) on or before April 30, 2025 .
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 (6Mcf/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.
Other Metrics
This new release contains references to "production replacement ratio", a metric commonly used in the oil and natural gas industry, which has been prepared by management. This term does not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.
"Production replacement ratio" is calculated by dividing the change in reserve volumes plus current year production by current year production. Alvopetro's 1P production replacement ratio and 2P production replacement ratio in 2024 is calculated as:
1P | 2P | |
Reserve volumes as at December 31, 2024 – Mboe | 4,512 | 9,148 |
Reserve volumes as at December 31, 2023 – Mboe | 2,727 | 8,711 |
Reserve additions – Mboe | 1,785 | 437 |
2024 production – Mboe | 657 | 657 |
Change in reserves before 2024 production - Mboe | 2,442 | 1,094 |
2024 production replacement ratio | 372 % | 167 % |
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. 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 information concerning plans relating to the Company's operational activities, proposed development activities and the timing for such activities, capital spending levels and future capital costs, the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement and arbitration procedures associated with the redetermination of working interests of the Caburé natural gas field. 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 regulation 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 future 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. 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 annual information form 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/February2025/26/c7583.html
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CHARBONE Hydrogen Executed a USD 50MM Financing to Accelerate its Hydrogen's North American Expansion Facilitated by US Capital Global
(TheNewswire)
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Global private financial group headquartered in San Francisco advises on construction facility to support CHARBONE's expansion of modular green hydrogen facilities in North America.
Brossard, Quebec TheNewswire - June 4, 2025 Charbone Hydrogen Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47) (the "Company" or "CHARBONE"), rare publicly traded pure-play company focused on the production and distribution of green hydrogen in North America, is pleased to announce more details on the signing, announced previously on May 1st 2025, of a project finance facility of up to USD 50 million being provided by a private fund managed by True Green Capital Management LLC ("TGC"). US Capital Global Securities LLC, the SEC-registered broker-dealer division of global private financial group US Capital Global has acted as lead advisor and facilitator.
Headquartered in Montreal, CHARBONE is developing modular production facilities targeting 99.999% purity (Grade 5.0 and higher) hydrogen, with all output pre-sold through tier-one offtake agreements.
" We're proud to have served as lead advisor to both CHARBONE and TGC on this transaction ," said Charles Towle, CEO of US Capital Global Securities. " CHARBONE is gaining strong momentum as demand grows for clean hydrogen solutions to decarbonize industrial users through their key sites in development across North America. We look forward to supporting the company's continued growth. The transaction was led by Lisa Terk, Senior Vice President and a top CleanTech and Renewables banker at our global headquarters. "
" This financing marks an important milestone in executing our long-term growth strategy ," said Benoit Veilleux, CFO of CHARBONE. " We are grateful to US Capital Global for their consistent support and expertise throughout this process—from structuring and investor engagement to the successful completion of legal documentation. "
Herv é Touati , Managing Director at TGC, added: " We're pleased to be financing CHARBONE and look forward to working together on this joint renewable clean energy initiative. We appreciate the diligence and insight of US Capital Global in bringing this opportunity to this stage. "
About Charbone Hydrogen Corporation
CHARBONE is an integrated green hydrogen company with strategic distribution capabilities of industrial gases across North America. While continuing to develop its modular green hydrogen production network, CHARBONE also leverages commercial partnerships to supply hydrogen, helium, and other industrial gases without the capital-intensive requirements of production facilities. This approach enhances revenue streams, reduces operational risks, and increases market flexibility. CHARBONE remains North America's only publicly traded pure-play green hydrogen company, with shares listed on the TSX Venture Exchange (TSXV: CH), the OTC Markets (OTCQB: CHHYF), and the Frankfurt Stock Exchange (FSE: K47). For more information, visit www.charbone.com .
About True Green Capital Management
True Green Capital Management LLC ("TGC") is a specialized renewable energy infrastructure fund manager with a focus in distributed power generation in the US and Europe. Since 2011, TGC has financed and managed clean energy assets that generate stable, low-correlated returns. Headquartered in Westport, Connecticut, TGC also maintains an office in London. Learn more at www.truegreencapital.com .
About US Capital Global
Founded in 1998, US Capital Global offers a range of advanced financial solutions, including debt, equity, and investment products customized for middle-market enterprises and investors. The firm oversees direct investment funds while delivering comprehensive wealth management and investment banking services, encompassing M&A strategies and capital raising expertise. Among the notable entities within the consortium are US Capital Global Investment Management LLC, US Capital Global Wealth Management LLC, and US Capital Global Securities LLC, an SEC-registered broker-dealer and member of FINRA. To learn more, visit www.uscapital.com .
Forward-Looking Statements
This news release contains statements that are "forward-looking information" as defined under Canadian securities laws ("forward-looking statements"). These forward-looking statements are often identified by words such as "intends", "anticipates", "expects", "believes", "plans", "likely", or similar words. The forward-looking statements reflect management's expectations, estimates, or projections concerning future results or events, based on the opinions, assumptions and estimates considered reasonable by management at the date the statements are made. Although Charbone believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on forward-looking statements, as unknown or unpredictable factors could cause actual results to be materially different from those reflected in the forward-looking statements. The forward-looking statements may be affected by risks and uncertainties in the business of Charbone. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in the Corporation's Filing Statement dated March 31, 2022, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements.
Except as required under applicable securities legislation, Charbone undertakes no obligation to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
Contact Charbone Hydrogen Corporation | ||||
Telephone: +1 450 678 7171 | ||||
Email: ir@charbone.com Benoit Veilleux CFO and Corporate Secretary | ||||
Copyright (c) 2025 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Charbone Hydrogene a execute un financement de 50 millions USD pour accelerer son expansion en hydrogene en Amerique du Nord, facilite par US Capital Global
(TheNewswire)
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Un groupe financier privé mondial dont le siège social est à San Francisco conseille sur la facilité de construction pour soutenir l'expansion des usines modulaires d'hydrogène vert de Charbone en Amérique du Nord.
Brossard (Québec) TheNewswire - le 4 juin 2025 - CORPORATION CHARBONE HYDROGÈNE (TSXV: CH OTCQB: CHHYF, FSE: K47 ) (« Charbone » ou la « Société »), une rare compagnie cotée en bourse spécialisée dans la production et la distribution d'hydrogène vert en Amérique du Nord, est heureuse d'annoncer plus de détails sur la signature, annoncée le 1 er mai 2025, d'un financement de projets d'un montant maximal de 50 millions de dollars américains, accordé par un fonds privé géré par True Green Capital Management LLC (« TGC »). US Capital Global Securities LLC, la division de courtage enregistrée auprès de la SEC du groupe financier privé mondial US Capital Global, a agi en tant que conseiller principal et facilitateur.
Basée à Montréal, Charbone développe des usines de production modulaires ciblant l'hydrogène d'une pureté de 99,999 % (grade 5.0 et supérieur), avec toute la production pré-vendue via des contrats de ventes à des clients de premier niveau.
" Nous sommes fiers d'avoir servi de conseiller principal à la fois à Charbone et à TGC sur cette transaction , a dit Charles Towle, Chef de la direction à US Capital Global Securities. " Charbone connaît une forte dynamique, face à la demande croissante de solutions d'hydrogène propre pour décarboner les utilisateurs industriels grâce à ses principaux sites en développement en Amérique du Nord. Nous sommes impatients de soutenir la croissance continue de l'entreprise. La transaction a été menée par Lisa Terk, vice-présidente principale et banquière de premier plan spécialisée dans les technologies propres et les énergies renouvelables à notre siège mondial . "
" Ce financement marque une étape importante dans l'exécution de notre stratégie de croissance à long terme , a dit Benoit Veilleux, Chef de la direction financière de Charbone. " Nous sommes reconnaissants à US Capital Global pour son soutien constant et son expertise tout au long de ce processus, depuis la structuration et de l'engagement des investisseurs jusqu'à la réussite de la documentation juridique . "
Hervé Touati, Directeur Général à TGC, a ajouté : " Nous sommes heureux de financer Charbone et nous réjouissons de collaborer à cette initiative conjointe en matière d'énergie propre et renouvelable. Nous apprécions la diligence et la perspicacité de US Capital Global qui ont permis à cette opportunité d'aboutir . "
À propos de Charbone Hydrogène Corporation
Charbone est une entreprise intégrée d'hydrogène vert disposant de capacités stratégiques de distribution de gaz industriels en Amérique du Nord. Tout en poursuivant le développement de son réseau modulaire de production d'hydrogène vert, Charbone s'appuie également sur des partenariats commerciaux pour fournir de l'hydrogène, de l'hélium et d'autres gaz industriels sans les exigences en capital élevées des usines de production. Cette approche améliore les sources de revenus, réduit les risques opérationnels et accroît la flexibilité sur le marché. Charbone reste la seule société purement axée sur l'hydrogène vert cotée en bourse en Amérique du Nord, avec des actions cotées à la Bourse de croissance TSX (TSXV: CH); sur les marchés OTC (OTCQB: CHHYF); et à la Bourse de Francfort (FSE: K47). Pour plus d'informations, visiter www.charbone.com .
À propos de True Green Capital
True Green Capital Management LLC (« TGC ») est un gestionnaire de fonds spécialisé dans les infrastructures d'énergies renouvelables, spécialisé dans la production d'électricité décentralisée aux États-Unis et en Europe. Depuis 2011, TGC finance et gère des actifs d'énergie propre générant des rendements stables et faiblement corrélés. Basé à Westport, dans le Connecticut, TGC dispose également d'un bureau à Londres. Pour en savoir plus, rendez-vous sur www.truegreencapital.com .
À propos de US Capital Global
Fondée en 1998, US Capital Global propose une gamme de solutions financières avancées, comprenant des produits de dette, de capitaux propres et d'investissement personnalisés pour les entreprises et les investisseurs du marché intermédiaire. La société supervise des fonds d'investissement directs et propose des services complets de gestion de patrimoine et de banque d'investissement, incluant des stratégies de fusions-acquisitions et une expertise en levée de capitaux. Parmi les entités notables du consortium figurent US Capital Global Investment Management LLC, US Capital Global Wealth Management LLC et US Capital Global Securities LLC, courtier-négociant enregistré auprès de la SEC et membre de la FINRA. Pour en savoir plus, visiter www.uscapital.com .
Énoncés prospectifs
Le présent communiqué de presse contient des énoncés qui constituent de « l'information prospective » au sens des lois canadiennes sur les valeurs mobilières (« déclarations prospectives »). Ces déclarations prospectives sont souvent identifiées par des mots tels que « a l'intention », « anticipe », « s'attend à », « croit », « planifie », « probable », ou des mots similaires. Les déclarations prospectives reflètent les attentes, estimations ou projections respectives de la direction de Charbone concernant les résultats ou événements futurs, sur la base des opinions, hypothèses et estimations considérées comme raisonnables par la direction à la date à laquelle les déclarations sont faites. Bien que Charbone estime que les attentes exprimées dans les déclarations prospectives sont raisonnables, les déclarations prospectives comportent des risques et des incertitudes, et il ne faut pas se fier indûment aux déclarations prospectives, car des facteurs inconnus ou imprévisibles pourraient faire en sorte que les résultats réels soient sensiblement différents de ceux exprimés dans les déclarations prospectives. Des risques et des incertitudes liés aux activités de Charbone peuvent avoir une incidence sur les déclarations prospectives. Ces risques, incertitudes et hypothèses comprennent, sans s'y limiter, ceux décrits à la rubrique « Facteurs de risque » dans la déclaration de changement à l'inscription de la Société datée du 31 mars 2022, qui peut être consultée sur SEDAR à l'adresse www.sedar.com; ils pourraient faire en sorte que les événements ou les résultats réels diffèrent sensiblement de ceux prévus dans les déclarations prospectives.
Sauf si les lois sur les valeurs mobilières applicables l'exigent, Charbone ne s'engage pas à mettre à jour ni à réviser les déclarations prospectives.
Ni la Bourse de croissance TSX ni son fournisseur de services de réglementation (tel que ce terme est défini dans les politiques de la Bourse de croissance TSX) n'acceptent de responsabilité quant à la pertinence ou à l'exactitude du présent communiqué.
Pour contacter Corporation Charbone Hydrogène :
Téléphone bureau: +1 450 678 7171 | ||
Courriel: ir@charbone.com Benoit Veilleux Chef de la direction financière et secrétaire corporatif |
Copyright (c) 2025 TheNewswire - All rights reserved.
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Charbone Hydrogen Announces Closing of Units for Debt Financing for a Total Amount of $1.3M
(TheNewswire)
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Brossard, Quebec TheNewswire - June 3, 2025 Charbone Hydrogen Corporation (TSXV: CH; OTCQB: CHHYF; FSE: K47) (the "Company" or "CHARBONE "), North America's only publicly traded pure-play company focused on green hydrogen production and distribution, is pleased to announce the closing of Units for debt settlements amounting to $1,342,687.
The Company has settled with certain arm's length suppliers $1,342,687 of payables through the issuance of units. Each unit offered, priced at $0.075 per Unit, comprised one common share of the Company and one common share purchase warrant. Each Warrant will entitle the holder thereof to purchase one additional common share of the Company at an exercise price of $ 0.10 for 12 months following the closing date. A total of 17,902,489 Units will be issued pursuant to the closing, at a conversion price per unit of $0.075. The Company believes that the settlement of the payables through the issuance of securities is appropriate to advance towards production for its Sorel-Tracy project and the overall need to manage its cash prudently. A formal agreement will reflect any debt settlement and will be subject to the approval of the TSX Venture Exchange. Any securities issued pursuant to a debt settlement will be subject to a statutory four-month hold period in Canada.
About Charbone Hydrogen Corporation
CHARBONE is an integrated green hydrogen company with strategic distribution capabilities of industrial gases across North America. While continuing to develop its modular green hydrogen production network, CHARBONE also leverages commercial partnerships to supply hydrogen, helium, and other industrial gases without the capital-intensive requirements of production facilities. This approach enhances revenue streams, reduces operational risks, and increases market flexibility. CHARBONE remains North America's only publicly traded pure-play green hydrogen company, with shares listed on the TSX Venture Exchange (TSXV: CH), the OTC Markets (OTCQB: CHHYF), and the Frankfurt Stock Exchange (FSE: K47). For more information, visit www.charbone.com .
Forward-Looking Statements
This news release contains statements that are "forward-looking information" as defined under Canadian securities laws ("forward-looking statements"). These forward-looking statements are often identified by words such as "intends", "anticipates", "expects", "believes", "plans", "likely", or similar words. The forward-looking statements reflect management's expectations, estimates, or projections concerning future results or events, based on the opinions, assumptions and estimates considered reasonable by management at the date the statements are made. Although Charbone believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on forward-looking statements, as unknown or unpredictable factors could cause actual results to be materially different from those reflected in the forward-looking statements. The forward-looking statements may be affected by risks and uncertainties in the business of Charbone. These risks, uncertainties and assumptions include, but are not limited to, those described under "Risk Factors" in the Corporation's Filing Statement dated March 31, 2022, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements.
Except as required under applicable securities legislation, Charbone undertakes no obligation to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
Contact Charbone Hydrogen Corporation | |
Telephone: +1 450 678 7171 | |
Email: ir@charbone.com Benoit Veilleux CFO and Corporate Secretary | |
Copyright (c) 2025 TheNewswire - All rights reserved.
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Charbone Hydrogene Annonce un Financement de Reglements de Dettes par Emission d'Unites pour un Montant Total de 1,3M$
Brossard (Québec) TheNewswire - le 3 juin 2025 — CORPORATION CHARBONE HYDROGÈNE (TSXV: CH OTCQB: CHHYF, FSE: K47 ) (« Charbone » ou la « Société »), la seule compagnie d'Amérique du Nord cotée en bourse axée sur la production et la distribution d'hydrogène vert, a le plaisir d'annoncer la clôture de règlements de dettes par émission d'unités s'élevant à 1 342 687 $.
La Société a conclu avec certains fournisseurs sans lien de dépendance pour un montant total de 1 342 687 $ de comptes à payer par l'émission d'unités. Chaque unité offerte, au prix de 0,075 $ l'unité, comprenait une action ordinaire de la Société et un bon de souscription d'action ordinaire . Chaque bon de souscription permettra à son porteur d'acquérir une action ordinaire supplémentaire de la Société à un prix d'exercice de 0,10 $ pendant 12 mois après la date de clôture . Un total de 17 902 489 d'unités seront émises à la clôture, au prix de conversion unitaire de 0,075 $. La Société estime que le règlement des dettes par l'émission de titres est approprié pour progresser vers la production de son projet phare de Sorel-Tracy et pour répondre à la nécessité générale de gérer sa trésorerie avec prudence. Une entente officielle reflétera tout règlement de dette et sera assujetti à l'approbation de la Bourse de croissance TSX. Tous titres émis dans le cadre de ce règlement de dettes sera assujetti à la période de détention légale au Canada de quatre mois.
À propos de Charbone Hydrogène Corporation
Charbone est une entreprise intégrée d'hydrogène vert disposant de capacités stratégiques de distribution de gaz industriels en Amérique du Nord. Tout en poursuivant le développement de son réseau modulaire de production d'hydrogène vert, Charbone s'appuie également sur des partenariats commerciaux pour fournir de l'hydrogène, de l'hélium et d'autres gaz industriels sans les exigences en capital élevées des usines de production. Cette approche améliore les sources de revenus, réduit les risques opérationnels et accroît la flexibilité sur le marché. Charbone reste la seule société purement axée sur l'hydrogène vert cotée en bourse en Amérique du Nord, avec des actions cotées à la Bourse de croissance TSX (TSXV: CH); sur les marchés OTC (OTCQB: CHHYF); et à la Bourse de Francfort (FSE: K47). Pour plus d'informations, visiter www.charbone.com .
Énoncés prospectifs
Le présent communiqué de presse contient des énoncés qui constituent de « l'information prospective » au sens des lois canadiennes sur les valeurs mobilières (« déclarations prospectives »). Ces déclarations prospectives sont souvent identifiées par des mots tels que « a l'intention », « anticipe », « s'attend à », « croit », « planifie », « probable », ou des mots similaires. Les déclarations prospectives reflètent les attentes, estimations ou projections respectives de la direction de Charbone concernant les résultats ou événements futurs, sur la base des opinions, hypothèses et estimations considérées comme raisonnables par la direction à la date à laquelle les déclarations sont faites. Bien que Charbone estime que les attentes exprimées dans les déclarations prospectives sont raisonnables, les déclarations prospectives comportent des risques et des incertitudes, et il ne faut pas se fier indûment aux déclarations prospectives, car des facteurs inconnus ou imprévisibles pourraient faire en sorte que les résultats réels soient sensiblement différents de ceux exprimés dans les déclarations prospectives. Des risques et des incertitudes liés aux activités de Charbone peuvent avoir une incidence sur les déclarations prospectives. Ces risques, incertitudes et hypothèses comprennent, sans s'y limiter, ceux décrits à la rubrique « Facteurs de risque » dans la déclaration de changement à l'inscription de la Société datée du 31 mars 2022, qui peut être consultée sur SEDAR à l'adresse www.sedar.com; ils pourraient faire en sorte que les événements ou les résultats réels diffèrent sensiblement de ceux prévus dans les déclarations prospectives.
Sauf si les lois sur les valeurs mobilières applicables l'exigent, Charbone ne s'engage pas à mettre à jour ni à réviser les déclarations prospectives.
Ni la Bourse de croissance TSX ni son fournisseur de services de réglementation (tel que ce terme est défini dans les politiques de la Bourse de croissance TSX) n'acceptent de responsabilité quant à la pertinence ou à l'exactitude du présent communiqué.
Pour contacter Corporation Charbone Hydrogène :
Téléphone bureau: +1 450 678 7171 | ||
Courriel: ir@charbone.com Benoit Veilleux Chef de la direction financière et secrétaire corporatif |
Copyright (c) 2025 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
SOURCE ROCK ROYALTIES ANNOUNCES FIRST QUARTER 2025 RESULTS
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./
Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR), a pure-play oil and gas royalty company with an established portfolio of oil focused royalties, announces results for the three-month period ended March 31, 2025 .
First Quarter Highlights:
- Quarterly royalty production of 232 boe/d (92% oil and NGLs), a decrease of 4% over Q1 2024.
- Quarterly royalty revenue of $1,676,388 , a decrease of 3% over Q1 2024.
- Quarterly adjusted EBITDA (1) of $1,460,440 ( $0.032 per share), a decrease of 3% over Q1 2024.
- Quarterly funds from operations (1) of $1,292,215 ( $0.028 per share), a decrease of 3% over Q1 2024.
- Declared three monthly dividends of $0.0065 per share, resulting in a payout ratio (1) of 69%.
- Achieved an operating netback (1) of $70.00 per boe and a corporate netback (1) of $61.94 per boe.
- Working capital of $5,263,714 (0.115 per share) as at March 31, 2025 .
Financial and Operational Results
Three Months Ended March 31, | |||
FINANCIAL ($, except as noted) | 2025 | 2024 | Change |
Royalty revenue | 1,676,388 | 1,728,050 | -3 % |
Adjusted EBITDA (1) | 1,460,440 | 1,504,104 | -3 % |
Per share (basic) | 0.032 | 0.033 | -3 % |
Funds from operations (1) | 1,292,215 | 1,331,106 | -3 % |
Per share (basic) | 0.028 | 0.029 | -3 % |
Total comprehensive income (loss) | 355,381 | 217,968 | 63 % |
Per share (basic) | 0.008 | 0.005 | 60 % |
Per share (diluted) | 0.007 | 0.005 | 40 % |
Dividends declared | 888,863 | 814,176 | 9 % |
Per share | 0.0195 | 0.018 | 8 % |
Payout ratio (1) (%) | 69 % | 61 % | 13 % |
Cash and cash equivalents | 5,125,530 | 2,445,179 | 110 % |
Per share (basic) | 0.11 | 0.05 | 108 % |
Average shares outstanding (basic) | 45,582,727 | 45,231,865 | 1 % |
Shares outstanding (end of period) | 45,582,727 | 45,232,645 | 1 % |
OPERATING | |||
Average daily production (boe/d) | 232 | 241 | -4 % |
Percentage oil & NGLs (%) | 92 % | 95 % | -3 % |
Average price realizations ($/boe) | 80.36 | 78.78 | 2 % |
Operating netback (1) ($/boe) | 70.00 | 68.58 | 2 % |
Corporate netback (1) ($/boe) | 61.94 | 60.70 | 2 % |
(1) | This is a non-GAAP financial measure or non-GAAP ratio. Refer to the disclosure under the heading "Non-GAAP Financial Measures & Ratios" for more information on each non-GAAP financial measure or ratio. |
About Source Rock Royalties Ltd.
Source Rock is a pure-play oil and gas royalty company with an existing, oil focused portfolio of royalty interests concentrated in southeast Saskatchewan , central Alberta and west-central Saskatchewan . Source Rock targets a balanced growth and yield business model, using funds from operations to pursue accretive royalty acquisitions and to pay dividends. By leveraging its niche industry relationships, Source Rock identifies and acquires both existing royalty interests and newly created royalties through collaboration with industry partners. Source Rock's strategy is premised on maintaining a low-cost corporate structure and achieving a sustainable and scalable business, measured by growing funds from operations per share and maintaining a strong netback on its royalty production.
Forward-Looking Statements
This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include statements regarding Source Rock's dividend strategy and the amount and timing of future dividends (and the sustainability thereof), the potential for future drilling on Source Rock's royalty lands, expectations regarding commodity prices, Source Rock's growth strategy and expectations with respect to future royalty acquisition and partnership opportunities, and the ability to complete such acquisitions and establish such partnerships. Such statements and information are based on the current expectations of Source Rock's management and are based on assumptions and subject to risks and uncertainties. Although Source Rock's management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Source Rock. Although Source Rock has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement or information can be guaranteed. Except as required by applicable securities laws, forward-looking statements and information speak only as of the date on which they are made and Source Rock undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures & Ratios
This news release uses the terms "funds from operations" and "Adjusted EBITDA" which are non-GAAP financial measures and the terms "payout ratio", "operating netback" and "corporate netback" which are non-GAAP ratios. These financial measures and ratios do not have a standardized prescribed meaning under GAAP and these measures and ratios may not be comparable with the calculation of similar measures disclosed by other entities.
"Adjusted EBITDA" is used by management to analyze the Corporation's profitability based on the Corporation's principal business activities prior to how these activities are financed, how assets are depreciated, amortized and impaired, and how the results are taxed. Additionally, amounts are removed relating to share-based compensation expense, the sale of assets, fair value adjustments on financial assets and liabilities, other non-cash items and certain non-standard expenses, as the Corporation does not deem these to relate to the performance of its principal business. Adjusted EBITDA is not intended to represent net profit (or loss) as calculated in accordance with IFRS.
The most directly comparable GAAP financial measure to funds from operations is cash flow from operating activities. "Funds from operations" is defined as cash flow from operating activities before the change in non-cash working capital. Source Rock believes the timing of collection, payment or incurrence of these non-cash items involves a high degree of discretion and as such may not be useful for evaluating Source Rock's operating performance. Source Rock considers funds from operations to be a key measure of operating performance as it demonstrates Source Rock's ability to generate funds to fund operations, acquisition opportunities, dividend payments and debt repayments, if applicable. Funds from operations should not be construed as an alternative to income or cash flow from operating activities determined in accordance with GAAP as an indication of Source Rock's performance.
"Corporate netback" is calculated as funds from operations divided by cumulative production volumes for the period. Corporate netback is used by Source Rock to better analyze the financial performance of its royalties against prior periods and to assess the cost efficiency of its overall corporate platform as it relates to production volumes. There is no standardized meaning for "corporate netback" and this metric as used by Source Rock may not be comparable with the calculation of similar metrics disclosed by other entities, and therefore should not be used to make comparisons.
"Operating netback" represents the cash margin for products sold. Operating netback is calculated as revenue minus cash administrative expenses divided by cumulative production volumes for the period. Operating netback is used by Source Rock to assess the cash generating and operating performance of its royalties against prior periods and to assess the costs efficiency of its operating platform as it relates to production volumes. There is no standardized meaning for "operating netback" and this metric as used by Source Rock may not be comparable with the calculation of similar metrics disclosed by other entities, and therefore should not be used to make comparisons.
"Payout ratio" is calculated as the aggregate of cash dividends declared in a period divided by funds from operations realized in such period. Source Rock considers payout ratio to be a key measure to assess Source Rock's ability to fund operations, acquisition opportunities, dividend payments, cash taxes and debt repayments, if applicable.
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 of this release.
SOURCE Source Rock Royalties Ltd.
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