September Sales Volumes And Gas Plant Expansion CALGARY, AB, Oct. 5, 2021 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces September sales volumes of 2,536 boepd based on field estimates, including natural gas sales of 14.5 mmcfpd and associated natural gas liquids sales from condensate of 113 bopd. This brings our average third quarter sales volumes to an estimated 2,459 boepd, an increase of 4% from our second quarter sales volumes of 2,361 boepd. On August 1, 2021, our natural gas price was adjusted to BRL1.31/m3, an increase of 24% from our February 1, 2021 contracted natural gas price of BRL1.06/m3. We are forecasting a further increase, to the ceiling within our contract, effective February 1, 2022, to BRL1.81/m3. This has been estimated using commodity prices to-date in 2021, GLJ Ltd.'s October 1, 2021 commodity price forecast and US CPI inflation up to August 31, 2021. Assuming the average heat content of Alvopetro's gas to-date of 107% and the September 30, 2021 BRL/USD foreign exchange rate of 5.44 this equates to US$10.07/mcf effective February 1, 2022.
Gas Plant Expansion
We have notified Enerflex Ltd. to increase the operational capacity of our gas processing facility to 500,000 m3/d under the terms of our existing Gas Treatment Agreement. We expect that the additional firm capacity will be available by June 1, 2022. The additional available capacity will allow us to have flexibility to process additional volumes from our Murucututu field with initial production from our 183(1) Gomo well expected early in 2022 with further capital plans commencing in 2022, including stimulation and tie-in of the 197(1) well and follow-up development wells.