Latest news with #Alvopetro
The Market Online
4 hours ago
- Business
- The Market Online
A smart energy strategy that reinvests in growth while rewarding shareholders
Alvopetro Energy Ltd. (TSXV:ALV) has core natural gas assets in Brazil, a high-performing entry into Canada, and a balanced capital allocation strategy that reinvests in growth while rewarding shareholders. Alvopetro has turned disciplined operations into tangible returns. From multilateral drilling success to firm gas sales contracts, this company is proving that smart energy investing isn't just a tagline, it's a playbook. We caught up with Corey Ruttan, President and CEO of Alvopetro, to talk growth, gas, and how this company is staying profitable while scaling up. The following is a transcription of the above video, and The Market Online has edited it for clarity Lyndsay: Let's jump right in here if we can. I mean, with firm gas sales in Brazil up 41% in Q1 and long-term contracts locked in, how much running room remains in your current Brazilian infrastructure before capacity becomes a constraint? Corey: Obviously we had a really nice increase in our Q1 sales volumes and our goal this year through our drilling program is to increase that production again by at least another 25%. And our strategic infrastructure that we've built is already equipped to accommodate that additional capacity. Lyndsay: So then your 183-D4 well that encountered 61 meters of gas pay in Murucututu. How does this shift your view of the field's total productive potential and your near term development plans in Brazil? Corey: That well was a follow up to our very successful well that we drilled last year, 183-A3. We brought that on production in the second half of last year. And as expected the 183-D4 well like you said, encountered the same caruacu sands but structurally up dip by over a hundred meters. So, we're very excited about that well, we're just starting the completion now and we would expect to have the well on production by the end of August. And then following up on that, we've got several additional follow up locations that we can drill from existing well pads that are already pipeline connected to our strategic infrastructure. So, I really think we're uniquely positioned to quickly convert the successes into production and cash flow. Lyndsay: You've got high margin contracted natural gas sales in Brazil and a strong fiscal regime. What's the biggest competitive advantage you're leveraging in that market that investors might be overlooking then? Corey: I think we're really fortunate to be operating in a very good environment that combines an excellent level of geological prospectivity with an attractive fiscal regime. Our realized natural gas prices are about US $11 per MCF. So, to put that in perspective, that's about three times what the US natural gas prices are and it's over 10 times what Canadian companies are realizing right now. So, combine that with an effective royalty rate of about 6% and consider that we've got very low cost natural gas production. What it leads to is an industry leading operating net back margin that approaches about 90%. So on top of that, our project is eligible for a 15% income tax rate. So, this is about as good as it gets in our industry. And then like any business, if you have the highest margins, your business is stronger and more resilient. That's really our advantage. What it allows us to do is generate more cash flow off the same amount of production relative to our peers and then that helps drive our capital allocation model that you mentioned earlier where we're looking to balance returns to stakeholders and organic growth. So, and then the other part of the equation is really the strategic infrastructure that we've invested in helps support that growth plan and we feel like we're really well positioned both in Brazil and now also in Canada to implement our growth objectives. Lyndsay: I want to push that just a little bit further if we can and really uncover a lot more of that model that you've built around reinvesting roughly half of your cash flows into organic growth. I mean, how much of that capital is currently weighted towards advancing your Brazilian drilling profile versus scaling newer Canadian assets? Corey: To put it in perspective, we added the Canadian growth platform on I think February 5th of this year. And I'm excited to say we've already drilled our first two wells. They were both on production by early April. So, it really shows how quickly you can move. We've just completed drilling the third well and the fourth well is going to be finished shortly. So, since February we've been investing in both opportunities in parallel, but from a capital expenditure perspective, we're probably still about three quarters of our capital is probably going to our Brazilian assets right now. Lyndsay: So, then the remaining cash is returned to stakeholders. So, can you give us some details and tell us what investors can expect in terms of yield? Corey: With the increase in production that we saw in the first quarter, we did increase our dividend by 11% up to US 10 cents per share quarterly. And we did just finish paying that for the second quarter here as well. So, at our current share price, that translates into a yield of over 9%. And as we mentioned earlier, our strategy is obviously to continue to grow our business and with continued success, my expectation is that we can continue to grow the dividend commensurate with that success. Lyndsay: Corey, between price stability, infrastructure control and upside in untapped zones, what are the key catalysts right now in Brazil that investors should be watching for through the remainder of 2025? Corey: I think it's Brazil and Canada quite frankly and I think it's really a continuation of what we've already been showing to start this year off. As mentioned, our latest well the 183-D4 well is expected to be completed and on production here in August. So, I think investors can look forward to those results and then the results from the additional follow up wells that would come after that in Canada. I think, you know, the results from the first two wells are extremely exciting. They're well ahead of the expectations that we had set for ourselves when we entered into that opportunity and I hope investors can look forward to more of the same in that business, which is really off to a fantastic start. You can find Alvopetro Energy on the Venture under the symbol and you can learn more at their website Join the discussion: Find out what everybody's saying about this stock on the Alvopetro Energy investor discussion forum, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here
Yahoo
03-07-2025
- Business
- Yahoo
Alvopetro Announces June 2025 Sales Volumes
CALGARY, AB, July 3, 2025 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces June 2025 sales volumes of 2,514 boepd, based on field estimates. In Brazil, June sales volumes averaged 2,364 boepd, including natural gas sales of 13.2 MMcfpd, associated natural gas liquids sales from condensate of 147 bopd, and oil sales of 9 bopd. In Canada, June sales volumes averaged 149 bopd. This brings our Q2 2025 average daily sales volumes to 2,436 boepd, based on field estimates. Natural gas, NGLs and crude oil sales: June 2025 May 2025 Q2 2025 Q1 2025 Brazil: Natural gas (Mcfpd), by field: Caburé 11,550 11,021 11,744 11,710 Murucututu 1,697 1,279 1,257 2,093 Total natural gas (Mcfpd) 13,247 12,300 13,001 13,803 NGLs (bopd) 147 111 128 135 Oil (bopd) 9 - 3 10 Total (boepd) – Brazil 2,364 2,161 2,298 2,446 Canada: Oil (bopd) – Canada 149 173 138 - Total Company – boepd(1) 2,514 2,334 2,436 2,446 (1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. Corporate Presentation Alvopetro's updated corporate presentation is available on our website at: Social Media Follow Alvopetro on our social media channels at the following links: Twitter - Instagram - LinkedIn - Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Abbreviations: boepd = barrels of oil equivalent ("boe") per day bopd = barrels of oil and/or natural gas liquids (condensate) per day Mcf = thousand cubic feet Mcfpd = thousand cubic feet per day MMcf = million cubic feet MMcfpd = million cubic feet per day NGLs = natural gas liquids (condensate) Q1 2025 = three months ended March 31, 2025 Q2 2025 = three months ended June 30, 2025 BOE Disclosure The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil. ALV, OTCQX: ALVOF SOURCE Alvopetro Energy Ltd. View original content:
Globe and Mail
03-07-2025
- Business
- Globe and Mail
Alvopetro Announces June 2025 Sales Volumes
CALGARY, AB , July 3, 2025 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces June 2025 sales volumes of 2,514 boepd, based on field estimates. In Brazil , June sales volumes averaged 2,364 boepd, including natural gas sales of 13.2 MMcfpd, associated natural gas liquids sales from condensate of 147 bopd, and oil sales of 9 bopd. In Canada , June sales volumes averaged 149 bopd. This brings our Q2 2025 average daily sales volumes to 2,436 boepd, based on field estimates. Natural gas, NGLs and crude oil sales: June 2025 May 2025 Q2 2025 Q1 2025 Brazil: Natural gas (Mcfpd), by field: Caburé 11,550 11,021 11,744 11,710 Murucututu 1,697 1,279 1,257 2,093 Total natural gas (Mcfpd) 13,247 12,300 13,001 13,803 NGLs (bopd) 147 111 128 135 Oil (bopd) 9 - 3 10 Total (boepd) – Brazil 2,364 2,161 2,298 2,446 Canada: Oil (bopd) – Canada 149 173 138 - Total Company – boepd (1) 2,514 2,334 2,436 2,446 (1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. Corporate Presentation Alvopetro's updated corporate presentation is available on our website at: Social Media Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Abbreviations: boepd = barrels of oil equivalent ("boe") per day bopd = barrels of oil and/or natural gas liquids (condensate) per day Mcf = thousand cubic feet Mcfpd = thousand cubic feet per day MMcf = million cubic feet MMcfpd = million cubic feet per day NGLs = natural gas liquids (condensate) Q1 2025 = three months ended March 31, 2025 Q2 2025 = three months ended June 30, 2025 BOE Disclosure The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Cision Canada
03-07-2025
- Business
- Cision Canada
Alvopetro Announces June 2025 Sales Volumes
CALGARY, AB, July 3, 2025 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces June 2025 sales volumes of 2,514 boepd, based on field estimates. In Brazil, June sales volumes averaged 2,364 boepd, including natural gas sales of 13.2 MMcfpd, associated natural gas liquids sales from condensate of 147 bopd, and oil sales of 9 bopd. In Canada, June sales volumes averaged 149 bopd. This brings our Q2 2025 average daily sales volumes to 2,436 boepd, based on field estimates. (1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes. Corporate Presentation Alvopetro's updated corporate presentation is available on our website at: Social Media Alvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related strategic midstream infrastructure. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. Abbreviations: boepd = barrels of oil equivalent ("boe") per day bopd = barrels of oil and/or natural gas liquids (condensate) per day Mcf = thousand cubic feet Mcfpd = thousand cubic feet per day MMcf = million cubic feet MMcfpd = million cubic feet per day NGLs = natural gas liquids (condensate) Q1 2025 = three months ended March 31, 2025 Q2 2025 = three months ended June 30, 2025 BOE Disclosure The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil. TSX-V: ALV, OTCQX: ALVOF SOURCE Alvopetro Energy Ltd.
The Market Online
26-06-2025
- Business
- The Market Online
From the ground up: Building value through smart energy investments
In today's energy landscape, companies that thrive are those that strike a careful balance between disciplined growth and consistent shareholder returns. With a focus on natural gas development in geologically rich and fiscally favourable regions, one such player is leveraging its strategic assets across Brazil and Canada to deliver both profitability and long-term value. By reinvesting roughly half of its cash flows into high-potential organic growth opportunities—while returning the other half to stakeholders—this operator is building a resilient, forward-looking business model. Anchored by strong production from key natural gas fields and supported by critical midstream infrastructure, its approach exemplifies how smart capital allocation can drive sustainable success. Alvopetro Energy (TSXV:ALV) is a profitable, growth-oriented energy company strategically focused on unlocking value through a balanced capital allocation model. The company reinvests approximately half of its cash flows into high-return organic growth opportunities while returning the other half to shareholders through dividends and other means. This disciplined approach is underpinned by Alvopetro's commitment to geologic prospectivity and favorable fiscal regimes, with operations centered in Brazil and Canada. Alvopetro's core assets include the Caburé and Murucututu natural gas fields in Brazil, supported by strategic midstream infrastructure and favorable natural gas prices. These assets form the backbone of the company's operations and provide a strong platform for continued growth. In early 2025 the company announced a strategic entry into Western Canada Within 45 days the two wells were drilled and production and sales from the wells commenced in mid-April at rates well above expectations. The wells drilled utilized multilateral drilling technology, with over 15 km of open hole reservoir contact. (The diagram above depicts the evolution of drilling technology to develop a ¼ section of land. On the far left, traditional development would have required 32 vertical wells. Technology then advanced to horizontal wells, as depicted in the middle of the diagram with 4 separate wells. Today, multilateral drilling technology (as depicted on the far right) allows for just a single well with 6+ open-hole lateral legs developing the ¼ section of land. Alvopetro's first 2 wells drilled in Saskatchewan each included 6 lateral legs. A total of 15 km of open-hole horizontal legs were drilled. Source: Alvopetro Energy Ltd.) The company now holds a 50 per cent working interest in 27.5 sections (8,800 net acres) with potential for over 100 drilling locations. Up to four additional wells (2.0 net to Alvopetro) are planned for the remainder of 2025. Alvopetro's updated long-term gas sales agreement in Brazil came into effect on January 1, 2025, increasing contractual firm volumes by 33 per cent. As a result, average daily sales in Brazil increased 41 per cent in Q1 2025 (compared to Q4 2024) to 2,446 boepd (+36 per cent compared to 2024 YTD average). April and May sales volumes in Brazil were 2,373 boepd and 2,161 boepd, respectively, with May sales volumes impacted by turnarounds at both Alvopetro facilities and Bahiagás end user plants, which reduced demand in the month With Canadian operations commencing mid-April 2025, May 2025 was the first full month of sales from the two wells, with Alvopetro's net 50 per cent share of oil sales of 173 bopd. Alvopetro – Daily sales volumes (boepd) (Source: Alvopetro Energy Ltd.) A key highlight in Alvopetro's recent operations is the successful drilling of the 183-D4 well on its 100 per cent-owned Murucututu natural gas field in Brazil. The well was drilled to a total measured depth of 3,072 metres, cased, and cemented. It encountered the Caruaçu Member of the Maracangalha Formation approximately 106 metres structurally updip of the previously successful 183-A3 well. Based on cased-hole gamma ray logs and gas readings while drilling, the well revealed an aggregate 61 metres of potential natural gas pay between 2,439 and 2,838 metres total vertical depth (TVD). Alvopetro plans to complete the well in up to five intervals, with production expected to commence in the third quarter of 2025. This result further strengthens the company's resource base and supports its strategy of organic growth through technically and economically attractive drilling opportunities. 'May sales included the first full month of production from our first two wells drilled in Western Canada averaging 346 bopd gross (173 bopd net), exceeding our pre-farmin expectations and we are looking forward to drilling our next two wells here starting this summer,' the company's president and CEO, Corey C. Ruttan, commented in a news release. 'We are also encouraged by our 183-D4 results and expect to have this well on production in Q3 to fuel continued production growth in Brazil.' With increased production and sales volumes and in line with its balanced capital allocation strategy, Alvopetro's Board of Directors increased the quarterly dividend commencing with the Q1 2025 dividend to US$0.10 per common share (from US$0.09 per common share in 2024). The Q2 2025 quarterly dividend was also confirmed at US$0.10 per common share, payable on July 15, 2025, to shareholders of record as of June 30, 2025. This dividend is designated as an 'eligible dividend' for Canadian income tax purposes. For non-resident shareholders, dividend payments will be subject to a 25 per cent Canadian withholding tax, though reduced rates may apply under applicable tax treaties. A compelling case for investor due diligence Logging 49 per cent growth in its TSX stock since this time last year, Alvopetro Energy Ltd. presents a compelling opportunity for investors seeking exposure to a profitable, well-managed energy company with a clear strategy for growth and value creation. With a strong foundation in Brazil's natural gas sector, a disciplined capital allocation model, and a commitment to returning capital to shareholders, Alvopetro is in a stable position for continued success. Investors would be wise to conduct further due diligence into Alvopetro's operations, financials, and strategic outlook as the company continues to deliver on its growth and return objectives. Join the discussion: Find out what everybody's saying about this stock on the Alvopetro Energy Bullboard, and check out the rest of Stockhouse's stock forums and message boards. This is sponsored content issued on behalf of Alvopetro Energy Ltd., please see full disclaimer here.
