Alvopetro Announces Operational Update and 2014 Year-End Reserves
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 04/01/15 -- Alvopetro Energy Ltd. (TSX VENTURE: ALV) is pleased to announce an operational update and our 2014 year-end reserves.
Operational Update
In December 2014, our 197(2) well located on Block 197 in the Reconcavo basin in the State of Bahia, Brazil, reached a total depth of 1,669 metres, discovered natural gas, and was cased and cemented. Based on cased-hole sonic and neutron logs, the 197(2) well encountered 78 metres of potential net natural gas pay, with an average 33% water saturation, and an average porosity of 12%, using an 8% porosity cut-off. We have mobilized all required equipment and have commenced testing the lowermost interval of the well and expect initial results within seven days. Our 197(2) well was not evaluated as part of our year-end 2014 independent reserves evaluation.
The remainder of our 2015 drilling program is expected to commence in the second half of 2015, subject to equipment availability. In the current lower commodity price environment, it is anticipated that Alvopetro will benefit from a reduction in oilfield service costs resulting in improved capital efficiencies. Alvopetro remains committed to a disciplined and balanced approach to our business during this current volatility in world oil and gas markets, allowing us to preserve our significant financial flexibility and remain well-positioned to execute on opportunities.
During the first quarter of 2015, we furthered our engineering and geotechnical work on our Gomo resource play, with a focus on defining potential deliverability through the use of laboratory tests, and fracture stimulation and reservoir modelling. We have submitted a regulatory application to complete and stimulate our 183(1) well. Together, these efforts provide the foundation for a large-scale commercial development.
Additionally, in the first quarter of 2015, we continued our focus on the interpretation of our extensive 3D seismic database over our blocks, enabling us to increase our initial 9-well inventory of prospects to an 18-well inventory of conventional exploration opportunities.
Late in 2014, we completed workovers of two wells in our Jiribatuba field, Jiribatuba(1) and Jiribatuba(9). Our Jiribatuba(1) well is producing 12 bopd of 36 degree API crude. It is expected that the facilities for our Jiribatuba(9) well will be modified to bring the well back online in the second quarter of 2015. Based on field estimates, Alvopetro's current total company production is 40 bbls/d.
2014 Year-End Reserves Summary
The reserves data set forth below is based upon an independent reserve assessment and evaluation prepared by Sproule International Limited ("Sproule") dated April 1, 2015 with an effective date of December 31, 2014 (the "Sproule Report"). The Sproule Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook reserve definitions that are consistent with the standards of National Instrument 51-101 ("NI 51-101"). The Sproule Report was only an evaluation of our Bom Lugar, Jiribatuba and Aracaju mature fields, and did not include an evaluation of our exploration blocks or our Block 183 and 197 discoveries.
Summary of Reserves (1), (2), (3), (4), (6)
Summary of Before Tax Net Present Value of Future Net Revenue - MUS$ (1), (2), (3), (4), (5)
Summary of After Tax Net Present Value of Future Net Revenue - MUS$ (1), (2), (3), (4), (5)
Future Development Costs
The table below sets out the total development costs deducted in the estimation in the Sproule Report of future net revenue attributable to proved reserves and proved plus probable reserves (using forecast prices and costs).
Reconciliation of Alvopetro's Gross Reserves (Before Royalty) (1), (2)
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at:
Alvopetro Energy Ltd.'s vision is to be the premier independent exploration and production company in Brazil, maximizing shareholder value by being the lowest cost operator and applying innovation to underexploited opportunities. Alvopetro aims to implement a large-scale, repeatable, low-risk, multi-well development program, utilizing advanced technology and completion techniques. Alvopetro's strong financial position, along with our experienced team of professionals, local operating capabilities and highly prospective land base, will enable us to efficiently develop our resource play opportunities.
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.
Oil and Natural Gas Reserves. The disclosure in this press release summarizes certain information contained in the Sproule 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, 2014 will be contained in the Company's annual information form for the year ended December 31, 2014 which will be filed on SEDAR () on or before April 30, 2015. All net present values in this press release are based on Sproule's forecast prices and estimates of future operating and capital costs as of December 31, 2014. The reserves definitions used in this evaluation are the standards defined by COGEH reserve definitions and consistent with NI 51-101 and used by Sproule. The oil reserves are presented in thousands of barrels, at stock tank conditions.
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", "intend" and other similar words or expressions are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward-looking information concerning reserves and potential hydrocarbons, exploration and development prospects of Alvopetro and the expected timing of certain of Alvopetro's testing and operational activities. The forward-looking statements are based on certain key expectations and assumptions made by Alvopetro, including expectations and assumptions concerning testing results, the timing of regulatory licenses and approvals, availability of capital, the success of future drilling and development activities, prevailing commodity prices and economic conditions, the availability of labour and services, the ability to transport and market our production, timing of completion of infrastructure and transportation projects, weather and access to drilling locations. 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 these and other factors that could affect the operations or financial results of Alvopetro are included in Alvopetro's annual information form which may be accessed through the SEDAR website at . 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.
Contacts:
Corey C. Ruttan
President and Chief Executive Officer and Director
Phone: 587.794.4224
Email:
TSX-V: ALV
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 01.04.2015 - 22:22 Uhr
Sprache: Deutsch
News-ID 382989
Anzahl Zeichen: 0
contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
Diese Pressemitteilung wurde bisher 198 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Alvopetro Announces Operational Update and 2014 Year-End Reserves"
steht unter der journalistisch-redaktionellen Verantwortung von
Alvopetro Energy Ltd. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
