Alvopetro Energy Ltd (ALV)

Alvopetro Announces Q2 2026 Dividend of US$0.12 Per Share and Initial 183-D1 Well ResultsJune 8, 2026 7:03 PM
PR Newswire (Canada) CALGARY, AB, June 8, 2026 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces that our Board of Directors has declared a quarterly dividend of US$0.12 per common share, payable in cash on July 15, 2026 to shareholders of record at the close of business on June 30, 2026. This dividend is designated as an "eligible dividend" for Canadian income tax purposes. Dividend payments to non-residents of Canada will be subject to withholding taxes at the Canadian statutory rate of 25%.  Shareholders may be entitled to a reduced withholding tax rate under a tax treaty between their country of residence and Canada.  For further information, see Alvopetro's website at  https://alvopetro.com/Dividends-Non-resident-Shareholders.183-D1 Initial Well ResultsWe have now completed drilling the 183-D1 well on our 100% owned Murucututu natural gas field. The 183-D1 well was drilled to a total measured depth ("MD") of 3,263 metres between our previously drilled 183-A3 and 183-D4 wells. 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 47.7 metres total vertical depth ("TVD") of potential natural gas pay, with average porosity of 10.0% and average water saturation of 29.2%, using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cutoff.  The calculated net pay includes 21.9 metres of net pay, with average porosity of 10.2% and 21.8% water saturation in the lowermost Caruaçu Member (Sequence 6.1) of the Maracangalha Formation. This Sequence 6.1 has not been incorporated into our reserves or resources assessments to date. We plan to complete the well in up to seven intervals, including Sequence 6.1, and are working to have the well on production in July.Annual General MeetingAlvopetro's annual general and special meeting (the "Meeting") will be held on Tuesday, June 9, 2026 at the offices of Torys LLP (Suite 4600, 525 8th SW, Calgary, Alberta) beginning at 9:30 a.m. Mountain time. The management information circular and all related materials are available on our website and www.sedarplus.ca.All interested parties are invited to attend the Meeting. We will also be broadcasting the meeting via live webcast for the interest of all shareholders. Please be advised that shareholders will not be able to vote any shares through this webcast format. Details for joining the event are as follows:DATE: June 9, 2026
TIME: 9:30 AM Mountain/11:30 AM Eastern
LINK: https://us06web.zoom.us/j/86716593981
DIAL-IN NUMBERS: https://us06web.zoom.us/u/knxDPPeb8
WEBINAR ID: 867 1659 3981Corporate PresentationAlvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation.Social MediaFollow Alvopetro on our social media channels at the following links:Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltdAlvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related 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.Well ResultsData obtained from the 183-D1 well identified in this press release, including open-hole logging data, potential net pay and porosity should be considered should be considered preliminary until testing, detailed analysis and interpretation has been completed. 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. There is no representation by Alvopetro that the data relating to the 183-D1 well contained in this press release is necessarily indicative of long-term performance or ultimate recovery. 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", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning the Company's dividends, plans for dividends in the future, the timing and amount of such dividends and the expected tax treatment thereof, proposed exploration and development activities and the timing of such activities, and the anticipated timing of production commencement from certain wells. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of  redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and 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. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. 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. 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 factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca. 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.SOURCE Alvopetro Energy Ltd. Original: Alvopetro Announces Q2 2026 Dividend of US$0.12 Per Share and Initial 183-D1 Well Results

Alvopetro Announces May Sales VolumesJune 4, 2026 5:02 PM
PR Newswire (Canada) CALGARY, AB, June 4, 2026 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces May sales volumes of 3,076 boepd (based on field estimates). In Brazil, May sales averaged 2,895 boepd, including natural gas sales of 16.3 MMcfpd, associated natural gas liquids sales from condensate of 174 bopd and oil sales of 10 bopd. In Canada, oil sales averaged 181 bopd. Natural gas, NGLs and crude oil sales:May2026April2026Q1  2026 Brazil:


    Natural gas (Mcfpd), by field:


    Caburé12,06012,21011,691    Murucututu4,2064,5224,798    Total natural gas (Mcfpd)16,26616,73216,489    NGLs (bopd)174155175    Oil (bopd) (1)10912Total (boepd) – Brazil2,8952,9532,935Canada:


    Oil (bopd) – Canada181180193Total Company – boepd(2)3,0763,1333,128(1)Oil sales volumes in Brazil relate to the Bom Lugar and Mãe da lua fields. Alvopetro has entered into an assignment agreement to dispose of the fields, the closing of which is subject to standard regulatory approvals, including approval of the ANP.(2)Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.Operations UpdateWe are currently drilling our 183-D1 well at a depth of 3,085 meters out of a planned 3,270 metres total depth. The 183-D1 well is a follow up to our successful 183-D4 well in the Caruaçu Formation on our 100% interest Murucututu Field. We have also started civil construction of our 183-G drilling pad that will support our ongoing future development drilling plans.Annual General MeetingAlvopetro's annual general and special meeting (the "Meeting") will be held on Tuesday, June 9, 2026 at the offices of Torys LLP (Suite 4600, 525 8th SW, Calgary, Alberta) beginning at 9:30 a.m. Mountain time. The management information circular and all related materials are available on our website and www.sedarplus.ca.All interested parties are invited to attend the Meeting. We will also be broadcasting the meeting via live webcast for the interest of all shareholders. Please be advised that shareholders will not be able to vote any shares through this webcast format. Details for joining the event are as follows:DATE: June 9, 2026
TIME: 9:30 AM Mountain/11:30 AM Eastern
LINK: https://us06web.zoom.us/j/86716593981
DIAL-IN NUMBERS: https://us06web.zoom.us/u/knxDPPeb8
WEBINAR ID: 867 1659 3981Corporate PresentationAlvopetro's updated corporate presentation is available on our website at: 
http://www.alvopetro.com/corporate-presentation.Social MediaFollow Alvopetro on our social media channels at the following links:X - https://x.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltdAlvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related 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.Abbreviations:boepd=barrels of oil equivalent ("boe") per daybopd=barrels of oil and/or natural gas liquids (condensate) per dayBRL=Brazilian reale3m3/d=thousand cubic metre per daym3/d=cubic metre per dayMcf=thousand cubic feetMcfpd=thousand cubic feet per dayMMcf=million cubic feetMMcfpd=million cubic feet per dayNGLs=natural gas liquids (condensate)BOE DisclosureThe term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.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", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning plans relating to the Company's operational activities and proposed exploration and development activities and the timing of such activities. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of  future redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and 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. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. 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. 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 factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca. 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.SOURCE Alvopetro Energy Ltd. Original: Alvopetro Announces May Sales Volumes

Alvopetro Announces Q1 2026 Financial Results and Details for Our Upcoming AGMMay 7, 2026 5:01 PM
PR Newswire (Canada) CALGARY, AB, May 7, 2026 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro" or the "Company") announces an operational update, our financial results for the three months ended March 31, 2026, and details for both our Q1 2026 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.President & CEO, Corey C. Ruttan commented:"We delivered a strong start to 2026 with another record of quarterly sales at 3,128 boepd, driving funds flow from operations of $12.5 million. This performance underscores the quality of our asset base and our ability to fund organic growth while continuing to return significant capital to our shareholders."Recent UpdatesQuarterly Natural Gas Pricing Update Effective May 1, 2026, our natural gas price under our long-term gas sales agreement was adjusted to BRL1.91/m3 on the first 400e3m3/d (14.1 MMcfpd) reference volumes ("QDC1") with the incremental 100 e3m3/d (3.5 MMcfpd) reference volumes ("QDC2") adjusted to BRL1.61/m3. This represents increases of 3% and 21% respectively for QDC1 and QDC2 relative to the February 1, 2026 price reset.Based on our average heat content to-date and the April 30, 2026 BRL/USD exchange rate of 5.00, our weighted average realized price (QDC1 + QDC2) on firm natural gas sales during the May 1, 2026 to July 31, 2026 period is expected to be $11.31/Mcf, an increase of 12% over our Q1 2026 realized price of $10.14/Mcf. Based on the BRL/USD exchange rate of 5.00 and forecast Q2 2026 Brent and Henry Hub benchmark prices using closing futures prices on April 30 2026, our expected realized weighted average realized price for the August 1, 2026 – October 31, 2026 reset period is forecasted to be $13.06/Mcf. Amounts ultimately received in equivalent USD will be impacted exchange rates and actual benchmark pricing in effect during the relevant period.April Sales VolumesApril sales volumes averaged 3,133 boepd (based on field estimates). In Brazil, April sales volumes averaged 2,953 boepd including natural gas sales of 16.7 MMcfpd, associated natural gas liquids sales from condensate of 155 bopd and oil sales of 9 bopd. In Canada, April sales volumes averaged 180 bopd.Binding Arbitration DecisionOn April 27, 2026, Alvopetro received the final order (the "Final Order") of the arbitral tribunal of the arbitral tribunal (the "Tribunal") pursuant to which the Tribunal found in favour of Alvopetro, maintaining Alvopetro's 56.2% working interest in the unitized area which includes Alvopetro's Caburé natural gas field.Brazil Operational UpdateWe have now commenced drilling our 183-D1 well on our 100% Murucututu field targeting the Caruaçu Formation. We have also received the necessary environmental permits and have started construction for a new drilling pad to support future Caruaçu development updip of the successful 183-D4 well.Canada Operational Update In Canada, we completed drilling two (1.0 net) additional wells in the quarter. We now have seven (3.5 net) wells on production averaging 193 bopd in the quarter. We are working with our partner to finalize the timing of our next phase of drilling. Financial and Operating Highlights – First Quarter of 2026Alvopetro and Bahiagás agreed to amend our long-term gas sales agreement to increase Alvopetro's firm gas sales by 25% to 500 e3m3/d (17.7 MMcfpd) for 2026 and 2027. With higher firm contracted volumes, average daily sales in Brazil in Q1 2026 increased to 2,935 boepd(1) (+20% from Q1 2025 and +8% from Q4 2025). In Canada, daily sales averaged 193 bopd(1) (+30% from Q4 2025). Overall, total daily sales averaged 3,128 boepd (+28% compared to Q1 2025 and +9% compared to Q4 2025), setting a new quarterly sales record.Our average realized natural gas price was $10.14/Mcf (-3% from Q1 2025 and +2% from Q4 2025). Our overall average realized sales price per boe was $61.77/boe (-3% from Q1 2025 and +3% from Q4 2025).Our natural gas, oil and condensate revenue increased to $17.4 million (+24% from Q1 2025 and +10% from Q4 2025) due to higher sales volumes.Our operating netback(2) in the quarter was $52.12 per boe, an increase of $1.35 per boe compared to Q1 2025 and $2.42 per boe compared to Q4 2025. We generated funds flows from operations(2) of $12.5 million ($0.33 per basic and diluted share), an increase of $3.3 million compared to Q1 2025 and $1.9 million compared to Q4 2025.We reported net income of $8.1 million ($0.22 per basic share and $0.21 per diluted share), an increase of $2.0 million compared to Q1 2025 and $2.5 million compared to Q4 2025.Capital expenditures in Q1 2026 of $5.1 million included the cost to drill and complete two (1.0 net) wells in Saskatchewan, costs to recomplete the 183-1 well on Alvopetro's 100% Murucututu field as well as initial costs for upcoming drilling and facilities projects in Brazil.Our working capital(2) was $16.9 million as of March 31, 2026 and our working capital, net of debt was $4.9 million.(1)Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.(2)See "Non-GAAP and Other Financial Measures" section within this news release.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.

As at and Three Months Ended March 31,



20262025Change (%)Financial





($000s, except where noted)





Natural gas, oil and condensate sales


17,39214,01324Net income


8,0596,07033    Per share – basic ($)(1)


0.220.1638    Per share – diluted ($)(1)


0.210.1631Cash flows from operating activities


10,7178,81722    Per share – basic ($)(1)


0.290.2421    Per share – diluted ($)(1)


0.280.2322Funds flow from operations(2)


12,5059,22236    Per share – basic ($)(1)


0.330.2532    Per share – diluted ($)(1)


0.330.2438Dividends declared


4,4083,64321Per share(1)


0.120.1020Capital expenditures


5,1498,375(39)Cash and cash equivalents


32,45017,26488Working capital(2)


16,8969,74273Working capital, net of debt(2)


4,8969,742(50)Weighted average shares outstanding





    Basic (000s)(1)


37,41937,312-    Diluted (000s)(1)


38,05037,7521Operations





Average daily sales volumes(3):





Brazil:





    Natural gas (Mcfpd), by field:





        Caburé (Mcfpd)


11,69111,710-        Murucututu (Mcfpd)


4,7982,093129    Total natural gas (Mcfpd)


16,48913,80319    NGLs – condensate (bopd)


17513530    Oil (bopd)


121020    Total (boepd) - Brazil


2,9352,44620






Canada:





    Oil (bopd) - Canada


193--






Total Company (boepd)


3,1282,44628






Average realized prices(2):





    Natural gas ($/Mcf)


10.1410.44(3)    NGLs – condensate ($/bbl)


82.6381.052    Oil ($/bbl)


56.2464.96(13)    Total ($/boe)


61.7763.67(3)






Operating netback ($/boe)(2)





    Realized sales price


61.7763.67(3)    Royalties


(4.19)(7.60)(45)    Production expenses


(5.25)(5.30)(1)    Transportation expenses


(0.21)--    Operating netback


52.1250.773Operating netback margin(2)


84 %80 %5Notes:(1)Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share.(2)See "Non-GAAP and Other Financial Measures" section within this news release.(3)Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.Q1 2026 Results WebcastAlvopetro will host a live webcast to discuss our Q1 2026 financial results at 9:00 am Mountain time on Friday May 8, 2026. Details for joining the event are as follows:DATE: May 8, 2026
TIME: 9:00 AM Mountain/11:00 AM Eastern
LINK: https://us06web.zoom.us/j/82243023429
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kMiGDfdH1
WEBINAR ID: 822 4302 3429The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com.Annual General MeetingAlvopetro's annual general and special meeting (the "Meeting") will be held on Tuesday, June 9, 2026 at the offices of Torys LLP (Suite 4600, 525 8th SW, Calgary, Alberta) beginning at 9:30 a.m. Mountain time. The management information circular and all related materials are available on our website and www.sedarplus.ca.All interested parties are invited to attend the Meeting. We will also be broadcasting the meeting via live webcast for the interest of all shareholders. Please be advised that shareholders will not be able to vote any shares through this webcast format. Details for joining the event are as follows:DATE: June 9, 2026
TIME: 9:30 AM Mountain/11:30 AM Eastern
LINK: https://us06web.zoom.us/j/86716593981
DIAL-IN NUMBERS: https://us06web.zoom.us/u/knxDPPeb8
WEBINAR ID: 867 1659 3981Corporate PresentationAlvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation.Social MediaFollow Alvopetro on our social media channels at the following links:X - https://x.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltdAlvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related 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.Abbreviations:$ or USD                   =         United States dollars$000s             =         thousands of USDboepd           =         barrels of oil equivalent ("boe") per daybopd             =         barrels of oil and/or natural gas liquids (condensate) per dayBRL               =         Brazilian Reale3m3/d           =         thousand cubic metre per daym3               =         cubic metrem3/d             =         cubic metre per dayMcf               =         thousand cubic feetMcfpd             =         thousand cubic feet per dayMMcf             =         million cubic feetMMcfpd           =         million cubic feet per dayNGLs             =         natural gas liquids (condensate)Q1 2025         =         three months ended March 31, 2025Q1 2026         =         three months ended March 31, 2026Q4 2025         =         three months ended December 31, 2025GAAP or IFRS =         IFRS Accounting StandardsNon-GAAP and Other Financial MeasuresThis news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this news release should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are used by management in assessing the Company's financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Other Financial Measures" section of the Company's MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca.Non-GAAP Financial MeasuresOperating NetbackOperating netback is calculated as natural gas, oil and condensate revenues less royalties, production expenses, and transportation expenses. This calculation is provided in the "Operating Netback" section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.Non-GAAP Financial RatiosOperating Netback per boeOperating netback is calculated on a per unit basis, which is per barrel of oil equivalent ("boe"). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company's producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the "Operating Netback" section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca.Operating Netback MarginOperating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:

Three Months EndedMarch 31,


20262025Operating netback - $ perboe

52.1250.77Average realized price - $ per boe

61.7763.67Operating netback margin

84 %80 %Funds Flow from Operations Per ShareFunds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share are as follows:

Three Months EndedMarch 31,$ per share

20262025Per basic share:



Cash flows from operating activities

0.290.24Funds flow from operations

0.330.25




Per diluted share:



Cash flows from operating activities

0.280.23Funds flow from operations

0.330.24Capital Management MeasuresFunds Flow from OperationsFunds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company's ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:

Three Months EndedMarch 31,


20262025Cash flows from operating activities

10,7178,817Changes in non-cash working capital

1,788405Funds flow from operations

12,5059,222Working Capital Working capital is computed as current assets less current liabilities. Working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows: 

As at March 31,

20262025Total current assets
41,81325,090Total current liabilities
(24,917)(15,348)Working capital
16,8969,742Working Capital, Net of DebtWorking capital net of debt is computed as working capital decreased by the non-current portion of the loan. Working capital net of debt is used by management to assess the Company's overall financial position. As of March 31, 2026, Alvopetro's working capital exceeds the balance outstanding on the loan.

As at March 31,

20262025Working capital
16,8969,742Loan, non-current
(12,000)-Working capital, net of debt
4,8969,742Supplementary Financial Measures"Average realized natural gas price - $/Mcf" is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company's natural gas sales volumes."Average realized NGL – condensate price - $/bbl" is comprised of condensate sales as determined in accordance with IFRS, divided by the Company's NGL sales volumes from condensate."Average realized oil price - $/bbl" is comprised of oil sales as determined in accordance with IFRS, divided by the Company's oil sales volumes."Average realized price - $/boe" is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company's total natural gas, NGL and oil sales volumes (barrels of oil equivalent)."Dividends per share" is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date."Royalties per boe" is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent)."Production expenses per boe" is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent)."Transportation expenses per boe" is comprised of transportation expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).BOE DisclosureThe term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.Contracted Natural Gas VolumesThe contracted daily firm volumes under Alvopetro's long-term gas sales agreement of 500 e3m3/d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro's natural gas is approximately 8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 463e3m3/d (16.4MMcfpd).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", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, future production and sales volumes, plans relating to the Company's operational activities, proposed exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, anticipated timing for upcoming drilling and testing of other wells, and projected financial results. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of  redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and 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. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. 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. 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 factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca. 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.SOURCE Alvopetro Energy Ltd. Original: Alvopetro Announces Q1 2026 Financial Results and Details for Our Upcoming AGM

Alvopetro Announces April Sales Volumes, Quarterly Natural Gas Pricing Update and Details for Q1 2026 Earnings CallMay 4, 2026 5:00 PM
PR Newswire (Canada) CALGARY, AB, May 4, 2026 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces April sales volumes of 3,133 boepd (based on field estimates). In Brazil, April sales averaged 2,953 boepd, including natural gas sales of 16.7 MMcfpd, associated natural gas liquids sales from condensate of 155 bopd and oil sales of 9 bopd. In Canada, oil sales averaged 180 bopd. Natural gas, NGLs and crude oil sales:April2026Q1  2026 Brazil:

    Natural gas (Mcfpd), by field:

    Caburé12,19111,691    Murucututu4,5414,798    Total natural gas (Mcfpd)16,73216,489    NGLs (bopd)155175    Oil (bopd) (1)912Total (boepd) – Brazil2,9532,935Canada:

    Oil (bopd) – Canada180193Total Company – boepd(2)3,1333,128(1)Oil sales volumes in Brazil relate to the Bom Lugar and Mãe da lua fields. Alvopetro has entered
into an assignment agreement to dispose of the fields, the closing of which is subject to standard
regulatory approvals, including approval of the ANP.(2)Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries,
may differ from production volumes.Operations UpdateWe have commenced drilling our 183-D1 well, a follow up to our successful 183-D4 well in the Caruaçu Formation on our 100% interest Murucututu Field. We have also started civil construction of our 183-G Drilling Pad that will support our ongoing future development drilling plans.Quarterly Natural Gas Pricing  Effective May 1, 2026, our natural gas price under our long-term gas sales agreement was adjusted to BRL1.91/m3 on the first 400e3m3/d (14.1 MMcfpd) reference volumes ("QDC1") with the price on the incremental 100 e3m3/d (3.5 MMcfpd) reference volumes ("QDC2") adjusted to BRL1.61/m3. This represents increases of 3% for QDC1 and 21% for QDC2 relative to the February 1, 2026 price reset.Based on our average heat content to-date and the April 30, 2026 BRL/USD exchange rate of 5.00, our expected weighted average realized price (QDC1 + QDC2) on firm natural gas sales during the May 1, 2026 to July 31, 2026 period is expected to be $11.31/Mcf. Based on the BRL/USD exchange rate of 5.00 and forecast Q2 2026 Brent and Henry Hub benchmark prices using closing futures prices on April 30, 2026, our expected realized weighted average realized price for the August 1, 2026 – October 31, 2026 reset period is forecasted to be $13.06/Mcf. Amounts ultimately received in equivalent USD will be impacted exchange rates and actual benchmark pricing in effect during the relevant period.Q1 2026 Results WebcastAlvopetro expects to announce its Q1 2026 financial results on Thursday May 7, 2026 after markets close. Alvopetro will host a live webcast to discuss the results at 9:00 am Mountain time on Friday May 8, 2026. Details for joining the event are as follows:DATE: May 8, 2026
TIME: 9:00 AM Mountain/11:00 AM Eastern
LINK: https://us06web.zoom.us/j/82243023429
DIAL-IN NUMBERS: https://us06web.zoom.us/u/kMiGDfdH1
WEBINAR ID: 822 4302 3429The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com.Corporate PresentationAlvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation.Social MediaFollow Alvopetro on our social media channels at the following links:
     X - https://x.com/AlvopetroEnergy 
     Instagram - https://www.instagram.com/alvopetro/ 
     LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltdAlvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related 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.Abbreviations:boepd           =         barrels of oil equivalent ("boe") per daybopd             =       barrels of oil and/or natural gas liquids (condensate) per dayBRL              =       Brazilian reale3m3/d         =       thousand cubic metre per daym3/d             =         cubic metre per dayMcf               =       thousand cubic feetMcfpd           =     thousand cubic feet per dayMMcf            =       million cubic feetMMcfpd        =     million cubic feet per dayNGLs            =       natural gas liquids (condensate)BOE DisclosureThe term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.Contracted Natural Gas VolumesThe contracted daily firm volumes under Alvopetro's long-term gas sales agreement of 500 e3m3/d (before any provisions for take or pay allowances) represent contracted volumes based on contract referenced natural gas heating value. Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro's natural gas is approximately 8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 463e3m3/d (16.4MMcfpd).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", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning the future expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, plans relating to the Company's operational activities, and proposed exploration and development activities and the timing of such activities. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of  future redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and 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. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. 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. 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 factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca. 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.www.alvopetro.com
TSX-V: ALV, OTCQX: ALVOFSOURCE Alvopetro Energy Ltd. Original: Alvopetro Announces April Sales Volumes, Quarterly Natural Gas Pricing Update and Details for Q1 2026 Earnings Call

Alvopetro Announces Additional Firm Gas Sales, Updated Natural Gas Pricing & Q1 2026 Record ProductionApril 1, 2026 1:18 AM
PR Newswire (Canada)

CALGARY, AB, April 1, 2026 /CNW/ - Alvopetro Energy Ltd. (TSX-V:ALV; OTCQX: ALVOF) announces additional firm gas sales for 2026 and 2027, updated natural gas pricing forecasts, Q1 2026 production and an operational update.Bahiagas Sales Agreement UpdateAlvopetro and Bahiagás have agreed to update our long-term gas sales agreement to increase Alvopetro's firm gas sales by 25% up to 500 e3m3/d (17.7 Mcfpd). The additional 100 e3m3/d of firm sales (QDC2) covers the period January 1, 2026 through December 31, 2027 and is being priced at US$/MMBtu=10.5%*average Brent oil prices in effect for the preceding quarter.As previously announced, effective February 1, 2026, our natural gas price under our existing long-term gas sales agreement (QDC1) was adjusted to BRL1.85/m3, a 2% increase from the November 1, 2025 price of BRL1.81/m3. This price applies to firm natural gas sales up to 400 e3m3/d from February 1, 2026 to April 30, 2026 (QDC1). The natural gas price under QDC2 is also reset quarterly and for the period February 1, 2026 to April 30, 2026 is BRL1.33/m3.Based on our average heat content to-date and the March 31, 2026 BRL/USD exchange rate of 5.22, our expected weighted average realized price (QDC1 + QDC2) on firm natural gas sales during the February 1, 2026 – April 30, 2026 period is expected to be $10.09/Mcf. Based on the March 31, 2026 BRL/USD exchange rate of 5.22 and Q1 2026 Brent and Henry Hub benchmark prices, our weighted average realized price for the May 1, 2026 – July 31, 2026 reset period is expected to be $10.68/Mcf. Based on the BRL/USD exchange rate of 5.22 and forecast Q2 2026 Brent and Henry Hub benchmark prices using closing futures prices on March 30, 2026, our expected realized weighted average realized price for the August 1, 2026 – October 31, 2026 reset period is forecasted to be $12.87/Mcf. Amounts ultimately received in equivalent USD will be impacted exchange rates and actual benchmark pricing in effect during the relevant period.The contracted firm volumes would be satisfied with delivered natural gas sales of approximately 463 e3m3/d (16.4 MMcfpd). At this sales level and including expected natural gas liquids (condensate) yields, our 2026 sales volumes from Brazil would average approximately 2,900 boepd, a 20% increase over 2025 sales in Brazil of 2,417 boepd.March 2026 & Q1 2026 Sales VolumesWith our amended gas sales agreement in place, we've again achieved record production levels. Our March sales volumes averaged 3,209 boepd (based on field estimates), a 5% increase over February 2026 volumes. In Brazil, March sales volumes averaged 3,014 boepd, including natural gas sales of 17.0 MMcfpd, associated natural gas liquids sales from condensate of 167 bopd and oil sales of 18 bopd. In Canada, March sales volumes averaged 195 bopd. Our March sales volumes bring Q1 2026 sales to 3,124 boepd, based on field estimates, up 24% from average 2025 sales, and a new quarterly record for Alvopetro.Natural gas, NGLs and crude oil sales:March
2026Q1
2026Q4
20252025Brazil:



    Natural gas (Mcfpd), by field:



    Caburé12,14111,7299,65510,467    Murucututu4,8294,7605,4373,080    Total natural gas (Mcfpd)16,96916,48915,09213,547    NGLs (bopd)167175184149    Oil (bopd) (1)18121911Total (boepd) – Brazil3,0142,9352,7192,417Canada:



    Oil (bopd) – Canada195189148106Total Company – boepd(2)3,2093,1242,8672,523
(1)Oil sales volumes in Brazil relate to the Bom Lugar and Mãe da lua fields. Alvopetro has entered into an assignment agreement to dispose
of the fields, the closing of which is subject to standard regulatory approvals, including approval of the ANP.(2)Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ
from production volumes.Operational UpdateWe completed the stimulation of a lower Gomo interval in our 183-1 well and have experienced low reservoir inflow.  The well is currently shut in as we evaluate remedial alternatives.We are currently mobilizing a drilling rig to our D pad so that we can commence drilling our 183-D1 Caruaçu development well.  We expect to initiate drilling later this month. Long-term Incentive GrantsIn connection with our long-term incentive compensation program, Alvopetro's Board of Directors (the "Board") has approved annual rolling grants to officers, directors and certain employees under Alvopetro's Omnibus Incentive Plan. A total of 195,000 restricted share units ("RSUs") and 57,000 deferred share units ("DSUs") were approved by the Board and are expected to be granted on April 6, 2026. Of the total grants, 146,000 RSUs and 57,000 DSUs will be granted to officers and directors. Each RSU and DSU entitles the holder to purchase one common share. All RSUs and DSUs granted expire five (5) years from the date of the grant.Corporate PresentationAlvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation.Social MediaFollow Alvopetro on our social media channels at the following links:X - https://x.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltdAlvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related 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.Abbreviations:
boepd=barrels of oil equivalent ("boe") per daybopd=barrels of oil and/or natural gas liquids (condensate) per dayBRL=Brazilian Reale3m3/d = thousand cubic metrem3 = cubic metreMcf= thousand cubic feetMcfpd=thousand cubic feet per dayMMBtu=million British Thermal UnitsMMcf=million cubic feetMMcfpd=million cubic feet per dayNGLs=natural gas liquids (condensate)Q1 2026=three months ended March 31, 2026Q2 2026=three months ended June 30, 2026Q4 2025 =three months ended December 31, 2025BOE DisclosureThe term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.Contracted Firm VolumesThe 2026 contracted daily firm volumes of 500 e3m3/d (before any provisions for take or pay allowances) represents volumes based on contract referenced natural gas heating value. Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro's natural gas, which is approximately 8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 463 e3m3/d (16.4MMcfpd).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", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, future production and sales volumes, plans relating to the Company's operational activities, and proposed development activities and the timing of such activities. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of  redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global conflicts, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and 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. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. 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. 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 factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca. 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.SOURCE Alvopetro Energy Ltd.

Original: Alvopetro Announces Additional Firm Gas Sales, Updated Natural Gas Pricing & Q1 2026 Record Production

Alvopetro Announces Year End 2025 Financial Results, Q1 2026 Dividend of US$0.12/share, and Filing of our AIFMarch 17, 2026 6:24 PM
PR Newswire (Canada)

CALGARY, AB, March 17, 2026 /CNW/ - Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) ("Alvopetro" or the "Company") announces an operational update, our financial results for the year ended December 31, 2025, a quarterly dividend of US$0.12 per common share and filing of our annual information form. We will be hosting a live webcast to discuss our Q4 2025 results on Wednesday March 18, 2026 at 8:00 a.m. Mountain time. 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.President & CEO, Corey C. Ruttan commented:"2025 was a transformational year for Alvopetro. Mainly off the success of our 183-D4 well on our 100% owned Murucututu asset, year-over-year we increased average daily sales by 41% to 2,523 boepd and grew 2P reserves by 43% to 13.1 MMboe, replacing production over 5 times. With record production to start the year, we are well positioned for another exceptional year in 2026."Operational UpdateFollowing the success of our 183-D4 well on our 100% owned Murucututu field, we are now focused on enhancing and expanding our capacity to deliver additional Murucututu production, positioning this asset for sustained multi-year growth. We plan to expand our Murucututu field production facility and pipelines to support an increase in our Murucututu field capacity from our current level of approximately 150 e3m3/d up to 600 e3m3/d. Simultaneously, we plan to enhance our gas processing capabilities at UPGN Caburé to accommodate higher proportions of richer gas from Murucututu, and also targeting an overall capacity of up to 600 e3m3/d.On the drilling and completions front, on our 100% owned Murucututu field, we have just recompleted our 183-1 well in a lower portion of the Gomo Formation and are working to bring the well back online. Upcoming plans on the field in 2026 involve drilling and completing a new well in the Caruaçu Formation, as well as permitting a new drilling pad to support future Caruaçu development updip of the successful 183-D4 well. We expect drilling to commence next month. At Caburé (56.2% working interest), 2026 capital plans include the sidetrack of one unfinished well from 2025.In Canada, we have completed drilling two (1.0 net) additional wells in 2026 . One (0.5 net) well requires remedial action but we now have 7 (3.5 net) wells on production. We have also added an additional 5 gross sections of land in one of our core-areas bringing our land position to 80.5 gross sections (25,760 net acres) targeting the Mannville stack heavy oil play fairway with over 100 Tier 1 drilling locations.On February 25, 2026, we announced our December 31, 2025 reserves based on the independent reserve assessment and evaluation prepared by GLJ Ltd. ("GLJ") dated February 25, 2026 with an effective date of December 31, 2025 (the "GLJ Reserves and Resources Report"). Highlights include:1P reserves increased 79% to 8.1 MMboe after 2025 production of 0.9 MMboe, representing a 1P production replacement ratio(1) of 485%. The increase was mainly due to results from our 183-D4 well on our Murucututu field which commenced production in August 2025 and added an additional five proved undeveloped locations to our 1P reserves as well as newly added Canadian reserves of 0.3 MMboe.2P reserve volumes increased 43% to 13.1 MMboe, representing a 2P production replacement ratio of 530%(1). Success on our 183-D4 well also contributed to the bulk of the increase to 2P reserves which includes eight undeveloped locations. In Canada, 0.7 MMboe of 2P reserves were assigned.With increased reserve volumes, 1P net present value before tax, discounted at 10% ("NPV10") increased 38% to $245.6 million and 2P NPV10 increased 20% to $393.6 million.2P reserves life index(1) of 12.5 years.2P F&D costs(1) of $15.42/boe with a 2P recycle ratio(1) of 3.4 times.Risked best estimate contingent resources decreased by 0.7 MMboe from 4.5 MMboe to 3.8 MMboe at December 31, 2025 with a NPV10 of $88.0 million, decreases from December 31, 2024 of 16% and 20% respectively. The decreases were associated with the migration of contingent resources to Reserves for the Caruaçu Formation at Murucututu.Risked best estimate prospective resources increased from 10.2 MMboe to 12.1 MMboe with a NPV10 of $264.3 million, increases of 19% and 27% respectively from December 31, 2024. The increases were mainly due to additional prospective resource in the Caruaçu Formation at Murucututu adjacent to the assigned reserves area.(1)Refer to the sections entitled "Oil and Natural Gas Advisories – Other Metrics" for additional disclosures and assumptions used in calculating production replacement ratio, 2P reserves life index, 2P F&D costs and 2P recycle ratio.Financial and Operating Highlights – Fourth Quarter of 2025Average daily sales in Q4 2025 were 2,867 boepd(1) (+65% from Q4 2024 and +22% from Q3 2025). In Brazil, daily sales averaged 2,719 boepd (+56% compared to Q4 2024 and +23% from Q3 2025) and in Canada, oil sales averaged 148 bopd in the quarter (+7% from Q3 2025).Our average realized natural gas price was $9.97/Mcf (-5% from Q4 2024 and -10% from Q3 2025). Our overall average realized sales price per boe was $59.75/boe (-6% from Q4 2024 and -9% from Q3 2025).Our natural gas, oil and condensate revenue increased to $15.8 million (+54% from Q4 2024 and +11% from Q3 2025). The increases compared to Q4 2024 and Q3 2025 were driven by higher sales volumes, partially offset by lower realized prices.Our operating netback(2) in the quarter was $49.70 per boe, a decrease of $5.39 per boe compared to Q4 2024 and a decrease of $6.20 per boe compared to Q3 2025 due mainly to lower realized prices and higher royalties.We generated funds flows from operations(2) of $10.6 million ($0.28 per basic and per diluted share), increases of $3.6 million compared to Q4 2024 and $0.1 million compared to Q3 2025.We reported net income of $5.6 million ($0.15 per basic and diluted share), an increase of $3.3 million compared to Q4 2024.In October 2025, Alvopetro entered into an expanded area of mutual interest (the "Expanded AMI") with our existing partner in Saskatchewan. Under the terms of the Expanded AMI, Alvopetro agreed to fund 100% of the costs for drilling two earning wells in exchange for a 50% working interest in an additional 46.9 sections of land (15,010 net acres). The two earning wells were drilled in Q4 2025. Capital expenditures in Q4 2025 of $4.9 million included the cost of these two earning wells and a seismic program in Saskatchewan, additional Unit development costs to tie in the wells drilled earlier in the year as well as costs for facilities improvements at the Unit and Murucututu.During the quarter Alvopetro entered into a $20 million loan agreement (the "Loan"). The Loan has a two-year term and bears interest at 7% per annum (payable quarterly), including all applicable charges and fees. Repayments of the Loan commence quarterly on November 30, 2026, ending on November 29, 2027.Our working capital(2) surplus was $18.5 million as of December 31, 2025. Our working capital surplus net of debt was $2.5 million as of December 31, 2025.Financial and Operating Highlights – Year Ended December 31, 2025Our annual sales volumes averaged 2,523 boepd, an increase of 41% from 2024, with Brazil sales volumes of 2,417 boepd (+35% from 2024) and 106 bopd from the newly added Canadian operations.We reported net income of $23.1 million, compared to $16.3 million in 2024 (+42%).We generated funds flow from operations(1) of $40.6 million ($1.09 per basic share and $1.08 per diluted share), an increase of $7.3 million (+22%) compared to 2024.Capital expenditures totaled $33.5 million in 2025.Dividends declared totaled $0.42 per share in 2025 compared to $0.36 per share in 2024 (+17%).(1) Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.
(2) See "Non-GAAP and Other Financial Measures" section within this news release.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.
As at and Three Months Ended December 31,As at and Year EndedDecember 31,
20252024Change (%)20252024Change (%)Financial





($000s, except where noted)





Natural gas, oil and condensate sales 15,75610,2145457,95445,51727Net income5,5852,24314923,09816,29542    Per share – basic ($)(1)0.150.061500.620.4441    Per share – diluted ($)(1)0.150.061500.610.4342Cash flows from operating activities9,3627,1143240,80534,90117    Per share – basic ($)(1)0.250.19321.090.9416    Per share – diluted ($)(1)0.250.19321.080.9316Funds flow from operations(2)10,5616,9665240,59733,27522    Per share – basic ($)(1)0.280.19471.090.8922    Per share – diluted ($)(1)0.280.19471.080.8921Dividends declared4,4083,2833415,38413,17017Per share(1) (2)0.120.09330.420.3617Capital expenditures4,8834,682433,49315,305119Cash and cash equivalents32,37221,6974932,37221,69749Net working capital(2)18,45013,1814018,45013,18140Working capital, net of debt(2)2,45013,181(81)2,45013,181(81)Weighted average shares outstanding





    Basic (000s)(1)37,26037,315-37,27037,289-    Diluted (000s)(1)37,71737,566-37,66637,558-Operations





Average daily sales volumes(3):





Brazil:





    Natural gas (Mcfpd), by field:





        Caburé (Mcfpd)9,6557,4762910,4679,22813        Murucututu (Mcfpd)5,4372,2311443,080928232    Total natural gas (Mcfpd)15,0929,7075513,54710,15633    NGLs – condensate (bopd)184109691499066    Oil (bopd)1911731112(8)    Total (boepd) - Brazil2,7191,738562,4171,79435






Canada:





    Oil (bopd) - Canada148--106--






Total Company (boepd)2,8671,738652,5231,79441






Average realized prices(2):





    Natural gas ($/Mcf)9.9710.51(5)10.4911.42(8)    NGLs – condensate ($/bbl)69.1875.95(9)73.7584.84(13)    Oil ($/bbl)47.9961.74(22)48.8666.94(27)    Total ($/boe)59.7563.88(6)62.9269.31(9)






Operating netback ($/boe)(2)





    Realized sales price59.7563.88(6)62.9269.31(9)    Royalties (3.83)(2.15)78(4.46)(1.99)124    Production expenses(6.03)(6.64)(9)(5.71)(6.33)(10)    Transportation expenses(0.19)--(0.14)--    Operating netback49.7055.09(10)52.6160.99(14)Operating netback margin(2)83 %86 %(3)84 %88 %(4)Notes:(1)Per share amounts are based on weighted average shares outstanding other than dividends per share, which is based on the number of common shares outstanding at each dividend record date. The weighted average number of diluted common shares outstanding in the computation of funds flow from operations and cash flows from operating activities per share is the same as for net income per share.(2)See "Non-GAAP and Other Financial Measures" section within this news release.(3)Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.Quarterly Dividend of US$0.12 per ShareOur Board of Directors has declared a quarterly dividend of US$0.12 per common share, payable in cash on April 15, 2026 to shareholders of record at the close of business on March 31, 2026. The dividend is designated as an "eligible dividend" for Canadian income tax purposes. Dividend payments to non-residents of Canada will be subject to withholding taxes at the Canadian statutory rate of 25%.  Shareholders may be entitled to a reduced withholding tax rate under a tax treaty between their country of residence and Canada.  For further information, see Alvopetro's website at https://alvopetro.com/Dividends-Non-resident-Shareholders.Annual Information FormAlvopetro has filed its annual information form ("AIF") with the Canadian securities regulators on SEDAR+. The AIF includes the disclosure and reports relating to oil and gas reserves data and other oil and gas information required pursuant to National Instrument 51-101 of the Canadian Securities Administrators. The AIF may be accessed electronically at www.sedarplus.ca and on our website at www.alvopetro.com.2025 Results WebcastAlvopetro will host a live webcast to discuss our 2025 financial results at 8:00 am Mountain time on Wednesday March 18, 2026. Details for joining the event are as follows:DATE:March 18, 2026TIME:8:00 AM Mountain/10:00 AM EasternLINK:https://us06web.zoom.us/j/82316007995DIAL-IN NUMBERS:https://us06web.zoom.us/u/kdThlHQznIWEBINAR ID:823 1600 7995The webcast will include a question-and-answer period. Online participants will be able to ask questions through the Zoom portal. Dial-in participants can email questions directly to socialmedia@alvopetro.com.Corporate PresentationAlvopetro's updated corporate presentation is available on our website at:
http://www.alvopetro.com/corporate-presentation.Social MediaFollow Alvopetro on our social media channels at the following links:X -https://x.com/AlvopetroEnergyInstagram -https://www.instagram.com/alvopetro/LinkedIn -https://www.linkedin.com/company/alvopetro-energy-ltdAlvopetro Energy Ltd. is deploying a balanced capital allocation model where we seek to reinvest roughly half our cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where we are building off the strength of our Caburé and Murucututu natural gas fields and the related 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.Abbreviations:$ or USD=


United States dollars$000s=


thousands of USD1P=


proved reserves2P=


proved plus probable reservesboepd=


barrels of oil equivalent ("boe") per daybopd=


barrels of oil and/or natural gas liquids (condensate) per dayBRL=


Brazilian Reale3m3/d=


thousand cubic metre per daym3=


cubic metrem3/d=


cubic metre per dayMcf=


thousand cubic feetMcfpd=


thousand cubic feet per dayMMcf=


million cubic feetMMcfpd=


million cubic feet per dayNGLs=


natural gas liquids (condensate)NPV10=


net present value before tax, discounted at 10%Q3 2025=


three months ended September 30, 2025Q4 2024=


three months ended December 31, 2024Q4 2025=


three months ended December 31, 2025GAAP or IFRS=


IFRS Accounting StandardsNon-GAAP and Other Financial MeasuresThis news release contains references to various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. While these measures may be common in the oil and gas industry, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. The non-GAAP and other financial measures referred to in this news release should not be considered an alternative to, or more meaningful than measures prescribed by IFRS and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are used by management in assessing the Company's financial performance, efficiency and liquidity and they may be used by investors or other users of this document for the same purpose. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures used in this news release. For more information with respect to financial measures which have not been defined by GAAP, including reconciliations to the closest comparable GAAP measure, see the "Non-GAAP Measures and Other Financial Measures" section of the Company's MD&A which may be accessed through the SEDAR+ website at www.sedarplus.ca.Non-GAAP Financial MeasuresOperating NetbackOperating netback is calculated as natural gas, oil and condensate revenues less royalties, production expenses, and transportation expenses. This calculation is provided in the "Operating Netback" section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca. Operating netback is a common metric used in the oil and gas industry used to demonstrate profitability from operations.Non-GAAP Financial RatiosOperating Netback per boeOperating netback is calculated on a per unit basis, which is per barrel of oil equivalent ("boe"). It is a common non-GAAP measure used in the oil and gas industry and management believes this measurement assists in evaluating the operating performance of the Company. It is a measure of the economic quality of the Company's producing assets and is useful for evaluating variable costs as it provides a reliable measure regardless of fluctuations in production. Alvopetro calculated operating netback per boe as operating netback divided by total sales volumes (boe). This calculation is provided in the "Operating Netback" section of the Company's MD&A using our IFRS measures. The Company's MD&A may be accessed through the SEDAR+ website at www.sedarplus.ca.Operating netback marginOperating netback margin is calculated as operating netback per boe divided by the realized sales price per boe. Operating netback margin is a measure of the profitability per boe relative to natural gas, oil and condensate sales revenues per boe and is calculated as follows:
Three Months Ended December 31,Year Ended December 31,
2025202420252024Operating netback - $ per boe49.7055.0952.6160.99Average realized price - $ per boe59.7563.8862.9269.31Operating netback margin 83 %86 %84 %88 %Funds Flow from Operations Per ShareFunds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities calculated before changes in non-cash working capital, divided by the weighted average shares outstanding for the respective period. For the periods reported in this news release the cash flows from operating activities per share and funds flow from operations per share are as follows:
Three Months Ended December 31,Year Ended December 31,$ per share2025202420252024Per basic share:



Cash flows from operating activities0.250.191.090.94Funds flow from operations 0.280.191.090.89




Per diluted share:



Cash flows from operating activities 0.250.191.080.93Funds flow from operations 0.280.191.080.89Capital Management MeasuresFunds Flow from OperationsFunds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities calculated before changes in non-cash working capital. The most comparable GAAP measure to funds flow from operations is cash flows from operating activities. Management considers funds flow from operations important as it helps evaluate financial performance and demonstrates the Company's ability to generate sufficient cash to fund future growth opportunities. Funds flow from operations should not be considered an alternative to, or more meaningful than, cash flows from operating activities however management finds that the impact of working capital items on the cash flows reduces the comparability of the metric from period to period. A reconciliation of funds flow from operations to cash flows from operating activities is as follows:
Three Months Ended December 31,Year Ended December 31,
2025202420252024Cash flows from operating activities9,3627,11440,80534,901Changes in non-cash working capital1,199(148)(208)(1,626)Funds flow from operations10,5616,96640,59733,275Net Working Capital Net working capital is computed as current assets less current liabilities. Net working capital is a measure of liquidity, is used to evaluate financial resources, and is calculated as follows: 

As at December 31,

20252024Total current assets
39,89226,984Total current liabilities
(21,442)(13,803)Net working capital
18,45013,181Working Capital, Net of DebtWorking capital net of debt is computed as net working capital decreased by the non-current portion of the Loan. Working capital net of debt is used by management to assess the Company's overall financial position. As of December 31, 2025, Alvopetro's net working capital exceeds the balance outstanding on the Loan.

As at December 31

20252024Net working capital
18,45013,181Loan, non-current
(16,000)-Working capital, net of debt
2,45013,181Supplementary Financial Measures"Average realized natural gas price - $/Mcf" is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company's natural gas sales volumes."Average realized NGL – condensate price - $/bbl" is comprised of condensate sales as determined in accordance with IFRS, divided by the Company's NGL sales volumes from condensate."Average realized oil price - $/bbl" is comprised of oil sales as determined in accordance with IFRS, divided by the Company's oil sales volumes."Average realized price - $/boe" is comprised of natural gas, condensate and oil sales as determined in accordance with IFRS, divided by the Company's total natural gas, NGL and oil sales volumes (barrels of oil equivalent)."Dividends per share" is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date."Royalties per boe" is comprised of royalties, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent)."Production expenses per boe" is comprised of production expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent)."Transportation expenses per boe" is comprised of transportation expenses, as determined in accordance with IFRS, divided by the total natural gas, NGL and oil sales volumes (barrels of oil equivalent).Oil and Natural Gas AdvisoriesOil and Natural Gas ReservesThe disclosure in this news release summarizes certain information contained in the GLJ Reserves and Resources Report but represents only a portion of the disclosure required under National Instrument 51-101 ("NI 51-101"). Full disclosure with respect to the Company's reserves as at December 31, 2025 is included in the Company's annual information form for the year ended December 31, 2025 which has been filed on SEDAR+ (www.sedarplus.ca). The GLJ Reserves and Resources Report has been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook" or "COGEH") that are consistent with the standards of NI 51-101. GLJ is a qualified reserves evaluator as defined in NI 51-101.All net present values in this press release are based on estimates of future operating and capital costs and GLJ's forecast prices as of December 31, 2025. The reserves definitions used in this evaluation are the standards defined by COGEH reserve definitions and are consistent with NI 51-101 and used by GLJ. The net present values of future net revenue attributable to Alvopetro's reserves estimated by GLJ do not represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of the Company's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.Caburé Working InterestAlvopetro's working interest in the Caburé natural gas field is 56.2% as of December 31, 2025 and the date hereof. This working interest is subject to redeterminations, the first of which was completed in April 2024. An independent expert (the "Expert") was engaged in connection with the first redetermination to evaluate the redetermination and the impact to each party's working interest. Following the Expert's decision, Alvopetro's working interest was increased from 49.1% to 56.2%. Alvopetro's partner filed a notice of dispute with respect to the Expert's decision, seeking to stay the redetermination procedure. Alvopetro subsequently filed a request for emergency arbitration before the International Chamber of Commerce ("ICC") seeking to make the Expert decision effective starting on June 1, 2024. In May 2024, Alvopetro received the decision of the emergency arbitrator ("the Order") wherein the arbitrator found in favour of Alvopetro, making the Expert decision effective June 1, 2024 until such time as the dispute is reviewed by and decided upon by an arbitral tribunal pursuant to the Rules of Arbitration of the ICC. The redetermination dispute proceeded to a full arbitration under the Rules of the ICC, however the timing and outcome of the full arbitration is uncertain and the resulting impact on the reserves and the net present value of future net revenue attributable to such reserves as presented herein may be material. In addition, future redeterminations may also have a material impact on Alvopetro's reserves and future cash flows.Contingent ResourcesThis news release discloses estimates of Alvopetro's contingent resources and the net present value associated with net revenues associated with the production of such contingent resources as included in the GLJ Reserves and Resources Report. There is no certainty that it will be commercially viable to produce any portion of such contingent resources and the estimated future net revenues do not necessarily represent the fair market value of such contingent resources. Estimates of contingent resources involve additional risks over estimates of reserves. Full disclosure with respect to the Company's contingent resources as at December 31, 2025 is included in the Company's annual information form for the year ended December 31, 2025 which has been filed on SEDAR+ (www.sedarplus.ca).Prospective ResourcesThis news release discloses estimates of Alvopetro's prospective resources included in the GLJ Reserves and Resources Report. There is no certainty that any portion of the prospective resources will be discovered and even if discovered, there is no certainty that it will be commercially viable to produce any portion. Estimates of prospective resources involve additional risks over estimates of reserves. The accuracy of any resources estimate is a function of the quality and quantity of available data and of engineering interpretation and judgment. While resources presented herein are considered reasonable, the estimates should be accepted with the understanding that reservoir performance subsequent to the date of the estimate may justify revision, either upward or downward. Full disclosure with respect to the Company's prospective resources as at December 31, 2025 is included in the Company's annual information form for the year ended December 31, 2025 which has been filed on SEDAR+ (www.sedarplus.ca).Other MetricsThis new release contains references to metrics commonly used in the oil and natural gas industry, which have been calculated by management including "production replacement ratio", "reserve life index", finding and development costs ("F&D costs") and "recycle ratio". These terms do not have standardized meanings and may not be comparable to similar measures presented by other companies, and therefore should not be used to make such comparisons."Production replacement ratio" is calculated by dividing the change in reserve volumes plus current year production by current year production. Alvopetro's 1P production replacement ratio and 2P production replacement ratio in 2025 is calculated as:
1P2PReserve volumes as at December 31, 2025 – Mboe8,05413,112Reserve volumes as at December 31, 2024 – Mboe4,5129,148Reserve additions – Mboe3,5423,9642025 production – Mboe921921Change in reserves before 2025 production - Mboe4,4634,8852025 production replacement ratio 485 %530 %"Reserve life index" is expressed in years and is calculated by dividing 2P reserve volumes by the Company's annualized Q4 2025 production of 2,867 boepd, as follows:
2P2P Reserve volumes as at December 31, 2025 – Mboe13,112Annualized Q4 2025 Total Production - Mboe1,046Reserve life index - years12.5"F&D costs" are reflected on a per barrel of oil equivalent and are calculated as the sum of capital expenditures in the current year plus the change in future development costs ("FDC") in 2P reserves for the period, divided by the change in 2P reserves in the period, before current year production.  The 2025 F&D costs are computed as follows:2025 capital expenditures - US$000s33,493Change in FDC from 2025(1) – US$000s41,856Total 75,349Change in 2P reserves before 2025 production(2) – thousands of boe ("Mboe")4,8852025 F&D costs (per boe) – US$$15.42(1)Computed based on FDC costs from the 2P reserves in the December 31, 2025 GLJ Reserves and Resources Report less FDC costs from the December 31, 2024 GLJ Reserves and Resources Report.(2)Computed as the change in 2P reserves from December 31, 2024 to December 31, 2025 (which increased 3,964 Mboe, from 9,148 Mboe to 13,112 Mboe) plus 2025 total production of 921 Mboe."Recycle ratio" is calculated by dividing the 2025 operating netback by 2P F&D costs per boe for the year. The Company's 2025 recycle ratio is calculated as follows:2025 operating netback – US$ per boe$52.612024 F&D costs – US$ per boe – see computation above$15.422P recycle ratio3.4BOE DisclosureThe term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.Contracted Natural Gas VolumesThe contracted daily firm volumes under Alvopetro's long-term gas sales agreement of 400 e3m3/d (before any provisions for take or pay allowances) represents contracted volumes based on contract referenced natural gas heating value. Alvopetro's reported natural gas sales volumes are prior to any adjustments for heating value of Alvopetro natural gas. Alvopetro's natural gas is approximately 8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e3m3/d (13.1MMcfpd).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", "plan", "may", "believe", "estimate", "forecast", "anticipate", "should" and other similar words or expressions are intended to identify forward-looking information. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking statements concerning the expected natural gas price, gas sales and gas deliveries under Alvopetro's long-term gas sales agreement, the timing and taxation of dividends and plans for dividends in the future, future production and sales volumes, plans relating to the Company's operational activities, proposed exploration and development activities and the timing for such activities, capital spending levels, future capital and operating costs, anticipated timing for upcoming drilling and testing of other wells, arbitration procedures associated with the redetermination of working interests of the Caburé natural gas field, and projected financial results. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to the success of future drilling, completion, testing, recompletion and development activities and the timing of such activities, the performance of producing wells and reservoirs, well development and operating performance, expectations and assumptions concerning the timing of regulatory licenses and approvals, equipment availability, environmental regulation, including regulations relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, the outlook for commodity markets and ability to access capital markets, foreign exchange rates, the outcome of any disputes, the outcome of  redeterminations, general economic and business conditions, forecasted demand for oil and natural gas, the impact of global pandemics, weather and access to drilling locations, the availability and cost of labour and services, and 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. Current and forecasted natural gas nominations are subject to change on a daily basis and such changes may be material. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although we believe that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, reliance on industry partners, availability of equipment and personnel, uncertainty surrounding timing for drilling and completion activities resulting from weather and other factors, changes in applicable regulatory regimes and health, safety and environmental risks), commodity price and foreign exchange rate fluctuations, market uncertainty associated with trade or tariff disputes, and general economic conditions. 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. 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 factors that could affect the operations or financial results of Alvopetro are included in our AIF which may be accessed on Alvopetro's SEDAR+ profile at www.sedarplus.ca. 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.SOURCE Alvopetro Energy Ltd.

Original: Alvopetro Announces Year End 2025 Financial Results, Q1 2026 Dividend of US$0.12/share, and Filing of our AIF