Gomo Tight Gas Resource (100% Alvopetro) - 183(1) Well Test
Our 183(1) well, located on Block 183 (100% working interest) in the Recôncavo basin in the
Operational Update
Caburé
The Caburé Unit development plan includes construction of high-pressure gas production facilities, tie-in of all wells, and drilling up to four new wells. The third development well (7-CBE-1D-BA) in the plan was recently drilled to a depth of 1,759 metres measured depth ("MD"). Based on open-hole logs, the well encountered 72 metres of potential net pay in the Caruacu Member of the Maracangalha Formation, with average porosity of 13.1% and average water saturation of 37%, consistent with expectations. Remaining field development, consisting of inter-well flowlines, the high-pressure facilities expansion, including connection to
Caburé
Our Caburé
Our natural gas will be sold under our long-term gas sales agreement with Bahiagás, the local distribution company for the
Neither the
Testing and Well Results. Data obtained from the 183(1) well and the 7-CBE-1D-BA well identified in this press release, including hydrocarbon shows, open-hole logging, net pay, porosities, and preliminary testing data (including production test rates and initial flow rates) should be considered to be preliminary until detailed pressure transient analysis and interpretation has been completed, and ultimately until longer-term production rates are demonstrated. Hydrocarbon shows can be seen during the drilling of a well in numerous circumstances and do not necessarily indicate a commercial discovery or the presence of commercial hydrocarbons in a well. Initial flow rates and production test rates are not determinative of the rates at which such wells will commence production and decline thereafter. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. There is no representation by Alvopetro that the data relating to the wells contained in this press release is necessarily indicative of long-term performance or ultimate recovery of hydrocarbons. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the well or of expected production or operational results for Alvopetro in the future.
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 plans relating to the Company'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.
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