Mr. Corey Ruttan reports

ALVOPETRO COMMENCES PRODUCTION FROM 197(1) WELL

Alvopetro Energy Ltd. has begun production at the 197(1) well on its Murucututu natural gas field. The company has also provided an operational update.

197(1) production commencement (100 per cent Alvopetro)

Earlier this month, the company completed stimulation operations at the 197(1) well on its Murucututu natural gas field. Alvopetro successfully stimulated four intervals in the well, injecting a total of 125 tonnes of sand into the formation. Following the stimulation, the company completed a 63-hour cleanup flow period and recovered 1,156 barrels of frac fluid and flowed a total of 3.8 million cubic feet of natural gas. Following the cleanup flow period and confirmation of natural gas composition, Alvopetro initiated natural gas sales through the Murucututu extension pipeline through to its Cabure natural gas plant (UPGN). The well is now flowing at a restricted rate of 1.3 million cubic feet per day through a 20/64-inch choke at a flowing wellhead pressure of 873 pound-force per square inch with 24 barrels per day of 53-degree API (American Petroleum Institute) natural gas liquids (condensate) and 57 barrels per day of frac fluid. Alvopetro has now delivered natural gas sales to the UPGN for a total of 30 hours, averaging 1.3 MMcfpd (220 barrels of oil equivalent per day), and it plans to continue to flow the well at this rate.

President and chief executive officer Corey C. Ruttan commented, "The completion and stimulation of our 197(1) well represents a major milestone for our Murucututu natural gas field development, and we are looking forward to drilling our first two fit-for-purpose Murucututu development wells in the second half of this year."

Operational update

On Alvopetro's Bom Lugar field, the company spudded its first development well (BL-06) on April 30, and Alvopetro has currently drilled 2,017 metres of the expected 3,400 metres and expects drilling to be completed in June. The BL-06 well is targeting the Caruacu formation, with additional potential in the deeper Gomo and Agua Grande formations.

About Alvopetro Energy Ltd.

Alvopetro Energy's vision is to become a leading independent upstream and mid-stream operator in Brazil. The company's strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of its Cabure natural gas field and its strategic mid-stream infrastructure.

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