Alvopetro Energy Ltd ALVOF

Primary Symbol: V.ALV

Energy Oil & Gas E&P

Alvopetro Energy Ltd. is a Canada-based company, which is engaged in the exploration for, and the acquisition, development and production of, hydrocarbons in Brazil. The Company is specialized in the development of Brazil's independent onshore natural gas industry with the Company's Cabure natural gas asset and midstream projects. It has interests in the Cabure and Murucututu natural gas assets, two exploration blocks (Block 182 and Block 183) and two oil fields (Bom Lugar and Mae-da-lua), in the Reconcavo basin onshore Brazil. The Cabure Field extends across four blocks in the Reconcavo Basin in the state of Bahia in Brazil, two of which are held by the Company and two of which are held by its partner. The Company's Murucututu natural gas project extends across Blocks 183 and 197, both held 100% by it. The Company is producing approximately 14 barrels of oil and/or natural gas liquids (condensate) per day (bopd) based on field estimates.

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Alvopetro Energy Ltd

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Post by Ladrianon Mar 27, 2021 8:40pm

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Post# 32893935

From another board CEO - https://ceo.ca/ALV

finally get the attention it deserves. A quick sum of the part analysis for the ones who want to understand what alvopetro is in my opinion:

26 Mar 2021, 11:16

@NicolasR 1/The Cabur deposit is producing and generates $17m of FCF per year and will continue to do so for the next 8-9 years at least

26 Mar 2021, 11:18

@NicolasR 2/The Gomo deposit is in the process of being proved and brought to production and has the potential to be 2-3X larger than the Cabur

26 Mar 2021, 11:19

@NicolasR 3/The company has built its own Gas processing facility and is currently using only 60% of its capacity. 2 options here to increase revenues: either increase the production with additional succesfull wells or rent it out to other producers.

26 Mar 2021, 11:22

@NicolasR 4/Near term exploration: two wells will be drilled in 2021 with both of them the potential to fill alone the available capacity of the plant: 182-C1 and 183-B1

26 Mar 2021, 11:23

@NicolasR 5/ and maybe by far the most important point: the management team is amazing and has been delivering on every milestones over the last 3 years that I have been a shareholder. They are not over promoting, just doing their job. They had massive success before with Petrominerales which was acquired for $US 1.5 billion in 2013.

26 Mar 2021, 11:27

@NicolasR 6/ They plan to distribute 50% of the FCF in dividends and reinvest the rest. Shareholders should receive over $80 m of dividends over the next 8 years, using the FCF generated by the Cabur assets alone.

26 Mar 2021, 11:32

@NicolasR I don't see what to not dislike in this stock. If anyone sees something I am missing, please highlight it to me. Best