Alvopetro Energy Ltd. announced that the company has completed drilling BL-06 well on 100% owned and operated Bom Lugar field in the Recôncavo Basin. Based on open-hole wireline logs the well has discovered a total of 35.4 metres of potential net oil pay, with an average porosity of 11.2% and average water saturation of 39.2%. The BL-06 well was spud on April 30, 2023 and drilled to a total measured depth ("MD") of 3,244 metres.

The primary target was the Caruaçu Member of the Maracangalha Formation with additional targets in the deeper Gomo Member of the Candeias Formation and the Agua Grande Formation. Based on open-hole logs, the BL-06 well encountered 35.4 metres of potential net oil pay in the Caruaçu Member at total vertical depth ("TVD") between 2,390 metres and 2,509 metres with an average porosity of 11.2% and an average water saturation of 39.2%, using an 8% porosity cut-off, 50% Vshale cut-off and 50% water saturation cut-off. The Gomo Member of the Candeias Formation was encountered between 2,509 and 3,097 metres TVD.

Hydrocarbon shows were evident while drilling the Gomo Member, but no net pay was calculated based on open-hole logs. Drilling was concluded prior to reaching the Agua Grande Formation, however the company still plans to target the Agua Grande Formation in future wells. Based on these drilling results, the company plans to undertake a testing program of the BL-06 well with a service rig, subject to equipment availability.

This testing will assess the productive capability of this well and help define the field development plan. After testing, the well is expected to be tied into the existing Bom Lugar production facility in the third quarter. After casing BL-06 well, the company plans to mobilize the drilling rig to Murucututu natural gas field to drill its next two planned fit-for-purpose wells, the first of which is expected to be spud in July.