Investor Perception
Brazil’s increasing pure gasoline market, supported by a horny and secure regulatory framework and monetary regime presents a singular alternative for Alvopetro Vitality to leverage its high-potential property and development alternatives as an revolutionary pure gasoline firm within the state of Bahia.
Overview
Alvopetro Vitality (TSXV:ALV;OTCQX:ALVOF) is a pioneering impartial pure gasoline producer in Brazil. The corporate was the primary to ship sales-specified pure gasoline onshore to the native distribution community beforehand dominated by the state oil firm. This milestone, achieved on July 5, 2020, marked the start of a brand new period in Brazil’s gasoline market.
As an impartial upstream and midstream operator, Alvopetro engages within the acquisition, exploration, improvement and manufacturing of pure gasoline and oil. The corporate holds pursuits within the Caburé and Murucututu pure gasoline property, Block 182 and 183 exploration property, and Bom Lugar and Mãe-da-lua oil fields, which cowl an space of over 22,000 acres within the Recôncavo basin onshore Brazil. Alvopetro Vitality was included in 2013 and is headquartered in Calgary, Canada.
State of Bahia – Reconcavo Basin
Alvopetro adheres to a balanced capital allocation mannequin, reinvesting half of its funds movement from operations in natural development alternatives whereas returning the remaining 50 p.c again to stakeholders (by dividends, debt and curiosity funds and capital lease funds). Since manufacturing got here on-line in July of 2020, funds movement from operations has reached ~$156 million with 43 p.c being reinvested into capital expenditure initiatives, 48 p.c being returned to stakeholders, and 9 p.c going again to strengthening the corporate’s stability sheet.
Alvopetro continues to concentrate on minimizing its environmental influence, responsibly supplying vitality, and having a constructive affect on the communities the place it operates. Alvopetro presently invests in numerous voluntary social applications which have been effectively acquired by the neighborhood. The corporate’s focus has been on the sustainable improvement of its rural communities, entrepreneurship, schooling, cultural and sporting actions, in addition to biodiversity preservation.
Firm Highlights
Alvopetro is a number one impartial upstream and midstream gasoline operator within the state of Bahia, Brazil.The corporate’s technique is concentrated on unlocking Brazil’s on-shore pure gasoline potential, constructing off the event of its Caburé and Murucututu pure gasoline fields strategic midstream infrastructure.Over 95 p.c of Alvopetro’s manufacturing is from pure gasoline and the corporate has a 2P reserve base of 9.6 MMboe.The corporate boasts excessive working netbacks and profitability per unit of manufacturing, setting it other than its Latin American and North American friends. The state of Bahia boasts a good fiscal regime with low royalties and a 15 p.c earnings tax charge.
Key Initiatives
Caburé
The corporate’s flagship Caburé asset (56.2 p.c Alvopetro) delivers the vast majority of Alvopetro’s present manufacturing. The venture is a joint improvement (the unit) of a standard pure gasoline discovery throughout 4 blocks, two of that are held by Alvopetro and two of that are held by its associate, with Alvopetro’s working curiosity being 56.2 p.c following the primary redetermination. The unit presently contains eight present wells, with all manufacturing services already in place. The useful resource is effectively outlined with 3D seismic surveys, significantly on the jap facet of a major bounding fault that runs roughly north-south by the Caruaçu formation. The corporate plans to drill an extra 5 wells in 2025 to additional enhance the productive capability of the sphere.
Midstream – Infrastructure and advertising (100% Alvopetro)
All of Alvopetro’s pure gasoline produced from Caburé and Murucututu are shipped through 100% owned and operated pure gasoline pipelines to Alvopetro’s pure gasoline processing facility (UPGN). On the UPGN, the pure gasoline goes by a mechanical refrigeration course of, with condensate and water eliminated throughout the course of, and condensate then will get trucked out and offered at a premium to Brent. The pure gasoline will get delivered to a receiving station (metropolis gate) that was constructed by the corporate’s offtaker, Bahiagás, the distribution firm for the State of Bahia.
The gasoline then will get shipped through a newly constructed 15 km distribution pipeline to the Camacari industrial complicated (~17.5 km away), the place the overwhelming majority of the pure gasoline within the state of Bahia will get consumed.
Pure gasoline is offered to Bahiagas beneath a long-term gasoline gross sales settlement, with pricing set quarterly based mostly on Brent and Henry Hub benchmark costs. Alvopetro not too long ago introduced an up to date gasoline gross sales settlement efficient January 1, 2025, growing agency gross sales volumes by 33 p.c.
Natural Development Alternatives
Maximizing the Fuel Plant
Within the near-to-mid time period, Alvopetro has a aim to maximise its gasoline plant capability to 18 million cubic ft per day (or 3,000 barrels of oil equal per day), with a plan to double its capability within the coming years by each ongoing improvement on the Caburé Unit and a multi-year improvement of the Murucututu area.
Unit Improvement
Alvopetro’s working curiosity within the Caburé Unit was not too long ago elevated from 49.1 p.c to 56.2 p.c and in consequence, Alvopetro is now entitled to increased manufacturing entitlements from the Unit. As well as, with the unit improvement drilling actions deliberate to begin in 2025, the general productive capability of the Unit is focused to extend.
Murucututu Fuel
Alvopetro’s Murucututu asset (100% owned) sits instantly north of Caburé. Impartial reserve estimators, GLJ, spotlight the potential for this area with 2P reserve totaling 4.6 million barrels of oil equal, risked finest estimate contingent useful resource of 5.4 million barrels of oil equal and risked finest estimate potential useful resource of 9.6 million barrels of oil equal representing a major addition to the corporate’s present 2P reserve base.
Alvopetro Vitality completed the recompletion of its 183-A3 effectively within the third quarter of 2024. The effectively got here on manufacturing in September prompting the corporate’s pure gasoline gross sales from the Murucututu area in This autumn 2024 to extend by 262 p.c in comparison with Q3 2024. The corporate has a follow-up effectively deliberate for the sphere in early 2025.
Administration Group
Corey C. Ruttan – President, Chief Govt Officer and Director
Corey C. Ruttan is the president, chief government officer and director of Alvopetro. He was the president and CEO of Petrominerales, from Might 2010 till it was acquired by Pacific Rubiales Vitality in November 2013. Previous to that, he was the vice-president of finance and chief monetary officer of Petrominerales. From March 2000 to Might 2010, Ruttan was the senior vice-president and chief monetary officer of Petrobank Vitality and Assets, and held more and more senior positions with Petrobank since its inception in 2000. He additionally served as government vice-president and chief monetary officer of Lightstream Assets from October 2009 to Might 2010; served as vice-president of Caribou Capital from June 1999 to March 2000; and supervisor monetary reporting of Pacalta Assets from Might 1997 to June 1999. He started his profession at KPMG the place he labored from September 1994 to Might 1997. Ruttan obtained his Bachelor of Commerce diploma majoring in accounting from the College of Calgary in 1994 and his chartered accountant designation in 1997.
Alison Howard – Chief Monetary Officer
Alison Howard is a chartered accountant with over 20 years of expertise in Canadian and worldwide taxation, accounting and finance. Howard joined Petrominerales in July 2011 as a tax supervisor and was subsequently promoted to tax director. From Might 2008 to July 2011, Howard was the tax supervisor at Petrobank Vitality and Assets. Previous to that, Howard spent various years at Deloitte LLP in Calgary. She obtained her Bachelor of Commerce diploma from the College of Saskatchewan in 1999.
Adrian Audet – VP, Asset Administration
Adrian Audet joined Petrominerales in 2013 and has held more and more senior roles with Alvopetro since its inception. Audet has spent intensive time in Bahia overseeing the operations, realizing intensive price financial savings and enhancements in effectivity. Beforehand, Audet held engineering roles with growing duty within the oil and gasoline business. Audet started his profession in 2006 and accomplished his masters and undergraduate levels in mechanical engineering on the College of Alberta. Audet is an expert engineer registered with APEGA and is a CFA charterholder.
Nanna Eliuk – Exploration Supervisor
Nanna Eliuk is an expert geophysicist (M.Sc.) with over 23 years of diversified petroleum exploration and improvement expertise. She has experience in standard and unconventional performs in each carbonate and clastic reservoirs in several depositional and structural settings (together with pre-salt) in numerous basins around the globe. Previous to becoming a member of Alvopetro, Eliuk was the senior explorationist of Condor Petroleum (Kazakhstan) for 2 years, and prior thereto, she was the vice-president of geophysics and land for Waldron Vitality. Eliuk began her profession in 1997, holding progressively senior roles at Husky Vitality for 5 years, and at Compton Petroleum for over six years. Her intensive expertise contains geophysical analysis and evaluation for enterprise improvement alternatives and new ventures in numerous worldwide basins, together with regional mapping, play fairway evaluation, petroleum system analysis, prospect definition, and seismic attribute evaluation. Eliuk holds a masters diploma in geology and geophysics, and a BSc. in geology.
Frederico Oliveira – Nation Supervisor
Frederico Oliveira has held more and more senior roles since 2008 and has experience in rules, contracts, partnerships, administration and value effectivity. He has held administration roles in giant personal firms in Brazil, performing strategic planning, venture implementation, course of restructuring, effectivity and productiveness enhancements, and value management. Oliveira obtained an MBA from the Federal College of Minas Gerais in 2004 and a Bachelor of Science diploma in Mechanical Engineering from the Pontificia Universidade Catolica de Minas Gerais.
