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Calgary, AB, January 12, 2022 /CNW/ – Alvopetro Energy Ltd (TSXV:VAT) (OTCQX:ALVOF) based on field estimates, announced December sales of 2,457 boepd, including 14.1 mmcfpd of natural gas sales and 101 bopd of related natural gas condensate sales. Our December sales brought our estimated fourth quarter average daily sales to 2,432 boepd, down 1% from the third quarter average daily sales of 2,459 boepd, and our 2021 average daily sales of 2,358 boepd, compared to 2,358 boepd Average growth of 27% Daily sales in the second half of 2020 were 1,857 boepd.
Operational update
Alvopetro has initiated a commissioning period for the rig that will be used for exploration drilling activities on two of our gas prospects, Block 182, Well 182-C1 and Block 183, Well 183-B1. We have begun shipping equipment to the 182-C1 well site, where the rig will be mobilized once it is fully commissioned at the rig operator’s base. Following successful commissioning and final rig acceptance, we expect to start drilling 182-C1 later this month.
Alvopetro is also in the final stages of completing the Gomo/Murucututu pipeline, connecting our 183-1 well in the Murucututu/Gomo field to our Caburé pipeline, which we will conduct final pressure testing at the end of the month. We have initiated site construction for our on-site production facility and expect to bring Well 183(1) into service by the end of the first quarter of this year.
Under the terms of our existing gas processing agreement, our project to increase the operational capacity of our gas processing facility to 500,000 m3/day is on schedule and we expect additional fixed capacity to be in place by June 1, 2022 supply. Available production capacity will allow us the flexibility to handle additional production from Caburé and our Murucututu fields, as well as initial production from our 183(1) Gomo well and further capital plans in 2022, including the stimulation and lap of our 197(1) well , and subsequent suitable development wells.
Semi-annual natural gas prices re-determined
Effective under the terms of our long-term gas sales agreement with Bahiagás February 1, 2022, our gas price will be adjusted to BRL1.94/m3 or $10.50/mcf (based on our 107% average heat content to date and December 31, 2021 The BRL/USD foreign exchange rate is 5.58).This adjusted price is a 48% increase over our current contract price and will apply from February 1 to July 31, 2022.
President and Chief Executive Officer, Corey Ratan commented:
“We ended 2021 with another strong quarterly production performance, while our…
The full story is available on Benzinga.com
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