Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) CEO Corey Ruttan talked with Proactive about the company’s 2024 performance and strategic goals.
Ruttan detailed the company’s November production numbers, which reflected seasonal maintenance by both Alvopetro and its gas consumers. This led to a temporary dip, but December’s production rebounded significantly, increasing by 43%.
Proactive: Let’s start with November. You've updated your sales numbers. There were some interesting numbers in there.
Corey Ruttan: Yes, we announce our production monthly. November was a bit lower. In the state where we produce gas, November is typically a time for facility maintenance and turnarounds by consumers. We took advantage of that to complete maintenance on all of our facilities.
We also announced December production numbers to date, which are up about 43% over November. I think we're ending the year quite nicely.
You've also announced a Q4 dividend, something the company has done in the past.
Yes, we've maintained a consistent quarterly dividend this year, following a disciplined capital allocation model. We reinvest half of our cash flow into organic growth and allocate the other half to stakeholders.
You mentioned gas agreements in the news release, which set the stage for next year. Could you explain how these agreements align with your plans for 2025?
The biggest part of our latest release was updating our contract. We sell gas in two modes in Brazil—firm and flexible.
We’ve experienced some demand volatility, but we’ve increased firm contractual volumes under our gas sales agreement by 33%. This increase should translate into a noticeable sales uptick next year.
We’ve also preserved attractive pricing relative to North American benchmarks. Based on futures prices, we forecast an average price of over $10.30 USD per MCF for 2025.
It sounds like 2025 is shaping up to be a pivotal year for Alvopetro. What work from 2024 has prepared you for this?
In 2024, we focused on building productive capacity to increase the firm volume under our gas sales agreement.
We’re particularly excited about results from the 183-A3 well on our Murucututu project. It has exceeded our early expectations and even surpassed the independent proved plus probable and possible estimate.
Next year, we’ll drill the 183-D4 well, located about 100 meters above the previous well. This will be another important milestone as we enter 2025.
Quotes have been lightly edited for clarity and style