Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) increased its production totals throughout the third quarter of 2024 from its Brazilian onshore natural gas assets.
September sales volumes averaged 1,963 boepd, showing improvement from August, with third-quarter production up 29% compared to the second quarter at 2,106 boepd.
The company is “very excited” about strong early production results from the completion of its 183-A3 well, CEO Corey Ruttan said.
“We look forward to continued production from the well and based on these early results we expect to be drilling follow-up locations starting later this year,” said Ruttan.
In September, Alvopetro completed the initial production of its 183-A3 well, which has begun producing natural gas and completion fluids. Over the last 72 hours, the well averaged 2.1 MMcfpd of gas, along with 175 barrels of completion fluid and 50 barrels of condensate daily, while maintaining an average flowing wellhead pressure of 1,195 psi.
The company also completed the recompletion of the 183-1 well, which is currently producing only water, and plans to monitor the 183-A3 well's performance to design a follow-up intervention for the 183-1 well and commence further drilling from the 183-D pad location.
Natural gas production from the Caburé field was 10.0 MMcfpd, down from 10.6 MMcfpd in August but up from Q2’s 8.8 MMcfpd. Conversely, the Murucututu field experienced a significant increase, producing 1.18 MMcfpd in September, a rise from 0.3 MMcfpd in August, reflecting the positive impact of the 183-A3 well.
Despite the positive results, the well has not yet recovered all the completion fluid. The company plans to monitor production closely and prepare follow-up drilling from the 183-D pad location based on the well’s continued performance.
Additionally, Alvopetro completed a recompletion of the 183-1 well in an uphole Caruaçu zone, but initial results indicate the zone is only producing water. The company intends to design an intervention for the 183-1 well after further analysis.
Looking ahead, Alvopetro plans to capitalize on the strong early results from the 183-A3 well, with further drilling projects expected later in 2024.