Alvopetro is deploying a balanced capital allocation model where it seeks to reinvest roughly half its cash flows into organic growth opportunities and return the other half to stakeholders.
The company's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime.
Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) announced that it has entered into an agreement with Courser Energy to add 28 gross sections, or 14 net sections, of heavy oil lands in Alberta’s Mannville fairway.
Under the agreement, Alvopetro will drill five earning wells beginning in the fourth quarter of 2026 at an estimated cost of C$8.5 million. The program will use open-hole multilateral wells and single-leg horizontal wells with recirculation strings to target reservoirs across the newly acquired lands.
Alvopetro will earn a 75% working interest in the earning wells before payout, declining to 50% after payout. The company will also hold a 50% interest in surrounding undeveloped lands. The agreement provides potential exposure to a drilling inventory of more than 75 gross locations.
The partnership expands Alvopetro’s existing Mannville position and gives the company access to lands held by Courser, which has developed a portfolio of drilling opportunities in the play.
Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) reported August sales volumes of 3,124 barrels of oil equivalent per day, based on field estimates, compared with 3,137 boepd in July. Brazilian sales averaged 2,989 boepd, including natural gas sales of 16.8 MMcfpd and condensate sales of 187 bopd. Canadian oil sales averaged 135 bopd.
The company also provided an update on its drilling program in Brazil. The 183-D1 well completed an initial cleanup and subsequently flowed for 11 days at an average rate of 31.7 e3m3/d, or 1.12 MMcfpd, equivalent to 186 boepd. Alvopetro noted that 16% of the completion fluid has been recovered to date and that it will continue monitoring the well as additional fluid is recovered.
Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) announced that it has completed drilling the 183-H2 well at its 100%-owned Murucututu natural gas field in Brazil.
The well reached a total measured depth of 3,176.5 metres and was drilled within an area assigned prospective resources by independent reserve evaluator GLJ.
Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) delivered a strong third-quarter performance fueled by output from its Murucututu field in Brazil, prompting analysts to highlight the company’s dual-track growth strategy across South America and Canada.
The Calgary-based oil and gas company reported average third-quarter production of 2,343 barrels of oil equivalent per day (boe/d), up 11% year-over-year, generating $14.2 million in revenue.
While quarterly volumes were slightly below the prior quarter, the company’s October sales hit a record 2,923 boe/d, driven by strong gas production and incremental spot sales above contracted volumes.
Alvopetro Energy CEO Corey Ruttan joined Steve Darling from Proactive to announce the company’s November 2024 sales results, an update to its long-term natural gas sales agreement, and the declaration of a quarterly dividend for Q4 2024. Ruttan highlighted that 2024 was a pivotal year for Alvopetro, as the company increased its productive capacity at the Caburé field and achieved notable success at the Murucututu project.
These developments have positioned Alvopetro to commit to higher base firm sales volumes starting in 2025, further reinforcing its disciplined capital allocation model and long-term growth strategy. In November 2024, the company reported average sales volumes of 1,465 barrels of oil equivalent per day (boepd), including 8.1 million cubic feet per day (MMcfpd) of natural gas sales, 110 barrels of oil per day (bopd) of natural gas liquids (condensate), and 9 bopd of oil sales, based on field estimates.