Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) is positioning itself for production growth in the second half of 2025, as the company prepares to bring new wells online in both Brazil and Western Canada and ramps up drilling activity across its portfolio.
The company said Wednesday it expects to add meaningful new volumes in Brazil with the 183-D4 well, which was recently drilled and cased in the Murucututu natural gas field.
Alvopetro plans to complete the well in up to five intervals, with first production targeted for the third quarter.
Cased-hole logs indicate 61 metres of potential net natural gas pay in the Caruaçu Formation.
Alvopetro has initiated its Caburé Unit development drilling program, with the first well already spud and three more expected to follow by the end of the third quarter. In Western Canada, construction is underway for the next two well pads, with drilling slated to begin this summer.
The company’s May sales volumes averaged 2,334 barrels of oil equivalent per day (boepd), including 173 bpd of oil from its new Canadian assets. While Brazilian sales dipped to 2,161 boepd due to scheduled maintenance turnarounds at Alvopetro and Bahiagás facilities, the company anticipates a rebound in the coming months as operations normalize and new wells are brought online.
"May sales included the first full month of production from our first two wells drilled in Western Canada averaging 346 bopd gross (173 bopd net), exceeding our pre-farmin expectations and we are looking forward to drilling our next two wells here starting this summer,” CEO Corey Ruttan told investors in a statement.
“We are also encouraged by our 183-D4 results and expect to have this well on production in Q3 to fuel continued production growth in Brazil."