Alvopetro highlights strong Brazil operations during second quarter – ICYMI

Alvopetro Energy Ltd earlier this week reported another strong quarterly performance, with higher production, stronger commodity prices and continued progress at its flagship Murucututu natural gas project in Brazil supporting revenue and cash flow growth.

Speaking with Proactive, chief executive Corey Ruttan said average sales volumes increased 26% year over year to 3,067 barrels of oil equivalent per day. He added that the company's realized natural gas price approached US$11 per MCF during the quarter, while condensate and oil prices also strengthened significantly compared with the same period last year.

Ruttan said the combination of higher production and improved pricing generated revenue of just over US$19 million and funds flow from operations of US$14.1 million. He also highlighted an operating netback of more than US$59 per boe and an 86% netback profit margin, which he said demonstrated the benefits of the company's low-cost operations and Brazil's favourable royalty regime.

Operationally, the company continues to advance development at its wholly owned Murucututu project. Ruttan said the first well drilled during 2026 is ready to begin production, while the second well is currently being drilled and will be followed immediately by another well as part of an accelerated drilling programme.

The company has also brought forward capital spending originally planned for 2027 into 2026 to maintain drilling continuity and capture operational efficiencies.