Mr. Corey Ruttan reports

ALVOPETRO ANNOUNCES JULY 2023 SALES VOLUMES, AN OPERATIONAL UPDATE, OUR SEMI-ANNUAL NATURAL GAS PRICE REDETERMINATION AND TIMING OF Q2 2023 RESULTS AND EARNINGS CALL

Alvopetro Energy Ltd. has released its July, 2023, sales volumes, its Aug. 1, 2023, natural gas price redetermination, an operational update, and the timing for release of its Q2 2023 results and earnings call.

All amounts contained in this new release are in United States dollars, unless otherwise stated.

July, 2023, sales volumes

July sales volumes averaged 2,018 boe/d (barrels of oil equivalent per day), including natural gas sales of 11.6 MMcf/d (million cubic feet per day) and associated natural gas liquids sales from condensate of 90 bo/d (barrels of oil and/or natural gas liquids (condensate) per day), based on field estimates.

Operational update

On July 11, the company spudded its 183-A3 well on the Murucututu natural gas field. The 183-A3 well is targeting shallower exploration potential in the Caruacu formation and the Gomo member of the Candeias formation. The company expects to finish drilling in the third quarter. Alvopetro also expects to complete its recently drilled Bom Lugar well (BL-06) and have the well on production in the third quarter.

Semi-annual natural gas price redetermination

Effective Aug. 1, 2023, the company's natural gas price under its long-term gas sales agreement (GSA) with Bahiagas has been adjusted to 1.99 Brazilian real (BRL)/cubic metre or $13.25/MMcf (based on the company's average heat content to date, the July 31, 2023, BRL/U.S. dollar foreign exchange rate of 4.74 and enhanced sales tax credits applicable in 2023). The contracted price is based on the adjusted ceiling price of $10.52/MMBtu (million British thermal units), which increased 3 per cent from the Feb. 1, 2023, price due to U.S. inflation adjustments. With the appreciation in the BRL relative to the U.S. dollar over the first half of 2023 compared with the second half of 2022, the BRL contracted price decreased slightly from 2.00 BRL/cubic metre as of Feb. 1, 2023, to 1.99 BRL/cubic metre as of Aug. 1, 2023. The new contracted price will be applicable for all natural gas sales from Aug. 1, 2023, to Jan. 31, 2024.

Upcoming Q2 2023 results and live webcast

Alvopetro anticipates announcing second quarter 2023 results on Aug. 9, 2023, after markets close, and will host a live webcast to discuss the results at 9 a.m. MT, on Aug. 10, 2023. Details for joining the event are as follows.

Date:  Aug. 10, 2023

Time:  9 a.m. MT (11 a.m. ET)

Webcast:  access on-line

Dial-in numbers:  access on-line

Webinar ID:  837 2379 6296

The webcast will include a question-and-answer period. On-line participants will be able to ask questions through the Zoom portal. Dial-in participants can e-mail questions directly to socialmedia@alvopetro.com.

Corporate presentation

Alvopetro's updated corporate presentation is available on its website.

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 onshore 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.

We seek Safe Harbor.