Alvopetro Energy Ltd. (TSX-V:ALV) is pleased to announce successful results from our 198(A1) well, located on Block 198 in the Recôncavo basin in the State of Bahia, Brazil.  The 198(A1) well was drilled as both a step out well to our 197(2) natural gas discovery in the Caruaçu Member, and to target uphole exploration potential.  The well also fulfilled our Block 198 exploratory phase commitments, subject to the approval of the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”).

The 198(A1) well was drilled to a total measured depth of 1,480 metres. Based on open-hole logs, the well encountered 31 metres of potential net natural gas pay in the Main Caruaçu Member, with an average 46% water saturation, and an average porosity of 11.4%, using an 8% porosity cut-off.  The well also encountered 26 metres of potential net hydrocarbon pay in a series of thinner up-hole Pojuca sands, with an average 51% water saturation, and an average porosity of 14.3%, using an 8% porosity cut-off.  We plan to commence production testing, starting with the main Caruaçu Member, in February 2017.

By comparison, our 197(2) well was completed and tested in 2015 from three zones in the Caruaçu totalling 25 metres of net pay. During the 72-hour test completed of each interval our 197(2) well flowed natural gas, on an unstimulated basis, at an average rate of 101,000 m3/d (3.6 MMcfpd or 600 boepd) from the first interval, 53,000 m3/d (1.9 MMcfpd or 310 boepd) from the second interval and 89,500 m3/d (3.2 MMcfpd or 527 boepd) from the third interval. In 2015, Alvopetro had a pressure transient analysis completed to forecast potential post-stimulation rates of our 197(2) well with damage removed (expected to be achieved using a near-wellbore acid wash) on a combined basis indicating total deliverability of 12.5 MMcfpd (2,089 boepd) after three months of continuous production and 6.9 MMcfpd (1,146 boepd) after one year of continuous production.

Our 198(A1) well reached total drilling depth in 10 days, representing a significant improvement over past wells drilled by Alvopetro.  These performance improvements have a positive impact on the attractiveness of our entire drilling inventory and provide improved financial flexibility.

Alvopetro has also received ANP approval for the Declaration of Commerciality of our 197(2) discovery which has now been named the Caburé Field.  Alvopetro is working to complete the unitization of the Caburé Field with the adjacent Block owner, and to conclude long-term gas sales agreements to finalize the field commercialization plan.   

For more information, please visit: http://alvopetro.com

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