Alvopetro finishes Brazil gas plant upgrade, volumes rebound

Alvopetro Energy Ltd reported September sales volumes of 2,627 barrels of oil equivalent per day (boepd), based on field estimates, as it completed a planned upgrade of its gas processing facility in Brazil.

Brazil sales averaged 2,508 boepd, including natural gas sales of 14.1 million cubic feet per day and condensate sales of 162 barrels of oil per day.

The upgrade of the UPGN-Caburé plant required a five-day planned shutdown of all Brazil production, which affected September volumes, Alvopetro said. Production has since returned to previous levels, the company added.

Canadian production averaged 135 bopd, with sales of 119 bopd, marginally lower than prior months because of oil in tanks at quarter end.

At its wholly owned Murucututu field, the 183-H2 well was drilled to a measured depth of 3,176.5 metres. Open-hole logs indicate 44.4 metres of potential net natural gas pay in the Caruaçu Member, with average porosity of 9.6% and average water saturation of 32.8%. The company is completing the well and expects to bring it on production later this month.

Alvopetro is also drilling the 183-G2 well, the first Caruaçu development well from its new 183-G pad, with drilling expected to finish later in October.

The Caburé upgrade lets the company process up to 50% of plant throughput with Murucututu gas. Alvopetro is also targeting a fourfold increase in Murucututu field takeaway capacity through expanded processing facilities and pipelines, with completion expected by early 2027.

In Saskatchewan, its original partner is drilling the first of two planned multi-lateral wells, in which Alvopetro holds 50% and 30% working interests. Both are expected on production this quarter, with Alvopetro's share of costs estimated at C$1.6 million.

Drilling of the first of five earning wells on its new joint venture is expected to begin in early November, with all wells targeted for completion by year end. Alvopetro will fund 100% of the estimated C$8.5 million cost.