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Alvopetro Announces Long-Term Natural Gas Sales Agreement and Strategy
Alvopetro Announces Long-Term Natural Gas Sales Agreement and Strategy Canada News...
About this update from Alvopetro Energy Ltd.
[{"type":"text","content":"\n\n\n\nAlvopetro Announces Long-Term Natural Gas Sales Agreement and Strategy\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prngen2{\nBORDER-TOP:1pt; BORDER-RIGHT:1pt; VERTICAL-ALIGN: BOTTOM; BORDER-BOTTOM:1pt; PADDING-LEFT:0.50em; BORDER-LEFT:1pt; PADDING-RIGHT:0.50em\n}\n.prntblns{\nBORDER-TOP: 1pt; BORDER-RIGHT: 1pt; BORDER-COLLAPSE: collapse; BORDER-BOTTOM: 1pt; BORDER-LEFT: 1pt\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, May 7, 2018\n\n\n\nCALGARY, May 7, 2018 /CNW/ - Alvopetro Energy Ltd. (TSX-V:ALV) announces a long-term natural gas sales agreement (GSA) and our natural gas commercialization plan.  These agreements are the foundation for unlocking significant value from our natural gas opportunities, including the value associated with our recently unitized Caburé natural gas field.  This is a precedent-setting agreement, being Bahiagás' first GSA with an independent producer in the State of Bahia.  \n\nHighlights\n\n\nFebruary 2018 gas price US$6.54/mmbtu (resets next in August 2018).\nUS$5.00 floor and US$8.50/mmbtu ceiling prices, both escalating based on US inflation.\nGas deliveries to commence at the end of 2019.\nStrong project economics underpinned entirely by Caburé project with significant upside.\nCaburé field recently unitized, early development capital fully funded initially by partner, field development underway.\nExpanded opportunities from 2-well discovered Gomo resource, new reserve additions from nearby exploration prospects, and third-party gas production.\nStrategy to focus on delivering cash returns to shareholders and other stakeholders.\n\nNatural Gas Sales Agreement\n\nAlvopetro has finalized a GSA with the Bahia State natural gas distribution company, Bahiagás.  The natural gas price to be received under the agreement is set semi-annually using a trailing weighted average basket of benchmark reference prices including; Henry Hub (HH – United States) and National Balancing Point (NBP – United Kingdom) natural gas prices, and Brent crude oil prices.  The calculated natural gas price und...