Alvopetro Announces Q2 2025 Financial Results and an Operational Update – Alvopetro Energy (OTC:ALVOF)

CALGARY, AB, Aug. 6, 2025/ CNW/ – Alvopetro Energy Ltd. ALV ALVOF reveals a functional upgrade and monetary outcomes for the 3 and 6 months ended June 30, 2025.

All referrals herein to $ describe United States dollars, unless otherwise mentioned and all tabular quantities remain in countless United States dollars, other than as otherwise kept in mind.

President & & CEO, Corey C. Ruttan commented:

” Q2 included our very first quarter of sales from our just recently included Western Canadian possessions and total sales volumes continued to be extremely strong averaging 2,436 boepd, up 50% from Q2 2024, and constant with Q1 2025. We have a substantial quantity of activity underway and we are eagerly anticipating an interesting Q3 with the conclusion and tie-in of our 183-D4 well, our Caburé System advancement wells, and our 2 most just recently drilled multi-lateral wells in Western Saskatchewan Our 2025 capital program is naturally moneyed and concentrated on high rate of return chances in Brazil and likewise now in the Western Canadian Sedimentary Basin.”

Functional Update

July Sales Volumes

July sales volumes balanced 2,418 boepd, consisting of 2,284 boepd from Brazil (with gas sales of 12.9 MMcfpd, associated gas liquids sales from condensate of 130 bopd, and oil sales of 9 bopd) and 134 bopd from oil sales in Canada, based upon field quotes.

Quarterly Gas Prices Update

Efficient August 1, 2025, our gas cost under our long-lasting gas sales arrangement was adapted to BRL1.90/ m ³ and will use to 100% natural gas sales from August 1, 2025 to October 31, 2025 Based upon our typical heat material to date and the July 31, 2025 BRL/USD currency exchange rate of 5.60, our anticipated understood cost at the brand-new contracted cost is $ 10.27/ Mcf, web of suitable sales taxes, a reduction of 3% from the Q2 2025 understood cost of $ 10.62/ Mcf due primarily to lowered Henry Center and Brent rates in the 2nd quarter. Quantities eventually gotten in comparable USD will be affected by currency exchange rate in impact throughout the duration August 1, 2025 to October 31, 2025

Advancement Activities – Brazil

On our 100% owned Murucututu field, the 183-D4 well was drilled in the 2nd quarter to an overall determined depth of 3,072 metres. The well experienced the Caruaçu Member of the Maracangalha Development 106 metres structurally updip of our 183-A3 well which has actually been on production because the 4th quarter of 2024. Based upon cased-hole gamma ray logs and stabilized gas while drilling, the well come across possible gas pay in the Caruaçu Member of the Maracangalha Development, with an aggregate 61 metres overall vertical depth (” TVD”) of possible gas pay in between 2,439 and 2,838 meters TVD. We have actually now finished the well in 7 periods and anticipate to have the well on production later on in the 3rd quarter. An overall of $ 3.3 million of capital investment are approximated on the field in the 2nd half of 2025, consisting of expenses for the 183-D4 conclusion.

Our joint advancement on the unitized location (” the System”) that includes our Caburé field began in the 2nd quarter and 3 wells (1.7 web) have actually now been drilled. The 4th well (0.6 web) is anticipated to be drilled later on in the 3rd quarter. Alvopetro’s share of these prepared system advancement expenses in the 2nd half of 2025 is expected to be $ 5.5 million The timing of drilling the 5th advancement well (0.6 web) undergoes the invoice of all required regulative approvals.

Advancement Activities– Western Canada

In June, we even more broadened our joint Mannville focused land based to 17,780 gross acres (8,890 net acres) and in July, 2 extra multi-lateral wells (1.0 web) were drilled with an aggregate of over 19 kilometers of open hole tank contact. Both wells will now be finished and geared up and are anticipated to be on production later on in the 3rd quarter. We anticipate to drill our next 2 multi-lateral wells (1.0 web) beginning later on this year.

Financial and Operating Emphasizes– 2nd Quarter of 2025

• Typical day-to-day sales in Q2 2025 were 2,436 boepd (+50% from Q2 2024 and constant with Q1 2025 sales of 2,446 boepd). In Brazil, day-to-day sales balanced 2,298 boepd (+41% compared to Q2 2024) and in Canada, oil sales began in April 2025, contributing 138 bopd in the quarter.
• Our average understood gas cost was $ 10.62/ Mcf in Q2 2025 (-10% from Q2 2024 and +2% from Q1 2025). Our total balanced understood prices per boe was $ 63.20/ boe (-12% from Q2 2024 and -1% from Q1 2025).
• With greater sales volumes, our gas, oil and condensate income increased to $ 14.0 million (+31% from Q2 2024).
• Our operating netback in the quarter was $ 54.72 per boe, a reduction of $ 9.58 per boe compared to Q2 2024 due primarily to lower understood prices in addition to greater royalties. Compared to Q1 2025, our operating netback increased $ 3.95 per boe with lower royalties partly balanced out by lower understood rates.
• We produced funds streams from operations of $ 10.4 million ($ 0.28 per fundamental and $ 0.27 per watered down share), boosts of $ 2.5 million compared to Q2 2024 and $ 1.1 million compared to Q1 2025.
• We reported earnings of $ 6.8 million ($ 0.18 per fundamental and diluted share), a boost of $ 4.5 million compared to Q2 2024 due to greater sales volumes in addition to forex gains (compared to forex losses in Q2 2024), partly balanced out by lower understood rates and greater royalties, production costs, exhaustion and devaluation cost and tax cost.
• Capital investment amounted to $ 9.0 million, consisting of drilling expenses for the 183-D4 well on Alvopetro’s 100% Murucututu field in addition to Alvopetro’s share of expenses sustained on system advancement, consisting of expenses for 2 (1.1 web) of 5 advancement wells (2.8 web) which began drilling in the quarter.
• Our working capital surplus was $ 6.8 million since June 30, 2025, reducing $ 2.9 million from March 31, 2025

The following table supplies a summary of Alvopetro’s monetary and operating outcomes for the durations kept in mind. The combined monetary declarations with the Management’s Conversation and Analysis (” MD&A”) are readily available on our site at www.alvopetro.com and will be readily available on the SEDAR+ site at www.sedarplus.ca.

Q2 2025 Outcomes Webcast

Alvopetro will host a live webcast to discuss our Q2 2025 monetary outcomes at 8:00 am Mountain time on Thursday August 7, 2025. Information for signing up with the occasion are as follows:

DATE: August 7, 2025
TIME: 8:00 AM Mountain/ 10:00 AM Eastern
LINK: https://us06web.zoom.us/j/87200931927
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kdLidYPIoO
WEBINAR ID: 872 0093 1927

The webcast will consist of a question-and-answer duration. Online individuals will have the ability to ask concerns through the Zoom website. Dial-in individuals can email concerns straight to socialmedia@alvopetro.com.

Business Discussion

Alvopetro’s upgraded business discussion is readily available on our site at:
http://www.alvopetro.com/corporate-presentation. 

Social Media

Follow Alvopetro on our social networks channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergy
Instagram – https://www.instagram.com/alvopetro/
LinkedIn – https://www.linkedin.com/company/alvopetro-energy-ltd

Alvopetro Energy Ltd. is releasing a well balanced capital allotment design where we look for to reinvest approximately half our money streams into natural development chances and return the other half to stakeholders. Alvopetro’s natural development technique is to concentrate on the very best mixes of geologic prospectivity and financial program. Alvopetro is stabilizing capital expense chances in Canada and Brazil where we are structure off the strength of our Caburé and Murucututu gas fields and the associated tactical midstream facilities.

Neither the TSX Endeavor Exchange nor its Guideline Provider Service Provider (as that term is specified in the policies of the TSX Endeavor Exchange) accepts obligation for the adequacy or precision of this press release.

Abbreviations:

Operating netback is computed on a per system basis, which is per barrel of oil equivalent(” boe”). It is a typical non-GAAP step utilized in the oil and gas market and management thinks&this measurement helps in assessing the operating efficiency of the Business. It is a procedure of the financial quality of the Business’s producing possessions and works for assessing variable expenses as it supplies a trustworthy step despite variations in production. Alvopetro computed running netback per boe as running netback divided by overall sales volumes( boe). This computation is supplied in note 3 of the interim condensed combined monetary declarations and in the “

Operating Netback “area of the Business’s MD&An utilizing our IFRS steps. The Business’s MD&A might be accessed through the SEDAR+ site at www.sedarplus.ca. Running netback is a typical metric utilized in the oil and gas market utilized to show success from operations on a per boe basis. Operating netback margin Operating netback margin is computed as running netback per boe divided by the understood prices per boe. Running netback margin is a procedure of the success per boe relative to gas, oil and condensate sales profits per boe and is computed as follows: 3 Months Ended June 30,

6 Months Ended June 30,

2025

2024(* )2025 2024 Operating netback -$ per boe

54.72

64.30

52.74 65.25 Typical understood cost – $per boe

63.20

71.97

0.44

Per diluted share:

Net working capital is calculated as present possessions less present liabilities. Net working capital is a procedure of liquidity, is utilized to assess funds, and is computed as follows:

As at June 30,

2025

“

Dividends per share(* )” is consisted of dividends stated, as figured out in accordance with IFRS, divided by the variety of shares impressive at the dividend record date.

The 2025 contracted day-to-day company volumes under Alvopetro’s long-lasting gas sales arrangement of 400 e

3 m 3(* )/ d( before any arrangements for take or pay allowances) represents contracted volumes based upon agreement referenced gas heating worth. Alvopetro’s reported gas sales volumes are previous to any modifications for heating worth of Alvopetro gas. Alvopetro’s gas is around 7.8 %greater than the agreement referral heating worth. For that reason, to please the legal company shipment Alvopetro would be needed to provide around 371e

3 m(* )3(* )/ d (13.1 MMcfpd). Well Outcomes

Information acquired from the 183-D4 well recognized in this news release, consisting of hydrocarbon programs, cased-hole logging information, and possible take-home pay ought to be thought about initial up until screening, in-depth analysis and analysis has actually been finished. Hydrocarbon programs can be seen throughout the drilling of a well in many scenarios and do not always show a business discovery or the existence of business hydrocarbons in a well. There is no representation by Alvopetro that the information associating with the 183-D4 well consisted of in this news release is always a sign of long-lasting efficiency or supreme healing. The reader is warned not to unduly count on such information as such information might not be a sign of future efficiency of the well or of anticipated production or functional outcomes for Alvopetro in the future. Positive Declarations and Cautionary Language This press release includes positive details within the significance of suitable securities laws. Using any of the words” will”,” anticipate”,” mean”,” strategy “, “might”,” think”,” price quote”,” projection”, “prepare for”, “must “and other comparable words or expressions are planned to determine positive details. Forward‐looking declarations include substantial dangers and unpredictabilities, must not read as assurances of future efficiency or outcomes, and will not always be precise indicators of whether such outcomes will be attained. A variety of aspects might trigger real outcomes to differ substantially from the expectations talked about in the positive declarations. These positive declarations show present presumptions and expectations relating to future occasions. Appropriately, when depending on positive declarations to make choices, Alvopetro warns readers not to put excessive dependence on these declarations, as positive declarations include substantial dangers and unpredictabilities. More especially and without constraint, this press release includes positive declarations worrying the anticipated gas cost, gas sales and gas shipments under Alvopetro’s long-lasting gas sales arrangement, future production and sales volumes, the anticipated timing of production start from particular wells, strategies associating with the Business’s functional activities, proposed expedition and advancement activities and the timing for such activities, capital costs levels, future capital and operating expense, the timing and tax of dividends and prepare for dividends in the future, expected timing for upcoming drilling and screening of other wells, and predicted monetary outcomes. Positive declarations are always based upon presumptions and judgments with regard to the future consisting of, however not restricted to the success of future drilling, conclusion, screening, recompletion and advancement activities and the timing of such activities, the efficiency of producing wells and tanks, well advancement and running efficiency, expectations and presumptions worrying the timing of regulative licenses and approvals, devices accessibility, ecological guideline, consisting of guidelines associating with hydraulic fracturing and stimulation, the capability to generate income from hydrocarbons found, the outlook for product markets and capability to gain access to capital markets, foreign exchange rates, the result of any conflicts, the result of redeterminations, basic financial and company conditions, anticipated need for oil and gas, the effect of worldwide pandemics, weather condition and access to drilling places, the accessibility and expense of labour and services, and the regulative and legal environment and other dangers related to oil and gas operations. The reader is warned that presumptions utilized in the preparation of such details, although thought about sensible at the time of preparation, might show to be inaccurate. Real outcomes attained throughout the projection duration will differ from the details supplied herein as an outcome of many recognized and unidentified dangers and unpredictabilities and other aspects. Existing and forecasted gas elections go through alter daily and such modifications might be product. In addition, the statement, timing, quantity and payment of future dividends stay at the discretion of the Board of Directors. Although our company believe that the expectations and presumptions on which the positive declarations are based are sensible, excessive dependence ought to not be put on the positive declarations due to the fact that we can offer no guarantee that they will show to be appropriate. Because forward looking declarations attend to future occasions and conditions, by their very nature they include intrinsic dangers and unpredictabilities. Real outcomes might vary materially from those presently expected due to a variety of aspects and dangers. These consist of, however are not restricted to, dangers related to the oil and gas market in basic( e.g., functional dangers in advancement, expedition and production; hold-ups or modifications in strategies with regard to expedition or advancement tasks or capital investment; the unpredictability of reserve quotes; the unpredictability of quotes and forecasts associating with production, expenses and costs, dependence on market partners, accessibility of devices and workers, unpredictability surrounding timing for drilling and conclusion activities arising from weather condition and other aspects, modifications in suitable regulative programs and health, security and ecological dangers ), product cost and foreign exchange rate variations, market unpredictability related to trade or tariff conflicts, and basic financial conditions. The reader is warned that presumptions utilized in the preparation of such details, although thought about sensible at the time of preparation, might show to be inaccurate. Although Alvopetro thinks that the expectations and presumptions on which such positive details is based are sensible, excessive dependence ought to not be put on the positive details due to the fact that Alvopetro can offer no guarantee that it will show to be appropriate. Readers are warned that the foregoing list of aspects is not extensive. Extra details on aspects that might impact the operations or monetary outcomes of Alvopetro are consisted of in our AIF which might be accessed on Alvopetro’s SEDAR + profile at www.sedarplus.ca. The positive details consisted of in this press release is made since the date hereof and Alvopetro carries out no responsibility to upgrade openly or modify any positive details, whether as an outcome of brand-new details, future occasions or otherwise, unless so needed by suitable securities laws.(* )www.alvopetro.com

TSX-V: ALV, OTCQX: ALVOF SOURCE Alvopetro Energy Ltd. .