Alvopetro Announces Updated Gomo 183(1) Well Test Results

CALGARY, Jan. 30, 2020 /CNW/ - Alvopetro Energy Ltd. (TSX-V: ALV; OTCQX: ALVOF) ("Alvopetro") announces updated results from our post-stimulated Gomo 183(1) well test.

Gomo Tight Gas Resource (100% Alvopetro) - 183(1) Well Test

Our 183(1) well, located on Block 183 (100% working interest) in the Recôncavo basin in the State of Bahia, Brazil was originally drilled in 2014 to a total depth of 3,550 metres.  We completed the stimulation of an 18-metre zone in the Gomo Member of the Candeias Formation.  We commenced a flowback and clean-up flow process on December 16, 2019 to recover completion and stimulation fluids.  As a result of limited equipment availability, our ability to accelerate and complete the clean-up flow period continues to be limited.  We were cycling the well to recover the remaining completion fluid.  Over this flowback period the well produced a total of 10.5 million cubic feet ("mmcf") of natural gas, 737 barrels ("bbls") of completion fluid and 419 bbls of 56-degree API condensate.  During the flow cycles we saw continual improvement to the well with good reservoir energy and pressure support during each build-up cycle.  On January 22, 2020, we decided to shut-in the well for 5 days prior to commencing a 72-hour production test.  Over the build-up period, well head pressure increased to 1860 psi. Over the 72-hour production test the well produced a total of 2.0 mmcf of natural gas, 46 bbls of completion fluid and 69 bbls of 56-degree API condensate, or approximately 35 bbls of condensate per mmcf of natural gas with a final flowing wellhead pressure of 154 psi on a 32/64" choke. The well is still being impacted by completion fluid and liquid loading and is expected to clean-up during long duration flow. The well has now been shut in for an extended pressure build-up. The results of the pressure transient analysis will allow us to assess the well deliverability and estimate long-term productivity assuming an artificial lift system is installed to more effectively remove liquids from the well during the clean-up period.  We expect to have this analysis completed at the beginning of the second quarter of 2020.

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.

Testing and Well Results.  Data obtained from the 183(1) well identified in this press release, including preliminary testing data, production test rates and initial flow rates should be considered to be preliminary until detailed pressure transient analysis and interpretation has been completed, and ultimately until longer-term production rates are demonstrated. Initial flow rates and production test rates are not determinative of the rates at which such wells will commence production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. There is no representation by Alvopetro that the data relating to the wells contained in this press release is necessarily indicative of long-term performance or ultimate recovery of hydrocarbons. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.

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 plans relating to the Company's operational activities. 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.

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