Mr. Corey Ruttan reports

ALVOPETRO ANNOUNCES DRILLING RESULTS FROM FIRST BOM LUGAR OIL DEVELOPMENT WELL

Alvopetro Energy Ltd. has completed drilling its BL-06 well on its 100-per-cent-owned-and-operated Bom Lugar field in the Reconcavo basin. Based on open-hole wireline logs the well has discovered a total of 35.4 metres of potential net oil pay, with an average porosity of 11.2 per cent and average water saturation of 39.2 per cent. All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.

President and chief executive officer Corey C. Ruttan commented:

"We are very pleased with the initial results from our first Bom Lugar oil development well. Based on logs, the well encountered thicker than anticipated Caruacu sands and, with successful production testing, is expected to lead to an expanded development drilling program."

The BL-06 well was spud on April 30, 2023, and drilled to a total measured depth (MD) of 3,244 metres. The primary target was the Caruacu member of the Maracangalha formation with additional targets in the deeper Gomo member of the Candeias formation and the Agua Grande formation. Based on open-hole logs, the BL-06 well encountered 35.4 metres of potential net oil pay in the Caruacu member at total vertical depth (TVD) between 2,390 metres and 2,509 metres with an average porosity of 11.2 per cent and an average water saturation of 39.2 per cent, using an 8-per-cent porosity cut-off, 50-per-cent Vshale cut-off and 50-per-cent water saturation cut-off. The Gomo member of the Candeias formation was encountered between 2,509 and 3,097 metres TVD. Hydrocarbon shows were evident while drilling the Gomo member, but no net pay was calculated based on open-hole logs. Drilling was concluded prior to reaching the Agua Grande formation, however we still plan to target the Agua Grande formation in future wells.

Based on these drilling results, the company plans to undertake a testing program of the BL-06 well with a service rig, subject to equipment availability. This testing will assess the productive capability of this well and help define the field development plan. After testing, the well is expected to be tied into the existing Bom Lugar production facility in the third quarter.

After casing the company's BL-06 well, Alvopetro plans to mobilize the drilling rig to its Murucututu natural gas field to drill its next two planned fit-for-purpose wells, the first of which is expected to be spudded in July.

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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