June 12, 2019 - 4:30 PM EDT
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Alvopetro Announces Operational Update

Canada NewsWire

CALGARY, June 12, 2019 /CNW/ - Alvopetro Energy Ltd. (TSX-V: ALV; OTCQX: ALVOF) announces a permitting and operational update for the construction of our strategic midstream infrastructure (100% Alvopetro) underpinning the commercialization of our Caburé natural gas field (49.1% Alvopetro).  This midstream infrastructure includes an 11-kilometre transfer pipeline (the "Transfer Pipeline") and the construction of a gas treatment facility (the "Facility").

Permitting/Permissions

  • On May 10, 2019, INEMA, the Bahia State environmental regulator, issued the environmental installation permits required to commence construction,
  • On May 22, 2019, the ANP issued their authorizations to commence physical construction of the Facility,
  • On May 29, 2019, Bahiagas received the alteration licences required to construct the 15-kilometre extension of their distribution pipeline to their new city gate being construction at our Facility location,
  • In May, Alvopetro finalized the formal documentation for surface land access to all 8 private landowners along the Transfer Pipeline right-of-way, and
  • On June 12, 2019, the ANP issued their authorizations to commence physical construction of the Transfer Pipeline.

Operational Update

All pipe for the Transfer Pipeline was shipped to our field staging area in February 2019.  Our contractor is currently preparing the Transfer Pipeline right-of-way and is mobilizing all equipment to begin field construction and installation.  

Our Facility is being constructed by Enerflex Ltd. where they will construct, own and operate the Facility.  Enerflex is responsible for all operations and maintenance of the Facility and is warrantying the delivery schedule and on-stream performance of the Facility.  The majority of the processing skids for the Facility have been assembled, tested, and are now in-transit to Brazil.  Civil construction at the Facility site is underway and is scheduled to be completed in advance of the processing skids arriving on-site. 

Alvopetro expects to start natural gas deliveries from the Caburé field in early 2020.  Our natural gas is being sold under our long-term gas sales agreement with Bahiagas, the local distribution company for the state of Bahia.

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 the construction of 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.

Forward-Looking Statements and Cautionary Language. This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend" and other similar words or expressions are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward-looking information concerning  the expected timing and outcomes of certain of Alvopetro's operational activities and expected timing of commencement of gas sales under Alvopetro's long-term gas sales agreement. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to the timing of regulatory licenses and approvals, the success of future drilling, completion, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.  Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed through the SEDAR website at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Alvopetro Energy Ltd.

View original content: http://www.newswire.ca/en/releases/archive/June2019/12/c9761.html

Corey C. Ruttan, President, Chief Executive Officer and Director, or Alison Howard, Chief Financial Officer; Phone: 587.794.4224, Email: [email protected], www.alvopetro.com, TSX-V: ALVCopyright CNW Group 2019


Source: Canada Newswire (June 12, 2019 - 4:30 PM EDT)

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