Alvopetro Energy Ltd. · TSXV:ALV
Alvopetro Energy — Investor Presentation (February 2025)
22 slides from Alvopetro Energy's investor presentation, February 2025
Slide 1: Corporate Presentation February 2025
Corporate Presentation February 2025 TSXV: ALV OTCQX: ALVOF
Slide 2: Alvopetro - A Disciplined Capital Allocation Model
Alvopetro - A Disciplined Capital Allocation Model First Brazilian integrated onshore natural gas producer Strong operating and financial results well ahead of expectations Balanced reinvestment and stakeholder return model High rate of return opportunities in Brazil & Canada Proven team with succes
Slide 3: Alberta-Saskatchewan Mannville Conventional Heavy Oil Fairway
Alberta-Saskatchewan Mannville Conventional Heavy Oil Fairway Source: Tapping into Opportunity: Unlocking the Potential of Mannville Oil in the Lloydminster and Cold Lake Areas – Part 1 – GLJ | Your Global Energy Partner GeoEdges Inc | TSXV: ALV, OTCQX: ALVOF 3
Slide 4: Western Canadian Growth Platform
Western Canadian Growth Platform • Initial focus area – Mannville heavy oil fairway • Multi-zone with large amounts of OOIP • Partnered with an established operator with strong track record • Funding 100% of first 2 wells to earn a 50% working interest in 19.1 sections of land • Potential for > 100
Slide 5: 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) 36.3 million 1,000 Average daily trading volume(1) 55,149 800 US$ millions Insider ownership(1) 9.4% 600 400 Market cap/Enterprise value(2)
Slide 6: Focused on Delivering Shareholder Returns
Focused on Delivering Shareholder Returns 183-A3 well results 10.00 197(1) well on Dividend -36% production 9.00 Dividend +17% Expert decision +17% 2P reserves value on 8.00 (NPV10BT) Redetermination Dividend +50% Emergency 7.00 Credit Facility repaid Arbitration decision CAD$ Share price (TSXV) Div
Slide 7: 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 8: 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 9: 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 10: Midstream - Infrastructure & Marketing (100% ALV)
Midstream - Infrastructure & Marketing (100% ALV) • 11-km transfer pipeline & Gas Plant (UPGN) with 18+ MMcfpd capacity Murucututu Project • Bahiagás 15-km Distribution pipeline & 70 MMcfpd citygate at our plant site (100%) • Updated GSA effective January 1, 2025, increasing firm sales volumes by 33
Slide 11: Strong Production Results
Strong Production Results Alvopetro - Daily sales volumes (boepd) 3,000 2,557 2,358 6 2,457 18 2,500 2 110 2,142 2,106 103 6 12 141 2,000 1,857 - 99 1,701 95 1,738 84 12 1,629 12 11 78 76 109 1,500 2,253 2,441 2,298 1,000 1,772 2,038 1,999 1,611 1,541 1,618 500 - H2 2020 2021 2022 2023 Q1 Q2 Q3 Q4 J
Slide 12: 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 13: 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 14: Brazilian Organic Growth Plan
Brazilian 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
Slide 15: 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 16: 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 early 2025 | TSXV: ALV, OTCQX: ALVOF 16
Slide 17: 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 17
Slide 18: Why Invest?
Why Invest? Results Growth Value Yield | TSXV: ALV, OTCQX: ALVOF 18
Slide 19: TSXV: ALV OTCQX: ALVOF
TSXV: ALV OTCQX: ALVOF Calgary, Canada: Alvopetro Energy Ltd. Suite 401, 255 – 17th Avenue SW Calgary, Alberta, Canada T2S 2T8 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: 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 21: 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 22: Endnotes
Endnotes 1. As of February 4, 2025. 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 August 6, 2024 and ending on February 4, 2025. 2. Enterprise value of $112.4 million is computed as
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