Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) has reported average September sales volumes of 2,231 barrels of oil equivalent per day (boepd), alongside updates on its natural gas pricing, a non-core asset sale in Brazil, and expansion of its exploration portfolio in Western Canada.
In Brazil, the company’s September sales averaged 2,069 boepd, including 11.3 million cubic feet per day (MMcfpd) of natural gas, 180 barrels per day (bopd) of condensate, and 9 bopd of oil.
Alvopetro said the strong contribution came from its Murucututu field, particularly the 183-D4 well, which began producing in late August and achieved an initial 30-day average rate of 5.8 MMcfpd and 97 bopd of condensate, totaling 1,071 boepd.
Sales volumes were affected by reduced demand from Bahiagas, prompting Alvopetro to scale back production from its Caburé field during the month.
The company noted that since October 1, it has entered a spot contract with Bahiagas to support increased flexible demand.
Between October 1 and 6, natural gas deliveries averaged 17.3 MMcfpd, a 54% increase from September levels, though October deliveries are expected to align closer to the firm contracted volume of 14 MMcfpd due to temporary electricity interruptions in Bahia’s industrial complex.
In Canada, sales averaged 162 bopd in September following the early production start from two new multi-lateral wells at the Big Gully project in Saskatchewan, which together include more than 19 kilometers of open-hole reservoir contact.
Effective November 1, 2025, Alvopetro’s natural gas price under its long-term sales agreement will be adjusted to BRL1.81 per cubic meter for firm sales volumes up to 400,000 m³ per day through January 31, 2026.
Based on current exchange rates, this equates to an expected realized price of $10.27 per thousand cubic feet (Mcf), down 3% from the prior quarter due to weaker benchmark Henry Hub prices.
The company also announced an expansion of its Mannville Stack portfolio in Western Saskatchewan through a new agreement with an existing partner.
Under the deal, Alvopetro will fund 100% of two earning wells to secure a 50% working interest in an additional 46.9 sections of land (15,010 net acres).
Following drilling, the company will hold a 50% interest in 74.4 sections (23,810 net acres), furthering its strategy in the Mannville heavy oil play.
Separately, Alvopetro has agreed to sell its interests in the Bom Lugar and Mãe da Lua oil fields in Brazil for up to $0.6 million, including deferred payments.
The buyer will assume all related abandonment liabilities, and the sale remains subject to regulatory approval.
Combined oil sales from these fields averaged 8 bopd in 2025.
Alvopetro plans to release its third-quarter 2025 financial results after market close on November 5, 2025.
A webcast and conference call to discuss the results will be held at 8 am Mountain Time (10 am Eastern) on November 6.