Alvopetro reports record production in Q3 – ICYMI

Core Insights - Alvopetro Energy Ltd has achieved record production results, with October reaching nearly 2,900 barrels of oil equivalent per day, driven by increased productive capacity and successful well performance [2][3]. Production Performance - The company reported a 41% increase in production in the first quarter of the year, maintaining consistent growth throughout [3]. - The addition of the 183-D4 well has significantly contributed to production, outperforming expectations with an initial 30-day average of close to 1,100 barrels of oil equivalent per day, nearly double pre-drill expectations [5]. Financial Results - In Q3, Alvopetro generated over $10 million in funds flow from operations, with production averaging 2,343 barrels of oil equivalent per day [4]. - The operating netback was nearly $60 per BOE, supported by strong realized natural gas prices exceeding $11 per MCF [4]. Expansion Plans - The company is expanding its operations in Western Canada, particularly in the Mannville Stack heavy oil play, now covering over 74 sections of attractive acreage [6]. - The use of open-hole multilateral wells is planned to unlock potential and build a multi-year inventory of drilling locations [7]. Market Dynamics - Although the natural gas contract price in Brazil has been slightly adjusted lower, it remains over $10 per MCF, which is favorable compared to North American prices [8]. - The company is balancing growth with shareholder returns, planning to return about half of its funds flow to stakeholders through dividends while reinvesting the other half for organic growth [10].