Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (September 2021)
28 slides from Alvopetro Energy's investor presentation, September 2021
Slide 1: Corporate Presentation
Corporate Presentation September 2021 TSXV: ALV OTCQX: ALVOF/ALVOD
Slide 2: Cautionary Statements
Cautionary Statements • Forward Looking Statements. This presentation contains forward-looking statements including forecasted future earnings and sales volumes, the anticipated timing of projects, future exploration and development plans (including the timing and associated spending of such), the C
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 Brazil-focused integrated natural gas producer • 9.6 mmboe 2P (88% natural gas) with focus on Caburé field & initial Gomo gas potential • Two high impact exploration wells, best est. unrisked prospective resource of 4.6 & 5.9 mmboe(9) • Gomo be
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 ANP mission to promote a stable
Slide 6: State of Bahia – Reconcavo Basin
State of Bahia – Reconcavo Basin • Oldest producing basin in Brazil • Reconcavo Basin: 23.9 mbopd + 2.2 e6m3/d (77 mmcf/d) • Brazil's 4th largest city Salvador (pop 2.9 million) • Important natural harbor All Saints Bay • Major industrial complex Camacari • Alvopetro SA operating in Brazil since 200
Slide 7: Corporate Overview – Operating and Financial Results
Corporate Overview – Operating and Financial Results Capital structure Common shares outstanding (000’s) (1) 32,854 Sep 3, 2021 share price (adjusted)(1) C$3.45/$2.72 52 week high/low–C$/share(adjusted) (1) C$3.45/C$1.62 Market cap (000’s) (1) C$113,347/$89,495 Insider ownership % (1) 9.4% Financial
Slide 8: Share Restructuring
Share Restructuring Shares outstanding Common shares outstanding – September 3, 2021 99,828,295 Shares repurchased at C$1.12 per common share (1,265,306) Net shares subject to consolidation/forward split 98,562,989 Common shares outstanding - September 7, 2021 32,854,330 Pre-Share Post-Share Net ass
Slide 9: 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% (light blue ) – Unitized development area 7 existing wells & all production facilities completed • Designed gross production plateau 15.9 mmcf/d (450 e3m3) Mmscf/d B
Slide 10: Midstream - Infrastructure & Marketing (100% ALV)
Midstream - Infrastructure & Marketing (100% ALV) • ALV owned 11-km transfer pipeline from the Unit (red ) • ALV Gas Plant (UPGN) constructed by Enerflex with 18 mmcfpd capacity • Bahiagás 15-km pipeline (black ) & 70 mmcfpd citygate at our plant site completed in July 2020 • The first non-Petrobras
Slide 11: Caburé – Unit Development HUB
Caburé – Unit Development HUB N 11
Slide 12: Gas Treatment Facility and City Gate
Gas Treatment Facility and City Gate N 12
Slide 13: ESG – First Year of Caburé Operations
ESG – First Year of Caburé Operations 13
Slide 14: Disciplined Reinvestment & Stakeholder Return Model – Caburé & Gomo 2P Reserves
Disciplined Reinvestment & Stakeholder Return Model – Caburé & Gomo 2P Reserves Stakeholders Reinvestment • Significant cash generating capacity just from development of Caburé & Gomo 2P reserves • Floor pricing protects free cash flow. 2021 Forecasted EBITDA, from Caburé alone, is >$20 million (8)
Slide 15: 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 • 2021 exploration
Slide 16: 2021 Natural Gas Exploration Drilling Program (100% ALV)
2021 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’ • ALV-182-C1 & ALV-183-B1 Pre-Rift natural gas prospects (100% WI) Caburé • Unrisked prospective resource evaluated by Remanso GLJ (best estimate)(9)
Slide 17: Gomo Deep Basin Natural Gas Resource (100% ALV)
Gomo Deep Basin Natural Gas Resource (100% ALV) A A’ Jan2 197- 183- 1 1 3275m 3550m • 5,460-acre tight gas resource Tested Gas • Confirmed natural gas resource in 197-1 and 183-1 wells • Environmental permit for 8-km tie-in approved. Initiated installation. • 2P reserves 3.3mmboe (19.7 Bcfe) (4) inc
Slide 18: Indicative Gomo/Murucututu Development Plan
Indicative Gomo/Murucututu Development Plan 18
Slide 19: 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 20: Reserves & Resources
Reserves & Resources Reserves (mboe) 1P 2P 3P Reserves NPV10BT ($000’s) 1P 2P 3P Caburé 4,098 6,018 7,668 Caburé 107,524 146,901 177,496 Gomo 843 3,276 5,951 Gomo 8,047 44,389 88,751 Other 167 300 589 Other 893 3,925 8,569 Total Company Reserves(4) 5,108 9,593 14,209 Total Company Reserves(4) 116,46
Slide 21: 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> Caburé Unitization Equity Support for Award Development Project Financing Portfolio First & Signed GSA Project Development Contracts Secured Growth Caburé Gas $3.50 • The unitizati
Slide 22: 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 with $5.52/mmbtu floor price • High margin production – Q2
Slide 23: TSXV: ALV OTCQX: ALVOF/ALVOD
TSXV: ALV OTCQX: ALVOF/ALVOD Calgary, Canada: Alvopetro Energy Ltd. Suite 1920, 215 – 9th Avenue SW Calgary, Alberta, Canada T2P 1K3 Tel: (587) 794-4224 Email: info@alvopetro.com Salvador, Brazil: Alvopetro S/A Extração de Petróleo e Gás Natural Rua Ewerton Visco, 290, Boulevard Side Empresarial, Sa
Slide 24: Endnotes
Endnotes 1. As of September 3, 2021. C$ share price and C$ market cap (TSXV), $ share price and $ market cap (OTCQX), adjusted for share consolidation/forward split completed effective September 7, 2021 (effective 3:1 consolidation). Share price return 2018-2020 YTD from December 29, 2017 to Septemb
Slide 25: Appendix
Appendix Additional Technical Materials
Slide 26: 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 Basement Basement • 1300-acre Pre-Rift prospect • GLJ independent prospective resource assessment, gross lease
Slide 27: 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 Pitanga column height 135m • Gas prospect defined on reprocessed 3FBL 0007 BA well projected 9km (closest well to 3D seismic • Seal potential is excellent for Sergi Fm penetrate below Se
Slide 28: 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 condensa
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