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13 January
Alvopetro Energy
Investor Insight
Brazil’s expanding natural gas market, supported by an attractive and stable regulatory framework and fiscal regime offers a unique opportunity for Alvopetro Energy to leverage its high-potential assets and growth opportunities as an innovative natural gas company in the state of Bahia.
Overview
Alvopetro Energy (TSXV:ALV;OTCQX:ALVOF) is a pioneering independent natural gas producer in Brazil. The company was the first to deliver sales-specified natural gas onshore to the local distribution network previously dominated by the state oil company. This milestone, achieved on July 5, 2020, marked the beginning of a new era in Brazil's gas market.
As an independent upstream and midstream operator, Alvopetro engages in the acquisition, exploration, development and production of natural gas and oil. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which cover an area of over 22,000 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy was incorporated in 2013 and is headquartered in Calgary, Canada.
State of Bahia – Reconcavo Basin
Alvopetro adheres to a balanced capital allocation model, reinvesting half of its funds flow from operations in organic growth opportunities while returning the remaining 50 percent back to stakeholders (through dividends, debt and interest payments and capital lease payments). Since production came online in July of 2020, funds flow from operations has reached ~$156 million with 43 percent being reinvested into capital expenditure initiatives, 48 percent being returned to stakeholders, and 9 percent going back to strengthening the company’s balance sheet.
Alvopetro continues to focus on minimizing its environmental impact, responsibly supplying energy, and having a positive influence on the communities where it operates. Alvopetro currently invests in various voluntary social programs that have been well received by the community. The company’s focus has been on the sustainable development of its rural communities, entrepreneurship, education, cultural and sporting activities, as well as biodiversity preservation.
Company Highlights
- Alvopetro is a leading independent upstream and midstream gas operator in the state of Bahia, Brazil.
- The company’s strategy is focused on unlocking Brazil’s on-shore natural gas potential, building off the development of its Caburé and Murucututu natural gas fields strategic midstream infrastructure.
- Over 95 percent of Alvopetro’s production is from natural gas and the company has a 2P reserve base of 9.6 MMboe.
- The company boasts high operating netbacks and profitability per unit of production, setting it apart from its Latin American and North American peers. The state of Bahia boasts a favorable fiscal regime with low royalties and a 15 percent income tax rate.
Key Projects
Caburé
The company’s flagship Caburé asset (56.2 percent Alvopetro) delivers the majority of Alvopetro’s current production. The project is a joint development (the unit) of a conventional natural gas discovery across four blocks, two of which are held by Alvopetro and two of which are held by its partner, with Alvopetro’s working interest being 56.2 percent following the first redetermination. The unit currently includes eight existing wells, with all production facilities already in place. The resource is well defined with 3D seismic surveys, particularly on the eastern side of a main bounding fault that runs roughly north-south through the Caruaçu formation. The company plans to drill an additional five wells in 2025 to further improve the productive capacity of the field.
Midstream – Infrastructure and marketing (100 percent Alvopetro)
All of Alvopetro’s natural gas produced from Caburé and Murucututu are shipped via 100 percent owned and operated natural gas pipelines to Alvopetro’s natural gas processing facility (UPGN). At the UPGN, the natural gas goes through a mechanical refrigeration process, with condensate and water removed during the process, and condensate then gets trucked out and sold at a premium to Brent. The natural gas gets delivered to a receiving station (city gate) that was built by the company’s offtaker, Bahiagás, the distribution company for the State of Bahia.
The gas then gets shipped via a newly built 15 km distribution pipeline to the Camacari industrial complex (~17.5 km away), where the vast majority of the natural gas in the state of Bahia gets consumed.
Natural gas is sold to Bahiagas under a long-term gas sales agreement, with pricing set quarterly based on Brent and Henry Hub benchmark prices. Alvopetro recently announced an updated gas sales agreement effective January 1, 2025, increasing firm sales volumes by 33 percent.
Organic Growth Opportunities
Maximizing the Gas Plant
In the near-to-mid term, Alvopetro has a goal to maximize its gas plant capacity to 18 million cubic feet per day (or 3,000 barrels of oil equivalent per day), with a plan to double its capacity in the coming years through both ongoing development at the Caburé Unit and a multi-year development of the Murucututu field.
Unit Development
Alvopetro’s working interest in the Caburé Unit was recently increased from 49.1 percent to 56.2 percent and as a result, Alvopetro is now entitled to higher production entitlements from the Unit. In addition, with the unit development drilling activities planned to commence in 2025, the overall productive capacity of the Unit is targeted to increase.
Murucututu Gas
Alvopetro’s Murucututu asset (100 percent owned) sits immediately north of Caburé. Independent reserve estimators, GLJ, highlight the potential for this field with 2P reserve totaling 4.6 million barrels of oil equivalent, risked best estimate contingent resource of 5.4 million barrels of oil equivalent and risked best estimate prospective resource of 9.6 million barrels of oil equivalent representing a significant addition to the company’s current 2P reserve base.
Alvopetro Energy finished the recompletion of its 183-A3 well in the third quarter of 2024. The well came on production in September prompting the company’s natural gas sales from the Murucututu field in Q4 2024 to increase by 262 percent compared to Q3 2024. The company has a follow-up well planned for the field in early 2025.
Management Team
Corey C. Ruttan – President, Chief Executive Officer and Director
Corey C. Ruttan is the president, chief executive officer and director of Alvopetro. He was the president and CEO of Petrominerales, from May 2010 until it was acquired by Pacific Rubiales Energy in November 2013. Prior to that, he was the vice-president of finance and chief financial officer of Petrominerales. From March 2000 to May 2010, Ruttan was the senior vice-president and chief financial officer of Petrobank Energy and Resources, and held increasingly senior positions with Petrobank since its inception in 2000. He also served as executive vice-president and chief financial officer of Lightstream Resources from October 2009 to May 2010; served as vice-president of Caribou Capital from June 1999 to March 2000; and manager financial reporting of Pacalta Resources from May 1997 to June 1999. He began his career at KPMG where he worked from September 1994 to May 1997. Ruttan obtained his Bachelor of Commerce degree majoring in accounting from the University of Calgary in 1994 and his chartered accountant designation in 1997.
Alison Howard – Chief Financial Officer
Alison Howard is a chartered accountant with over 20 years of experience in Canadian and international taxation, accounting and finance. Howard joined Petrominerales in July 2011 as a tax manager and was subsequently promoted to tax director. From May 2008 to July 2011, Howard was the tax manager at Petrobank Energy and Resources. Prior to that, Howard spent a number of years at Deloitte LLP in Calgary. She obtained her Bachelor of Commerce degree from the University of Saskatchewan in 1999.
Adrian Audet – VP, Asset Management
Adrian Audet joined Petrominerales in 2013 and has held increasingly senior roles with Alvopetro since its inception. Audet has spent extensive time in Bahia overseeing the operations, realizing extensive cost savings and improvements in efficiency. Previously, Audet held engineering roles with increasing responsibility in the oil and gas industry. Audet began his career in 2006 and completed his masters and undergraduate degrees in mechanical engineering at the University of Alberta. Audet is a professional engineer registered with APEGA and is a CFA charterholder.
Nanna Eliuk – Exploration Manager
Nanna Eliuk is a professional geophysicist (M.Sc.) with over 23 years of diversified petroleum exploration and development experience. She has expertise in conventional and unconventional plays in both carbonate and clastic reservoirs in different depositional and structural settings (including pre-salt) in various basins around the world. Prior to joining Alvopetro, Eliuk was the senior explorationist of Condor Petroleum (Kazakhstan) for two years, and prior thereto, she was the vice-president of geophysics and land for Waldron Energy. Eliuk started her career in 1997, holding progressively senior roles at Husky Energy for five years, and at Compton Petroleum for over six years. Her extensive experience includes geophysical evaluation and analysis for business development opportunities and new ventures in various international basins, along with regional mapping, play fairway analysis, petroleum system evaluation, prospect definition, and seismic attribute analysis. Eliuk holds a masters degree in geology and geophysics, and a BSc. in geology.
Frederico Oliveira – Country Manager
Frederico Oliveira has held increasingly senior roles since 2008 and has expertise in regulations, contracts, partnerships, management and cost efficiency. He has held management roles in large private companies in Brazil, performing strategic planning, project implementation, process restructuring, efficiency and productivity improvements, and cost control. Oliveira obtained an MBA from the Federal University of Minas Gerais in 2004 and a Bachelor of Science degree in Mechanical Engineering from the Pontificia Universidade Catolica de Minas Gerais.
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Leading independent upstream and midstream gas developer in Brazil
18 March
Alvopetro Announces Year End 2024 Financial Results, Q1 2025 Dividend of US$0.10/share and Filing of our AIF
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces an operational update, our financial results for the year ended December 31, 2024 a quarterly dividend of US$0.10 per common share and filing of our annual information form. We will be hosting a live webcast to discuss our Q4 2024 results on Wednesday March 19, 2025 at 8:00 a.m. Mountain time .
All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
President & CEO, Corey C. Ruttan commented:
"Through 2024 we increased our productive capacity both at the Caburé Unit and on our 100% interest Murucututu project. This allowed us to increase our firm natural gas sales volumes for 2025 resulting in a strong start to the year with a 37% increase in our sales volumes. We are increasing our base dividend to US$0.10 per share, consistent with our long-standing commitment to a more disciplined capital allocation model, balancing returns to stakeholders and organic growth."
Operational Update
As announced on December 17, 2024 , our updated long-term gas sales agreement came into effect on January 1, 2025 increasing Alvopetro's contracted firm reference volumes by 33%. As a result, Alvopetro's daily sales in January and February increased 37% from Q4 2024 sales to an average of 2,375 boepd, including 13.4 MMcfpd of natural gas, natural gas liquids sales from condensate of 129 bopd and oil sales of 10 bopd. Effective February 1, 2025 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL1.95 /m 3 , a 7% increase from the January 2025 price of BRL1.83 /m 3 and consistent with the Q4 2024 price of BRL1.94 /m 3 . All natural gas sales from February 1, 2025 to April 30, 2025 will be sold at BRL1.95 /m 3 ( $10.55 /Mcf, net of applicable sales taxes, based on average heat content to date and the January 31, 2025 BRL/USD exchange rate of 5.83).
On February 5, 2025 , we announced the terms of a farmin agreement in Canada , pursuant to which Alvopetro agreed to fund 100% of two earning wells in exchange for a 50% non-operated working interest in 12,243 acres (6,122 net acres) of land in Western Saskatchewan . The first two earning wells have now been drilled and are being completed and equipped. Both wells are expected to be on production within the next 30 days. Alvopetro's estimated total costs for the two earning wells is expected to be approximately C$4.0 million ( $2.8 million ). After these initial two earning wells Alvopetro's working interest will be 50%.
On the Company's Murucututu natural gas field, we spud the first of two development wells planned for 2025 in February. Drilling is underway. On the unitized area (the "Unit") which includes the Caburé natural gas field, Alvopetro has five development wells planned for 2025, with the first well expected to be drilled in April.
On February 26, 2025 , we announced our December 31, 2024 reserves based on the independent reserve assessment and evaluation prepared by GLJ Ltd. ("GLJ") dated February 26, 2025 with an effective date of December 31, 2024 (the "GLJ Reserves and Resources Report"). Highlights include:
- After 2024 production of 0.7 MMboe, 1P reserves increased 65% to 4.5 MMboe, representing a 1P production replacement ratio (1) of 372%. The increase was mainly due to the successful working interest redetermination at the Caburé field and increases of Caruaçu assigned reserves on our 100% Murucututu field following success on the 183-A3 well completion, somewhat offset by technical revisions related to the Gomo Formation.
- 2P reserve volumes increased 5% to 9.1 MMboe, representing a 2P production replacement ratio of 167% (1) . The increase in 2P volumes was due to the higher working interest on the Caburé field following the redetermination, partially offset by 2024 production of 0.7 MMboe. At Murucututu, additional reserves associated with the Caruaçu reservoir were offset by technical revisions reducing reserves assigned to the Gomo Formation.
- With increased reserve volumes, 1P net present value before tax, discounted at 10% ("NPV10") increased 53% to $177.7 million and 2P NPV10 increased 6% to $327.8 million .
- Risked best estimate contingent resources decreased by 0.8 MMboe from 5.4 MMboe to 4.5 MMboe at December 31, 2024 with a NPV10 of $110.0 million , decreases from December 31, 2023 of 15% and 13% respectively. The decreases were associated with the migration of volumes to reserves for the Caruaçu Formation.
- Risked best estimate prospective resources increased from 9.6 MMboe to 10.2 MMboe with a NPV10 of $208.9 million , increases of 6% and 13% respectively from December 31, 2023 .
Financial and Operating Highlights – Fourth Quarter of 2024
- Our average daily sales decreased to 1,738 boepd in Q4 2024 (-19% from Q4 2023 and -17% from Q3 2024) with reduced natural gas demand as well as shutdowns during the month of November for planned facility turnarounds and inspections.
- Our average realized natural gas price decreased to $10.51 /Mcf in Q4 2024 (-18% from Q4 2023 and -4% from Q3 2024), due mainly to the devaluation of the BRL relative to the USD, which depreciated 18% compared to the average rate in Q4 2023. Our overall averaged realized sales price was $63.88 per boe (-18% from Q4 2023 and -4% from Q3 2024).
- With lower sales volumes and lower prices, our natural gas, oil and condensate revenue decreased to $10.2 million (-33% from Q4 2023 and -21% from Q3 2024).
- Our operating netback (1) in the quarter was $55.09 per boe (- $14.60 per boe from Q4 2023) due mainly to the reduction in our realized sales price per boe as well as higher production expenses per boe with lower overall production.
- We generated funds flows from operations (1) of $7.0 million ( $0.19 per basic share and per diluted share), decreases of $5.4 million compared to Q4 2023 and $2.9 million compared to Q3 2024 due mainly to lower sales volumes and lower realized prices.
- We reported net income of $2.2 million in Q4 2024, an increase of $1.6 million compared to Q4 2023 despite lower sales volumes and realized prices due to impairment losses recognized in Q4 2023, offset by foreign exchange losses in Q4 2024 compared to foreign exchange gains in Q4 2023.
- Capital expenditures totaled $4.7 million , including costs to re-enter the 183-B1 well on our exploratory Block 183 and costs associated with the facilities upgrade at our Caburé field.
- Our working capital surplus was $13.2 million as of December 31, 2024 , increasing $0.1 million from December 31, 2023 and decreasing $2.7 million from September 30, 2024 .
Financial and Operating Highlights – Year Ended December 31, 2024
- Our annual sales volumes averaged 1,794 boepd (93% natural gas, 6% NGLs from condensate and 1% from crude oil production), a decrease of 16% compared to 2023.
- We reported net income of $16.3 million , compared to $28.5 million in 2023 (-43%).
- We generated funds flow from operations (1) of $33.3 million ( $0.89 per basic share and per diluted share), a decrease of $14.8 million compared to 2023.
- Capital expenditures totaled $15.3 million in 2024.
- Dividends declared totaled $0.36 per share in 2024 compared to $0.56 per share in 2023 (-36%).
(1) Refer to the sections entitled " Oil and Natural Gas Advisories – Other Metrics " and " Non-GAAP and Other Financial Measures ". |
The following table provides a summary of Alvopetro's financial and operating results for the periods noted. The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca .
As at and Three Months Ended December 31 | As at and Year Ended December 31, | ||||||
2024 | 2023 | Change (%) | 2024 | 2023 | Change (%) | ||
Financial | |||||||
($000s, except where noted) | |||||||
Natural gas, oil and condensate sales | 10,214 | 15,300 | (33) | 45,517 | 59,687 | (24) | |
Net income | 2,243 | 652 | 244 | 16,295 | 28,525 | (43) | |
Per share – basic ($) (1) | 0.06 | 0.02 | 200 | 0.44 | 0.77 | (43) | |
Per share – diluted ($) (1) | 0.06 | 0.02 | 200 | 0.43 | 0.76 | (43) | |
Cash flows from operating activities | 7,114 | 7,904 | (10) | 34,901 | 47,702 | (27) | |
Per share – basic ($) (1) | 0.19 | 0.21 | (10) | 0.94 | 1.29 | (27) | |
Per share – diluted ($) (1) | 0.19 | 0.21 | (10) | 0.93 | 1.26 | (26) | |
Funds flow from operations (2) | 6,966 | 12,393 | (44) | 33,275 | 48,030 | (31) | |
Per share – basic ($) (1) | 0.19 | 0.33 | (42) | 0.89 | 1.29 | (31) | |
Per share – diluted ($) (1) | 0.19 | 0.33 | (42) | 0.89 | 1.27 | (30) | |
Dividends declared | 3,283 | 5,127 | (36) | 13,170 | 20,462 | (36) | |
Per share (1) (2) | 0.09 | 0.14 | (36) | 0.36 | 0.56 | (36) | |
Capital expenditures | 4,682 | 4,934 | (5) | 15,305 | 27,449 | (44) | |
Cash and cash equivalents | 21,697 | 18,326 | 18 | 21,697 | 18,326 | 18 | |
Net working capital (2) | 13,181 | 13,117 | - | 13,181 | 13,117 | - | |
Weighted average shares outstanding | |||||||
Basic (000s) (1) | 37,315 | 37,262 | - | 37,289 | 37,121 | - | |
Diluted (000s) (1) | 37,566 | 37,963 | (1) | 37,558 | 37,770 | (1) | |
Operations | |||||||
Average daily sales volumes: | |||||||
Natural gas (Mcfpd), by field: | |||||||
Caburé (Mcfpd) | 7,476 | 11,699 | (36) | 9,228 | 11,742 | (21) | |
Murucututu (Mcfpd) | 2,231 | 546 | 309 | 928 | 487 | 91 | |
Total natural gas (Mcfpd) | 9,707 | 12,245 | (21) | 10,156 | 12,229 | (17) | |
NGLs – condensate (bopd) | 109 | 92 | 18 | 90 | 99 | (9) | |
Oil (bopd) | 11 | 10 | 10 | 12 | 6 | 100 | |
Total (boepd) | 1,738 | 2,143 | (19) | 1,794 | 2,142 | (16) | |
Average realized prices (2) : | |||||||
Natural gas ($/Mcf) | 10.51 | 12.85 | (18) | 11.42 | 12.64 | (10) | |
NGLs – condensate ($/bbl) | 75.95 | 89.45 | (15) | 84.84 | 86.29 | (2) | |
Oil ($/bbl) | 61.74 | 73.67 | (16) | 66.94 | 71.22 | (6) | |
Total ($/boe) | 63.88 | 77.60 | (18) | 69.31 | 76.33 | (9) | |
Operating netback ($/boe) (2) | |||||||
Realized sales price | 63.88 | 77.60 | (18) | 69.31 | 76.33 | (9) | |
Royalties | (2.15) | (2.07) | 4 | (1.99) | (2.13) | (7) | |
Production expenses | (6.64) | (5.84) | 14 | (6.33) | (5.38) | 18 | |
Operating netback | 55.09 | 69.69 | (21) | 60.99 | 68.82 | (11) | |
Operating netback margin (2) | 86 % | 90 % | (4) | 88 % | 90 % | (2) | |
Notes: | |
(1) | Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share. |
(2) | See "Non-GAAP and Other Financial Measures" section within this news release. |
Quarterly Dividend of US$0.10 per Share
With our updated gas sales agreement in effect as of January 1, 2025 and higher production levels forecasted in the first quarter of 2025 our Board of Directors determined it was appropriate to increase the declared quarterly dividend to US$0.10 per common share, payable in cash on April 15, 2025, to shareholders of record at the close of business on March 31, 2025. This dividend is designated as an "eligible dividend" for Canadian income tax purposes.
Dividend payments to non-residents of Canada will be subject to withholding taxes at the Canadian statutory rate of 25%. Shareholders may be entitled to a reduced withholding tax rate under a tax treaty between their country of residence and Canada. For further information, see Alvopetro's website at https://alvopetro.com/Dividends-Non-resident-Shareholders .
Annual Information Form
Alvopetro has filed its annual information form ("AIF") with the Canadian securities regulators on SEDAR+. The AIF
includes the disclosure and reports relating to oil and gas reserves data and other oil and gas information required
pursuant to National Instrument 51-101 of the Canadian Securities Administrators. The AIF may be accessed
electronically at www.sedarplus.ca and on our website at www.alvopetro.com .
2024 Results Webcast
Alvopetro will host a live webcast to discuss our 2024 financial results at 8:00 am Mountain time on Wednesday March 19, 2025. Details for joining the event are as follows:
DATE: March 19, 2025
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/84540021301
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kBRCh4fgE
WEBINAR ID : 845 4002 1301
The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com .
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .
Social Media
Follow Alvopetro on our social media channels at the following links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Abbreviations:
$000s | = | thousands of U.S. dollars |
1P | = | proved reserves |
2P | = | proved plus probable reserves |
boepd | = | barrels of oil equivalent ("boe") per day |
bopd | = | barrels of oil and/or natural gas liquids (condensate) per day |
BRL | = | Brazilian Real |
Mcf | = | thousand cubic feet |
Mcfpd | = | thousand cubic feet per day |
MMcf | = | million cubic feet |
MMcfpd | = | million cubic feet per day |
NGLs | = | natural gas liquids (condensate) |
NPV10 | = | net present value before tax, discounted at 10% |
Q3 2024 | = | three months ended September 30, 2024 |
Q4 2023 | = | three months ended December 31, 2023 |
Q4 2024 | = | three months ended December 31, 2024 |
USD | = | United States dollars |
GAAP or IFRS | = | IFRS Accounting Standards |
Non-GAAP and Other Financial Measures
This news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure . Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are used by management in assessing the Company's financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the " Non-GAAP Measures and Other Financial Measures " section of the Company's MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca .
Non-GAAP Financial Measures
Operating netback
Operating netback is calculated as natural gas, oil and condensate revenues less royalties and production expenses. This calculation is provided in the " Operating Netback " section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.
Non-GAAP Financial Ratios
Operating netback per boe
Operating netback is calculated on a per unit basis, which is per barrel of oil equivalent ("boe"). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company's producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the " Operating Netback " section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca . Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations on a per boe basis.
Operating netback margin
Operating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:
Three Months Ended December 31, | Year Ended December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Operating netback - $ per boe | 55.09 | 69.69 | 60.99 | 68.82 |
Average realized price - $ per boe | 63.88 | 77.60 | 69.31 | 76.33 |
Operating netback margin | 86 % | 90 % | 88 % | 90 % |
Funds Flow from Operations Per Share
Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share is as follows:
Three Months Ended December 31, | Year Ended December 31, | |||
$ per share | 2024 | 2023 | 2024 | 2023 |
Per basic share: | ||||
Cash flows from operating activities | 0.19 | 0.21 | 0.94 | 1.29 |
Funds flow from operations | 0.19 | 0.33 | 0.89 | 1.29 |
Per diluted share: | ||||
Cash flows from operating activities | 0.19 | 0.21 | 0.93 | 1.26 |
Funds flow from operations | 0.19 | 0.33 | 0.89 | 1.27 |
Capital Management Measures
Funds Flow from Operations
Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company's ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:
Three Months Ended December 31, | Year Ended December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Cash flows from operating activities | 7,114 | 7,904 | 34,901 | 47,702 |
Changes in non-cash working capital | (148) | 4,489 | (1,626) | 328 |
Funds flow from operations | 6,966 | 12,393 | 33,275 | 48,030 |
Net Working Capital
Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows:
As at December 31 | |||
2024 | 2023 | ||
Total current assets | 26,984 | 25,995 | |
Total current liabilities | (13,803) | (12,878) | |
Net working capital | 13,181 | 13,117 |
Supplementary Financial Measures
" Average realized natural gas price - $/Mcf " is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company's natural gas sales volumes.
" Average realized NGL – condensate price - $/bbl " is comprised of condensate sales as determined in accordance with IFRS, divided by the Company's NGL sales volumes from condensate.
" Average realized oil price - $/bbl " is comprised of oil sales as determined in accordance with IFRS, divided by the Company's oil sales volumes.
" Average realized price - $/boe " is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company's total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
" Dividends per share " is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.
" Royalties per boe " is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
" Production expenses per boe " is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).
Oil and Natural Gas Advisories
Oil and Natural Gas Reserves
The disclosure in this news release summarizes certain information contained in the GLJ Reserves and Resources Report but represents only a portion of the disclosure required under National Instrument 51-101 ("NI 51-101"). Full disclosure with respect to the Company's reserves as at December 31, 2024 is included in the Company's annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ). The GLJ Reserves and Resources Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook" or "COGEH") that are consistent with the standards of NI 51-101. GLJ is a qualified reserves evaluator as defined in NI 51-101.
All net present values in this press release are based on estimates of future operating and capital costs and GLJ's forecast prices as of December 31, 2024 . The reserves definitions used in this evaluation are the standards defined by COGEH reserve definitions and are consistent with NI 51-101 and used by GLJ. The net present values of future net revenue attributable to Alvopetro's reserves estimated by GLJ do not represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of the Company's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
Cabur é Working Interest
Alvopetro's working interest in the Caburé natural gas field is 56.2% as of December 31, 2024 and the date hereof. This working interest is subject to redetermination, the first of which was completed in April 2024 . An independent expert (the "Expert") was engaged in connection with the first redetermination to evaluate the redetermination and the impact to each party's working interest. Following the Expert's decision, Alvopetro's working interest was increased from 49.1% to 56.2%. Alvopetro's partner filed a notice of dispute with respect to the Expert's decision, seeking to stay the redetermination procedure. Alvopetro subsequently filed a request for emergency arbitration before the International Chamber of Commerce ("ICC") seeking to make the Expert decision effective starting on June 1, 2024 . In May 2024 , Alvopetro received the decision of the emergency arbitrator ("the Order") wherein the arbitrator found in favour of Alvopetro, making the Expert decision effective June 1, 2024 until such time as the dispute is reviewed by and decided upon by an arbitral tribunal pursuant to the Rules of Arbitration of the ICC. The redetermination dispute has proceeded to a full arbitration under the Rules of the ICC, however the timing and outcome of the full arbitration is uncertain and the resulting impact on the reserves and the net present value of future net revenue attributable to such reserves as presented herein may be material. In addition, future redeterminations may also have a material impact on Alvopetro's reserves and future cash flows.
Contingent Resources
This news release discloses estimates of Alvopetro's contingent resources and the net present value associated with net revenues associated with the production of such contingent resources as included in the GLJ Reserves and Resources Report. There is no certainty that it will be commercially viable to produce any portion of such contingent resources and the estimated future net revenues do not necessarily represent the fair market value of such contingent resources. Estimates of contingent resources involve additional risks over estimates of reserves. Full disclosure with respect to the Company's contingent resources as at December 31, 2024 is included in the Company's annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ).
Prospective Resources
This news release discloses estimates of Alvopetro's prospective resources included in the GLJ Reserves and Resources Report. There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Estimates of prospective resources involve additional risks over estimates of reserves. The accuracy of any resources estimate is a function of the quality and quantity of available data and of engineering interpretation and judgment. While resources presented herein are considered reasonable, the estimates should be accepted with the understanding that reservoir performance subsequent to the date of the estimate may justify revision, either upward or downward. Full disclosure with respect to the Company's prospective resources as at December 31, 2024 is included in the Company's annual information form for the year ended December 31, 2024 which has been filed on SEDAR+ ( www.sedarplus.ca ).
Other Metrics
This new release contains references to "production replacement ratio", a metric commonly used in the oil and natural gas industry, which has been calculated by management. This term does not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.
"Production replacement ratio" is calculated by dividing the change in reserve volumes plus current year production by current year production. Alvopetro's 1P production replacement ratio and 2P production replacement ratio in 2024 is calculated as:
1P | 2P | |
Reserve volumes as at December 31, 2024 – Mboe | 4,512 | 9,148 |
Reserve volumes as at December 31, 2023 – Mboe | 2,727 | 8,711 |
Reserve additions – Mboe | 1,785 | 437 |
2024 production – Mboe | 657 | 657 |
Change in reserves before 2024 production - Mboe | 2,442 | 1,094 |
2024 production replacement ratio | 372 % | 167 % |
BOE Disclosure
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Contracted Natural Gas Volumes
The 2025 contracted daily firm volumes under Alvopetro's long-term gas sales agreement of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro's natural gas is approximately 7.8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e 3 m 3 /d (13.1MMcfpd).
Forward-Looking Statements and Cautionary Language
This news release contains forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, the timing and taxation of dividends and plans for dividends in the future, plans relating to the Company's operational activities, proposed exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, future production and sales volumes, the expected timing of production commencement in Canada , arbitration procedures associated with the redetermination of working interests of the Caburé natural gas field, anticipated timing for upcoming drilling and testing of other wells, and projected financial results. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Alvopetro Energy Ltd.

View original content: http://www.newswire.ca/en/releases/archive/March2025/18/c2211.html
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05 March
Alvopetro Announces February 2025 Sales Volumes
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces February sales volumes of 2,285 boepd, including natural gas sales of 13.0 MMcfpd and associated natural gas liquids sales from condensate of 115 bopd, based on field estimates.
Natural gas, NGLs and crude oil sales: |
February
2025
January
2025
Q4
2024
Natural gas (Mcfpd), by field:
Caburé
10,950
11,450
7,476
Murucututu
2,065
2,338
2,231
Total Company natural gas (Mcfpd)
13,015
13,788
9,707
NGLs (bopd)
115
141
109
Oil (bopd)
-
18
11
Total Company (boepd)
2,285
2,457
1,738
Sales volumes in February were impacted by reduced demand for the final 7 days of February. Sales in March are expected to be consistent with January.
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .
Social Media
Follow Alvopetro on our social media channels at the following links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube - https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w
Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
Abbreviations:
boepd | = barrels of oil equivalent ("boe") per day |
bopd | = barrels of oil and/or natural gas liquids (condensate) per day |
Mcf | = thousand cubic feet |
Mcfpd | = thousand cubic feet per day |
MMcfpd | = million cubic feet per day |
NGLs | = natural gas liquids |
BOE Disclosure . The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Forward-Looking Statements and Cautionary Language. This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning future production and sales volumes and expected sales under the Company's long-term gas sales agreement. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. Forward -looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, expectations and assumptions concerning forecasted demand for oil and natural gas, the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations regarding Alvopetro's working interest and the outcome of any redeterminations, the outcome of any disputes, the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, general economic and business conditions, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, the regulatory and legal environment and other risks associated with oil and gas operations . The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF
SOURCE Alvopetro Energy Ltd.

View original content: http://www.newswire.ca/en/releases/archive/March2025/05/c4751.html
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26 February
Alvopetro Announces 2024 Year End Reserves Including a 65% Increase in 1P Reserves
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro" or the "Company") announces our reserves as at December 31, 2024 with total proved ("1P") reserves of 4.5 MMboe and total proved plus probable ("2P") reserves of 9.1 MMboe, increases of 65% and 5%, respectively, from December 31, 2023 . The before tax net present value discounted at 10% ("NPV10") of our 1P reserves increased 53% to $177.7 million and the NPV10 of our 2P reserves increased 6% to $327.8 million . We also announce risked best estimate contingent resources of 4.5 MMboe (NPV10 $110.0 million ) and risked best estimate prospective resources of 10.2 MMboe (NPV10 $208.9 million ). The reserves and resources data set forth herein is based on an independent reserves and resources assessment and evaluation prepared by GLJ Ltd. ("GLJ") dated February 26, 2025 with an effective date of December 31, 2024 (the "GLJ Reserves and Resources Report").
The GLJ Reserves and Resources Report incorporates Alvopetro's working interest share of remaining recoverable reserves held by Alvopetro in the Caburé and Murucututu natural gas fields and the Bom Lugar and Mãe-da-lua oil fields as well as Alvopetro's working interest share of remaining recoverable resources held by Alvopetro in the Murucututu natural gas field. With respect to Murucututu, Bom Lugar, and Mãe-da-lua, Alvopetro's working interest share is 100%. With respect to the unitized area (the "Unit") which includes our Caburé and Caburé Leste fields (collectively referred to as "Caburé" in this news release) and two fields held by our third-party partner in the Unit, Alvopetro's working interest share as of December 31, 2024 was 56.2%, with the remaining 43.8% held by our partner.
All references herein to $ refer to United States dollars, unless otherwise stated.
President & CEO, Corey C. Ruttan commented:
"Our 2024 year end reserves reflect a strong year for Alvopetro resulting from our successful redetermination increasing our Caburé Unit working interest from 49.1% to 56.2% and strong results from our 183-A3 well in the Caruaçu Formation on our 100% interest Murucututu project. These successes allowed us to commit to a higher level of base committed firm sales volumes with our offtaker, Bahiagás, for 2025 and further strengthens our disciplined capital allocation model, balancing returns to stakeholders and organic growth."
December 31, 2024 GLJ Reserves and Resource Report:
- After 2024 production of 0.7 MMboe, 1P reserves increased 65% to 4.5 MMboe, representing a 1P production replacement ratio (1) of 372%. The increase was mainly due to the successful working interest redetermination at the Caburé field and increases on Caruaçu assigned reserves on our 100% Murucututu field following success on the 183-A3 well completion, somewhat offset by technical revisions related to the Gomo Formation.
- 2P reserve volumes increased 5% to 9.1 MMboe, representing a 2P production replacement ratio of 167% (1) . The increase in 2P volumes was due to the higher working interest on the Caburé field following the redetermination, partially offset by 2024 production of 0.7 MMboe. At Murucututu, additional reserves associated with the Caruaçu reservoir were offset by technical revisions reducing reserves assigned to the Gomo Formation.
- With increased reserve volumes, 1P NPV10 increased 53% to $177.7 million and 2P NPV10 increased 6% to $327.8 million .
- Risked best estimate contingent resources decreased by 0.8 MMboe from 5.4 MMboe to 4.5 MMboe at December 31, 2024 with a NPV10 of $110.0 million , decreases from December 31, 2023 of 15% and 13% respectively. The decreases were associated with the migration of volumes to Reserves for the Caruaçu Formation.
- Risked best estimate prospective resources increased from 9.6 MMboe to 10.2 MMboe with a NPV10 of $208.9 million , increases of 6% and 13% respectively from December 31, 2023 .
(1) Refer to the sections entitled " Oil and Natural Gas Advisories – Other Metrics " for additional disclosures and assumptions used in calculating production replacement ratio.
SUMMARY
December 31, 2024 Gross Reserve and Gross Resource Volumes : (1)(2)(3)(4)(5)(6)
December 31, 2024 Reserves (Gross) | Total Proved (1P) | Total Proved plus (2P) | Total Proved plus (3P) |
(Mboe) | (Mboe) | (Mboe) | |
Caburé Natural Gas Field | 2,147 | 4,121 | 5,465 |
Murucututu Natural Gas Field | 2,216 | 4,563 | 7,265 |
Bom Lugar Oil Field | 124 | 422 | 638 |
Mãe-da-lua Oil Field | 27 | 42 | 61 |
Total Company Reserves | 4,512 | 9,148 | 13,428 |
December 31, 2024 Murucututu Resources (Gross) | Low Estimate | Best Estimate | High Estimate |
(Mboe) | (Mboe) | (Mboe) | |
Risked Contingent Resource Risked Prospective Resource | 2,570 4,830 | 4,549 10,208 | 6,127 17,076 |
See 'Footnotes' section at the end of this news release |
Net Present Value Before Tax Discounted at 10% : (1)(2)(3)(4)(5)(6)(7)(8)
Reserves | 1P | 2P | 3P |
($000s) | ($000s) | ($000s) | |
Caburé Natural Gas Field | 106,514 | 185,164 | 234,176 |
Murucututu Natural Gas Field | 67,797 | 134,792 | 200,732 |
Bom Lugar Oil Field | 2,882 | 6,857 | 11,388 |
Mãe-da-lua Oil Field | 459 | 966 | 1,532 |
Total Company | 177,651 | 327,779 | 447,828 |
Murucututu Resource | Low Estimate | Best Estimate | High Estimate |
($000s) | ($000s) | ($000s) | |
Risked Contingent Resource Risked Prospective Resource | 58,505 88,427 | 109,951 208,880 | 146,405 351,902 |
See 'Footnotes' section at the end of this news release |
PRICING ASSUMPTIONS – FORECAST PRICES AND COSTS
GLJ employed the following pricing and inflation rate assumptions as of January 1, 2025 , in the GLJ Reserves and Resources Report in estimating reserves and resources data using forecast prices and costs.
Year | Brent Blend | NYMEX Henry Hub ($/MMBtu) | Alvopetro-Bahiagas $/MMBtu* (Current Year) | Alvopetro-Bahiagas $/MMBtu* (Previous Year) | Change from prior |
2025 | 75.25 | 3.19 | 9.23 | 10.08 | -8 % |
2026 | 77.50 | 3.85 | 10.11 | 10.44 | -3 % |
2027 | 80.08 | 4.16 | 10.55 | 10.51 | 0 % |
2028 | 82.69 | 4.25 | 10.66 | 10.48 | 2 % |
2029 | 84.34 | 4.33 | 10.47 | 10.63 | -2 % |
2030 | 86.03 | 4.42 | 10.71 | 10.82 | -1 % |
2031 | 87.76 | 4.50 | 10.96 | 11.04 | -1 % |
2032 | 89.50 | 4.60 | 11.22 | 11.26 | 0 % |
2033 | 91.20 | 4.69 | 11.48 | 11.48 | 0 % |
2034** | 92.94 | 4.78 | 11.74 | 11.71 | 0 % |
* Net of applicable sales taxes expected to apply |
**Escalated at 2% per year thereafter |
GLJ RESERVES AND RESOURCES REPORT
The GLJ Reserves and Resources Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook" or "COGEH") that are consistent with the standards of National Instrument 51-101 ("NI 51-101"). GLJ is a qualified reserves evaluator as defined in NI 51-101. The GLJ Reserves and Resources Report was an evaluation of all reserves of Alvopetro including our working interest share as of December 31, 2024 of the Unit (referred to herein as the Caburé natural gas field), our Murucututu natural gas project, as well as our Bom Lugar and Mãe-da-lua oil fields. The GLJ Reserves and Resources Report also includes an evaluation of the gas resources of our Murucututu natural gas field. In addition to the reserves assigned to our Murucututu field, contingent resource was assigned to the area in proximity to our existing Murucututu reserves, deemed to be discovered. The area mapped by 3D seismic west and north of the area defined as contingent was assigned prospective resource. Additional reserves and resources information as required under NI 51-101 will be included in the Company's Annual Information Form for the 2024 fiscal year which will be filed on SEDAR+ ( www.sedarplus.ca ) by April 30, 2025 .
December 31, 2024 Reserves Information:
Summary of Reserves (1)(2)(3)
Light & Medium Oil | Conventional Natural Gas | Natural Gas Liquids | Oil Equivalent | ||||||
Company Gross | Company | Company | Company | Company | Company | Company | Company | ||
(Mbbl) | (Mbbl) | (MMcf) | (MMcf) | (Mbbl) | (Mbbl) | (Mboe) | (Mboe) | ||
Proved | |||||||||
Producing | 4 | 4 | 14,874 | 14,323 | 190 | 183 | 2,673 | 2,574 | |
Developed Non-Producing | 146 | 136 | 1,396 | 1,342 | 10 | 10 | 389 | 369 | |
Undeveloped | - | - | 7,843 | 7,529 | 143 | 138 | 1,451 | 1,392 | |
Total Proved | 150 | 139 | 24,113 | 23,194 | 343 | 330 | 4,512 | 4,335 | |
Probable | 313 | 292 | 23,934 | 22,931 | 333 | 319 | 4,635 | 4,433 | |
Total Proved plus Probable | 463 | 431 | 48,047 | 46,124 | 677 | 649 | 9,148 | 8,768 | |
Possible | 235 | 219 | 22,302 | 21,352 | 328 | 313 | 4,280 | 4,091 | |
Total Proved plus Probable plus Possible | 699 | 650 | 70,349 | 67,476 | 1,004 | 962 | 13,428 | 12,859 |
See 'Footnotes' section at the end of this news release |
Summary of Before Tax Net Present Value of Future Net Revenue - $000s (1)(2)(3)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | ||
Proved | ||||||
Producing | 145,792 | 134,892 | 125,270 | 116,873 | 109,547 | |
Developed Non-Producing | 19,256 | 15,218 | 12,375 | 10,316 | 8,780 | |
Undeveloped | 81,878 | 55,499 | 40,006 | 30,234 | 23,666 | |
Total Proved | 246,927 | 205,609 | 177,651 | 157,423 | 141,993 | |
Probable | 306,142 | 205,419 | 150,128 | 115,530 | 91,857 | |
Total Proved plus Probable | 553,069 | 411,027 | 327,779 | 272,953 | 233,849 | |
Possible | 348,169 | 184,292 | 120,049 | 86,800 | 66,442 | |
Total Proved plus Probable plus Possible | 901,238 | 595,319 | 447,828 | 359,753 | 300,291 |
See 'Footnotes' section at the end of this news release |
Summary of After Tax Net Present Value of Future Net Revenue – $000s (1)(2)(3)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | ||
Proved | ||||||
Producing | 130,855 | 121,530 | 113,190 | 105,860 | 99,436 | |
Developed Non-Producing | 15,471 | 12,283 | 10,012 | 8,353 | 7,105 | |
Undeveloped | 61,008 | 42,127 | 30,708 | 23,341 | 18,293 | |
Total Proved | 207,334 | 175,939 | 153,910 | 137,554 | 124,834 | |
Probable | 234,053 | 160,795 | 119,072 | 92,190 | 73,390 | |
Total Proved plus Probable | 441,387 | 336,734 | 272,982 | 229,744 | 198,224 | |
Possible | 244,094 | 132,792 | 87,980 | 64,288 | 49,541 | |
Total Proved plus Probable plus Possible | 685,481 | 469,526 | 360,962 | 294,032 | 247,765 |
See 'Footnotes' section at the end of this news release |
Future Development Costs (1)(2)(3)(7)(8)
The table below sets out the total development costs deducted in the estimation of future net revenue attributable to proved reserves, proved plus probable reserves and proved plus probable plus possible reserves (using forecast prices and costs), by field, in the GLJ Reserves and Resources Report. Total development costs include capital costs for drilling and completing wells and for facilities but excludes abandonment and reclamation costs.
The future development costs for the Caburé field include Alvopetro's working interest share (56.2%) for two development wells in the proved category and an additional three development wells in the probable and possible categories.
The future development costs for the Murucututu field in the proved category include three development wells and a stimulation project at the 183-1 well. The probable category includes an additional two development wells .
The future development costs for Bom Lugar in the proved category include costs to stimulate the BL-06 well. Costs in the probable category also include one development well and costs for facilities upgrade. Future development costs at the Mãe-da-lua field relate to a stimulation of the existing well.
Alvopetro's share of future development costs are summarized as follows:
$000s, Undiscounted | 2025 | 2026 | 2027 | 2027 | 2029 | Remaining | Total | |
Proved | ||||||||
Caburé Natural Gas Field | 3,443 | - | - | - | - | - | 3,443 | |
Murucututu Gas Field | 13,010 | 8,095 | - | - | - | - | 21,105 | |
Bom Lugar Oil Field | - | 500 | - | - | - | - | 500 | |
Mãe-da-lua Oil Field | - | 540 | - | - | - | - | 540 | |
Total Proved | 16,453 | 9,135 | - | - | - | - | 25,588 | |
Proved Plus Probable | ||||||||
Caburé Natural Gas Field | 8,743 | - | - | - | - | - | 8,743 | |
Murucututu Gas Field | 13,010 | 21,774 | - | - | - | - | 34,784 | |
Bom Lugar Oil Field | - | 5,967 | - | - | - | - | 5,967 | |
Mãe-da-lua Oil Field | - | 540 | - | - | - | - | 540 | |
Total Proved Plus Probable | 21,753 | 28,281 | - | - | - | - | 50,034 | |
Proved Plus Probable Plus Possible | ||||||||
Caburé Natural Gas Field | 8,743 | - | - | - | - | - | 8,743 | |
Murucututu Gas Field | 13,010 | 21,774 | - | - | - | - | 34,784 | |
Bom Lugar Oil Field | - | 5,967 | - | - | - | - | 5,967 | |
Mãe-da-lua Oil Field | - | 540 | - | - | - | - | 540 | |
Total Proved Plus Probable Plus Possible | 21,753 | 28,281 | - | - | - | - | 50,034 |
See 'Footnotes' section at the end of this news release |
Reconciliation of Alvopetro's Gross Reserves (Before Royalty) (1)(2)(3)(8)
Proved | Probable | Proved Plus | Possible (Mboe) | Proved plus (Mboe) | |
December 31, 2023 | 2,727 | 5,983 | 8,711 | 6,497 | 15,208 |
Discoveries | - | - | - | - | - |
Extensions | 1,833 | (1,833) | - | - | - |
Technical Revisions | 611 | 486 | 1,097 | (2,217) | (1,120) |
Production | (660) | - | (660) | - | (660) |
December 31, 2024 | 4,512 | 4,635 | 9,148 | 4,280 | 13,428 |
See 'Footnotes' section at the end of this news release. |
December 31, 2024 Murucututu Contingent Resources Information:
Summary of Unrisked Company Gross Contingent Resources (1)(2)(5)(6)
Development Pending Economic Contingent Resources | Low Estimate | Best Estimate | High Estimate |
Conventional natural gas (MMcf) | 15,442 | 27,326 | 36,810 |
Natural gas liquids (Mbbl) | 282 | 500 | 673 |
Oil equivalent (Mboe) | 2,856 | 5,054 | 6,808 |
See 'Footnotes' section at the end of this news release. |
Summary of Before Tax Net Present Value of Future Net Revenue of Unrisked Contingent Resources- $000s (1)(2)(5)(6)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | |
Low Estimate | 194,005 | 104,907 | 65,035 | 43,899 | 31,279 |
Best Estimate | 395,351 | 197,993 | 122,199 | 84,357 | 62,149 |
High Estimate | 573,506 | 269,157 | 162,703 | 111,941 | 82,752 |
See 'Footnotes' section at the end of this news release . |
The GLJ Contingent Resource Report for Murucututu assumes capital deployment starting in 2026 for the drilling and completion of wells with total project costs of $27.6 million and first commercial production in 2026. The information presented herein is based on company net project development costs. The recovery technology assumed for purposes of the estimate is based on established technologies utilized repeatedly in the industry.
There can be no certainty that the project will be developed on the timelines discussed herein. The project is based on a pre-development study. Development of the project is dependent on several contingencies as further described in this news release. Significant positive factors relevant to the estimate include existing production in close proximity, proximity to infrastructure, existing long-term gas sales agreement and corporate commitment to the project. Significant negative factors relevant to the estimate include reservoir performance and the economic viability of the project (with sensitivity to low commodity prices), access to and amount of capital required to develop resources at an acceptable cost, and regulatory approvals for planned activities including stimulations and new infrastructure developments.
Summary of Development Pending Risked Company Gross Contingent Resources (1)(2)(5)(6)
The GLJ Reserves and Resources Report estimates the Chance of Development as the product of two main contingencies associated with the project development, which are: 1) the probability of corporate sanctioning, which GLJ estimates at 95%; 2) the probability of finalization of a development plan, which GLJ estimates at 95%. The product of these two contingencies is 90%. As there is no risk related to discovery, the Chance of Commerciality for the contingent resource is therefore 90% which is the risk factor that has been applied to the Development Risked company gross contingent resources and the net present value figures reported below.
Low Estimate | Best Estimate | High Estimate | |
Conventional natural gas (MMcf) | 13,898 | 24,593 | 33,129 |
Natural gas liquids (Mbbl) | 254 | 450 | 606 |
Oil equivalent (Mboe) | 2,570 | 4,549 | 6,127 |
See 'Footnotes' section at the end of this news release. |
Summary of Development Pending Risked Before Tax Net Present Value of Future Net Revenue of Contingent Resources- $000s (1)(5)(6)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | |
Low Estimate | 174,640 | 94,396 | 58,505 | 39,484 | 28,127 |
Best Estimate | 355,872 | 178,170 | 109,951 | 75,896 | 55,910 |
High Estimate | 516,214 | 242,218 | 146,405 | 100,721 | 74,453 |
See 'Footnotes' section at the end of this news release. |
December 31, 2024 Murucututu Prospective Resources Information:
Summary of Unrisked Company Gross Prospective Resources (1)(2)(4)(6)
Prospective Resources | Low | Best | High |
Conventional natural gas (MMcf) | 32,247 | 68,282 | 114,219 |
Natural gas liquids (Mbbl) | 588 | 1,222 | 2,045 |
Oil equivalent (Mboe) | 5,963 | 12,603 | 21,081 |
See 'Footnotes' section at the end of this news release. |
Summary of Before Tax Net Present Value of Future Net Revenue of Unrisked Prospective Resources - $000s (1)(4)(6)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | |
Low Estimate | 419,522 | 199,745 | 109,233 | 65,060 | 40,823 |
Best Estimate | 1,039,969 | 464,830 | 257,956 | 161,030 | 107,769 |
High Estimate | 1,897,537 | 800,305 | 434,532 | 270,057 | 181,411 |
See 'Footnotes' section at the end of this news release . |
The GLJ Reserves and Resources Report for Murucututu prospective resources assumes capital deployment starting in 2026 for the drilling and completion of wells and pipeline expansion costs, first commercial production in 2027 and with total project costs of $75.6 million in Low case, $90.3 million in the Best case and $97.7 million in the High case. The information presented herein is based on company project development costs. The recovery technology assumed for purposes of the estimate is based on established technologies utilized repeatedly in the industry.
There can be no certainty that the project will be developed on the timelines discussed herein. Development of the project is dependent on several contingencies as further described in this news release. The project is based on a conceptual study. Significant positive factors relevant to the estimate include existing production in close proximity, proximity to infrastructure, existing long-term gas sales agreement and corporate commitment to the project. Significant negative factors relevant to the estimate include reservoir performance and the economic viability of the project (with sensitivity to low commodity prices), access to and amount of capital required to develop resources at an acceptable cost, and regulatory approvals for planned activities including stimulations and new infrastructure developments.
Summary of Development Risked Company Gross Prospective Resources (1)(2)(4)(6)
The GLJ Reserves and Resources Report estimates the Chance of Commerciality as the product between the Chance of Discovery and the Chance of Development. The Chance of Discovery of the prospective resources has been assessed at 90%, while the Chance of Development has been assessed as the same as for the Contingent Resources described above at 90%. The resulting Chance of Commerciality is 81%, which has been applied to the company gross unrisked prospective resources and the net present value figures reported below.
Low | Best | High | |
Conventional natural gas (MMcf) | 26,120 | 55,309 | 92,517 |
Natural gas liquids (Mbbl) | 477 | 990 | 1,656 |
Oil equivalent (Mboe) | 4,830 | 10,208 | 17,076 |
See 'Footnotes' section at the end of this news release. |
Summary of Development Risked Before Tax Net Present Value of Future Net Revenue of Prospective Resources- $000s (1)(4)(6)(7)(8)
Undiscounted | 5 % | 10 % | 15 % | 20 % | |
Low Estimate | 339,934 | 161,755 | 88,427 | 52,651 | 33,026 |
Best Estimate | 842,544 | 376,454 | 208,880 | 130,380 | 87,246 |
High Estimate | 1,537,171 | 648,183 | 351,902 | 218,687 | 146,893 |
See 'Footnotes' section at the end of this news release. |
UPCOMING 2024 RESULTS AND LIVE WEBCAST
Alvopetro anticipates announcing its 2024 fourth quarter and year-end results on March 18, 2025 after markets close and will host a live webcast to discuss the results at 8:00am Mountain time , on March 19 , 2025. Details for joining the event are as follows:
DATE: March 19, 2025
TIME : 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/84540021301
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kBRCh4fgE
WEBINAR ID : 845 4002 1301
The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com .
CORPORATE PRESENTATION
Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .
FOOTNOTES
(1) | References to Company Gross reserves or Company Gross Resources means the total working interest share of remaining recoverable reserves or resources held by Alvopetro before deductions of royalties payable to others and without including any royalty interests held by Alvopetro. See the section entitled " Oil and Natural Gas Advisories – Cabur é Working Interest " at the end of this news release for additional details with respect to Alvopetro's working interest share of the Caburé natural gas field. |
(2) | The tables above are a summary of the reserves of Alvopetro and the net present value of future net revenue attributable to such reserves as evaluated in the GLJ Reserves and Resources Report based on forecast price and cost assumptions. The tables summarize the data contained in the GLJ Reserves and Resources Report and as a result may contain slightly different numbers than such report due to rounding. Also due to rounding, certain columns may not add exactly. |
(3) | Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. |
(4) | Prospective Resources are defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery as described in footnote 6. |
(5) | Contingent Resources are defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates as described in footnote 6 and may be subclassified based on project maturity and/or characterized by their economic status. The Contingent Resources estimated in the GLJ Reserves and Resources Report are classified as "economic contingent resources", which are those contingent resources that are currently economically recoverable. All such resources are further sub-classified with a project status of "development pending", meaning that resolution of the final conditions for development are being actively pursued. The recovery estimates of the Company's contingent resources provided herein are estimates only and there is no guarantee that the estimated resources will be recovered. There is uncertainty that it will be commercially viable to produce any portion of the resources. Actual recovered resource may be greater than or less than the estimates provided herein. |
(6) | Low Estimate: This is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate. |
(7) | The net present value of future net revenue attributable to Alvopetro's reserves and resources are stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures, well abandonment and reclamation costs for only those wells assigned reserves and material dedicated gathering systems and facilities. The net present values of future net revenue attributable to Alvopetro's reserves and resources estimated by GLJ do not represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve and resource estimates of the Company's reserves and resources provided herein are estimates only and there is no guarantee that the estimated reserves and resources will be recovered. Actual reserves and resources may be greater than or less than the estimates provided herein. |
(8) | GLJ's January 1, 2025 escalated price forecast is used in the determination of future gas sales prices under Alvopetro's long-term gas sales agreement and for all forecasted oil sales and natural gas liquids sales. See https://www.gljpc.com/sites/default/files/pricing/Jan25.pdf for GLJ's price forecast. |
Alvopetro Energy Ltd.'s is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
All amounts contained in this news release are in United States dollars, except as otherwise noted.
Abbreviations:
1P | = | proved reserves |
2P | = | proved plus probable reserves |
3P | = | proved plus probable plus possible reserves |
Mbbl | = | thousands of barrels |
Mboe | = | thousand barrels of oil equivalent |
MMbtu | = | million British Thermal Units |
MMcf | = | million cubic feet |
MMboe | = | million barrels of oil equivalent |
$000s | = | thousands of U.S. dollars |
Oil and Natural Gas Advisories
Oil and Natural Gas Reserves
The disclosure in this news release summarizes certain information contained in the GLJ Reserves and Resources Report but represents only a portion of the disclosure required under NI 51-101. Full disclosure with respect to the Company's reserves as at December 31, 2024 will be included in the Company's annual information form for the year ended December 31, 2024 which will be filed on SEDAR+ ( www.sedarplus.ca ) on or before April 30, 2025 .
All net present values in this press release are based on estimates of future operating and capital costs and GLJ's forecast prices as of December 31, 2024 . The reserves definitions used in this evaluation are the standards defined by COGEH reserve definitions and are consistent with NI 51-101 and used by GLJ. The net present values of future net revenue attributable to the Alvopetro's reserves estimated by GLJ do not represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of the Company's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
Cabur é Working Interest
Alvopetro's working interest in the Caburé natural gas field is 56.2% as of December 31, 2024 and the date hereof. This working interest is subject to redetermination, the first of which was completed in April 2024 . An independent expert (the "Expert") was engaged in connection with the first redetermination to evaluate the redetermination and the impact to each party's working interest. Following the Expert's decision, Alvopetro's working interest was increased from 49.1% to 56.2%. Alvopetro's partner filed a notice of dispute with respect to the Expert's decision, seeking to stay the redetermination procedure. Alvopetro subsequently filed a request for emergency arbitration before the International Chamber of Commerce ("ICC") seeking to make the Expert decision effective starting on June 1, 2024 . In May 2024 , Alvopetro received the decision of the emergency arbitrator ("the Order") wherein the arbitrator found in favour of Alvopetro, making the Expert decision effective June 1, 2024 until such time as the dispute is reviewed by and decided upon by an arbitral tribunal pursuant to the Rules of Arbitration of the ICC. The redetermination dispute has proceeded to a full arbitration under the Rules of the ICC, however the timing and outcome of the full arbitration is uncertain and the resulting impact on the reserves and the net present value of future net revenue attributable to such reserves as presented herein may be material. In addition, future redeterminations may also have a material impact on Alvopetro's reserves and future cash flows.
Contingent Resources
This news release discloses estimates of Alvopetro's contingent resources and the net present value associated with net revenues associated with the production of such contingent resources as included in the GLJ Reserves and Resources Report. There is no certainty that it will be commercially viable to produce any portion of such contingent resources and the estimated future net revenues do not necessarily represent the fair market value of such contingent resources. Estimates of contingent resources involve additional risks over estimates of reserves. Full disclosure with respect to the Company's contingent resources as at December 31, 2024 will be contained in the Company's annual information form for the year ended December 31, 2024 which will be filed on SEDAR+ ( www.sedarplus.ca ) on or before April 30, 2025 .
Prospective Resources
This news release discloses estimates of Alvopetro's prospective resources included in the GLJ Reserves and Resources Report. There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Estimates of prospective resources involve additional risks over estimates of reserves. The accuracy of any resources estimate is a function of the quality and quantity of available data and of engineering interpretation and judgment. While resources presented herein are considered reasonable, the estimates should be accepted with the understanding that reservoir performance subsequent to the date of the estimate may justify revision, either upward or downward. Full disclosure with respect to the Company's prospective resources as at December 31, 2024 will be contained in the Company's annual information form for the year ended December 31, 2024 which will be filed on SEDAR+ ( www.sedarplus.ca ) on or before April 30, 2025 .
Boe Disclosure
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Other Metrics
This new release contains references to "production replacement ratio", a metric commonly used in the oil and natural gas industry, which has been prepared by management. This term does not have a standardized meaning and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons.
"Production replacement ratio" is calculated by dividing the change in reserve volumes plus current year production by current year production. Alvopetro's 1P production replacement ratio and 2P production replacement ratio in 2024 is calculated as:
1P | 2P | |
Reserve volumes as at December 31, 2024 – Mboe | 4,512 | 9,148 |
Reserve volumes as at December 31, 2023 – Mboe | 2,727 | 8,711 |
Reserve additions – Mboe | 1,785 | 437 |
2024 production – Mboe | 657 | 657 |
Change in reserves before 2024 production - Mboe | 2,442 | 1,094 |
2024 production replacement ratio | 372 % | 167 % |
Forward-Looking Statements and Cautionary Language
This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning plans relating to the Company's operational activities, proposed development activities and the timing for such activities, capital spending levels and future capital costs, the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement and arbitration procedures associated with the redetermination of working interests of the Caburé natural gas field. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of future redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca ). The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Alvopetro Energy Ltd.

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05 February
Alvopetro Announces January 2025 Sales Volumes, Quarterly Natural Gas Pricing, an Operational Update and a Strategic Entry into the Western Canadian Sedimentary Basin
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces January 2025 sales volumes of 2,457 boepd, including natural gas sales of 13.8 MMcfpd, associated natural gas liquids sales from condensate of 141 bopd and oil sales of 18 bopd, based on field estimates. This represents a 41% increase from Q4 2024.
Natural gas, NGLs and crude oil sales: |
January
2025
December
2024
Q4
2024
Natural gas (Mcfpd), by field:
Caburé
11,450
7,565
7,474
Murucututu
2,338
2,687
2,233
Total Company natural gas (Mcfpd)
13,788
10,252
9,707
NGLs (bopd)
141
110
109
Oil (bopd)
18
9
11
Total Company (boepd)
2,457
1,828
1,738
Quarterly Natural Gas Price Update
As announced on December 17, 2024 , our updated long-term gas sales agreement came into effect on January 1, 2025 increasing Alvopetro's contracted firm volumes starting January 1, 2025 by 33% up to 400 e 3 m 3 /d. The updated natural gas pricing model is recalculated quarterly based on Brent oil equivalent prices and Henry Hub natural gas prices resulting in quicker adjustments for commodity price and foreign exchange rate fluctuations. Effective February 1, 2025 , our natural gas price under our long-term gas sales agreement with Bahiagás has been adjusted to BRL1.95 /m 3 , a 6.5% increase from the January 2025 price of BRL1.83 and consistent with the Q4 2024 price of BRL1.94 /m 3 . All natural gas sales from February 1, 2025 to April 30, 2025 will be sold at BRL1.95 /m 3 ( $10.55 /Mcf, based on average heat content to date, the January 31, 2025 BRL/USD exchange rate of 5.83, net of expected sales taxes applicable).
Operational Update
In the fourth quarter we attempted an optimization project on our 183-B1 well on Block 183 which was originally drilled and tested in 2022. The plan included sidetracking from the existing wellbore and re-entering the Sergi Formation horizontally. Unfortunately, we encountered challenges during the project that resulted in the loss of the bottom hole assembly and the abandonment of the operation with costs totalling approximately $4.0 million .
On our Murucututu field, based off the successful recompletion of our 183-A3 well in the third quarter we plan to spud 183-D4 location this week. The 183-D4 location is targeting the Caruaçu Member approximately 110 metres up-dip of the 183-A3 location. This location also has an uphole exploratory target in the Marfin Formation. We expect to announce results from the 183-D4 well near the end of the first quarter.
Following this Murucututu well, we plan to drill and complete five development wells at our Caburé Unit as part of the agreed development plan with our partner. During the month of January, we also completed the commissioning phase of our recently installed compression system at Caburé increasing our productive capacity from the Unit.
Strategic Entry into Western Canadian Growth Opportunity
Alvopetro has been pursuing additional growth opportunities to complement our existing asset base to continue our disciplined capital allocation model where we look to reinvest approximately half our cash flow into organic growth and return the other half to stakeholders. The Western Canadian Sedimentary Basin (" WCSB ") offers high-quality assets with large resources in place with access to a high-quality service industry, and leading-edge technology deployment. With our past experiences and our headquarters in Calgary , we are well positioned to create a complementary growth platform with the opportunity to deliver attractive returns for shareholders.
Initial Focus Area - Mannville Heavy Oil Fairway
The Mannville multi-zone heavy oil fairway targets the Colony, McLaren, Waseca , Sparky, GP, Rex, Lloydminster , and Cummings formations containing a large amount of original oil in place and providing attractive economics through the application of multilateral drilling and other technologies.
Farmin – Partner with Proven Track Record
Alvopetro is partnering with Durham Creek Energy Ltd., an established operator with a proven track record. Alvopetro has agreed to fund 100% of two earning wells at an estimated total cost of C$4.5 million in exchange for a 50% working interest in 19.13 sections (12,243 acres) of land in western Saskatchewan . With success, the land position could support upwards of 100 development drilling locations.
President & CEO, Corey C. Ruttan commented:
"Alvopetro's strong financial position and cash flows from operations help position the Company to maximize shareholder returns from our combined asset base. With exposure to projects in Brazil and now also in Canada , it allows us to allocate capital across a growing inventory of high rate of return opportunities and to continue our disciplined capital allocation model."
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .
Social Media
Follow Alvopetro on our social media channels at the following links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube - https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
Abbreviations:
boepd | = | barrels of oil equivalent ("boe") per day |
bopd | = | barrels of oil and/or natural gas liquids (condensate) per day |
C$ | = | |
e 3 m 3 /d | = | thousand cubic metre per day |
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.
Contracted firm volumes . The 2025 contracted daily firm natural gas volumes of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Note that Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro's natural gas is approximately 7.8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e 3 m 3 /d (13.1MMcfpd).
Forward-Looking Statements and Cautionary Language. This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning future production and sales volumes, the expected natural gas price and expected sales volumes under the Company's long-term gas sales agreement, and future capital plans and potential development opportunities associated with the WCSB farmin. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. Forward -looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, expectations and assumptions concerning forecasted demand for oil and natural gas, the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations regarding Alvopetro's working interest and the outcome of any redeterminations, the outcome of any disputes, the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, general economic and business conditions, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, the regulatory and legal environment and other risks associated with oil and gas operations . The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF
SOURCE Alvopetro Energy Ltd.

View original content: http://www.newswire.ca/en/releases/archive/February2025/05/c0962.html
News Provided by Canada Newswire via QuoteMedia
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06 January
Alvopetro Announces December 2024 Sales Volumes
Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces December 2024 sales volumes of 1,828 boepd, including natural gas sales of 10.3 MMcfpd, associated natural gas liquids sales from condensate of 110 bopd and oil sales of 9 bopd, based on field estimates, bringing our average sales volumes to 1,738 boepd in the fourth quarter of 2024.
Natural gas, NGLs and crude oil sales: |
December
2024
November
2024
Q4
2024
Q3
2024
Natural gas (Mcfpd), by field:
Caburé
7,559
5,827
7,475
11,378
Murucututu
2,693
2,245
2,232
616
Total Company natural gas (Mcfpd)
10,252
8,073
9,707
11,994
NGLs (bopd)
110
110
109
95
Oil (bopd)
9
9
11
12
Total Company (boepd)
1,828
1,465
1,738
2,106
Sales volumes in the latter half of December were impacted by reduced demand from Bahiagás. As announced on December 17, 2024 , our updated long-term gas sales agreement came into effect on January 1, 2025 . Bahiagás nominations and deliveries for January have commenced at the new contracted daily firm volumes of 400 e 3 m 3 /d.
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 |
e 3 m 3 /d | = thousand cubic metre per day |
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.
Contracted firm volumes . The 2025 contracted daily firm volumes of 400 e 3 m 3 /d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Note that Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro's natural gas is approximately 7.8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e 3 m 3 /d (13.1MMcfpd).
Forward-Looking Statements and Cautionary Language. This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend" and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning future production and sales volumes and expected sales under the Company's long-term gas sales agreement. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. Forward -looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, expectations and assumptions concerning forecasted demand for oil and natural gas, the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations regarding Alvopetro's working interest and the outcome of any redeterminations, the outcome of any disputes, the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, general economic and business conditions, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, the regulatory and legal environment and other risks associated with oil and gas operations . The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF
SOURCE Alvopetro Energy Ltd.

View original content: http://www.newswire.ca/en/releases/archive/January2025/06/c5504.html
News Provided by Canada Newswire via QuoteMedia
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31 March
QIMC Reports Significant Concentrations Exceeding 13,000 ppm (1.3%) Hydrogen at St-Bruno-de-Guigues; Expands Strategic Land Portfolio into Ontario
Quebec Innovative Materials Corp. (CSE: QIMC) (OTCQB: QIMCF) (FSE: 7FJ) (QIMC) is proud to report significant hydrogen measurements from its St-Bruno-de-Guigues property in Temiscamingue, Quebec, marking an important milestone for the natural hydrogen industry. Recent testing from monitoring and measuring hole #8 has returned hydrogen (H₂) concentrations of 13,102 ppm (1.31%) and 12,873 ppm (1.29%) at a shallow 75 meters depth, comprising 69 meters of quaternary deposits overburden dominated by glaciolacustrine sediments (clays and silts). The last 6 meters intersect sandstones of the Lorain formation of the Cobalt Group. These results, achieved at sub-zero temperatures, represent a nearly 100% increase from previous record measurements (7,000 PPM H2 at 50m press releases on January 21, 2025) and solidify QIMC's position as Canada's leading and one of North America's leaders in the natural hydrogen industry.
"These exceptional measurements provide further validation of QIMC's proprietary hydrogen model, uniquely positioning the company as a leader in the natural hydrogen sector," notes John Karagiannidis President of QIMC. "We are expanding our monitoring and measurement programs at St-Bruno-de-Guigues as temperatures rise, heading into the spring and summer seasons."
Leveraging its proprietary methodology and technology, QIMC recently announced the acquisition of a district-scale land package in Nova Scotia, alongside an aggressive expansion into the United States. The company has also strategically expanded its Temiscamingue hydrogen land holdings across the provincial border into Ontario, securing key acreage along the prolific Riviere Blanche fault adjacent to our partner, Record Resources (REC-V). This expansion gives QIMC significant land position over the entire Temiscamingue hydrogen district across both Quebec and Ontario.
"These exceptional hydrogen measurements represent a significant milestone for QIMC and confirm our leadership in the natural hydrogen sector," stated John Karagiannidis, President of QIMC. "The strategic expansion into Nova Scotia, Ontario, and the United States positions us to significantly accelerate our exploration and development programs, creating long-term value for shareholders and industry partners."
QIMC has put in place alongside its partner Record Resources (REC-V) a comprehensive exploration campaign this spring and summer, featuring extensive soil sampling and advanced geophysical surveys across its recently acquired Ontario properties. These strategic activities aim to pinpoint and confirm additional high-potential hydrogen zones, laying the groundwork for targeted drilling, measurement, and ongoing monitoring programs.
About the INRS and Pr. Marc Richer-LaFlèche, P.Geo.
The Institut National de la Recherche Scientifique ("INRS") is a high-level research and training institute. Pr. Richer-LaFlèche's team has exceptional geological, geochemical and geophysical experience specifically in the regions of QIMC's newly acquired claims. They have carried out over six years of geophysical and geochemical work and collected thousands of C1-C4 Soil-Gas analyses.
In addition, the INRS team has several portable gas spectrometers and the sampling equipment and logistics necessary for taking gas samples and geophysical measurements on the ground or in the aquatic environment.
Pr. Richer-LaFlèche also holds an FRQNT grant, in partnership with Quebec MRN and the mining industry, to develop and optimize a Soil-Gas method for the direct detection of mineralized bodies and faults under Quaternary cover. In addition to sulphide gases, hydrogen was systematically analyzed in the numerous surveys carried out in 2023 in Abitibi, Témiscamingue and also in the Quebec Appachian.
Pr. Richer-Laflèche, a qualified expert in hydrogen exploration, has reviewed, read and approved the technical content presented in this press release. Pr. Richer-Laflèche confirms that the methodologies employed, data presented, and interpretations made conform to current industry practices and standards relating to hydrogen exploration.
For more information about Quebec Innovative Materials Corp. and its products, please visit www.qimaterials.com
About Québec Innovative Materials Corp.
Québec Innovative Materials Corp. is a mineral exploration, and development company dedicated to exploring and harnessing the potential of Canada's abundant resources. With properties in Ontario and Québec, QIMC is focused on specializing in the exploration of white (natural) hydrogen and high-grade silica deposits, QIMC is committed to sustainable practices and innovation. With a focus on environmental stewardship and cutting-edge extraction technology, we aim to unlock the full potential of these materials to drive forward clean energy solutions to power the AI and carbon-neutral economy and contribute to a more sustainable future.
QUÉBEC INNOVATIVE MATERIALS CORP.
John Karagiannidis
Chief Executive Officer
Tel: +1 514-726-7058
For further information, please contact:
Email: info@qimaterials.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the CSE policies) accepts responsibility for the adequacy or accuracy of this news release and has neither approved nor disapproved the contents of this news release.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Québec Innovative Materials' actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.
Although Québec Innovative Materials believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature, forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; adverse industry events; future legislative and regulatory developments in the mining sector; the Company's ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of Québec Innovative Materials Corp. to implement its business strategies; competition; and other assumptions, risks and uncertainties.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
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26 March
5 Biggest ASX Oil and Gas Stocks in 2025
Oil and gas are key energy fuels, and ASX-listed Australian oil and gas companies could benefit from their price moves.
For the most part, 2024 was a volatile year for both the oil and gas markets. In the first half of the year, oil prices were riding an uptrend, spurred on by rising tensions in the Middle East amid tightening supply.
However, after prices peaked at US$91.70 per barrel in early April, demand-side challenges weighed oil down, with levels sinking to US$77 in early June. In the second half of the year, oil prices took a hit as global economic uncertainties continued to grow.
By September 10, oil fell to a year-to-date low of US$69.09 as investors anticipated interest rate cuts in the US and the Israel-Hamas war continued to threaten supply chains. Weakness in demand from China also suppressed oil prices. By late December, prices were holding in the US$72.40 range and climbed higher into early January.
As of late March, prices were back to about US$73.50.
Meanwhile, natural gas prices experienced a sharp six month decline starting in November 2023. The fall came on the back of a shift in mature markets, including the Asia Pacific region, Europe and North America, which are experiencing reductions in gas demand as they seek alternatives like renewables and pursue improved energy efficiency.
In mid-2024, natural gas prices surged to US$3.12 per million British thermal units based on increased demand during above-normal temperatures, but they pulled back in the third quarter to below US$2. However, seasonal demand amidst colder weather pushed natural gas prices up in the fourth quarter to flirt with the US$4 level in late December, and they climbed even higher in Q1 2025 to reach a two-year high of US$4.49 in mid-March.
The oil and gas outlook for 2025 is for both these commodities to continue facing market volatility as geopolitical and global economic uncertainties persist. And, of course, Donald Trump's presidency in the US will likely throw the market a few curveballs. Nevertheless, analysts remain confident in the resiliency of this sector.
For investors looking to enter the oil and gas sector, what's the best way to get exposure on the ASX? Learning about the biggest ASX oil and gas companies by market cap is a good place to start. Data for the ASX oil stocks list below was obtained on March 20, 2025, using TradingView’s stock screener. All market cap and share price data was accurate at that time.
1. Woodside Energy Group (ASX:WDS)
Market cap: AU$43.32 billion
Share price: AU$22.94
As the biggest ASX-listed oil and gas stock by market cap, Woodside Energy Group leads the country in natural gas production and is considered a pioneer in Australia’s liquefied natural gas (LNG) industry.
In June 2022, Woodside Petroleum merged with BHP's (ASX:BHP,NYSE:BHP,LSE:BHP) oil and gas business to form Woodside Energy Group. The new company's natural gas production accounts for 5 percent of global LNG supply.
The company reported in June 2024 that it had achieved first production at the Sangomar project in Senegal, the country's first offshore oil project. Its standalone floating production storage and offloading facility has a nameplate capacity of 100,000 barrels per day. Woodside continued ramping up production throughout the year, reporting record output levels by the third quarter.
In December 2024 Woodside agreed to an asset swap with Chevron's (NYSE:CVX) indirect subsidiary Chevron Australia that is expected to close in 2026, "subject to the completion of Julimar Phase 3 Project execution and handover."
Under the agreement, Woodside would acquire Chevron Australia's interest in several projects in Western Australia in which Woodside already holds interest, namely the North West Shelf project, the North West Shelf oil project and the Angel carbon capture and storage project. These would bring Woodside's interests to 50 percent, 66.7 percent and 40 percent respectively. Chevron Australia will also pay Woodside up to US$400 million reliant on certain milestones.
In exchange, Chevron would receive Woodside's 13 percent non-operating interest in the Wheatstone project and 65 percent operating interest in the Julimar-Brunello project.
With Sangomar in production, Woodside achieved a net profit after tax of US$3.57 billion for 2024, up 115 percent over the previous year.
2. Santos (ASX:STO)
Market cap: AU$20.61 billion
Share price: AU$6.46
Australian energy company Santos is the operator of multiple joint ventures with significant LNG production, including the Papua New Guineau LNG project and the Gladstone LNG project in Queensland, Australia. The company supplies its products to markets located across Australia and Asia.
In May 2024, the company secured a binding 10 year LNG supply and purchase agreement with Japan's Hokkaido Gas Co. (TSE:9534) for approximately 400,000 tonnes of LNG per year starting in 2027. The company ended the year with the signing of a long-term LNG supply contract with Japanese utility company Shizouka Gas.
Along with its joint venture partners ExxonMobil (NYSE:XOM), Kumul Petroleum Holdings, Mineral Resources Development Company and JX Nippon, Santos brought the Angore LNG project, part of Papua New Guineau LNG, into production in November 2024.
In its report for 2024, Santos highlighted strong free cashflow of US$1.9 billion and sales revenue of US$5.4 billion for the year.
In March 2025, Santos shared news of a new oil discovery on Alaska’s North Slope from the Sockeye-2 exploration well in which the company holds a 25 per cent stake through a joint venture.
3. Beach Energy (ASX:BPT)
Market cap: AU$3.29 billion
Share price: AU$1.435
Oil and gas exploration and production company Beach Energy has a diverse portfolio, with onshore and offshore oil and gas production in five basins across Australia and New Zealand.
In 2023, the company made gas discoveries at both Tarantula Deep 1 and Trigg Northwest 1 as part of its ongoing Perth Basin gas exploration campaign. During its 2024 fiscal year, Beach Energy posted AU$1.8 billion in sales revenue, up 9 percent year-on-year. The increase came despite a 7 percent decrease in production to 18.2 million barrels of oil; according to the firm, the decline was mainly due to lower customer gas nominations.
For its H1 2025 fiscal year results, Beach Energy reported that sales revenues of AU$990 million, up 5 percent over the same period in the previous year. Production for the half year was up 15 percent to 10.2 million barrels of oil.
Looking ahead, Beach Energy is targeting Q4 of the calendar year 2025 for first gas sales at its Waitsia gas plant, which is currently in the commissioning phase.
4. Viva Energy Australia (ASX:VEA)
Market cap: AU$2.79 billion
Share price: AU$1.785
Viva Energy Australia owns the Geelong oil refinery and distributes Shell (NYSE:SHEL,LSE:SHEL) fuels throughout Australia. The firm oversees a vast network of over 1,300 Shell and Liberty service stations nationwide.
In its fiscal year 2024 financials, Viva Energy highlighted that its commercial and industrial segment delivered a fourth consecutive year of earnings growth, with an earnings before interest, taxes, depreciation and amortization (EBITDA) up 5 percent to AU$469.9 million. The company attributed the growth to strong demand from the aviation, resource, agriculture and defence sectors.
The company’s energy and infrastructure segment reported an EBITDA of AU$94.3 million in its fiscal year 2024, up 44 percent on lower levels of maintenance and improved operating performance.
5. Karoon Energy (ASX:KAR)
Market cap: AU$1.21 billion
Share price: AU$1.63
Karoon Energy is focused on continued company growth through a broad pipeline of exploration and development projects in Brazil, including its producing Baúna and Piracaba oil fields.
In December 2023, Karoon completed its acquisition of interests in the US Gulf of Mexico from LLOG, including a 30 percent working interest in the Who Dat and Dome Patrol oil and gas fields and associated infrastructure, as well as a nearly 16 percent working interest in the Abilene field and varying interests in adjacent exploration acreage.
In its full year 2024 report, Karoon outlined record production volume on a net revenue interest (NRI) basis of 10.4 million barrels of oil equivalent, up 14 percent over the previous year. Sales revenue for the period was also up 14 percent, totalling US$776.5 million.
In February 2025, Karoon announced the sale and purchase agreement for the acquisition of the Baúna Cidade de Itajaí floating production, storage and offloading facility in Brazil for US$115 million. The goal of the purchase is to return to reliable production from its Baúna project.
FAQs for oil and gas investing
What is crude oil?
Crude oil is a mixture of hydrocarbons in liquid form that is found in natural underground reservoirs in the Earth's crust. This petroleum liquid is refined to produce a variety of energy and industrial products, including asphalt, diesel and jet fuels, gasoline, heating oils, lubricants and propane.
Does Australia have oil?
Geoscience Australia states that Australia hosts about 0.3 percent of global oil reserves.
“Most of Australia's known remaining oil resources are condensate and liquefied petroleum gas associated with giant offshore gas fields in the Browse, Carnarvon and Bonaparte basins,” according to the government agency.
Where does Australia get its oil?
In addition to producing it domestically, Australia receives oil imports from Singapore, South Korea, China, Malaysia and India, because Australia’s domestic oil production does not cover its oil consumption.
Don't forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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20 March
Hydrogen Stocks: 9 Biggest Companies in 2025
Hydrogen stocks are benefiting from cleantech sector momentum as the world moves closer to a green energy future.
The most abundant element on Earth, hydrogen is a colorless gas. It can be produced in liquid form and burned to generate electricity, or combined with oxygen atoms in fuel cells. In this way, hydrogen — which produces no carbon emissions — can replace fossil fuels in household heating, transportation and industrial processes such as steel manufacturing.
Rising demand for carbon-free energy sources alongside significant new government policies are driving growth in the hydrogen market. Grand View Research projects that the global hydrogen-generation market will grow at a compound annual growth rate of 9.3 percent from 2024 to 2030, reaching US$317.39 billion by the end of the forecast period.
It's worth noting that the downside to hydrogen as a clean energy source is that 99 percent of the hydrogen fuel currently in production is derived from power generated by coal or gas. To combat this problem, some companies are pursuing green hydrogen, which is produced by splitting hydrogen atoms from oxygen using electrolyzers powered by renewable energy.
Below the Investing News Network profiles the biggest hydrogen companies by market cap on US, Canadian and Australian stock exchanges. Data was gathered on March 13, 2025, using TradingView’s stock screener.
The hydrogen stocks on this list are focused on a diverse range of sectors in the hydrogen space, including: low-carbon hydrogen gas production, green hydrogen technology and production, hydrogen fuel cell companies, and hydrogen distribution and storage.
US hydrogen stocks
The US hydrogen market is well established, accounting for “more than half the world’s fuel cell vehicles, 25,000 fuel cell material handling vehicles, more than 8,000 small scale fuel systems in 40 states, and more than 550 MW of large-scale fuel cell power installed or planned,” according to the Fuel Cell and Hydrogen Energy Association.
The US was also the top exporter of hydrogen in 2023 with US$2.15 billion in exports based on data from the Observatory of Economic Complexity (OEC).
Looking at the medium to long term, the use of hydrogen as a fuel source is expected to grow. While the strong government incentives enacted under former US President Joe Biden's Inflation Reduction Act, such as a production tax credit, may be on the ropes under the Trump Administration, there is still optimism among industry leaders.
1. Linde (NYSE:LIN)
Market cap: US$213.49 billion
Share price: US$453.26
Leading global industrial gases and engineering company Linde has been producing hydrogen for more than a century and is a pioneer in new hydrogen production technologies. Linde’s operations cover each step of the hydrogen value chain, from production and processing through distribution and storage. The company also uses its gases for industrial and consumer applications.
Globally, the company has more than 500 hydrogen production plants. Through its ITM Linde Electrolysis joint venture, Linde has become one of the world’s leading suppliers of green hydrogen produced using proton exchange membrane (PEM) electrolyzer technologies. This also makes it one of the few green hydrogen stocks.
In August 2024, Linde signed a US$2 billion long-term supply agreement to supply clean hydrogen to Dow (NYSE:DOW) subsidiary Dow Canada's Path2Zero project in Fort Saskatchewan, Alberta.
In response to the regulatory uncertainties under the Trump Administration, Linde announced in its Q4 2024 earnings call that 90 percent of its US clean hydrogen projects will be focused on blue hydrogen, which is created by reforming natural gas with carbon capture storage. Blue hydrogen is more cost effective to produce, and although it is not zero emission like green hydrogen, it is more environmentally friendly than grey hydrogen produced with coal.
2. Air Products & Chemicals (NYSE:APD)
Market cap: US$65.32 billion
Share price: US$292.85
Founded in 1940, Air Products & Chemicals sells industrial gases and chemicals and provides related equipment and expertise to a wide range of industries, including the refining, chemical, metals, electronics, manufacturing, and food and beverage segments.
In addition to producing oxygen, nitrogen, argon and helium, the company operates more than 100 hydrogen plants and maintains the world’s largest hydrogen distribution network. Air Products has an extensive hydrogen-dispensing technology patent portfolio and has been involved in more than 250 hydrogen-fueling projects worldwide.
Air Products also has a joint venture project now under construction with ACWA Power (SR:2082) and NEOM Company in Saudi Arabia. Called the NEOM Green Hydrogen Complex, the operation will be powered by 4 gigawatts of renewable power from solar and wind to produce 600 metric tons per day of carbon-free hydrogen, which it says will be delivered in the form of green ammonia. Once production begins at the complex in 2026, Air Products will be the sole off-taker and plans to deliver the green ammonia to Europe's transport sector.
Air Products' Louisiana Clean Energy Complex, its largest US investment, is also making headway, with first production expected in 2028. The complex will produce blue hydrogen for power mobility and industrial markets in the Gulf Coast region and other markets.
3. Cummins (NYSE:CMI)
Market cap: US$43.71 billion
Share price: US$312.92
Indianapolis-based Cummins designs, manufactures and distributes engines, filtration and power-generation products with a specialization in diesel and alternative fuel engines and generators.
In March 2023, the company announced the launch of a new brand, Accelera, which features “a diverse portfolio of zero-emissions solutions, includ(ing) battery systems, fuel cells, ePowertrain systems and electrolyzers.” The brand encompasses Cummins' established battery electric and hydrogen fuel cell systems, as well as electrolyzers for hydrogen refueling stations. Shortly after, Accelera began production at its first US electrolyzer facility, located in the state of Minnesota.
The hydrogen fuel cell company showcased its next generation B6.7H hydrogen engine at the April 2024 Intermat Sustainable Construction Solutions and Technology Exhibition in Paris. The following month heralded the launch of Accelera's next-gen hydrogen fuel cell technology for commercial vehicles, specifically the FCE300 and FCE150 fuel cell engines.
Accelera inked a deal in February 2025 to supply a 100 megawatt PEM electrolyzer system for BP's (NYSE:BP,LSE:BP) Lingen green hydrogen project in Germany. The system is Accelera's largest to date and uses its HyLYZER PEM electrolyzer technology.
Canadian hydrogen stocks
Like its neighbor to the south, Canada is a world leader in hydrogen and fuel cell technologies, especially when it comes to innovation, research and development. The country reportedly generates C$200 million in hydrogen technology exports according to data from January 2023. In terms of the global hydrogen market, the country exported $385 million worth of hydrogen in 2023, ranking ninth overall according to the OEC.
The federal government is heavily invested in the sector both in terms of funding and the implementation of clean energy policies. “The Hydrogen Strategy for Canada laid out a framework that focuses low-carbon hydrogen as a tool to achieve our goal of net-zero emissions by 2050, while creating jobs, growing our economy, expanding exports and protecting our environment," Natural Resources Canada states.
In British Columbia, the Government of Canada invested C$9.4 billion to launch a new Clean Hydrogen Hub that will use electrolyzer technology and hydroelectricity to generate hydrogen that can be sold to industry users.
On the global stage, Canada and its trading partner Germany have agreed to each commit C$300 million for a total of C$600 million to launch Atlantic Canada's hydrogen export industry, which will send hydrogen to Germany. However, delays due to factors including high hydrogen prices and inflation as well as lack of infrastructure have pushed the expected start of exports back from 2025.
1. Ballard Power Systems (TSX:BLDP)
Market cap: C$526.98 million
Share price: C$1.82
Ballard Power Systems is a global leader in hydrogen fuel cell technology and is working to accelerate the adoption of this technology. The company develops and manufactures PEM fuel cell products that create electrical energy from the combination of hydrogen and air. Ballard's products are designed for heavy-duty trucks, buses, trains and marine applications, as well as backup power storage.
Two of Ballard’s 200 kilowatt fuel cell modules are located on the world’s first hydrogen-powered ferry, operated by Norwegian company Norled. The company is also supplying hydrogen fuel cell modules to global carbon-reduction company First Mode; they will be used to power several hybrid hydrogen and battery ultra-class mining haul trucks.
In January 2024, Ballard secured a supply contract for a minimum of 100 of its FCmove-HD+ modules to NFI Group to be used in the latter's New Flyer next generation Xcelsior CHARGE FC hydrogen fuel cell buses, which will be deployed across the US and Canada. The company also announced in April 2024 that it had secured its largest order ever — 1,000 hydrogen fuel cell engines to be supplied to European bus manufacturer Solaris.
Ballard signed a multi-year supply agreement with an Egypt-based company named Manufacturing Commercial Vehicles, in which Ballard will supply 50 FCmove-HD+ fuel cell engines to support projects in the European Union with deliveries expected between 2025 and 2026.
2. Westport Fuel Systems (TSX:WPRT)
Market cap: C$91.5 million
Share price: C$5.07
Headquartered in Vancouver, British Columbia, Westport Fuel Systems supplies advanced alternative fuel delivery components and systems to the transportation industry worldwide. This includes its high pressure direct injection (HPDI) fuel system for commercial vehicles, which can run on biogas, natural gas, hydrogen and other alternative fuel products.
The company has operations in partnership with leading global transportation brands across more than 70 countries across Europe, Asia, North America and South America.
One of those partners is Swedish automaker Volvo Group (STO:VOLV-B). The two firms are working together to commercialize Westport’s HPDI fuel system technology for long-haul and off-road applications that will use renewable fuels now and hydrogen in the future.
Westport is also working with a leading global provider locomotive original equipment manufacturer on a two-year proof of concept project to adapt its hydrogen HPDI fuel system for use with the company's engine design. The project is fully funded by the locomotive company.
3. Tidewater Renewables (TSX:LCFS)
Market cap: C$90.25 million
Share price: C$2.32
Tidewater Renewables produces renewable diesel and hydrogen at its facilities located near Prince George in BC, Canada. The plant has a nameplate capacity of 3,000 barrels per day of renewable diesel and 23.7 metric tons per day of hydrogen. It began production during Q4 2023 using feedstock that included soybean and canola oil.
Tidewater is now focused on expanding operations at the site to produce sustainable aviation fuel, targeting 2028 for first production.
Australian hydrogen stocks
Australia is another important hotspot for investing in hydrogen. The Australian Government says that "over AU$200 billion is currently in the investment pipeline for hydrogen and derivatives," accounting for 20 percent of announced renewable hydrogen projects worldwide.
The Australian government’s National Hydrogen Strategy, which it updated in 2023, highlights its intention to position the country as a “major player” in the global hydrogen market by 2030. To this end, Australia has partnered with a number of other nations on hydrogen technology.
Australia and Germany are working together on a hydrogen technology development program that will help Australia build out its capacity to export hydrogen to Germany as it seeks to reduce its reliance on fossil fuels. Through a partnership with Japan, Australia is developing new hydrogen fuel cell technology and looking to establish the world's first clean liquefied hydrogen export pilot project, and its government has invested more than AU$500 million in the development of regional hydrogen hubs across the country.
In May 2024, the Australian government announced an AU$22.7 billion package to bolster the country's domestic manufacturing and renewable energy sector, including AU$6.7 billion for renewable hydrogen production starting in mid-year 2028 through the 2039/2040 fiscal year.
1. Gold Hydrogen (ASX:GHY)
Market cap: AU$70.29 million
Share price: AU$0.45
Gold Hydrogen is an exploration and development company with a focus on making new hydrogen and helium discoveries in South Australia using recorded government data with modern exploration techniques.
During initial drill work conducted at its Ramsey project in 2023, Gold Hydrogen reconfirmed the historical figures for hydrogen while demonstrating new purity levels of up to 86 percent. Additionally, strong levels of up to 17.5 percent purity helium were found.
In August 2024, Gold Hydrogen reported high concentrations of hydrogen and helium at surface. Using new seismic information, the company has identified sites for its first wells, which it intends to drill beginning in 2025. “To have an initial world first to see Hydrogen and Helium to surface is very exciting for our further ongoing exploration and drilling programs in even better locations,” Gold Hydrogen Managing Director Neil McDonald stated.
Gold Hydrogen announced in February 2025 that it had received a AU$6.45 million research and development tax refund associated with its natural hydrogen and helium exploration activities for the fiscal year ended June 30, 2024. The refund will help fund the company's 2025 work to delineate the hydrogen and helium accumulation at Ramsey.
2. Hazer Group (ASX:HZR)
Market cap: AU$67.93 million
Share price: AU$0.30
Technology development company Hazer Group is working to commercialize the HAZER Process, a low-emission hydrogen and graphite production process initially developed at the University of Western Australia. It uses iron ore as a process catalyst to convert natural gas and similar feedstocks into hydrogen for use as an industrial chemical and in fuel cells, as well as into high-quality synthetic graphite for use in lithium-ion batteries.
Hazer started operations at its commercial demonstration plant in early 2024 and it is now producing hydrogen and graphitic carbon.
In May 2024, the company inked an agreement with Canadian utility FortisBC for the development of a hydrogen production facility in British Columbia that will use Hazer’s proprietary technology. The proposed commercial production facility will have a design capacity of up to 2,500 metric tons per year of clean hydrogen and approximately 9,500 metric tons per year of Hazer graphite.
The company announced in March 2025 that it had successfully completing its commercial reactor test program, validating a commercial scale-up reactor design. "The equipment was designed to mimic key aspects of the Hazer Process for producing hydrogen and graphite at commercial scale, and the completion of this testing is a major milestone for the government support from CleanBC," the press release states.
3. Pure Hydrogen (ASX:PH2)
Market cap: AU$25.77 million
Share price: AU$0.08
Pure Hydrogen is focused on becoming a leading producer and supplier of hydrogen and hydrogen-fuel-cell-powered vehicles such as buses and waste collection vehicles. The company has several partnerships with companies for its technology. Pure Hydrogen’s hydrogen-fuel-cell-powered Prime Mover truck was displayed at the Brisbane Truck Show last year.
Pure Hydrogen has a 40 percent stake in the Turquoise Group, an Australian clean energy company, as well as exclusive long-term acquisition rights for the company's future hydrogen production. Turquoise Group announced in May 2024 that it had produced the first graphene powder and hydrogen during testing at its commercial demonstration plant in Brisbane, Queensland. In August 2024, Pure Hydrogen registered Australia's first hydrogen-powered semi-truck, the Hydrogen Fuel Cell 110kW 6x4 Prime Mover.
Pure Hydrogen's majority-owned subsidiary HDrive confirmed in January 2025 that it had sold two Taurus 70 metric ton hydrogen fuel cell prime movers to Australian logistics services provider TOLL Transport as part of a broader AU$2 million package. The vehicles are slated for delivery in the fourth quarter of the calendar year.
FAQS for hydrogen investing
Which is better: EVs or hydrogen?
According to research from TWI Global, there are pros and cons to both electric vehicles (EVs) and hydrogen vehicles. In terms of range and charging time, hydrogen beats electric hands down. However, while a hydrogen-powered vehicle doesn’t need much time to refuel compared to an EV, there is still much more EV charging infrastructure currently available compared to hydrogen fueling stations. EVs are also cheaper to purchase than hydrogen vehicles. As far as safety and emissions are concerned, it's a draw between the two.
Why does Elon Musk not like hydrogen?
Elon Musk’s SpaceX has used hydrogen to fuel its rockets, and in 2023 Musk talked about hydrogen playing an important role in industrial applications, such as steelmaking. However, he has balked at the idea of hydrogen fueling vehicles, calling fuel cells “fool sells.” Speaking at a Financial Times conference in May 2022, Musk said, “It’s important to understand that if you want a means of energy storage, hydrogen is a bad choice.”
Starting in 2024, rumors began spreading that Tesla (NASDAQ:TSLA) was planning to launch a Tesla Model H powered by hydrogen, but they have been proven false.
Why is Toyota investing in hydrogen?
Toyota (NYSE:TM,TSE:7203) first invested in hydrogen fuel cell technology in 1992 as its executives saw clean energy as the future of transport. However, with EVs dominating the clean car space, the automaker began to shift its focus to compete with its peers. Toyota brought its newest hydrogen-powered vehicle to market in the fall of 2023 — a revamped Crown sedan that also has a hybrid-electric version. The following year, the auto maker introduced the first prototype of its Toyota Hilux trucks with a hydrogen fuel cell powertrain.
In 2025, Toyota shared its long-term strategy for developing hydrogen passenger vehicles as well as hydrogen technologies for long-haul freight.
Who is the leader in hydrogen energy?
Some countries leading in green and blue hydrogen production are the US, Germany and Canada. Many countries around the world have released clean hydrogen strategies, including the US, Canada and many countries in the Europe Union. However, clean hydrogen production is still in the early phases as countries develop infrastructure.
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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20 March
QIMC Announces Transformative Expansion with Launch of New Hydrogen Exploration Camp in Nova Scotia
Quebec Innovative Materials Corp. (CSE: QIMC) (OTCQB: QIMCF) (FSE: 7FJ) ("QIMC") is pleased to announce a major expansion of its natural clean renewable hydrogen exploration activities with the establishment of a new exploration camp in the Cumberland Basin, Nova Scotia, QIMC has staked 2,645 exploration claims. This strategic initiative significantly expands QIMC's natural clean renewable hydrogen and helium exploration portfolio into Canada's Atlantic region, positioning the company to access international hydrogen export markets via existing Atlantic port infrastructure.
John Karagiannidis CEO of QIMC stated: "Our expansion into Nova Scotia marks a transformative step forward, building upon our unparalleled exploration success in Quebec. By harnessing the favorable geological features of the Cumberland Basin and utilizing our proven exploration methodologies, we are poised to unlock substantial new natural clean hydrogen and helium resources, fueling a cleaner energy future and creating significant value for shareholders."
Covering approximately 428.49 km² with 2,645 exploration claims, the Cumberland project strategically targets geological structures conducive for their natural hydrogen and helium potential. Characterized by a thick sedimentary sequence exceeding 7 kilometers, deep-seated faults, and prominent geothermal gradients, the Cumberland Basin offers optimal conditions for hydrogen generation, accumulation, and potential storage.
Leveraging the exceptional exploration model developed at QIMC's St-Bruno-de-Guigues property in Quebec, where groundbreaking exploration has yielded outstanding natural renewable hydrogen results, QIMC intends to replicate its proven approach in the geologically favorable Cumberland Basin area. Nova Scotia's geological environment, marked by significant structural similarities to renowned global hydrogen-rich regions such as the Lorraine Basin in France, offers an ideal opportunity for transformative discoveries.
Specifically, the Cobequid-Chedabucto fault system, an extensive and deep-reaching geological structure, provides pathways for natural hydrogen production through water-mineral interactions involving biotite-rich granitoids and olivine-bearing mafic rocks. Recent scientific modeling in analogous geological environments, such as France's Rhine graben, demonstrates substantial hydrogen generation from biotite-rich granites, confirming the significant hydrogen potential awaiting discovery in Nova Scotia.
In addition, Nova Scotia's geological setting provides robust potential for helium co-production and hydrogen storage, particularly due to abundant salt diapirs within the Windsor Formation. This integrated exploration strategy strengthens QIMC's leading role in natural hydrogen exploration and positions it prominently as the North American leader in natural renewable hydrogen.
Prof. Marc Richer-Laflèche explains: "Nova Scotia frequently hosts biotite-rich potassic granitoids, notably within Neoproterozoic geological complexes such as the Frog Lake pluton (Murphy et al., 2001), as well as within several significant Carboniferous plutons including the North River and Hanna Farm plutons in the Cobequid Highlands (Pe-Piper, 1991). Additionally, lamprophyric intrusions, which are notably abundant throughout the region, also exhibit high biotite concentrations. Within our exploration model for natural hydrogen in Nova Scotia, biotite plays a pivotal role. Analogous to the process involving olivine in mafic and ultramafic rocks, biotite in these granitoids is known to readily react with groundwater, facilitating substantial hydrogen generation under appropriate geothermal conditions. This reaction underscores the strategic geological significance of Nova Scotia's biotite-rich granitoids for natural hydrogen exploration and potential production. This process has been demonstrated and modelled in the Rhine graben (Alsace, France) where, for moderate temperatures of around 130-200oC, biotite produces good quantities of hydrogen (e.g. 102 KT of H2 per km3 of granite: Murray et al., 2020). Given the favorable geothermal gradient in Cumberland, these temperatures could easily be reached, enabling hydrogen production by oxidation of the Fe2+ contained in biotite."
Cumberland sector:
The geological context of Nova Scotia includes lithological, structural and geophysical features conducive to the formation of hydrogen or helium. The Cumberland Basin area (Fig. 1), in particular, is a convergence zone bringing together several critical elements conducive to the formation and accumulation of natural hydrogen in a context showing certain similarities with the geological context of the hydrogen discovery in the Lorraine region of France. This area is characterized by the presence of the Cobequid Highlands.
Figure 1: Location map of the Cumberland project in Nova Scotia and other hydrogen exploration properties of QIMC and its partners. Figure modified from Google Map.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7968/245342_35ce51fa04ebf928_001full.jpg
The sedimentary geology of the Cumberland area, adjacent to the Cobequid Highlands, is characterized at surface by the presence of Late Carboniferous geological units of the Cumberland Group (Ragged Reef Fm, Polly Brook Fm) and stratigraphically underlying rocks of the Windsor and Mabou Groups. Rock units in the basin include continental detrital sedimentary rocks, coal formations (e.g. Springhill) and evaporites (Windsor Group). These rocks are underlain by older bedrock rich in Neoproterozoic potassic granitoids, mafic volcanics and intrusives, diorites and Carboniferous potassic granites (Pe-Piper et al., 1989; Pe-Piper and Piper, 2002). These rocks are cut by local or regional faults. The Cobequid-Chedaducto fault zone, south of the Cobequid Highlands, cuts across much of Nova Scotia and separates the Avalon terrain to the north and the Meguma terrain to the south (Fig. 2). The latter are components of the Northern Appalachians. This structural zone is thought to be the upper part of a larger structure known as the Minas Geofracture. This geological structure, reactivated several times in the Paleozoic, is thought to have been involved, among other things, in the emplacement of basaltic magmas that support the hypothesis of the presence of a transcrustal fault that could reach the peridotitic lithospheric mantle. This mafic magmatism, associated with the effusion of 1,500 m of volcanic rocks (continental tholeiites) (Dessureau et al., 2000), is of great importance for the production of natural renewable hydrogen through the interaction of groundwater and minerals such as olivine, pyroxenes and magnetite.
Figure 2: Simplified geological map of Nova Scotia's Carboniferous and Triassic sedimentary basins. Source: NSDNR, 2006.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7968/245342_35ce51fa04ebf928_002full.jpg
The presence of an imposing succession of sedimentary rocks (over 7 km) in the Cumberland Basin is a favorable feature for natural hydrogen exploration, given the presence of porous, permeable rocks interbedded with impermeable rocks such as shales and evaporites (salt formations of the Windsor Fm). The formation of anticlinal structures by the rise of salt diapirs is, among other things, conducive to the formation of hydrogen and helium gas deposits. The presence of salt formations offers the potential for gas storage in the Cumberland Basin.
With its thick succession of sedimentary rocks and relatively high geothermal gradient, the Cumberland Basin is also recognized for its geothermal potential (Comeau et al., 2020). In a context of hydrogen production, through reactions between groundwater and minerals such as olivine, magnetite and biotite, the presence of relatively warm water, at realistic depths, is one of the characteristics sought for natural hydrogen production. The presence of a granitic basement rich in K, Th and U is also conducive to the production of radiolytic hydrogen and crustal radiogenic helium.
References :
Comeau et al., 2020. Assessment of geothermal resources in onshore Nova Scotia. Offshore Energy Research Association (OERA). Open File Report ME 2021-003, 216 pages.
Dessureau, G., Piper, D.J.W., and Pe-Piper, G., 2000. Geochemical evolution of earliest Carboniferous continental tholeiitic basalts along a crustal-scale shear zone, southwestern Maritimes basin, eastern Canada. Lithos, Volume 50, Issues 1-3, Pages 27-50.
Murray, J., Clément, A., Fritz, B., Schmittbuhl, J., Bordmann, V., Fleury, J.M., 2020. Abiotic hydrogen generation from biotite-rich granite: A case study of the Soultz-sous-Forêts geothermal site, France. Applied Geochemistry.
Murphy, G.B., Pe-Piper, G., Piper, D.J.W, Nance, R.D. and Doig, R., 2001. Geology of the Eastern Cobequid Highlands, Nova-Scotia. Geological Survey of Canada, Bulletin 556, 62 pages. NSDNR, 2006. Geological map of the province of Nova Scotia, Scale 1:500 000, Compiled by J. D. Keppie, 2000. Digital Version of Nova Scotia Department of Natural Resources Map ME 2000-1. DP ME 43, Version 2.
Pe-Piper, G., 1991. Granite and associated mafic phases, North River pluton, Cobequid Highlands, Nova Scotia. Atlantic Geology, 27, 15-28.
Pe-Piper, G., Murphy, J.B. and Turner, D.S., 1989. Petrology, geochemistry, and tectonic setting of some Carboniferous plutons of the eastern Cobequid Hills. Atlantic Geology, 25, 37-49.
Pe-Piper, G. and Piper, D. J.W., 2002. A synopsis of the geology of the Cobequid Highlands, Nova Scotia. Atlantic Geology, 38, 145-160.
White, C. E., Archibald, D. B. MacHattie, T. G and Escarraga, E. A. 2011. Preliminary Geology of the Southern Antigonish Highlands, Northern Mainland Nova Scotiain Mineral Resources Branch, Report of Activities 2010; Nova Scotia Department of Natural Resources, Report ME 2011-1, p. 145-164.
M. Richer-LaFlèche is the Qualified Person responsible for the technical information contained in this news release and has read the information contained herein. He is a professional geologist registered with the Ordre des géologues du Québec and is the Qualified Person responsible for the technical information contained in this news release and has read the information contained herein and approves the press release.
For more information about Quebec Innovative Materials Corp. and its products, please visit www.qimaterials.com.
About Québec Innovative Materials Corp.
Québec Innovative Materials Corp. is a mineral exploration and development company dedicated to exploring and harnessing the potential of Canada's abundant resources. With properties in Ontario and Québec, QIMC is focused on specializing in the exploration of white (natural) hydrogen and high-grade silica deposits. QIMC is committed to sustainable practices and innovation. With a focus on environmental stewardship and cutting-edge extraction technology, we aim to unlock the full potential of these materials to drive forward clean energy solutions to power the AI and carbon-neutral economy and contribute to a more sustainable future.
QUÉBEC INNOVATIVE MATERIALS CORP.
John Karagiannidis
Chief Executive Officer
For further information, please contact:
Email: info@qimaterials.com
Tel: +1 514-726-7058
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the CSE policies) accepts responsibility for the adequacy or accuracy of this news release and has neither approved nor disapproved the contents of this news release.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Québec Innovative Materials' actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.
Although Québec Innovative Materials believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature, forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions in Canada and abroad; adverse industry events; future legislative and regulatory developments in the natural resources sector, in particular as regards the regulation of white (natural) hydrogen exploration, development and exploitation; the Company's ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; natural resources industry and markets in Canada and generally; the ability of Québec Innovative Materials to implement its business strategies; competition; and other assumptions, risks and uncertainties.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
Cautionary Statements This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation. These statements are based on expectations, estimates, and projections as of the date of this release. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from current expectations. Readers are cautioned not to place undue reliance on these statements, as no assurance can be provided regarding future outcomes.
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20 March
First Helium Announces Shallow Heavy Oil Discovery
First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced two discoveries at its Worsley Project:
Shallow Heavy Oil Discovery
- In the recently completed 7-30 well, approximately 50 barrels of 15-degree API oil was recovered in the two calendar days following an acid stimulation, demonstrating vertical well, cold flow heavy oil capability.
- The 7-15 well, without stimulation, also produced small quantities of heavy oil from the same formation and was shut-in for further evaluation following spring breakup.
- This discovery confirms the Company's ongoing evaluation of this zone ("Heavy Oil Zone"), which occurs repeatedly over the Company's 53,000-acre (~83 square miles) Worsley land base as a potential shallow heavy oil development play. The Company is now proceeding to prepare a plan to develop this potentially large, repeatable play.
Helium Enriched Natural Gas Play
- Successfully tested the Blue Ridge Formation in its 7-15 well, which flowed natural gas with helium content of 1.0%.
- Results confirm the eastern extension of the Blue Ridge helium enriched natural gas regional play concept established on the Company's West Worsley lands.
"Our recent drilling program has validated what we've long understood about the multi-zone potential of our Worsley property," said Ed Bereznicki, President & CEO of First Helium. "While our primary oil target in the Leduc formation did not test as commercially viable, our secondary target for heavy oil has exceeded our expectations for inflow of cold flow heavy oil from a vertical well bore. We are very excited to proceed with the development of this potentially large, shallow heavy oil play utilizing contemporary horizontal drilling methods. Our initial economic analyses indicate attractive rate of return estimates for a large, lower risk development play," added Mr. Bereznicki.
"In addition to the heavy oil play, we are pleased to confirm the extension of our Blue Ridge helium enriched natural gas play to the eastern block of First Helium's land base. This has the potential to significantly increase the size of this regional play at Worsley, making it attractive to potential partners for large scale development", concluded Mr. Bereznicki.
The Company provides additional details on these two development opportunities:
Shallow Heavy Oil Opportunity
The Heavy Oil Zone has been recognized by the Company in numerous existing wellbores across the Worsley land base, representing the potential for a large, attractive, lower-risk oil development opportunity utilizing contemporary horizontal drilling technology. Based on the Company's evaluation, including results of the 7-15 and 7-30 wells, potential project highlights would include:
- Large volumes of oil in place, with management's initial estimate of approximately 5 million barrels of original oil in place per square mile.
- Application of contemporary, proven horizontal drilling techniques to maximize oil recovery.
- Management analyses indicate attractive rate of return estimates and payback periods for a lower risk, cold flow heavy oil development play.
- Company owned oil battery and water disposal facilities nearby to reduce operating costs.
- Evaluation work has begun to prepare a plan for an area development project across Worsley.
- Next steps include bringing the 7-30 heavy oil zone into production and preparing to drill a horizontal test well into the shallow formation to kickstart the development plan – both activities are being planned for early Q3.
Blue Ridge Opportunity
The Company has confirmed the extension of the Blue Ridge Formation from West Worsley to the eastern portion of its property through recent drilling. Highlights include:
- Blue Ridge first identified at West Worsley, where two historical vertical wells produced natural gas with ~0.8% helium content.
- 5-27 Blue Ridge horizontal well (100% owned by First Helium) at West Worsley is cased and ready for completion.
- 7-15 well gas sample analysis returned an average helium content of 1.0%, which is notably higher than the 0.8% results at West Worsley - confirming the observed trend of increasing helium content from west to east across the Company's Worsley land base.
- Based on results from drilling the 7-30 and 7-15 wells, the Company confirmed that the Blue Ridge play extends to East Worsley.
- Company-owned pipeline network provides an infrastructure advantage for development across Worsley.
- Next steps include completing and testing the 5-27 horizontal well and preparing an area development plan in collaboration with potential project partners.
Leduc Formation Targets Update
The Company's recent drilling program also continues to advance its Leduc Formation targets:
- Higher risk play for light oil, natural gas and helium.
- Individual vertical exploration wells target discrete structures, complementing the lower-risk, more expansive, overlying horizontal development plays represented by the Heavy Oil Zone and the Blue Ridge Formation.
- While the Leduc Formation structure target was reached as planned in each of 7-30 and 7-15, neither opportunity demonstrated commercial potential during testing, though valuable geological data was obtained to refine future targeting. The Company will incorporate the data into a fresh evaluation of the Leduc play, incorporating the prior successes at the15-25, 1-30, and 4-29 wells.
- Interpretation of the Company's proprietary 3D Seismic, incorporating the recent wells 7-15 and 7-30, validates the Company's technical approach, reducing risk on future locations.
"Our multi-formation approach at Worsley represents a balanced portfolio of opportunities," noted Mr. Bereznicki. "The combination of higher-impact Leduc targets along with more systematic development opportunities in the Heavy Oil Zone and Blue Ridge Formation provides both near-term potential and longer-term, scalable growth across our extensive land base."
The Company will be providing more detail regarding its development plans for each opportunity over the course of the next quarter.
ABOUT First Helium
Led by a core Senior Executive Team with diverse and extensive backgrounds in Oil & Gas Exploration and Operations, Mining, Finance, and Capital Markets, First Helium seeks to be one of the leading independent providers of helium gas in North America.
First Helium holds over 53,000 acres along the highly prospective Worsley Trend in Northern Alberta which has been the core of its exploration and development drilling activities to date.
Building on its successful 15-25 helium discovery well, and 1-30 and 4-29 oil wells at the Worsley project, the Company has identified numerous follow-up drill locations and acquired an expansive infrastructure system to facilitate future exploration and development across its Worsley land base. Cash flow from its successful oil wells at Worsley has helped support First Helium's ongoing exploration and development growth strategy. Further potential oil drilling locations have also been identified on the Company's Worsley land base.
For more information about the Company, please visit www.firsthelium.com .
ON BEHALF OF THE BOARD OF DIRECTORS
Edward J. Bereznicki
President, CEO and Director
CONTACT INFORMATION
First Helium Inc.
Investor Relations
Email: ir@firsthelium.com
Phone: 1-833-HELIUM1 (1-833-435-4861)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING STATEMENTS
This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate", "plan", "continue", "expect", "estimate", "objective", "may", "will", "project", "should", "predict", "potential" and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of future planned activities. Although the Company believes 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 the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the state of the equity financing markets and regulatory approval.
Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company's future operations. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward-looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise.
SOURCE: First Helium Inc.

News Provided by GlobeNewswire via QuoteMedia
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18 March
Trillion Energy Announces SASB Field Operational Update
Trillion Energy International Inc. (“Trillion”or the “Company”)(CSE: TCF) (OTCQB: TRLEF) (Frankfurt: Z62), is pleased to announce an operational update for the SASB offshore gas project, Turkey.
In January 2025, the Company successfully installed new velocity string tubing in two tripod-based wells, Alapli-2 and Bayhanli-2, completing the operation within approximately two weeks. This follows the installation of similar tubing in four wells on the Akcakoca platform during the fall of 2024. In total, six wells have now been upgraded with the new smaller-diameter tubing to mitigate water loading and enhance production efficiency.
Following the velocity string program, the wells were injected with nitrogen to evacuate water, lower the bottom hole pressure and stimulate gas production. The wells responded positively to the nitrogen operation demonstrating the success of the velocity strings and confirming the effect of water reduction on the well performance.
In response to the recent operation results Trillion has selected several artificial lift techniques for various wells in an effort to enhance and sustain long-term production rates. The Company has secured a gas lift compressor system for the Akcakoca platform. This system will enable continuous gas lift injection into select wells to support production. Before deployment, the compressor will undergo testing on an onshore natural gas well, with modifications including piping, cabling, inverter, and separator installations.
Testing is scheduled to begin next week March 24, with final mobilization to the platform expected the following week. High pressure nitrogen injection is planned after the installation of the gas lift compressor to stimulate production.
Additionally, the Company is implementing several pump solutions to reduce water loading and optimize well performance. These enhancements include one Progressive Cavity Pump (PCP) and two slim-hole Electric Submersible Pumps (ESPs) attached to the new tubing. These strategic interventions are critical to sustaining long-term production rates and are expected to occur in the coming months.
About the Company
Trillion Energy International Inc is focused on oil and natural gas production for Europe and Türkiye with natural gas assets in Türkiye. The Company is 49% owner of the SASB natural gas field, a Black Sea natural gas development and a 19.6% (except three wells with 9.8%) interest in the Cendere oil field. More information may be found on www.sedar.com, and our website.
Contact
Sean Stofer, Chairman
Brian Park, VP of Finance
1-778-819-1585
E-mail: info@trillionenergy.com
Website: www.trillionenergy.com
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the Company's ability to obtain regulatory approval of the executive officer and director appointments. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Trillion does not undertake to update any forward-looking information except in accordance with applicable securities laws.
These statements are no guarantee of future performance and are subject to certain risks, uncertainties, delay, change of strategy, and assumptions that are difficult to predict and which may change over time. Accordingly, actual results and strategies could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. These factors include unforeseen securities regulatory challenges, COVID, oil and gas price fluctuations, operational and geological risks, changes in capital raising strategies, the ability of the Company to raise necessary funds for development; the outcome of commercial negotiations; changes in technical or operating conditions; the cost of extracting gas and oil may increase and be too costly so that it is uneconomic and not profitable to do so and other factors discussed from time to time in the Company’s filings on www.sedar.com" target="_blank" rel="noopener noreferrer">www.sedar.com" target="_blank" rel="noopener noreferrer">www.sedar.com, including the most recently filed Annual Report on Form 20-F and subsequent filings. For a full summary of our oil and gas reserves information for Turkey, please refer to our Forms F-1,2,3 51-101 filed on www.sedar.com, and or request a copy of our reserves report effective December 31, 2022 and updated January 31 2023.
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