Alvopetro Announces Q1 2024 Results and Details for the Q1 2024 Earnings Call, April Sales Volumes, an Operational Update and Details for our Upcoming AGM
CALGARY, AB, May 8, 2024 /CNW/ - Alvopetro Energy Ltd. (TSXV:ALV) (OTCQX:ALVOF) announces April 2024 sales volumes, an operational update, financial results for the three months ended March 31, 2024 and details for both our Q1 2024 earnings call and our upcoming annual general and special meeting.
All references herein to $ refer to United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.
April Sales Volumes
April sales volumes averaged 1,808 boepd, including natural gas sales of 10.3 MMcfpd, associated natural gas liquids sales from condensate of 79 bopd and oil sales of 18 bopd, based on field estimates.
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Natural gas, NGLs and crude oil sales: |
April |
March |
|
Natural gas (Mcfpd), by field: |
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|
Caburé |
9,773 |
10,437 |
|
Murucututu |
492 |
462 |
|
Total natural gas (Mcfpd) |
10,265 |
10,899 |
|
NGLs (bopd) |
79 |
86 |
|
Oil (bopd) |
18 |
8 |
|
Total (boepd) |
1,808 |
1,911 |
Operational Update
We have completed the planned chemical injection program in our 197-1 well. This program was designed to enhance production from the well and we are in the process of bringing the back online to the field production facility. Following this project, we plan to recomplete our 183-1 well in an uphole Caruaçu zone. We expect to initiate this project in the next two weeks, with production results anticipated in June. Following this, we also plan to finish the completion of our 183-A3 well. This well was drilled to a total measured depth of 3,540 metres and based on open-hole logs, the well encountered potential net natural gas pay in both the Caruaçu Member of the Maracangalha Formation and the Gomo Member of the Candeias Formation, with an aggregate 127.7 metres total vertical depth of potential natural gas pay, using a 6% porosity cutoff, 50% Vshale cut-off and 50% water saturation cutoff. The 183-A3 work is expected to start at the beginning of the third quarter pending equipment availability.
On April 4, 2024, the independent expert appointed in connection with the redetermination of working interests in the unitized area which includes Alvopetro's Caburé natural gas field (the "Unit"), found in favour of Alvopetro, increasing Alvopetro's working interest from 49.1% to 56.2%. Our partner filed a notice of dispute seeking to stay the redetermination result. Alvopetro then filed an emergency arbitration request before the International Chamber of Commerce ("ICC") seeking an injunction to make the expert decision effective in the interim, starting on June 1, 2024, as provided for in our Unit Operating Agreement ("UOA"). The dispute may ultimately need to be decided by an arbitral tribunal pursuant to the Rules of Arbitration of the ICC as provided for under the terms of the UOA.
Financial and Operating Highlights – First Quarter of 2024
- Our daily sales averaged 1,701 boepd during the quarter, a decrease of 21% from Q4 2023 and 39% from Q1 2023 due to lower natural gas demand and reduced availability from the Unit.
- Our average realized natural gas price was $12.57/Mcf, a 4% increase from Q1 2023, and our overall realized price per boe was $75.94 (+4% from Q1 2023).
- With lower overall sales volumes, our natural gas, condensate and oil revenue was $11.8 million in Q1 2024, a decrease of $3.5 million (-23%) compared to Q4 2023 and a decrease of $6.4 million (-35%) compared to Q1 2023.
- Our operating netback in the quarter was $66.16 per boe (-$0.45 per boe from Q1 2023) with higher production expenses more than offsetting the increase in realized sales prices.
- We generated funds flows from operations of $8.5 million ($0.23 per basic and per diluted share), a decrease of $6.5 million compared to Q1 2023 and $3.9 million compared to Q4 2023.
- We reported net income of $4.6 million in Q1 2024, a decrease of $7.7 million compared to Q1 2023 and an increase of $3.9 million compared to Q4 2023.
- Capital expenditures totaled $2.4 million, including completion costs for the 183-A3 well on our Murucututu natural gas field, site construction costs for a new well pad on the Murucututu field and equipment purchases for upcoming capital projects.
- Consistent with lower overall sales volumes and funds flow from operations in the quarter, our Board of Directors decreased the quarterly dividend to $0.09 per share. The dividend was paid on April 15, 2024 to shareholders of record on March 28, 2024.
- Our working capital surplus was $15.0 million as of March 31, 2024, increasing $1.9 million from December 31, 2023.
The following table provides a summary of Alvopetro's financial and operating results for the periods noted. The consolidated financial statements with the Management's Discussion and Analysis ("MD&A") are available on our website at www.alvopetro.com and will be available on the SEDAR+ website at www.sedarplus.ca.
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As at and Three Months Ended March 31, |
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2024 |
2023 |
Change (%) |
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Financial |
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($000s, except where noted) |
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Natural gas, oil and condensate sales |
11,752 |
18,160 |
(35) |
|||
|
Net income |
4,550 |
12,202 |
(63) |
|||
|
Per share – basic ($)(1) |
0.12 |
0.34 |
(65) |
|||
|
Per share – diluted ($)(1) |
0.12 |
0.33 |
(64) |
|||
|
Cash flows from operating activities |
8,213 |
13,856 |
(41) |
|||
|
Per share – basic ($)(1) |
0.22 |
0.38 |
(42) |
|||
|
Per share – diluted ($)(1) |
0.22 |
0.37 |
(41) |
|||
|
Funds flow from operations (2) |
8,513 |
14,972 |
(43) |
|||
|
Per share – basic ($)(1) |
0.23 |
0.41 |
(44) |
|||
|
Per share – diluted ($)(1) |
0.23 |
0.40 |
(43) |
|||
|
Dividends declared |
3,296 |
5,104 |
(35) |
|||
|
Per share(1) |
0.09 |
0.14 |
(36) |
|||
|
Capital expenditures |
2,439 |
3,291 |
(26) |
|||
|
Cash and cash equivalents |
17,450 |
24,623 |
(29) |
|||
|
Net working capital(2) |
15,047 |
20,915 |
(28) |
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Weighted average shares outstanding |
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