Analysts at Research Capital see a recent update from Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF) supporting their growth outlook for the natural gas firm with assets in Brazil and Canada.
On Wednesday, Alvopetro Energy reported average September sales of 2,231 boepd, driven by strong production from its Murucututu field in Brazil and early output from new wells in Canada’s Big Gully project.
“The 183-D4 well in the Murucututu field continues to outperform, averaging 5.8 MMcf/d and 97 bbl/d of condensate (1,071 boe/d) over its first 30 days of production,” Research Capital’s analysts highlighted.
“We believe the well has likely added significant new reserves and sets the stage for potentially material growth from the Murucututu area.”
Alvopetro also reported that natural gas deliveries in Brazil rose 54% in early October under a spot contract with Bahiagas, though October volumes are expected to normalize due to temporary electricity interruptions.
The company announced a natural gas price adjustment to BRL1.81 per cubic meter for firm sales through January 2026 and expanded its Mannville Stack portfolio in Western Saskatchewan by securing a 50% working interest in 23,810 net acres.
Alvopetro also agreed to sell its non-core Bom Lugar and Mãe da Lua fields in Brazil for up to $0.6 million, with the buyer assuming all abandonment liabilities.
Following the update, Research Capital maintained its ‘Speculative Buy’ rating on Alvopetro with a $7.75 target price, implying upside of about 12.3% from the stock’s price at the time of writing.