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ALV:TSX.V; ALVOF:OTCQX

Alvopetro Energy Ltd.

Alvopetro is focused on oil and natural gas exploration and production in Brazil. Alvopetro's vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the onshore natural gas potential in the state of Bahia in Brazil, building off the development of our Cabure natural gas field and strategic midstream infrastructure.
ALV:TSX.V ALVOF:OTCQX

Expert Comments:

Anish Kapadia, Hannam & Partners

(9/8/20)
"Alvopetro Energy Ltd. announced yesterday August gas sales of 10.6 Mcf/d or 1,867 boe/d including condensate, which is in line with our expectations and the firm delivery rate that was disclosed in mid-August. . .the company expects to generate $7.5M in EBITDA in H2/20 and $17M of EBITDA in 2021 and to be able to produce at the plateau rate for at least seven years with EBITDA protected by floor pricing plus take or pay contracts whilst retaining upside potential from higher global oil and gas pricing."

headshot of Bill Newman

Bill Newman, Mackie Research Capital

(9/8/20)
"In H1/21, Alvopetro Energy Ltd. plans to drill two exploration wells targeting a combined mean unrisked prospective resource of 59.4 Bcf; the cost to drill these wells is expected to be funded by free cash flow generated from the Caburé field. Success on either exploration prospect could move the stock price higher."

Alvopetro Energy's "important milestone" and expansion potential are covered in a Mackie Research Capital Corp. report.
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Alvopetro Energy, which has started production at its project in Brazil, has a contract price that is twice the natural gas price in the U.S.
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Anish Kapadia, Hannam & Partners

(7/7/20)
"Alvopetro Energy Ltd. announced yesterday the startup of natural gas deliveries to its customer Bahiagas from its Caburé project. Commercial deliveries started on July 5, and volumes have already ramped up to the firm delivery rate of 10.6 MMcf/d."

headshot of Bill Newman

Bill Newman, Mackie Research Capital

(7/6/20)
"Alvopetro Energy Ltd. announced that it has commenced first physical sales production from its Caburé natural gas field. . .We expect the stock to trade up on the news. . .Connecting the Caburé field to Bahiagás natural gas distribution network is a big milestone for Alvopetro. . .With the production facilities in place, new discoveries can be quickly monetized. Cash flow generated by the project is expected to be reinvested into the exploitation of the company's large portfolio of appraisal and exploration plays."

Clive Maund, CliveMaund.com

(7/6/20)
"Alvopetro Energy Ltd. is a natural gas operator in Brazil whose stock looks to be in position to commence another upleg after consolidating for the past year. . .the company is therefore regarded as a Buy here with an awareness that the resistance could force a minor dip before it breaks out."

The rationale for this view concerning Alvopetro Energy is explained in a Mackie Research Capital Corp. report.
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headshot of Bill Newman

Bill Newman, Mackie Research Capital

(6/2/20)
"Alvopetro Energy Ltd. is only weeks away from establishing first sales production from the Caburé natural gas field. Once on production, we expect the company to generate substantial free cash flow to fund an exploration program targeting the company's large prospect inventory, and potentially pay a cash dividend. Using CNE as a proxy, the establishment of first production could be the catalyst that rerates the stock. We reiterate our SPECULATIVE BUY recommendation and our $1.65 target price."

This development benefits Alvopetro Energy in a globally uncertain time.
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Alvopetro Energy finishes construction of its new transfer pipeline and gas treatment facility.
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More Expert Comments

Experts Following This Company

Anish Kapadia – Hannam & Partners
David Lavigne, Senior Analyst, Managing Partner – Trickle Research
Clive Maund – CliveMaund.com
headshot of Bill Newman
Bill Newman, Senior Analyst, Energy – Mackie Research Capital

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.See disclaimer for more details.

Investing Highlights
 
Precedent setting natural gas development, reserves discovered, delineated, and development complete.
 
Attractive long-term gas sales agreement with floor price of US$5.21/mmbtu.
 
Strategic midstream infrastructure – constructed first independently owned gas plant in Brazil
 
4 Balanced reinvestment and stakeholder return model. Dividends expected to start in 2021.
catalyst Calendar
Q2
2020
Q4
2020
Long-term testing of Gomo gas resource to define deep basin development opportunity (2021+).
Q4
2020
Conventional exploration inventory (3 to 5 years)