CALGARY, AB , May 3, 2021 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV); (OTCQX: ALVOF) announces a favorable amendment to our existing senior secured credit facility (the "Facility"). The maturity date of the Facility has been extended by one year to October 8, 2023 , the 3% per annum interest payable in kind ("PIK") has been eliminated effective April 15, 2021 , and the covenants pertaining to the payment of dividends have been relaxed. With the elimination of the PIK interest, the effective interest rate declines from 12.5% to 9.5%, a 24% savings. The Facility will continue to be repayable at maturity or earlier at Alvopetro's option without penalty.
Corey Ruttan , President and Chief Executive Officer, commented:
"This amendment allows us to continue our valued relationship with Cordiant Capital and recognizes the strong operating and financial results being generated by our Caburé project. This refinancing is a key prerequisite to accelerating our balanced stakeholder return and reinvestment model. Following the drilling of our two high impact exploration prospects (183-B1 and 182-C1), scheduled to start drilling at the end of June 2021 , we expect to be in a position to define our 2022 capital expenditure budget and in turn, our stakeholder return model."
Stephen Foss , Managing Director, Cordiant Capital, commented:
"We are pleased to continue our valued relationship with Alvopetro, to provide on-going support as it expands its operations in Brazil . With its strategic initiatives and its demonstrated commitment to ESG principles, we believe the company is well positioned to continue its growth trajectory."
Corporate Presentation
Alvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation .
Social Media
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Alvopetro Energy Ltd.'s vision is to become a leading independent upstream and midstream operator in Brazil . Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil , building off the development of our Caburé natural gas field and our strategic midstream infrastructure.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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.
Forward-Looking Statements and Cautionary Language. This news release contains "forward-looking information" within the meaning of applicable securities laws. The use of any of the words "will", "expect", "intend" and other similar words or expressions are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward-looking information concerning the plans relating to the Company's operational activities and the Company's stakeholder return model. The forward–looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to the extent of future gas sales under the Company's long-term gas sales agreement, the timing of regulatory licenses and approvals, the success of future drilling, completion, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic, the performance of producing wells and reservoirs, well development and operating performance, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed through the SEDAR website at www.sedar.com . The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOF
SOURCE Alvopetro Energy Ltd.
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