Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) announced a rise in third-quarter revenue and income, driven by increased natural gas production in Brazil.
The company, which focuses on natural gas and oil production in Brazil, reported average daily sales of 2,106 barrels of oil equivalent per day (boepd) in Q3 2024, a 24% increase year-on-year and a 29% rise from Q2, attributed to higher gas demand.
Revenue from natural gas, condensate, and oil reached $12.9 million, up $0.6 million from the same period last year.
Alvopetro’s natural gas sales prices fell to $10.92 per thousand cubic feet (Mcf), a 16% decline from Q3 2023, mainly due to a 14% devaluation of the Brazilian real against the US dollar. However, the boost in production helped the company achieve a net income of $7.2 million, an increase of $1.3 million year-over-year.
Production at the Murucututu field surged following the recompletion of its 183-A3 well, which came online in September. Natural gas output from the field rose 187% over Q3 levels, with further drilling planned in late 2024.
October sales volumes across the company averaged 1,912 boepd, slightly down from September’s 1,963 boepd.
Alvopetro reported operating netbacks of $59.19 per boe in Q3 2024, down by $11.15 year-over-year due to the price decline. Funds flow from operations rose to $9.9 million, with capital expenditures totaling $4.7 million, reflecting Murucututu well recompletions and upgrades at Caburé.
Alvopetro’s working capital surplus grew to $15.8 million by September 30, an increase of $2.7 million from December 2023.