Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (November 2024)
19 slides from Alvopetro Energy's investor presentation, Nov 6, 2024
Slide 1: Corporate Presentation November 2024
Corporate Presentation November 2024 TSXV: ALV OTCQX: ALVOF | TSXV: ALV, OTCQX: ALVOF
Slide 2: Alvopetro - A Leading Brazilian Independent Natural Gas Company
Alvopetro - A Leading Brazilian Independent Natural Gas Company First Brazilian integrated onshore natural gas producer Strong operating and financial results well ahead of expectations Balanced reinvestment and stakeholder return model Demonstrated ESG commitment Proven team with successful LatAm t
Slide 3: At a Glance – Value, Yield, Growth
At a Glance – Value, Yield, Growth Market Summary Reserves & Resources, NPV10 before tax (4)(7)(8)(12) Proforma December 31, 2023 Reserves Shares outstanding(1) 36.5 million 1,000 Average daily trading volume(1) 42,538 800 US$ millions Insider ownership(1) 9.3% 600 400 Market cap/Enterprise value(2)
Slide 4: 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 12th largest economy Brazil Attractive fiscal regime with 5.5-11% royalties & 15%-34% income tax Stable regulatory framework at
Slide 5: State of Bahia – Reconcavo Basin
State of Bahia – Reconcavo Basin • Oldest producing basin in Brazil: 23.9 Mbopd + 2.2 e6m3/d (77 MMcf/d) • Brazil's 4th largest city Salvador (pop 2.9 million) • Well developed industrialized region • Majority of natural gas consumed in Camacari industrial complex • Highly strategic infrastructure B
Slide 6: Caburé – Asset Overview – 56.2% ALV
Caburé – Asset Overview – 56.2% ALV(12) • The Caburé field is a joint development of a conventional natural gas discovery • Unitized area development - 8 wells and all production facilities Murucututu Project (100%) • Gross Unit production capacity up 33% to 21.2 MMcfpd (600 e3m3) ALV 183-B1 • 2024/
Slide 7: Midstream - Infrastructure & Marketing (100% ALV)
Midstream - Infrastructure & Marketing (100% ALV) • 11-km transfer pipeline & Gas Plant (UPGN) with 18+ MMcfpd capacity Murucututu Project (100%) • Bahiagás 15-km Distribution pipeline & 70 MMcfpd citygate at our plant site • Price set semi-annually based on Brent, Henry Hub and UK NBP benchmark pri
Slide 8: Strong Production Results
Strong Production Results Alvopetro - Daily sales volumes (boepd) 3,000 2,642 2,724 2,767 5 5 2,432 2,501 2 2,361 2,459 2 12 2 2,359 117 128 130 2,500 5 99 5 2,143 2,175 - 105 107 103 97 10 2,106 1,950 98 1,975 5 12 1,912 - 92 95 14 2,000 1,764 - 89 92 1,696 1,701 1,629 3 12 12 108 79 81 78 1,500 76
Slide 9: Operating Netback
Operating Netback Q3 2024 operating netback margin of 89% Operating Netback(9)- $/boe Operating netback as a % of realized sales price 91% 90% 87% 89% 90% 87% 89% 89% Q3 2024 realized price of $66.46/boe 82% 82% 77.41 78.90 77.60 Including natural gas sales of $10.92/Mcf 80.00 75.94 Operating Netbac
Slide 10: Disciplined Capital Allocation – Balancing Organic Growth & Returns
Disciplined Capital Allocation – Balancing Organic Growth & Returns Funds Flow From Operations(9) & Capital Allocation Allocation of Funds Flow from Operations July 2020 to September 30, 2024 9,618 14,972 Share Building 16,000 13,348 repurchases 11,047 cash and 13,193 1% working 12,434 12,393 capita
Slide 11: Organic Growth Plan
Organic Growth Plan Near-term goal of 18 MMcfepd Longer-term vision of 35 MMcfepd Caburé Unit and midstream Bom Lugar Field • Gas plant capacity 18+ MMcfpd • Redetermination - Unit working interest and production entitlement increased from 49.1% to 56.2%(12) • Further expand Unit capacity with addit
Slide 12: Murucututu Gas – Gomo + Caruaçu Development (100% ALV)
Murucututu Gas – Gomo + Caruaçu Development (100% ALV) • 5,460-acre deep basin gas resource 183-A3 Caruaçu net pay 116.1 metres Murucututu Project (100%) Top Maracangalha Seq 7 Time • 2P reserves: 4.6 MMboe (27.4 Bcfe), Structure 20ms CI A’ Dev well: NPV10BT $129.2 million(4) including three ALV 183
Slide 13: Murucututu – Positioned for Growth
Murucututu – Positioned for Growth • ALV can drill 6+ development wells from 3 existing well pads all connected to our field production facility at 183-1 that delivers gas to ALV UPGN • Currently planning follow-up well at D pad location starting end of 2024 | TSXV: ALV, OTCQX: ALVOF 13
Slide 14: Murucututu Multi-Year Development Plan
Murucututu Multi-Year Development Plan • 2P Reserves: 3 existing wells + 3 undeveloped locations (183-A2, 197-A2 and 197-A3) • Contingent Resource: 3 development wells • Prospective Resource: 10 additional wells 183-D4 | TSXV: ALV, OTCQX: ALVOF 14
Slide 15: Why Invest?
Why Invest? Results Growth Value Yield | TSXV: ALV, OTCQX: ALVOF 15
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: 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 18: Cautionary Statements
Cautionary Statements • Net Present Value and Reserves Disclosed. 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, devel
Slide 19: Endnotes
Endnotes 1. As of November 6, 2024. Average daily trading volume is based on average volumes traded on all Canadian exchanges (TSXV and other Canadian) and on the OTCQX in the six months commencing on May 7, 2024 and ending on November 6, 2024 2. Enterprise value of 111.0 million is computed as US$
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