Monday, July 11, 2022
Alvopetro Energy (ALVOF)
Drilling success paves the way for future growth
Alvopetro Energy Ltd.’s vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.
Michael Heim, CFA, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Alvopetro announced multizone discovery at exploratory well. Management announced that it has discovered 34.3 meters of potential net hydrocarbon pay on well 183-B1. The discovery follows similar results at sister well 182-C1 as announced in April. Both wells will begin production testing shortly, which will help determine well economics. The discovery of hydrocarbons in the wells is not unexpected but an important step in the company’s growth plans.
The wells are more exploratory in nature and represent a step out of current production. Alvopetro’s drilling program can be described as a two-pronged approach that includes both developmental drilling in the Murucututu/Gomo Project and exploratory drilling in the block west of Gomo. Developmental drilling is needed to maintain production and fill out this summer’s gas plant expansion to 18 MMcf/day. Exploratory drilling success is needed to justify future gas plant expansions in order to meet management’s long-term goal of reaching 35 MMcf/day….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
