CALGARY, ALBERTA / ACCESSWIRE / September 12, 2019 / Alvopetro Energy Ltd. (TSX-V: ALV; OTCQX: ALVOF) announces an operational update on our Cabure Midstream Project consisting of our 11-kilometre transfer pipeline ("Transfer Pipeline") and our gas treatment facility (the "Facility").
Cabure Midstream Project (100% Alvopetro)
Construction of the Transfer Pipeline commenced with right of way preparation in May 2019. Line pipe has been laid out along 71% of the right of way. Over 42% of the pipe has now been welded and 14% has been installed and buried. The Transfer Pipeline is expected to be completed in the fourth quarter of 2019.
Our Gas Treatment Facility is being constructed by Enerflex Ltd. ("Enerflex") where they will construct, own and operate the Facility. Enerflex is responsible for all operations and maintenance of the Facility and is warrantying the delivery schedule and on-stream performance of the Facility. All of the processing skids for the Facility have now arrived in Brazil and the majority have cleared customs and are at the field staging area. Enerflex has commenced field work for the installation of the processing skids.
Alvopetro expects to start natural gas deliveries from the Cabure field in early 2020. Our natural gas is being sold under our long-term gas sales agreement with Bahiagas, the local distribution company for the state of Bahia. As part of this agreement, Bahiagas agreed to extend their distribution network by 15 kilometres and construct a new gas receiving station (City Gate) at the Facility site. In July, Bahiagas issued their service authorization to commence the construction of this pipeline extension. Their contractor has mobilized their equipment and Bahiagas has now received all line pipe shipments to the field.
Updated Corporate Presentation
Alvopetro's updated corporate presentation is available at: http://www.alvopetro.com/corporate-presentation.
Investor Summit - New York City
Alvopetro will be attending the Fall Investor Summit at The Essex House in New York City, on September 16th and 17th. The Investor Summit is an exclusive, independent conference dedicated to connecting small cap and microcap companies with qualified investors. Alvopetro will present on September 17, 2019 at 9am Eastern Time. A live webcast can be accessed at https://www.webcaster4.com/Webcast/Page/2038/31634 and a replay will be made available on Alvopetro's website.
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 Cabure natural gas field and the construction of 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 expected timing and outcomes of certain of regulatory approvals and Alvopetro's operational activities and expected timing of commencement of gas sales under Alvopetro's long-term gas sales agreement. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to the timing of regulatory licenses and approvals, the success of future drilling, completion, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, 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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Corey C. Ruttan, President, Chief Executive Officer and Director, or
Alison Howard, Chief Financial Officer
SOURCE: Alvopetro Energy Ltd.
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