CALGARY, AB, April 25, 2024 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro") announces that it has filed a request for an emergency arbitration (the "Emergency Arbitration Application") before the International Court of Arbitration of the International Chamber of Commerce ("ICC") in connection with the redetermination of working interests in the unitized area which includes Alvopetro's Caburé natural gas field (the "Unit").
As announced by Alvopetro on April 5, 2024, the independent expert (the "Expert") appointed by Alvopetro and our third-party partner (the "Partner") found in favour of Alvopetro's proposal, thereby increasing Alvopetro's working interest in the Unit from 49.1% to 56.2%. On April 11, 2024, Alvopetro received a notice of dispute from the Partner with respect to the Expert decision seeking to stay the redetermination procedure. Following the receipt of the decision of the Expert, the Partner had requested additional clarifications with respect to the decision. The Expert has now provided an additional formal response expanding on the technical justifications for their final decision, reiterating the decision in favour of Alvopetro, and noting that they consider the matter closed.
As previously announced, Alvopetro strongly disagrees with the Partner as all provisions of the Unit Operating Agreement ("UOA") and related agreements between the parties provide that the decision of the Expert is binding. Alvopetro has now filed the Emergency Arbitration Application before the ICC. Pursuant to the Application, Alvopetro has requested that an emergency arbitrator be appointed in order to make the Expert decision effective, as provided for in the UOA.
Alvopetro Energy Ltd.'svision 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.
Abbreviations:
ANP: Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (The National Agency of Petroleum, Natural Gas and Biofuels of Brazil)
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. Forward–looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning the emergency arbitration procedures. The forward–looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to expectations and assumptions concerning the success of future drilling, completion, and testing, equipment availability, the timing of regulatory licenses and approvals, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of global pandemics and other significant worldwide events, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the outcome of any future redeterminations, 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 factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca. 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.
SOURCE Alvopetro Energy Ltd.
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