Mr. Corey Ruttan reports

ALVOPETRO ANNOUNCES AUGUST 2023 SALES VOLUMES AND AN OPERATIONAL UPDATE

Alvopetro Energy Ltd. has provided its August, 2023, sales volumes and an operational update.

August, 2023, sales volumes

August sales volumes averaged 1,852 barrels of oil equivalent per day, including natural gas sales of 10.6 million cubic feet per day, associated natural gas liquids (NGL) sales from condensate of 84 barrels of oil per day and oil sales of eight barrels of oil per day, based on field estimates. Of the total natural gas sales of 10.6 million cubic feet per day, 9.9 million cubic feet per day were from the company's Cabure field, with 700,000 cubic feet per day from the company's Murucututu field. Natural gas production from the company's Murucututu field declined from 900,000 cubic feet per day in July to 700,000 cubic feet per day in August, and the company is evaluating alternatives to improve the productive capability of the field.

In connection with a temporary reduction in end-user consumption, the company's offtaker, Bahiagas, has provided notice to reduce natural gas nominations for the remainder of September to approximately 8.5 million cubic feet per day, and as such, we are expecting a reduction in September natural gas sales.

Operational update

In July, the company spudded its 183-A3 well on its Murucututu natural gas field. Alvopetro initially drilled to a total measured depth of 1,614 metres but encountered hole stability problems drilling the intermediate section within the Pojuca formation in the intermediate 12-1/4-inch hole section. The company was able to successfully recover the directional drilling assembly and return it to surface, and the company then initiated a sidetrack from 800 metres. Alvopetro completed drilling this sidetracked intermediate section to 1,707 metres and the company is in the process of cementing this section in place. Alvopetro's plan is to drill the well to 3,600 metres and the company now expects to complete drilling operations in October.

On its Bom Lugar field, following an extended maintenance program on the company's contracted completion rig, Alvopetro has now initiated completion operations of its BL-06 well. The company expects to have the well on production later this month.

Corporate presentation

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