Mr. Corey Ruttan reports

ALVOPETRO ANNOUNCES OPERATIONAL UPDATE AND 2014 YEAR-END RESERVES

Alvopetro Energy Ltd. has provided an operational update and its 2014 year-end reserves.

Operational update

In December, 2014, the company's 197(2) well located on block 197 in the Reconcavo basin in the state of Bahia, Brazil, reached a total depth of 1,669 metres, discovered natural gas, and was cased and cemented. Based on cased-hole sonic and neutron logs, the 197(2) well encountered 78 metres of potential net natural gas pay, with an average 33-per-cent water saturation and an average porosity of 12 per cent, using an 8-per-cent porosity cut-off. The company has mobilized all required equipment and has commenced testing the lowermost interval of the well, and expects initial results within seven days. The company's 197(2) well was not evaluated as part of the company's year-end 2014 independent reserves evaluation.

The remainder of the company's 2015 drilling program is expected to commence in the second half of 2015, subject to equipment availability. In the current lower commodity price environment, it is anticipated that Alvopetro will benefit from a reduction in oil field service costs, resulting in improved capital efficiencies. Alvopetro remains committed to a disciplined and balanced approach to the company's business during this current volatility in world oil and gas markets, allowing it to preserve its significant financial flexibility and remain well positioned to execute on opportunities.

During the first quarter of 2015, the company furthered its engineering and geotechnical work on its Gomo resource play, with a focus on defining potential deliverability through the use of laboratory tests, and fracture stimulation and reservoir modelling. Alvopetro has submitted a regulatory application to complete and stimulate the company's 183(1) well. Together, these efforts provide the foundation for a large-scale commercial development.

Additionally, in the first quarter of 2015, it continued its focus on the interpretation of its extensive 3-D seismic database over its blocks, enabling it to increase its initial nine-well inventory of prospects to an 18-well inventory of conventional exploration opportunities.

Late in 2014, the company completed workovers of two wells in its Jiribatuba field, Jiribatuba(1) and Jiribatuba(9). Its Jiribatuba(1) well is producing 12 barrels of oil per day of 36-degree API crude. It is expected that the facilities for the company's Jiribatuba(9) well will be modified to bring the well back on-line in the second quarter of 2015. Based on field estimates, Alvopetro's current total company production is 40 barrels per day.

2014 year-end reserves summary

The reserves data set forth in the associated tables are based upon an independent reserve assessment and evaluation prepared by Sproule International Ltd. dated April 1, 2015, with an effective date of Dec. 31, 2014. The Sproule report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook reserve definitions that are consistent with the standards of National Instrument 51-101 (NI 51-101). The Sproule report was only an evaluation of the company's Bom Lugar, Jiribatuba and Aracaju mature fields, and did not include an evaluation of the company's exploration blocks, or the company's block 183 and 197 discoveries.

                   SUMMARY OF RESERVES (1)(2)(3)(4)(5)

                                                 Light, medium  Light, medium
                                                 and shale oil  and shale oil
                                                 company gross    company net
                                                        (Mstb)         (Mstb)
Proved
Proved developed producing                                  33             31
Total proved                                                33             31
Probable                                                   710            670
Total proved plus probable                                 742            701

       SUMMARY OF BEFORE-TAX NET PRESENT VALUE OF FUTURE NET REVENUE
                       (in $000s (U.S.)) (1)(2)(3)(4)

                         Undiscounted         5%       10%       15%       20%
Proved
Proved developed
Producing                         530      $494      $462      $434      $409
Total proved                      530       494       462       434       409
Probable                       26,503    18,613    13,384     9,735     7,080
Total proved plus
probable                       27,033    19,107    13,846    10,169     7,490

       SUMMARY OF AFTER-TAX NET PRESENT VALUE OF FUTURE NET REVENUE
                       (in $000s (U.S.)) (1)(2)(3)(4)

                         Undiscounted        5%       10%       15%       20%
Proved
Proved developed
Producing                         480       449       422       398       376
Total proved                      480       449       422       398       376
Probable                       25,081    17,539    12,532     9,036     6,492
Total proved plus
probable                       25,562    17,988    12,954     9,434     6,868

(1) The tables  are a summary of the reserves of Alvopetro and the net
    present value of future net revenue attributable to such reserves as
    evaluated in the Sproule report based on forecast price and cost
    assumptions. The tables summarize the data contained in the Sproule
    report and, as a result, may contain slightly different numbers than such
    report due to rounding. Also due to rounding, certain columns may not
    add exactly.
(2) Company gross reserves mean the total working interest share of
    remaining recoverable reserves owned by Alvopetro before deductions of
    royalties payable to others and without including any royalty interests
    owned by Alvopetro.
(3) Based on Sproule's Dec. 31, 2014, escalated price forecast.
(4) The net present value of future net revenue attributable to Alvopetro's
    reserves is stated without provision for interest costs, and general and
    administrative costs, but after providing for estimated royalties,
    production costs, development costs, other income, future capital
    expenditures and well abandonment costs for only those wells assigned
    reserves by Sproule. The net present values of future net revenue
    attributable to the Alvopetro's reserves estimated by Sproule do not
    represent the fair market value of those reserves. Other assumptions and
    qualifications relating to costs, prices for future production and other
    matters are summarized herein. The recovery and reserve estimates of the
    company's reserves provided herein are estimates only, and there is no
    guarantee that the estimated reserves will be recovered. Actual reserves
    may be greater than or less than the estimates provided herein.
(5) Mstb means thousand stock tank barrels.

Future development costs

The associated table sets out the total development costs deducted in the estimation in the Sproule report of future net revenue attributable to proved reserves and proved plus probable reserves (using forecast prices and costs).

                           FORECAST PRICES AND COSTS
                        (in thousands of U.S. dollars)

                                                        Proved plus probable
                                       Proved reserves              reserves

2015                                                 -               $10,003
2016                                                 -                 2,030
2017                                                 -                     -
2018                                                 -                     -
2019                                                 -                     -
Remaining years                                      -                     -
Total undiscounted                                   -                12,033

    RECONCILIATION OF ALVOPETRO'S GROSS RESERVES (BEFORE ROYALTY) (1)(2)

                                                               Gross proved
                                Gross proved  Gross probable  plus probable
                                       (Mstb)          (Mstb)         (Mstb)

Dec. 31, 2013                           45.5           713.5          759.0
Technical revisions                     (0.6)           (2.5)          (4.1)
Economic factors                         0.0            (1.0)          (1.0)
Production                             (11.9)            0.0          (11.9)
Dec. 31, 2014                           33.0           710.0          742.0

(1) Gross reserves mean the company's working interest reserves before
    calculation of royalties.
(2) Based on the Sproule price forecast effective Dec. 31, 2014.

Corporate presentation

Alvopetro's updated corporate presentation is available on the company's website.

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