Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (December 2020)
20 slides from Alvopetro Energy's investor presentation, December 2020
Slide 1: Corporate Presentation
Corporate Presentation December 2020 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, the anticipated timing of construction and development projects, future exploration and development plans (including the timing and associ
Slide 3: Alvopetro - a Leading Brazilian Independent Gas Company
Alvopetro - a Leading Brazilian Independent Gas Company Brazil-focused integrated natural gas producer • 7.9 mmboe 2P (88% natural gas) with focus on Caburé field with Gomo gas upside potential • Two high impact exploration catalysts in H1 2021, best estimate unrisked prospective resource of 4.6 and
Slide 4: Platform To Unlock Basin-wide Natural Gas Potential
Platform To Unlock Basin-wide Natural Gas Potential Upstream Assets: • Caburé (49% WI, non-operated) Brazil • 7 wells drilled • 2P reserves 6.2 mmboe (37.2 Bcfe) (4) • Gas deliveries commenced on July 5, 2020 • Gomo (100% WI, non-operated) • Deep basin gas project • 2 existing wells • Optimized prod
Slide 5: Q3 2020 Results & Corporate Overview
Q3 2020 Results & Corporate Overview Capital structure Common shares outstanding (000’s) (1) 99,319 December 4, 2020 share price(1) C$0.80/$0.64 52 week high/low – C$/share C$0.95/C$0.48 Market cap (000’s) (1) C$79,445/$63,564 Insider ownership % (1) 9.0% Financial & Reserves *field estimates Cash (
Slide 6: Brazil Is a Growing Market with Attractive Fundamentals
Brazil Is 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 sta
Slide 7: 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 $1.00 & Signed GSA Project Development Contracts Secured Growth Caburé Gas $0.90 • The unit
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% (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 9: 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 • This is the only non-Pe
Slide 10: Caburé – Unit Development HUB
Caburé – Unit Development HUB N 10
Slide 11: Gas Treatment Facility and City Gate
Gas Treatment Facility and City Gate N 11
Slide 12: Disciplined Reinvestment & Investor Return Model – Caburé 2P
Disciplined Reinvestment & Investor Return Model – Caburé 2P Reinvestment Stakeholders • Significant cash generating capacity just from development of Caburé 2P reserves, low maintenance capital • Floor pricing protects free cash flow, at floor price 2021 EBITDA, from Caburé alone, is $17.0 million(
Slide 13: Growth Potential - Exploration & Acquisition Upside
Growth Potential - Exploration & Acquisition Upside Next objective is to maximize utilization of our highly strategic midstream assets up to 18 mmcfpd • Highly under-explored prospective land base (23,527 acres, 100% working interest) • Eight conventional exploration prospects identified, all suppor
Slide 14: Gomo Deep Basin Natural Gas Resource (100% ALV)
Gomo Deep Basin Natural Gas Resource (100% ALV) A A’ Jan2 197-1 183-1 • Confirmed natural gas resource in 197-1 and 183-1 wells • 2P reserves 8.1 Bcfe (4) assigned to drainage 3275m areas around existing 2 wells • Block 183 optimized production test Q4 2020 • Designing “fit for purpose” development
Slide 15: 2021 Natural Gas Exploration Drilling Program
2021 Natural Gas Exploration Drilling Program 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) Mata Sao J
Slide 16: 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 1300-acre Pre-Rift prospect Basement • • GLJ independent prospective resource assessment, gross lease
Slide 17: 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 18: Why Invest
Why Invest • Stable production profile with little to no maintenance capital and an 11.9-year reserve life index • Attractive long-term gas sales agreement with $5.23/mmbtu floor price • Highly strategic infrastructure in heart of the Basin near major industrial demand • High margin production – Q3
Slide 19: TSXV: ALV OTCQX: ALVOF
TSXV: ALV OTCQX: ALVOF Calgary, Canada: Alvopetro Energy Ltd. Suite 1700, 525 – 8th Avenue SW Calgary, Alberta, Canada T2P 1G1 Tel: (587) 794-4224 Email: info@alvopetro.com Salvador, Brazil: Alvopetro S/A Extração de Petróleo e Gás Natural Rua Ewerton Visco, 290, Boulevard Side Empresarial, Sala 200
Slide 20: Endnotes
Endnotes 1. As of December 4, 2020. C$ share price and C$ market cap (TSXV), $ share price and $ market cap (OTCQX). Share price return 2018-2020 YTD from December 29, 2017 to December 4, 2020 (TSXV). 2. Net Asset Value of $186.2 million ($1.88/share, C$2.40/share) includes; 2P NPV10 before tax of $
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