Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) earlier this week discussed strong Q1 2025 performance, driven by gains in Brazil and early success in a new Canadian venture.
The company told investors it produced 2,446 barrels of oil equivalent per day during the quarter. This marked a 41% increase from Q4 2024. It said the realized gas price reached US$10.44 per MCF, which contributed to over US$9 million in funds flow from operations.
Alvopetro said the increase in production was supported by the 183-A3 well at its 100%-owned Murucututu project in Brazil. It highlighted that the result allowed it to increase firm delivery obligations with its offtaker by one third.
A follow-up well is now being drilled in the same formation, approximately 110 metres up dip. The company said this could add a significant amount of additional pay. A further follow-up well and development activity are planned later this year.
In Canada, the company said it completed a strategic entry into the Western Canadian Sedimentary Basin in February. Alvopetro drilled two wells under budget and brought them into production in April. It noted early results are exceeding type curve expectations.
Looking forward, Alvopetro is targeting at least a 25% increase in productive capacity in Brazil by the end of 2025. It also plans to drill up to four more wells in Western Canada. The company said this dual-basin focus supports a balanced model of returns and reinvestment.