Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (February 2022)
25 slides from Alvopetro Energy's investor presentation, Feb 7, 2022
Slide 1: Corporate Presentation February 2022
Corporate Presentation February 2022 TSXV: ALV OTCQX: ALVOF
Slide 2: Cautionary Statements
Cautionary Statements • Forward Looking Statements. This presentation contains forward-looking statements including forecasted future earnings and sales volumes, forecasted natural gas prices under the Company’s long-term gas sales agreement, the anticipated timing of projects, future exploration an
Slide 3: Cautionary Statements
Cautionary Statements • Net Present Value. The net present value of future net revenue attributable to Alvopetro’s reserves is stated without provision for interest costs and general and administrative costs, but after providing for estimated royalties, production costs, development costs, other inc
Slide 4: Alvopetro - A Leading Brazilian Independent Gas Company
Alvopetro - A Leading Brazilian Independent Gas Company First Brazilian integrated onshore natural gas producer • Strategic midstream infrastructure to support organic growth (100% working interest) • 9.6 mmboe 2P (88% natural gas) with focus on core Caburé field & Gomo tight gas potential • Near-te
Slide 5: Brazil a Growing Market with Attractive Fundamentals
Brazil a Growing Market with Attractive Fundamentals Largest oil producer in S. America and 9th globally New natural gas market. 48% of supply is currently imported World’s 9th largest economy Brazil Attractive fiscal regime with 5.5-11% royalties & 15%- 34% income tax Stable regulatory framework at
Slide 6: State of Bahia – Reconcavo Basin
State of Bahia – Reconcavo Basin • Oldest producing basin in Brazil • Alvopetro SA operating in Brazil since 2006, acquired blocks in Rounds 7, 9, 11, 12, & 13 • Reconcavo Basin: 23.9 mbopd + 2.2 e6m3/d (77 mmcf/d) • Alvopetro produces 18% of Basin's natural gas production • Brazil's 4th largest cit
Slide 7: Corporate Overview – Operating and Financial Results
Corporate Overview – Operating and Financial Results Capital Structure Common shares outstanding (000’s) (1) 33,904 February 4, 2022 share price(1) C$4.47/$3.54 52 week high/low–C$/share (1) C$5.26/C$2.13 Q4 2021 dividend per common share $0.06 Annualized yield at last share price 6.8% Market cap (0
Slide 8: Caburé – Asset Overview (49.1% ALV)
Caburé – Asset Overview (49.1% ALV) • Upstream – core asset is a joint development of a conventional natural gas discovery - ALV 49.1% ( ) • Unitized area development - 7 wells and all production facilities • Designed gross production plateau 15.9 mmcf/d (450 e3m3) Mmscf/d Bcf 12.0 Caburé ALV Gas Pr
Slide 9: Midstream - Infrastructure & Marketing (100% ALV)
Midstream - Infrastructure & Marketing (100% ALV) • ALV owned 11-km transfer pipeline from the Unit ( ) • ALV Gas Plant (UPGN) constructed by Enerflex with 18 mmcfpd capacity • Bahiagás 15-km pipeline ( ) & 70 mmcfpd citygate at our plant site completed in July 2020 • First non-Petrobras gas plant i
Slide 10: Gas Treatment Facility and City Gate (100% ALV)
Gas Treatment Facility and City Gate (100% ALV) N Virtual Field Tour: https://www.youtube.com/watch?v=p1AvDNX0YXk&t=16s
Slide 11: ESG – First Year of Caburé Operations
ESG – First Year of Caburé Operations ALVOPETRO ENERGY LTD. | TSXV: ALV, OTCQX: ALVOF 11
Slide 12: Growth Plan (100% working interest)
Growth Plan (100% working interest) Objective is to fully utilize our strategic midstream assets (18 mmcfpd) • Highly under-explored prospective land base (23,527 acres, 100% working interest) • Eight exploration prospects identified, supported by high quality reprocessed seismic • 2022 exploration
Slide 13: Reserves & Resources – Near-term Catalysts
Reserves & Resources – Near-term Catalysts Reserves (mboe) 1P 2P 3P Reserves NPV10BT ($000’s) 1P 2P 3P Caburé 107,524 146,901 177,496 Caburé 4,098 6,018 7,668 Gomo 8,047 44,389 88,751 Gomo 843 3,276 5,951 Other 893 3,925 8,569 Total Company Reserves(4) 116,463 195,215 274,816 Other 167 300 589 Resou
Slide 14: Track Record of Delivery
Track Record of Delivery April-May 2018 October 2018 Through June 2019 September 2019 Mid 2019 - May 2020 July 5, 2020 July 2020> September 2021 2022 Catalysts Caburé Unitization Equity Support Award Project Debt 2P Reserves First Exceeding Quarterly • Increasing gas $5.00 & Signed GSA for Project D
Slide 15: Why Invest?
Why Invest? • Stable production profile with little to no maintenance capital and a 13.7-year reserve life index • Highly strategic infrastructure in heart of the Basin near major industrial demand • Attractive long-term gas sales agreement, realized price increased to $10.94/mcf effective February
Slide 16: TSXV: ALV OTCQX: ALVOF
TSXV: ALV OTCQX: ALVOF Calgary, Canada: Alvopetro Energy Ltd. Suite 1920, 215 – 9th Avenue SW Calgary, Alberta, Canada T2P 1K3 Tel: (587) 794-4224 Email: info@alvopetro.com Salvador, Brazil: Alvopetro S/A Extração de Petróleo e Gás Natural Rua Ewerton Visco, 290, Boulevard Side Empresarial, Sala 200
Slide 17: Endnotes
Endnotes 1. As of February 4, 2022. C$ share price and C$ market cap (TSXV), $ share price and $ market cap (OTCQX). Share price return 2018-2020 YTD from December 29, 2017 to February 4, 2022(TSXV). All share prices have been adjusted for effective 3:1 consolidation following September 7, 2021 shar
Slide 18: Appendix: Additional Technical Materials
Appendix Additional Technical Materials
Slide 19: Natural Gas Exploration Drilling Program (100% ALV)
Natural Gas Exploration Drilling Program (100% ALV) Fazenda Belem Tie Miranga Agua Grande Biriba Sussuarana Rio Pojuca ALV-183-B1 A ALV-182-C1 A’ Remanso Caburé • ALV-182-C1 & ALV-183-B1 Pre-Rift natural gas prospects (100% WI) Mata Sao Joao • Unrisked prospective resource evaluated by GLJ (best est
Slide 20: Gomo/Murucututu Deep Basin Natural Gas Resource (100% ALV)
Gomo/Murucututu Deep Basin Natural Gas Resource (100% ALV) A A’ Jan2 197-1 183-1 3275m 3550m Tested Gas • 5,460-acre tight gas resource • Confirmed natural gas resource in 197-1 and 183-1 wells • Installation of 8-km pipeline to connect 183-1 well to Caburé pipeline virtually complete and all pressu
Slide 21: Indicative Gomo/Murucututu Development Plan
Indicative Gomo/Murucututu Development Plan ALVOPETRO ENERGY LTD. | TSXV: ALV, OTCQX: ALVOF 21
Slide 22: ALV-182-C1 Agua Grande/Sergi Gas Prospect
ALV-182-C1 Agua Grande/Sergi Gas Prospect NW SE • 2900 meters TVD (100% WI) • 780-acre pre-rift prospect, maximum column height Pitanga 135m • Gas prospect defined on reprocessed 3D seismic 3FBL 0007 BA well projected 9km (closest well to • Seal potential is excellent for Sergi Fm juxtaposed penetra
Slide 23: ALV-183-B1 Pre-Rift Agua Grande/Sergi Gas Prospect
ALV-183-B1 Pre-Rift Agua Grande/Sergi Gas Prospect A A A” A ’ 182-C1 Block 183-B1 Block Biriba Sussuarana A’ A” • 3100 meters TVD (100% WI) • Gas prospect defined on reprocessed 3D seismic • 1300-acre Pre-Rift prospect Basement Basement • Seal potential for Agua Grande Fm and Sergi Fm similar to the
Slide 24: Gomo Development Plan – Reserves and Resource
Gomo Development Plan – Reserves and Resource Development Plans • Reserves: Pipeline to current well locations. 2 development wells • Contingent Resource: 4 additional development wells from the current well locations • Prospective Resource: 10 additional wellbores from 3 future multi-well developme
Slide 25: Gomo Development: Single Well Economics
Gomo Development: Single Well Economics 2P assessment (GLJ): • 5.2Bcf sales gas+129mbbls of condensate = 1.0 mmboe • Year 1 average production rate: • 1.34 mmcfpd, 257 boepd (including condensate) • Field condensate rate is 24bbl/mmcf. • Sales based on field heat content (no assumption for UPGN cond
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