Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (March 2022)
25 slides from Alvopetro Energy's investor presentation, Mar 8, 2022
Slide 1: Corporate Presentation March 2022
Corporate Presentation March 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) • 8.7 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 March 7, 2022 share price(1) C$4.92/$3.82 52 week high/low–C$/share (1) C$5.26/C$2.13 Q4 2021 dividend per common share $0.06 Annualized yield at last share price 6.3% 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%, operated) • Unitized area development - 7 wells and all production facilities • Unit C well to be drilled in 2022 (further Pojuca Fm. devel
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%, operated) • ALV Gas Plant (UPGN) constructed by Enerflex with 18+ mmcfpd capacity • Bahiagás 15-km pipeline ( ) & 70 mmcfpd citygate at our plant site completed in J
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: Organic Growth Plan (100% working interest)
Organic Growth Plan (100% working interest) Near-term goal of 18 mmcfpd Exploration well: Murucututu/Gomo project Longer-term vision of 35 mmcfpd ALV 183-B1 (100%, operated) Caburé and midstream expansion ALV 183-B1 • Gas plant expansion mid-2022 to 18+ mmcfpd ALV 182-C1 ALV 183-1 Alvopetro • Follow
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%, operated) Agua Grande ALV 183-B1 Biriba ALV 182-C1 ALV 183-1 Alvopetro Pipeline Exploration well: ALV 197-1 Sussuarana ALV 182-C1 Rio Pojuca ALV-183-B1 Caburé field
Slide 14: Gomo/Murucututu Deep Basin Natural Gas Resource (100% ALV)
Gomo/Murucututu Deep Basin Natural Gas Resource (100% ALV) A A’ Murucututu/Gomo project Jan2 197-1 183-1 (100%, operated) ALV 183-B1 ALV 182-C1 ALV 183-1 Alvopetro Pipeline ALV 197-1 3275m Caburé field (49%, non-op) 3550m Bahiagás Distribution Pipeline Tested Gas • 5,460-acre tight gas resource • Co
Slide 15: Murucututu Gomo Multi-Year Development Plan
Murucututu Gomo Multi-Year Development Plan • Reserves: 2 development wells • Contingent Resource: 4 development wells • Prospective Resource: 10 additional wellbores ALVOPETRO ENERGY LTD. | TSXV: ALV, OTCQX: ALVOF 15
Slide 16: 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 17: 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 18: Near-term Catalysts
Near-term Catalysts 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2023 (Production timing, with success) 182-C1 well Drilling Exploration 183-B1 well Drilling Unit C well Drilling 183(1) well Tie-in, EPF construction Development Murucututu 197(1) well Stim/tie-in MURS1 well Drilling Stim/tie-in Prod’n Gas process
Slide 19: 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 $11.28/mcf effective February
Slide 20: TSXV: ALV OTCQX: ALVOF
TSXV: ALV OTCQX: ALVOF Calgary, Canada: Alvopetro Energy Ltd. Suite 1920, 215 – 9th Avenue SW Calgary, Alberta, Canada T2P 1K3 Tel: (587) 794-4224 Email: info@alvopetro.com Salvador, Brazil: Alvopetro S/A Extração de Petróleo e Gás Natural Rua Ewerton Visco, 290, Boulevard Side Empresarial, Sala 200
Slide 21: Endnotes
Endnotes 1. As of March 7, 2022. C$ share price and C$ market cap (TSXV), $ share price and $ market cap (OTCQX). All share prices have been adjusted for effective 3:1 consolidation following September 7, 2021 share restructuring. 2. Net Asset Value of $297.3 million ($8.77/share, C$11.20/share) inc
Slide 22: Appendix: Additional Technical Materials
Appendix Additional Technical Materials
Slide 23: ALV-182-C1 Agua Grande/Sergi Gas Prospect
ALV-182-C1 Agua Grande/Sergi Gas Prospect NW SE • Spud on March 2, 2022 • 2,900 meters TVD (100% WI) Pitanga • 780-acre pre-rift prospect, maximum column height 135m 3FBL 0007 BA well projected 9km (closest well to • Gas prospect defined on reprocessed 3D seismic penetrate below Sergi) • Seal potent
Slide 24: 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” • 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 similar to t
Slide 25: Gomo Development: Single Well Economics
Gomo Development: Single Well Economics 2P assessment (GLJ): • 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: $5.8 million
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