Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (April 2022)
25 slides from Alvopetro Energy's investor presentation, April 2022
Slide 1: Corporate Presentation April 2022
Corporate Presentation April 2022 TSXV: ALV OTCQX: ALVOF | 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) • 8.7 MMboe 2P (4) (88% natural gas) with focus on core Caburé field & Murucututu Gomo natural gas pr
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 April 20, 2022 share price(1) C$5.37/$4.34 52 week high/low–C$/share (1) C$5.70/C$2.58 Q1 2022 dividend per common share $0.08 Annualized yield at last share price 7.4% Market cap (000
Slide 8: Caburé – Asset Overview (49.1% ALV)
Caburé – Asset Overview (49.1% ALV) • The Caburé field is a joint development of a conventional natural gas discovery - ALV 49.1% Murucututu/Gomo project (100%) • Unitized area development - 7 wells and all production facilities • Unit C well to be drilled in 2022 (shallow Pojuca development and Car
Slide 9: Midstream - Infrastructure & Marketing (100% ALV)
Midstream - Infrastructure & Marketing (100% ALV) • ALV owned 11-km transfer pipeline from the Unit ( ) Murucututu/Gomo project (100%) • 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 A
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 TSXV: ALV, OTCQX: ALVOF 10
Slide 11: ESG – First Year of Caburé Operations
ESG – First Year of Caburé Operations | TSXV: ALV, OTCQX: ALVOF 11
Slide 12: Organic Growth Plan (100% working interest)
Organic Growth Plan (100% working interest) Murucututu/Gomo project Near-term goal of 18 MMcfpd Exploration well: (100%) Longer-term vision of 35 MMcfpd ALV 183-B1 Dev well: Caburé and midstream expansion ALV 183-B1 MUR-1 MUR-1 • Gas plant expansion mid-2022 to 18+ MMcfpd ALV 182-C1 ALV 183-1 Dev we
Slide 13: 2022 Gas Exploration Drilling Program (100% ALV)
2022 Gas Exploration Drilling Program (100% ALV) Miranga Tie Fazenda Belem Exploration well: Murucututu/Gomo project ALV 183-B1 (100%) Agua Grande ALV 183-B1 Biriba ALV 182-C1 ALV 183-1 Alvopetro Pipeline ALV 197-1 Exploration well: Sussuarana ALV 182-C1 Rio Pojuca ALV-183-B1 ALV-182-C1 Caburé field
Slide 14: ALV-182-C1 Discovery - Agua Grande Formation (100% ALV)
ALV-182-C1 Discovery - Agua Grande Formation (100% ALV) • 182-C1 well was spud on March 2, 2022 and drilled to a total measured depth of 2,926 metres • 36-metre-thick Agua Grande sand at • Based on open-hole logs, the well discovered 25 metres of potential natural gas pay in Agua Grande 2,550 to 2,5
Slide 15: ALV-183-B1 Pre-Rift Agua Grande/Sergi Gas Prospect (100% ALV)
ALV-183-B1 Pre-Rift Agua Grande/Sergi Gas Prospect (100% ALV) A A A” A ’ 182-C1 Block 183-B1 Block Biriba Sussuarana A’ A” • 3,100 meters TVD (100% WI) • Gas prospect defined on reprocessed 3D seismic • 1,300-acre Pre-Rift prospect Basement Basement • Seal potential for Agua Grande Fm and Sergi Fm s
Slide 16: Murucututu Deep Basin Gomo Natural Gas Resource (100% ALV)
Murucututu Deep Basin Gomo Natural Gas Resource (100% ALV) Murucututu/Gomo project A A’ Jan2 197-1 183-1 (100%) Dev well: ALV 183-B1 MUR-1 MUR-1 ALV 182-C1 ALV 183-1 Dev well: MURS-1 MURS-1 ALV 197-1 Alvopetro Pipeline 3275m Caburé field (49%) 3550m Tested Gas • 5,460-acre deep basin gas resource •
Slide 17: Murucututu Multi-Year Gomo Development Plan
Murucututu Multi-Year Gomo Development Plan • Reserves: 2 existing wells + 2 undeveloped locations (MURS-1 & MUR-1) • Contingent Resource: 4 development wells • Prospective Resource: 10 additional wells | TSXV: ALV, OTCQX: ALVOF 17
Slide 18: Reserves & Resources – Near-Term Catalysts
Reserves & Resources – Near-Term Catalysts Reserves (Mboe) 1P 2P 3P Reserves NPV10BT ($000’s) 1P 2P 3P Caburé 3,224 5,141 6,796 Caburé 150,414 216,859 265,483 Murucututu/Gomo 20,239 72,307 135,821 Murucututu/Gomo 1,024 3,286 5,974 Other 3,107 7,833 15,418 Other 173 310 606 Total Company Reserves(4)
Slide 19: Track Record of Delivery
Track Record of Delivery ✓ Caburé unitization completed April 20, 2018 ✓ ALV gas plant and pipeline construction permits filed April 30, 2018 ✓ Bahiagas gas sales agreement signed May 7, 2018 ✓ Gas treatment facility (UPGN) construction & operating agreement September 20, 2018 ✓ Equity financing Oct
Slide 20: Near-Term Catalysts
Near-Term Catalysts 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 182-C1 well Drilling (Production timing, with Exploration success) 183-B1 well Drilling Unit C well Drilling Murucututu Development 183-1 well Tie-in, EPF construction 197-1 well Stim/tie-in MURS-1 well Drilling Stim/tie-in MUR-1 well Drilling
Slide 21: Why Invest?
Why Invest? • Stable production profile with little to no maintenance capital and a 10.2-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 $11.28/Mcf effective February
Slide 22: TSXV: ALV OTCQX: ALVOF
TSXV: ALV OTCQX: ALVOF Calgary, Canada: Alvopetro Energy Ltd. Suite 1920, 215 – 9th Avenue SW Calgary, Alberta, Canada T2P 1K3 Tel: (587) 794-4224 Email: info@alvopetro.com Salvador, Brazil: Alvopetro S/A Extração de Petróleo e Gás Natural Rua Ewerton Visco, 290, Boulevard Side Empresarial, Sala 200
Slide 23: Endnotes
Endnotes 1. As of April 20, 2022. C$ share price and C$ market cap (TSXV), $ share price and $ market cap (OTCQX). 2. Net Asset Value of $299.6 million ($8.83/share, C$11.03/share) includes; 2P NPV10 before tax of $297.0 million of reserves as evaluated by GLJ as at 12/31/21 (discounted at 10%) plus
Slide 24: Appendix Additional Technical Materials
Appendix Additional Technical Materials | TSXV: ALV, OTCQX: ALVOF
Slide 25: Murucututu Development: Single Well Gomo Economics
Murucututu Development: Single Well Gomo Economics 2P assessment (GLJ)(4): • 4.7 Bcf sales gas + 115 Mbbls of condensate = 0.9 MMboe • Year 1 average production rate: • 1.34 MMcfpd, 257 boepd (including condensate) • Field condensate rate is 24 bbl/MMcf • Higher heating value 1.22 MMBtu/Mcf • Capex:
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