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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, and was the first company to deliver sales-specified natural gas onshore into the local distribution network, which was 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.
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 ~$140 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 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 late 2024 and early 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 semi-annually based on a blend of three international benchmark prices (Henry Hub, UK NBP and Brent oil equivalent) averaged over a period of time. The contract includes both a floor and a ceiling price, with adjustments for inflation.
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 2024, 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. The company is looking to optimize its existing wells, which will help cultivate a broader multi-year development plan. 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.
Management Team
Corey C. Ruttan – Chief Executive Officer
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.
Alvopetro Announces Approval of Normal Course Issuer Bid and Automatic Share Purchase Plan
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro" or the "Company") is pleased to announce the TSX Venture Exchange ("TSXV") has now approved the Company's proposed normal course issuer bid (the "NCIB") and an automatic share purchase plan ("ASPP").
Pursuant to the NCIB, Alvopetro is authorized to repurchase up to 2,953,044 common shares, representing 8.1% of the common shares outstanding as of August 12, 2024 and 10% of Alvopetro's "public float", over the period commencing on August 13, 2024 and ending on the earlier of: August 12, 2025 or such earlier date as the NCIB is completed or is terminated at the Company's election. Purchases under the NCIB may be made through open market transactions on the TSXV, the OTCQX and any alternate trading systems in Canada on which the common shares are traded, based on the prevailing market price, at such times and in such quantities as the Company may determine, subject to applicable regulatory restrictions. A maximum of 5% of Alvopetro's common shares outstanding may be purchased on the OTCQX during the twelve-month term of the NCIB. Any common shares purchased under the NCIB will be cancelled. During the Company's previous normal course issuer bid, which ran from January 6, 2023 until January 5, 2024 (the "Prior NCIB"), the Company purchased 4,600 of its common shares. The weighted average price paid per common share in the Prior NCIB was C$6.76 .
Alvopetro has appointed Research Capital Corporation as our designated broker to conduct the NCIB purchases. In connection with the NCIB, Alvopetro has entered into the ASPP with our designated broker. The TSXV has approved the ASPP. The ASPP allows our designated broker to purchase common shares under the NCIB. The ASPP allows for the purchase of common shares under the NCIB at times when the Company may not ordinarily be permitted to purchase common shares due to regulatory restrictions and customary self-imposed blackout periods. Any purchases under the ASPP are determined by the broker at its sole discretion based on purchasing parameters set out by the Company in accordance with rules of the TSXV, applicable securities laws and the terms of the ASPP. The ASPP will terminate on the earlier of the date on which: (i) the NCIB expires; (ii) the maximum number of common shares have been purchased under the ASPP; and (iii) the Company terminates the ASPP in accordance with its terms.
Outside of the ASPP and outside of pre-determined blackout periods, common shares may continue to be purchased under the NCIB based on management's discretion, in compliance with the rules of the TSXV and applicable securities laws. All purchases made under the ASPP will be included in the number of common shares available for purchase under the NCIB.
Alvopetro has an established strategy to balance reinvestment in our business with stakeholder returns. In combination with our quarterly dividends, the NCIB provides us with further flexibility with respect to stakeholder returns. Where Alvopetro has excess cash and working capital on hand, the NCIB provides Alvopetro with discretion to repurchase our common shares for cancellation at times where our board of directors and senior management believe the market price of the common shares may not fully reflect the reflect the underlying value of the common shares and Alvopetro's business and future prospects. In such circumstances, the repurchase of common shares under the NCIB should increase the underlying value of the common shares to the remaining shareholders. In addition, purchases under the NCIB may increase liquidity to shareholders wishing to sell their common shares. As announced on August 7, 2024 , where Alvopetro's funds flow from operations (1) to be allocated to stakeholders exceeds our current base dividend ( $0.09 per common share), Alvopetro's intention is to allocate such surplus funds to common share repurchases. An initial budget of $0.5 million has been allocated based on results for the six months ended June 30, 2024 and Alvopetro expects to augment this in future quarters based on results.
Alvopetro retains discretion whether to make purchases under the NCIB, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to applicable regulatory requirements.
(1) See " Non-GAAP and Other Financial Measures " section within this news release. |
Social Media
Follow Alvopetro on our social media channels at the following links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube - https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w
Alvopetro Energy Ltd.'s vision is to become a leading independent upstream and midstream operator in Brazil . Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil , building off the development of our Caburé and Murucututu natural gas assets and our strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
Abbreviations:
C$ = Canadian dollar
Non-GAAP and Other Financial Measures. This news release contains a reference to funds flow from operations which is a non-GAAP capital management measure as such term is defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. It is not a recognized measure under GAAP and does not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. It should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and is not meant to enhance the Company's reported financial performance or position. 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. For more information including a reconciliation 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 .
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 the NCIB, the duration of the NCIB, the number of common shares which may be purchased under the NCIB, the timing, amount and price of common shares under the NCIB, anticipated advantages to shareholder of the NCIB, the anticipated budget for the NCIB, the Company's dividend policy and plans for dividends in the future, future results of operations and related matters. Forward -looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, 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, 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, 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, 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. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the board of directors and may vary depending on numerous factors, including, without limitation, the Company's operational performance, available financial resources and financial requirements, capital requirements and growth plans. There can be no assurance that dividends will be paid at the intended rate or at any rate in the future. Similarly, the decision by the Company to repurchase common shares pursuant to the NCIB and the amount and timing of such repurchases is uncertain and there can be no assurance that the Company will repurchase any common shares in the future. 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.
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Alvopetro Announces Q2 2024 Results and Provides an Operational Update and a Corporate Update
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro" or the "Company") announces July 2024 sales volumes, updated natural gas pricing under our long-term gas sales agreement, an intention to launch a share buyback program under a normal course issuer bid ("NCIB"), and financial results for the three and six months ended June 30, 2024 . We will host a live webcast to discuss Q2 2024 results on Thursday August 8, 2024 at 8:00 am 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:
"We continue to post strong financial results with a Q2 2024 operating netback of $64.30 /boe and funds flow from operations of $7.9 million . We are also pleased to announce a significant 49% increase in production as we start the third quarter.
Alvopetro has a disciplined capital allocation model whereby roughly half of our funds flow from operations are intended to be reinvested in organic growth and the other half in returns to stakeholders. We have already returned $43.8 million ( $1.22 /share) to shareholders through dividends and we plan to complement these stakeholder returns through a share repurchase program. Our organically funded capital program is intensifying, we are planning a very busy second half of the year and we expect to have key results from initial activities to announce later this quarter."
Operational Update
July Sales Volumes
July sales volumes increased 49% over Q2 2024, averaging 2,432 boepd, including natural gas sales of 13.8 MMcfpd, associated natural gas liquids sales from condensate of 118 bopd and oil sales of 19 bopd, based on field estimates. To address continued impacts resulting from reductions in natural gas demand in the state of Bahia, Alvopetro and Bahiagás have agreed to review natural gas pricing on interruptible sales volumes (those volumes above our 300,000 m3/d (10.6 Mmcfpd) of Firm contracted sales) on a monthly basis. We expect nominations in August to be consistent with our July sales.
Natural gas, NGLs and crude oil sales: | July 2024 |
|
Natural gas (Mcfpd), by field: | ||
Caburé | 13,418 | 8,822 |
Murucututu | 353 | 422 |
Total natural gas (Mcfpd) | 13,771 | 9,244 |
NGLs (bopd) | 118 | 76 |
Oil (bopd) | 19 | 12 |
Total (boepd) | 2,432 | 1,629 |
Development Activities
We completed the planned chemical injection program in our 197-1 well, the well is back online, and we are monitoring the effectiveness of the chemical program. We have initiated the recompletion of our 183-1 well in an uphole Caruaçu zone and expect to bring the well online through our Murucututu production facility this quarter. In parallel, we are finishing the completion of our 183-A3 well. This well was drilled to a total measured depth of 3,540 metres and based on open-hole logs, the well encountered potential net natural gas pay in both the Caruaçu Member of the Maracangalha Formation and the Gomo Member of the Candeias Formation, with an aggregate 127.7 metres total vertical depth of potential natural gas pay, using a 6% porosity cutoff, 50% Vshale cut-off and 50% water saturation cutoff. We also plan to have this well on production through our Murucututu production facility later this quarter.
Semi-Annual Natural Gas Pricing Update
Effective August 1, 2024 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL1.945 /m 3 or $10.83 /Mcf (based on average heat content to date, the July 31, 2024 BRL/USD exchange rate of 5.66 and sales tax credits applicable). While the BRL contracted price was virtually unchanged from the February 1, 2024 contracted price, the expected USD price of $10.83 /Mcf, based on the July 31, 2024 exchange rate of 5.66, is 8% lower than the realized natural gas price of $11.83 /Mcf in Q2 2024, which was based on the Q2 2024 average exchange rate of 5.21.
Corporate Update - Normal Course Issuer Bid
Alvopetro has been following a disciplined capital allocation model whereby roughly half of our funds flow from operations are intended to be reinvested in organic growth and the other half allocated to stakeholder returns. Since commencing production from our Caburé project on July 5, 2020 , this model has resulted in all of our initial $15 million project finance debt being repaid in just over two years and, in Q3 2021, the introduction of our quarterly dividend. To date, we have already returned $43.8 million ( $1.22 /share) to shareholders through dividends.
To complement our stakeholder return model, Alvopetro's Board of Directors (the "Board") has approved the submission of an application to launch a share buyback program under a NCIB, subject to securities law and customary approvals. To the extent funds flow to be allocated to stakeholders is in excess of Board approved dividend amounts, the NCIB would provide us with further flexibility with respect to stakeholder returns, allowing us discretion to allocate these surplus funds to share repurchases. Where Alvopetro has excess cash and working capital on hand, the NCIB would provide Alvopetro with discretion to repurchase our common shares for cancellation at times where our Board and senior management believe the market price of the common shares may not fully reflect the underlying value of the common shares and Alvopetro's business and future prospects. In such circumstances, the repurchase of shares under the NCIB increases the underlying value of the common shares to the remaining shareholders. In addition, the purchases under the NCIB may increase liquidity to shareholders wishing to sell their common shares.
To the extent funds flow to be allocated to stakeholders exceeds our current base dividend ( $0.09 /share), Alvopetro's intention is to allocate these surplus funds to share repurchases. During the first six months of 2024 this surplus totaled $0.5 million which is being allocated to the initial budget for share repurchases and is expected to be augmented in future quarters based on results.
The NCIB is subject to the approval of the TSX Venture Exchange. Once approved, Alvopetro retains discretion whether to make purchases under the NCIB and to determine the timing, amount and acceptable price of such purchases, subject at all times to applicable regulatory requirements.
Financial and Operating Highlights – Second Quarter of 2024
- In April 2024 , the independent expert appointed in connection with the redetermination of working interests in the Unit found in favour of Alvopetro, increasing Alvopetro's working interest from 49.1% to 56.2%. Our partner disputed the findings of the independent expert and the matter was subsequently referred to an emergency arbitrator of the International Chamber of Commerce ("ICC"). In May 2024 , the emergency arbitrator found in favour of Alvopetro, making the decision of the appointed expert binding and increasing Alvopetro's working interest to 56.2% effective June 1, 2024 . The decision of the emergency arbitrator is a provisional and contingent decision until the matter is decided upon by a full arbitral tribunal pursuant to the Rules of Arbitration of the ICC as provided for under the terms of the UOA. The full arbitration has now commenced.
- Our daily sales averaged 1,629 boepd in Q2 2024, a decrease of 18% from Q2 2023 and 4% from Q1 2024 due to lower natural gas demand.
- Our average realized natural gas price was $11.83 /Mcf (-8% from Q2 2023) and our overall realized sales price per boe was $71.97 (-7% from Q2 2023).
- With lower overall sales volumes and realized prices per boe, our natural gas, condensate and oil revenue was $10.7 million , a decrease of $3.2 million (-23%) compared to Q2 2023 and $1.1 million (-9%) compared to Q1 2024.
- Our operating netback in the quarter was $64.30 per boe (- $5.31 from Q2 2023) due mainly to the reduction in our realized sales price per boe.
- We generated funds flows from operations of $7.9 million ( $0.21 per basic and per diluted share), a decrease of $3.1 million compared to Q2 2023 and $0.6 million compared to Q1 2024 due mainly to lower sales volumes and realized prices.
- We reported net income of $2.4 million in Q2 2024, a decrease of $7.5 million compared to Q2 2023 and $2.2 million compared to Q1 2024 due mainly to lower sales volumes and realized prices as well as higher foreign exchange losses, mainly on intercompany balances.
- Capital expenditures totaled $3.4 million , including equipment purchases for the facility upgrade at Caburé and other long-lead purchases, costs for our Murucututu wells and additional capital for historical Unit projects as a result of our increased working interest following the redetermination.
- Our working capital surplus was $14.7 million as of June 30, 2024 , increasing $1.6 million from December 31, 2023 and decreasing $0.4 million from March 31, 2024
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 June 30 | As at and Six Months Ended June 30, | |||||
2024 | 2023 | Change (%) | 2024 | 2023 | Change (%) | |
Financial | ||||||
($000s, except where noted) | ||||||
Natural gas, oil and condensate sales | 10,672 | 13,914 | (23) | 22,424 | 32,074 | (30) |
Net income | 2,350 | 9,852 | (76) | 6,900 | 22,054 | (69) |
Per share – basic ($) (1) | 0.06 | 0.27 | (78) | 0.19 | 0.60 | (68) |
Per share – diluted ($) (1) | 0.06 | 0.26 | (77) | 0.18 | 0.59 | (69) |
Cash flows from operating activities | 8,860 | 13,473 | (34) | 17,073 | 27,329 | (38) |
Per share – basic ($) (1) | 0.24 | 0.37 | (35) | 0.46 | 0.75 | (39) |
Per share – diluted ($) (1) | 0.24 | 0.36 | (33) | 0.45 | 0.73 | (38) |
Funds flow from operations (2) | 7,910 | 11,047 | (28) | 16,423 | 26,019 | (37) |
Per share – basic ($) (1) | 0.21 | 0.30 | (30) | 0.44 | 0.71 | (38) |
Per share – diluted ($) (1) | 0.21 | 0.29 | (28) | 0.44 | 0.69 | (36) |
Dividends declared | 3,296 | 5,109 | (35) | 6,592 | 10,213 | (35) |
Per share (1) (2) | 0.09 | 0.14 | (36) | 0.18 | 0.28 | (36) |
Capital expenditures | 3,437 | 8,521 | (60) | 5,876 | 11,812 | (50) |
Cash and cash equivalents | 19,681 | 25,598 | (23) | 19,681 | 25,598 | (23) |
Net working capital (2) | 14,692 | 18,084 | (19) | 14,692 | 18,084 | (19) |
Weighted average shares outstanding | ||||||
Basic (000s) (1) | 37,286 | 36,697 | 2 | 37,282 | 36,627 | 2 |
Diluted (000s) (1) | 37,600 | 37,755 | - | 37,647 | 37,657 | - |
Operations | ||||||
Natural gas, NGLs and crude oil sales: | ||||||
Natural gas (Mcfpd), by field: | ||||||
Caburé (Mcfpd) | 8,822 | 10,759 | (18) | 9,029 | 13,185 | (32) |
Murucututu (Mcfpd) | 422 | 510 | (17) | 426 | 335 | 27 |
Total natural gas (Mcfpd) | 9,244 | 11,269 | (18) | 9,455 | 13,520 | (30) |
NGLs – condensate (bopd) | 76 | 92 | (17) | 77 | 111 | (31) |
Oil (bopd) | 12 | 5 | 140 | 12 | 5 | 140 |
Total (boepd) | 1,629 | 1,975 | (18) | 1,665 | 2,369 | (30) |
Average realized prices (2) : | ||||||
Natural gas ($/Mcf) | 11.83 | 12.86 | (8) | 12.21 | 12.40 | (2) |
NGLs – condensate ($/bbl) | 92.27 | 83.35 | 11 | 90.06 | 83.79 | 7 |
Oil ($/bbl) | 71.87 | 63.93 | 12 | 68.54 | 68.00 | 1 |
Total ($/boe) | 71.97 | 77.41 | (7) | 74.00 | 74.80 | (1) |
Operating netback ($/boe) (2) | ||||||
Realized sales price | 71.97 | 77.41 | (7) | 74.00 | 74.80 | (1) |
Royalties | (1.94) | (1.97) | (2) | (1.98) | (2.18) | (9) |
Production expenses | (5.73) | (5.83) | (2) | (6.77) | (4.75) | 43 |
Operating netback | 64.30 | 69.61 | (8) | 65.25 | 67.87 | (4) |
Operating netback margin (2) | 89 % | 90 % | (1) | 88 % | 91 % | (3) |
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. |
Q2 2024 Results Webcast
Alvopetro will host a live webcast to discuss our Q2 2024 financial results at 8:00 am Mountain time on Thursday August 8, 2024. Details for joining the event are as follows:
DATE: August 8, 2024
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/83519395336
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kdjyfsnxcK
WEBINAR ID : 835 1939 5336
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.'s vision is to become a leading independent upstream and midstream operator in Brazil . Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil , building off the development of our Caburé and Murucututu natural gas fields and our 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 |
Q2 2023 | = | three months ended June 30, 2023 |
Q2 2024 | = | three months ended June 30, 2024 |
USD | = | United States dollars |
GAAP | = | 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 June 30, | Six Months Ended June 30, | |||
2024 | 2023 | 2024 | 2023 | |
Operating netback - $ per boe | 64.30 | 69.61 | 65.25 | 67.87 |
Average realized price - $ per boe | 71.97 | 77.41 | 74.00 | 74.80 |
Operating netback margin | 89 % | 90 % | 88 % | 91 % |
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 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 June 30, | Six Months Ended June 30, | |||
$ per share | 2024 | 2023 | 2024 | 2023 |
Per basic share: | ||||
Cash flows from operating activities | 0.24 | 0.37 | 0.46 | 0.75 |
Funds flow from operations | 0.21 | 0.30 | 0.44 | 0.71 |
Per diluted share: | ||||
Cash flows from operating activities | 0.24 | 0.36 | 0.45 | 0.73 |
Funds flow from operations | 0.21 | 0.29 | 0.44 | 0.69 |
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 June 30, | Six Months Ended June 30, | |||
2024 | 2023 | 2024 | 2023 | |
Cash flows from operating activities | 8,860 | 13,473 | 17,073 | 27,329 |
Add back changes in non-cash working capital | (950) | (2,426) | (650) | (1,310) |
Funds flow from operations | 7,910 | 11,047 | 16,423 | 26,019 |
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 June 30 | |||
2024 | 2023 | ||
Total current assets | 25,300 | 32,801 | |
Total current liabilities | (10,608) | (14,717) | |
Net working capital | 14,692 | 18,084 |
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.
Testing and Well Results
Data obtained from the 183-A3 well identified in this press release including net pay and porosities should be considered to be preliminary. There is no representation by Alvopetro that the data relating to the 183-A3 well contained in this press release is necessarily indicative of long-term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.
Forward-Looking Statements and Cautionary Language
This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend" 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 Company's intention to proceed with the NCIB, potential advantages to shareholders of the NCIB, the company's dividend policy and plans for dividends in the future, the arbitration procedures associated with the redetermination of working interests of the Unit, plans relating to the Company's operational activities, proposed exploration development activities and the timing for such activities, the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, exploration and development prospects of Alvopetro, capital spending levels, future capital and operating costs, future production and sales volumes, production allocations from the Caburé natural gas field, anticipated timing for upcoming drilling and testing of other wells, projected financial results, and sources and availability of capital. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, 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, 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, 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, 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. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors and may vary depending on numerous factors, including, without limitation, the Company's operational performance, available financial resources and financial requirements, capital requirements and growth plans. There can be no assurance that dividends will be paid at the intended rate or at any rate in the future. Similarly, there can be no assurance that the Company will receive approval for the NCIB and, to the extent approval is received, the decision by the Company to repurchase shares pursuant to the NCIB and the amount and timing of such repurchases is uncertain and there can be no assurance that the Company will repurchase any shares in the future. 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 financial institution instability, 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.
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Alvopetro Announces June 2024 Sales Volumes
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces June 2024 sales volumes of 1,669 boepd including natural gas sales of 9.6 MMcfpd, associated natural gas liquids sales from condensate of 67 bopd and oil sales of 10 bopd, based on field estimates. Our Q2 2024 sales averaged 1,629 boepd compared to 1,701 boepd in Q1 2024.
Natural gas, NGLs and crude oil sales: |
June
2024
May
2024
Q2
2024
Q1
2024
Natural gas (Mcfpd), by field:
Caburé
9,121
7,608
8,821
9,236
Murucututu
437
343
423
430
Total Company natural gas (Mcfpd)
9,558
7,951
9,244
9,666
NGLs (bopd)
67
84
76
78
Oil (bopd)
10
9
12
12
Total Company (boepd)
1,669
1,418
1,629
1,701
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.'s vision is to become a leading independent upstream and midstream operator in Brazil . Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil , building off the development of our Caburé and Murucututu natural gas assets and our 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 |
BRL | = | Brazilian real |
m 3 | = | cubic metre |
m 3 /d | = | cubic metre 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 the expected natural gas sales under the Company's long-term gas sales agreement. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to expectations and assumptions concerning expectations regarding natural gas demand, the success of future drilling, completion, and testing, equipment availability, the timing of regulatory licenses and approvals, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of global pandemics and other significant worldwide events, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on 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.
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Alvopetro Announces Q2 2024 Dividend of US$0.09 Per Share and Reminder of Upcoming AGM
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces that our Board of Directors has declared a quarterly dividend of US$0.09 per common share, payable in cash on July 15, 2024 to shareholders of record at the close of business on June 28, 2024 . 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 General Meeting
Alvopetro's annual general and special meeting (the "Meeting") will be held on Tuesday, June 18, 2024 at the Penn West Plaza Conference Centre (Suite 211, 207 9th Avenue SW, Calgary, Alberta ) beginning at 9:30 a.m. Mountain time. All interested parties are invited to attend the Meeting, however only registered shareholders of record at the close of business on April 29, 2024 and duly appointed proxyholders will be entitled to vote at 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, 2024
TIME : 9:30 AM Mountain/ 11:30 AM Eastern
LINK: https://us06web.zoom.us/j/83279531812 https://us06web.zoom.us/j/85643699805
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kdTMTKlxry
WEBINAR ID : 856 4369 9805
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.'s vision is to become a leading independent upstream and midstream operator in Brazil . Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil , building off the development of our Caburé natural gas field and our 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.
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 the Company's dividends, plans for dividends in the future, the timing and amount of such dividends and the expected tax treatment thereof. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to expectations and assumptions concerning expectations regarding natural gas demand, the performance of producing wells and reservoirs, well development and operating performance, the outcome of any disputes, the success of future drilling, completion, and testing, equipment availability, the timing of regulatory licenses and approvals, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of global pandemics and other significant worldwide events, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, Alvopetro's working interest in properties and the outcome of future redeterminations, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. 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.
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Alvopetro Announces May 2024 Sales Volumes
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces May 2024 sales volumes of 1,418 boepd including natural gas sales of 8.0 MMcfpd, associated natural gas liquids sales from condensate of 84 bopd and oil sales of 9 bopd, based on field estimates.
Natural gas, NGLs and crude oil sales: |
May
2024
April
2024
Natural gas (Mcfpd), by field:
Caburé
7,594
9,775
Murucututu
358
490
Total Company natural gas (Mcfpd)
7,952
10,265
NGLs (bopd)
84
79
Oil (bopd)
9
18
Total Company (boepd)
1,418
1,808
Natural gas sales in May were impacted by reduced nominations from Bahiagás resulting from temporary reductions in consumer demand. This demand reduction is expected to continue throughout much of June and nominations for the month are currently set at 8.9 MMcfpd.
Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .
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.'s vision is to become a leading independent upstream and midstream operator in Brazil . Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil , building off the development of our Caburé natural gas field and our 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 the expected natural gas sales under the Company's long-term gas sales agreement. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to expectations and assumptions concerning expectations regarding natural gas demand, the success of future drilling, completion, and testing, equipment availability, the timing of regulatory licenses and approvals, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of global pandemics and other significant worldwide events, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on 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.
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View original content: http://www.newswire.ca/en/releases/archive/June2024/04/c0639.html
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BPH Energy Ltd Raises $1 Million to Accelerate Funding of Hydrocarbon and Cortical Investments
BPH Energy Limited (ASX: BPH) (“BPH” or “Company”) is pleased to announce that it has received binding commitments to raise $1.044 million (before costs) (“Placement”). The Placement will comprise the issue of 58,028,337 new fully paid ordinary shares (“Placement Shares”) in the Company at an issue price of $0.018 per share. The Placement Shares will be issued pursuant to the Company’s existing placement capacity under ASX Listing Rule 7.1A.
HIGHLIGHTS
- Binding commitments received to raise $1.044 million through a Placement at $0.018 per share
- New sophisticated investors including high net worth, family office and dedicated resource funds confirmed as participants
- Subject to Shareholder approval, placement participants will receive one (1) Attaching Option for every two (2) New Shares subscribed for under the Placement, exercisable at $0.03 per share, expiring 12 months from the date of issue.
- BPH funded to execute its next phase of hydrocarbon and Cortical Dynamics funding
Placement participants will receive one (1) free Attaching Option for every two (2) Placement Shares subscribed for under the Placement, exercisable at $0.03 each, expiring 12 months from the date of issue (“Attaching Options”). The issue of the Attaching Options is subject to shareholder approval at a general meeting to be held on or about 25 September 2024. The Company will seek shareholder approval for a total of 29,014,168 Attaching Options.
Oakley Capital Partners Pty Limited (“Oakley Capital”) and 62 Capital Limited (“62 Capital”) acted as Joint Lead Managers for the Placement. Oakley Capital and 62 Capital will be paid a cash fee of 5.5% on funds raised under the Placement and subject to shareholder approval at the general meeting held on or about 25 September 2024, will receive 16,666,667 Broker Options (“Broker Options”) exercisable at $0.03 each, expiring 12 months from the date of issue (pro rata to their participation in the Placement).
The Company will seek quotation of the Attaching Options and Broker Options, subject to ASX Listing Rule requirements being met.
Commenting on the capital raising, Executive Director Mr David Breeze said:
“We were pleased with the strong support in the Placement and will see the introduction of several new sophisticated investors, including high net worth, family office and resource funds to our register.
The funding allows BPH to accelerate the exploration programs to unlock the potential on our gas projects especially with the current gas supply crisis as well as assist the next phase of associate Cortical Dynamic Limited’s expansion.
Click here for the full ASX Release
This article includes content from BPH Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Daydream-2 Operations Update
Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an update on the Daydream-2 program in its 100% owned Grandis Project in Queensland’s Taroom Trough.
HIGHLIGHTS
- Final equipment being mobilised to site
- Milling of plug set above the Lorelle Sandstone due over the weekend
- Flow testing of the stimulated Lorelle to follow immediately after
Elixir is in the final stages of mobilizing all equipment for the Daydream-2 stimulation and testing program. Over the coming weekend the plug set above the Lorelle Sandstone is due to be milled out and post stimulation flow testing of the Lorelle sandstone will follow immediately after. Given the depth and high pressure of this well, Elixir has been undertaking additional HSE inspections to ensure the simulation and testing will be conducted smoothly and safely.
Coil Tubing Unit Cab in Miles, ready to be mobilized to the wellsite
The Coil Tubing Unit (CTU) which was recently imported from New Zealand has been checked and function tested in cooperation with Elixir’s neighbouring Taroom Operator. The CTU is required to remove the plug above the Lorelle Sandstone before the flow test can commence.
The wellhead manifold and “Christmas Tree” valves have been serviced and pressure tested to 13,000 psi. They are fully functional and ready for tie in to the stimulation spread.
Servicing of well head at Daydream-2
In excess of 815,000 pounds of proppant and micro-proppant is also being transported to the wellsite in preparation for the 5 remaining stages of stimulation that will follow the Lorelle flow test.
Click here for the full ASX Release
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Saudi Aramco's Q2 Profits Dip on Lower Oil Sales and Refining Margins
Saudi Aramco (TADAWUL:2222), the world's largest oil company, attributes a 3.4 percent decline in its second quarter net income to lower crude oil sales volumes and softer refining margins.
In a Monday (August 5) press release, Aramco reported net income of US$29.07 billion, marking a slight reduction from the previous year due to the ongoing volatility in global oil markets.
Despite this dip, the company achieved a base divided of US$20.3 billion for Q2, plus a performance-linked dividend distribution of US$10.8 billion. That puts it on track for an "industry-leading" total dividend of US$124.2 billion this year.
Aramco's dividends are critical for Saudi Arabia's economy. The financial boost is crucial as the kingdom pursues ambitious economic diversification under Crown Prince Mohammed bin Salman's Vision 2030 plan.
The Saudi government also continues to benefit from its significant stake in Aramco.
Following a recent sale of 0.7 percent of its shares for US$12.35 billion, the government still holds nearly 81.5 percent of the company, with an additional 16 percent held by the Public Investment Fund.
Dividends from Aramco along with other financial strategies ensure Saudi Arabia's continued economic resilience and capacity to invest in long-term development projects.
Capital expenditures for Q2 rose by nearly 14 percent year-on-year to US$12.13 billion. This increase was partly due to investments aimed at maintaining crude oil production capacity at 12 million barrels per day and a gas business expansion.
Currently, Saudi Arabia is producing approximately 9 million barrels per day, about three-quarters of its maximum capacity.
The country, along with other OPEC+ members, has implemented production cuts to stabilize oil prices amid fluctuating demand. The global oil market has faced challenges recently, with Brent crude trading at around the US$76 per barrel level, its lowest since January. This decline has been driven by concerns over global economic growth and demand.
Saudi Arabia's economic growth has been impacted by these production cuts, with the kingdom experiencing GDP contractions for four consecutive quarters. Overall, the oil sector saw a dip of 8.5 percent in the second quarter.
Despite these market conditions, Aramco's shares rose by 1.7 percent on Tuesday (August 6), although they are down approximately 17 percent for the year, trailing behind western oil majors. Nevertheless, the company remains optimistic about future demand growth, anticipating global oil demand of 104.7 million barrels per day for 2024.
Aramco CEO Amin Nasser expressed confidence in the company's performance and the broader market outlook.
“We have delivered market-leading performance once again, with strong earnings and cash flows in the first half of the year,” Nasser remarked in the company’s press release.
“Leveraging these strong earnings, we continued to deliver a base dividend that is sustainable and progressive, and a performance-linked dividend that shares the upside with our shareholders,” he added.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
PEP11 Update
BPH Energy Limited (BPH) (ASX: BPH) and Bounty Oil & Gas NL (Bounty) (ASX: BUY) for the PEP11 Joint Venture announce that today, 5 August 2024, Asset Energy Pty Ltd (Asset) as operator for and on behalf of the joint venture partners, filed an Originating Application for Judicial Review in the Federal Court seeking the following:
1. A declaration that the Commonwealth-New South Wales Offshore Petroleum Joint Authority has breached an implied duty by failing to make a decision under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) with respect to two pending applications relating to Petroleum Exploration Permit NSW–11 (PEP11 Permit); and
2. An order that the Joint Authority be compelled to determine the applications within 45 days.
Background
On 24 December 2019, Asset applied for a variation and suspension of the conditions of the PEP11 Permit pursuant to s 264 of the Act and an extension of the term of the PEP11 Permit pursuant to s 265 of the Act (the First Application). The variation, suspension and extension were sought to, among other things, enable Asset (i) further time lawfully to drill an exploration well; and (ii) thereafter conduct post well studies rather than conduct a three-dimensional seismic survey. The National Offshore Petroleum Titles Administrator (NOPTA), on behalf of the Joint Authority, accepted the First Application on 23 January 2020.
On 30 January 2021, Asset applied for a variation and suspension of the conditions of the PEP11 Permit pursuant to s 264 of the Act and an extension of the term of the PEP11 Permit pursuant to s 265 of the Act (the Second Application). The variation, suspension and extension were sought to, among other things, enable Asset further time lawfully to drill an exploration well and sought to invoke the decision-making principles set out in the COVID-19 Fact Sheet: Work-Bid Exploration Permits (dated April 2020). NOPTA, on behalf of the Joint Authority, accepted the Second Application on 4 February 2021.
On or about 26 March 2022, the then purported Joint Authority formally determined to refuse the First Application (Purported First Application Decision). On 14 February 2023, the Purported First Application Decision was set aside by the Federal Court of Australia on the ground of apprehended bias. The decision of the Federal Court was the subject of an announcement made on 14 February 2023 by BPH.
Between March 2023 and October 2023, Asset provided further information to NOPTA. On 17 October 2023, NOPTA made a recommendation to the Joint Authority with respect to both Applications. To date, neither the First Application nor Second Application have been determined by the Joint Authority according to law. It has been 1,656 days (inclusive) since the First Application was accepted by NOPTA. It has been 1,278 days (inclusive) since the Second Application was accepted by NOPTA.
Asset alleges that the failure by the Joint Authority to make a decision with respect to the First Application and the Second Application constitutes a breach of its duty to consider the applications within a reasonable time.
David Breeze (Director) authorised the release of this announcement to the market.
Click here for the full ASX Release
This article includes content from BPH Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
5 Top Weekly TSXV Stocks: Tuktu Resources Rises 70 Percent on Light Oil Discovery
Welcome to the Investing News Network's weekly look at the best-performing junior mining stocks on the TSX Venture Exchange, starting with a round-up of Canadian and US market data impacting the resource sector.
The S&P/TSX Venture Composite Index (INDEXTSI:JX) lost 23.77 points last week to close at 555.56. Meanwhile, the S&P/TSX Composite Index (INDEXTSI:OSPTX) lost 587.18 points to close at 22,227.63.
The US Bureau of Labor Statistics released its Employment Situation Summary this past Friday (August 2). It points to softening employment, with 114,000 jobs added in July, significantly lower than analysts' predictions of 175,000.
The release also shows a 0.2 percent rise in the unemployment rate to 4.3 percent, with the number of unemployed people increasing by 352,000 to 7.2 million. While the uptick in unemployment could be a sign of an underlying recession in the country, it comes without the wave of layoffs typical during those conditions. Permanent job losses remained steady at 1.7 million, although temporary layoffs rose 249,000 to come in at 1.1 million.
The monthly job figures show a more pronounced softening in the laborforce, and will likely add fuel to the US Federal Reserve’s policy decision when it meets in September. At the moment, 72.5 percent of Fed watchers are leaning toward a 50 basis point cut to the benchmark rate versus the 78 percent predicting a 25 basis point cut just one week ago.
Statistics Canada released an industry breakdown for May GDP this past Wednesday (July 31). The report shows a 0.6 percent contraction in the mining, quarrying and oil and gas extraction sector. The decline was attributed to a 2.1 percent pullback in oil and gas, which includes a 3.5 percent decrease in oil sands extraction — the largest since January.
Declines were offset by 0.5 percent growth in mining and quarrying, the seventh increase in eight months. Gains were supported by 2.7 percent growth in non-metallic mineral mining, including a 7.1 percent rise in potash mining.
Markets saw post-rate decision gains erased at the end of the week, with the S&P 500 (INDEXSP:.INX) losing 1.84 percent on the week to close at 5,346.55 points, the Nasdaq-100 (INDEXNASDAQ:NDX) falling 2.38 percent to close at 18,440.85 and the Dow Jones Industrial Average (INDEXDJX:.DJI) shedding 1.51 percent to end the week at 39,737.27.
Commodities were also down, with the S&P GSCI (INDEXSP:SPGSCI) ending the week 2.08 percent lower at 533.05. Meanwhile, precious metals were up, with gold posting a gain of 2.37 percent on the week to reach US$2,443.62 per ounce. For its part, silver climbed 2.33 percent to hit US$28.58 per ounce as of 4:00 p.m. EDT on Friday.
Read on to learn about the five top-gaining mining and energy stocks on the TSXV last week.
1. Tuktu Resources (TSXV:TUK)
Weekly gain: 70 percent; market cap: C$10.14 million; share price: C$0.085
Tuktu Resources is an oil and gas development company focused on expanding its footprint in the foothills of Southern Alberta, Canada. The company started working in the region in December 2022, when it entered into a purchase agreement for a 19 section land package on the eastern edge of the Alberta thrust belt that included a single well. Tuktu has since expanded its holdings in the region to 26.4 sections and 20 horizontal well locations.
In its 2023 results, released on April 25, the company reported proven and probable oil and gas reserves of 127.6 million barrels of light and medium oil and 8.99 million cubic feet of natural gas.
The most recent news from Tuktu came this past Tuesday (July 30), when it announced that testing at an oil zone in the region’s deep basin, for which it recently closed its farm-in agreement, resulted in a successful light oil discovery.
According to Tuktu, “This discovery more than triples Tuktu’s oil production and delineates a new oil fairway.” During the final seven hour period of testing, the well produced at rates between 327 and 383 barrels of oil per day.
Samples have been submitted for further analysis, and the company said it will also provide updates on the well’s performance over the next one to three months.
2. Mogotes Metals (TSXV:MOG)
Weekly gain: 66.67 percent; market cap: C$25.53 million; share price: C$0.20
Mogotes Metals is an explorer working to advance its Filo Sur copper-gold-silver project, which straddles the border between Argentina and Chile in the Vicuña copper district. The company began trading on the TSXV on June 11.
The Argentinean portion of the site, representing the bulk of the land package at 8,118 hectares, is currently the subject of an earn-in agreement with Golden Arrow Resources (TSXV:GRG,OTCQB:GARWF), a member of the Grosso Group. Under the deal, Mogotes has the ability to acquire an 80 percent share of the property in exchange for C$5 million in exploration expenditures and C$1.75 million in payments on or before May 4, 2027.
Shares of Mogotes saw gains this past Wednesday after the company announced assay results from rock chip and trench channel samples. Rock chip samples returned grades up to 1.32 grams per metric ton (g/t) gold and 94.3 g/t silver, while trench samples returned average results of 0.23 g/t gold, 1.4 g/t silver, 620 parts per million (ppm) copper and 461 ppm zinc. Magotes said further exploration of the area will help to provide drill targets.
3. Golconda Gold (TSXV:GG)
Weekly gain: 41.67 percent; market cap: C$24.59 million; share price: C$0.34
Golconda Gold is a gold production company with mining operations in New Mexico, US, and South Africa.
The company acquired the Galaxy mine near Barberton, South Africa, in 2015. It is one of the oldest mines in the country. Golconda expanded its holdings to the US in May 2021, when it acquired the Summit mine and Banner mill, located in Grant County, New Mexico. The site has hosted mining activities since the late 1800s.
In mid-May, Golconda announced it had begun mining the Princeton Top deposit at Galaxy, a move it said will help it achieve its goal of doubling gold production in 2024.
Its most recent news came on May 29 with the release of its Q1 financial and operating results. Golconda increased its production in Q1, during which time it processed 1,095 metric tons of concentrate at an average grade of 42.8 g/t gold for 1,507 gold ounces. The amount represents an increase of 15 percent over the 1,314 ounces produced in the previous quarter. The company also said it generated C$2.2 million from the sale of 1,099 ounces of gold.
Golconda did not release news this past week, but still saw a large increase in its share price.
4. Falcon Energy Materials (TSXV:FLCN)
Weekly gain: 41.51 percent; market cap: C$84.52 million; share price: C$0.75
Falcon Energy Materials, which changed its name from SRG Mining at the beginning of July, is a minerals development company working to advance its Lola graphite project in the Republic of Guinea.
The site's main deposit consists of over 8.7 kilometers of strike length, an average width of 370 meters and an average depth of 32 meters. In a feasibility study from February 2023, the company reported total proven and probable reserves of 42.06 million metric tons with grades of 4.17 percent carbon graphite. The study also determined a pre-tax net present value of US$389 million at an 8 percent discount with an internal rate of return of 33 percent.
The most recent news from the company came this past Monday (July 29), when it announced it would commence trading under its new stock symbol, FLCN, on Wednesday.
5. Purepoint Uranium (TSXV:PTU)
Weekly gain: 40 percent; market cap: C$15.02 million; share price: C$0.035
Purepoint Uranium is a uranium exploration company working to advance several projects in the Athabasca Basin in Northern Saskatchewan, Canada. Its most recent news came on July 9, when it provided an update on geophysical programs at the company’s Russell South, Tabbernor and Smart Lake projects.
In the announcement, the company said it had completed two surveys at Russel South that were intended to help identify high-priority drill targets. To date, five target areas have been identified on the 13,320 hectare site, which sits adjacent to Cameco’s (TSX:CCO,NYSE:CCJ) past-producing Key Lake uranium mine.
Additionally, the company said it had commenced three surveys at the Tabbernor project; they will cover 7,549 line kilometers targeting the Tabbernor fault system with the goal of providing high-resolution data to define drill targets. The fault system at Tabbernor aligns with eight of the largest uranium discoveries in the Athabasca Basin.
The company also announced that survey work at Smart Lake will be completed before the end of the year following postponements due to adverse weather on site. The surveys will target drill target discovery, with results being used to plan a winter drill program. Purepoint owns 27 percent of Smart Lake in a joint venture with Cameco.
Data for this 5 Top Weekly TSXV Performers article was retrieved at 11:00 am PST on August 2, 2024, using TradingView's stock screener. Only companies with market capitalizations greater than C$10 million prior to the week's gains are included. Companies within the non-energy minerals and energy minerals were considered.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Purepoint Uranium is a client of the Investing News Network. This article is not paid-for content.
Multiple Significant New Oil Leads Identified in Peruvian TEA
Condor Energy Ltd (ASX: CND) (Condor or the Company) is pleased to provide an update on its evaluation work on the oil and gas potential of its 4,858km2 Technical Evaluation Agreement (TEA or Block) offshore Peru.
Highlights
- Significant new oil targets identified from fast-track interpretation of the 3,800km2 of legacy 3D seismic data
- Recently completed field work mapped Zorritos Formation reservoir fairways (the primary reservoir objective) into the Tumbes TEA
- A series of prospective leads have been mapped within these anticipated reservoir fairways located above Heath Formation source rocks at peak oil maturity
- Salmon Lead within this new trend has stacked structural traps with some potential Direct Hydrocarbon Indicators (DHIs)
- The structural configuration of the Salmon Lead is repeated several times, presenting the possibility of multiple follow-on targets in the event of success
As a result of the Company’s fast-track interpretation of the 3,800km2 of legacy 3D seismic data, the Company has identified significant new oil targets which highlights the potential for additional discoveries in the Block (Figure 1). Condor has completed a comprehensive assessment of the Salmon Lead.
Figure 1 – Perspective view of the Zorritos Unconformity. The Salmon Lead at this level has two separate closures (A&B) and additional leads (C-G) have also been identified. The green arrows show inferred oil migration pathways into the traps.
Figure 2 – Maturation map showing expected Vitrinite Reflectance (%) in the middle of the Heath Formation. The peak oilgeneration zone corresponds to a range in vitrinite reflectance between 0.8 and 1.2% shown in green.
The Salmon Lead is a structural target in the basin centre located mid way between the previously identified Raya and Bonito Prospects (Figures 2 and 3).
Click here for the full ASX Release
This article includes content from Condor Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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