Alvopetro Energy Ltd. presents at EnerCom’s The Oil & Gas Conference®

Alvopetro Energy Ltd. (ticker: ALV) is an independent upstream and midstream operator in Brazil. It’s strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé and Gomo natural gas projects and the construction of strategic infrastructure assets.

Q2 highlights

  • Production increased to 33 bopd in the second quarter, a 57% increase from the first quarter 2018, largely due to increased production from our Bom Lugar well. As a result of increased sales volumes, rising commodity prices and reduced production expenses, we achieved an operating netback of $4.28 per barrel in the quarter.
  • Capital expenditures of $0.9 million in the second quarter included Caburé permitting and unit development costs of $0.6 million and capitalized G&A of $0.3 million.
  • Reported a net loss of $1.1 million in the second quarter due to negative funds flow from operations of $0.8 million and impairment charges of $0.2 million recognized in the quarter. We relinquished Block 106 subsequent to June 30, 2018 and recognized an impairment of $0.2 million in the quarter to reduce the carrying value of the block to $nil. E&E expense in the quarter was primarily attributable to the remaining work commitment outstanding on this block.
  • Cash, restricted cash and working capital resources total $5.5 million, including cash and cash equivalents of $5.8 million.

Breakout session at the EnerCom conference

During Alvopetro Energy’s breakout session at the 2018 EnerCom conference, management was asked the following questions:

  • How are you going to finance the development?
  • Will Petrobras or Alvopetro own the pipeline? If Alvopetro will own the pipeline, where the funds come from? If Alvopetro will drill wells where the funds come from?
  • Is there any other cash your company needs? What will your company do will the cash?
  • You mentioned Petrobras’ legacy infrastructure, how do they integrate with your project?
  • You are very successful in Columbia and Ecuador, how you compare this opportunity in Brazil with these?
  • What is the complexity there?
  • Is there any LNG imported into the basin? How is the price will compare with your project, given the gas is short in the basin?
  • Will any petroleum company in the basin also have the plan to sell gas? Or they will only sell oil?
  • What currency is the gas priced in, Brazilian Real or US Dollar? Is there any hedge or guaranteed quick currency translation path to translation into US Dollar?
  • You have 85 million shares, is there any other compensation to the employee. Or will there be any dilution?

You can listen to Alvopetro Energy’s presentation here.

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