Mr. Corey Ruttan reports

ALVOPETRO ANNOUNCES BLOCK 182 DISCOVERY

Alvopetro Energy Ltd.'s 182 (B1) well, located on block 182, in the Reconcavo basin in the state of Bahia, Brazil, has discovered hydrocarbons. The 182 (B1) well reached a total measured depth of 2,095 metres. While drilling, inflows of oil and solution gas were experienced into the wellbore from an overpressured hydrocarbon-bearing zone at approximately 1,722 metres MD in the Candeias formation. The well was controlled, the hydrocarbons were circulated out, the drilling fluid density was increased and the well was drilled to total depth, cased and cemented. Due to the formation pressures encountered, cased-hole sonic and neutron logs were run. The logs indicate the well has encountered six metres of potential conventional hydrocarbon pay in the Agua Grande formation at 1,900 to 1,906 metres MD, with an average 35-per-cent water saturation and a porosity range of 10 to 14 per cent. The company plans to conduct further cased-hole logging and test the hydrocarbon potential of both the Candeias and Agua Grande formations over 72-hour initial period tests and then long-duration tests in accordance with Brazilian hydrocarbon regulations.

The well satisfies the company's current-phase exploration work commitment, and the company has two additional prospects on this block.

It continues to focus significant effort on interpreting its extensive reprocessed 3-D seismic database. Its conventional exploration inventory has now expanded to 21 prospects. One of the company's more prospective conventional oil exploration opportunities is a shallow target on block 170, at 2,000 metres vertical depth, that it plans to drill in the second half of 2015.

The company is also sourcing a larger drilling rig capable of efficiently drilling its first Bom Lugar horizontal development oil well. It is expected this rig would also be used to drill the first of two conventional oil prospects on block 107, which are offsetting and analogous to its Bom Lugar producing field.

Updated corporate presentation

Its updated corporate presentation is available at the company's website.

We seek Safe Harbor.