As announced on
With ongoing strong production results from our Caburé project, combined now with a 24% increase in our realized natural gas price, we continue to generate very strong cash flows. This allows us to organically fund our upcoming exploration drilling campaign, has allowed us to repay half of our outstanding debt in the first year of operations and positions us to commence planned dividends to shareholders by the first quarter of 2022. Now that we have successfully completed our share restructuring, we can cost effectively administer future recurring dividends when declared by our Board of Directors.
Alvopetro's closing trading price on the
2P Net Asset Value (in MUS, other than per share amounts) | Pre-Share | Post-Share |
Proved plus probable reserves, before tax net present value, discounted at 10%(1) | ||
Pro-forma net debt – as at | (3,046) | (4,166) |
Total Net Asset Value(3) | ||
Common shares outstanding(4) | 99,828,295 | 32,854,330 |
Net asset value - $ per basic share | ||
Net asset value - C$ per basic share(5) |
(1) | Before tax net present value of proved plus probable reserves ("2P") as of |
(2) | Net debt is computed as the carrying amount of the Company's Credit Facility decreased by net working capital surplus, as of |
(3) | Alvopetro has reflected all contractual obligations pursuant to our |
(4) | The common shares outstanding post-Share Restructuring may be subject to final adjustments due to rounding following the share split. |
(5) | Converted to Canadian dollars ("C$") based on the exchange rate on |
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation.
Social Media
Follow Alvopetro on our social media channels at the following links:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube: https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w
Neither the
All amounts contained in this new release are in
Abbreviations:
boepd | = | barrels of oil equivalent ("boe") per day |
bopd | = | barrels of oil and/or natural gas liquids (condensate) per day |
BRL | = | Brazilian Real |
C$ | = | Canadian dollars |
mmcf | = | million cubic feet |
mmcfpd | = | million cubic feet per day |
MUS | = | thousands of |
BOE Disclosure. The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
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. Forward–looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning the plans relating to the Company's operational activities, the expected gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, and the Company's plans for dividends in the future. 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, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic, 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 factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro's SEDAR profile 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.
Oil and Natural Gas Reserves. The disclosure in this news release summarizes certain information contained in the independent reserve assessment and evaluation prepared by
Non-GAAP Measures. This news release contains financial terms that are not considered measures under International Financial Reporting Standards ("IFRS"), such as net asset value, net debt, and working capital surplus. Net asset value is computed based on the net present value of the Company's proved plus probable reserves (before tax), discounted at 10%, decreased by the Company's net debt. Net debt is computed as the carrying amount of the Company's credit facility decreased by net working capital surplus or increased by net working capital deficit. Net working capital is computed as current assets less current liabilities. The non-GAAP measures do not have standardized meanings under IFRS and therefore are unlikely to be comparable to similar measures presented by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP measures referred to in this report should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures" section of the Company's most recent MD&A which may be accessed through the SEDAR website at www.sedar.com.
SOURCE
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