{"id":4077,"date":"2025-11-06T09:19:20","date_gmt":"2025-11-06T09:19:20","guid":{"rendered":"https:\/\/profitalarm.com\/index.php\/2025\/11\/06\/alvopetro-announces-q3-2025-financial-results-and-an-operational-update-including-record-october-sales\/"},"modified":"2025-11-06T09:19:20","modified_gmt":"2025-11-06T09:19:20","slug":"alvopetro-announces-q3-2025-financial-results-and-an-operational-update-including-record-october-sales","status":"publish","type":"post","link":"https:\/\/profitalarm.com\/index.php\/2025\/11\/06\/alvopetro-announces-q3-2025-financial-results-and-an-operational-update-including-record-october-sales\/","title":{"rendered":"Alvopetro Announces Q3 2025 Financial Results and an Operational Update Including Record October Sales"},"content":{"rendered":"<\/p>\n
\n
\n

Alvopetro Energy Ltd. (TSXV:ALV,OTC:ALVOF) (OTCQX: ALVOF) announces an operational update and financial results for the three and nine months ended September 30, 2025.\u00a0\u00a0<\/p>\n

All references herein to $ refer to United States<\/span> dollars, unless otherwise stated and all tabular amounts are in thousands of United States<\/span> dollars, except as otherwise noted.<\/p>\n

President & CEO, Corey C. Ruttan<\/span> commented:<\/p>\n

‘Our sales in Brazil<\/span> in October averaged 2,766 boepd, a 34% increase from September. Our Western Canadian assets added an additional 157 bopd bringing our company average up to 2,923 boepd, a new record for Alvopetro. On our 100% owned Murucututu project in Brazil<\/span>, our 183-D4 well achieved IP30 rates of 1,071 boepd, significantly above our pre-drill estimates. This result helps strengthen our longer-term growth plans in Brazil<\/span>. Our success in Brazil<\/span> is being complimented by our Western Canadian capital program and our recently expanded partnership covering virtually all of the Saskatchewan<\/span> portion of the Mannville Stack Heavy Oil play fairway. We are in a strong position to continue our disciplined capital allocation model, balancing returns to stakeholders and investing in high rate of return growth opportunities in Brazil<\/span> and the Western Canadian Sedimentary Basin.’<\/p>\n<\/p>\n

Operational Update<\/b><\/p>\n

October Sales Volumes <\/i><\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Natural gas, NGLs and crude oil sales:<\/b><\/span><\/p>\n<\/td>\n

\n

October<\/b><\/span><\/p>\n

2025<\/b><\/span><\/p>\n<\/td>\n

\n

September<\/span><\/p>\n

2025<\/span><\/p>\n<\/td>\n

\n

Q3
2025<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Brazil:<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

\u00a0\u00a0\u00a0\u00a0\u00a0 Natural gas (Mcfpd), by field:<\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

\u00a0\u00a0\u00a0\u00a0\u00a0 Cabur\u00e9<\/span><\/p>\n<\/td>\n

\n

9,136<\/b><\/span><\/p>\n<\/td>\n

\n

5,463<\/span><\/p>\n<\/td>\n

\n

8,735<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0 Murucututu<\/span><\/p>\n<\/td>\n

\n

6,115<\/b><\/span><\/p>\n<\/td>\n

\n

5,812<\/span><\/p>\n<\/td>\n

\n

3,558<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0 Total natural gas (Mcfpd)<\/span><\/p>\n<\/td>\n

\n

15,251<\/b><\/span><\/p>\n<\/td>\n

\n

11,275<\/span><\/p>\n<\/td>\n

\n

12,293<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0 NGLs (bopd)<\/span><\/p>\n<\/td>\n

\n

206<\/b><\/span><\/p>\n<\/td>\n

\n

180<\/span><\/p>\n<\/td>\n

\n

147<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0\u00a0\u00a0\u00a0\u00a0 Oil (bopd)(1)<\/sup><\/span><\/p>\n<\/td>\n

\n

18<\/b><\/span><\/p>\n<\/td>\n

\n

9<\/span><\/p>\n<\/td>\n

\n

9<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total (boepd) \u2013 Brazil<\/b><\/span><\/p>\n<\/td>\n

\n

2,766<\/b><\/span><\/p>\n<\/td>\n

\n

2,069<\/span><\/p>\n<\/td>\n

\n

2,205<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Canada:<\/b><\/span><\/p>\n<\/td>\n

<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
\n

\u00a0\u00a0\u00a0\u00a0\u00a0 Oil (bopd) \u2013 Canada<\/span><\/p>\n<\/td>\n

\n

157<\/b><\/span><\/p>\n<\/td>\n

\n

163<\/span><\/p>\n<\/td>\n

\n

138<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Total Company \u2013 boepd(2)<\/sup><\/span><\/b><\/span><\/p>\n<\/td>\n

\n

2,923<\/b><\/span><\/p>\n<\/td>\n

\n

2,232<\/span><\/p>\n<\/td>\n

\n

2,343<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

\n
\n\n\n\n\n
\n

(1)<\/i><\/span><\/p>\n<\/td>\n

\n

Oil sale volumes in Brazil relate to the Bom Lugar and M<\/i>\u00e3<\/i>e 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.<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(2)<\/i><\/span><\/p>\n<\/td>\n

\n

Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.<\/i><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

October sales volumes increased to 2,923 boepd, including 2,766 boepd from Brazil<\/span> (with natural gas sales of 15.3 MMcfpd, associated natural gas liquids sales from condensate of 206 bopd, and oil sales of 18 bopd) and 157 bopd from oil sales in Canada<\/span>, based on field estimates, setting a new record for sales volumes at Alvopetro. In Brazil<\/span>, sales volumes increased 34% over September and 25% over Q3 2025 following Alvopetro and Bahiagas agreeing to a spot contract with discounted pricing for volumes above our firm contract reference volumes of 400 e3<\/sup>m3<\/sup>\/d (14.1 MMcfpd).<\/p>\n

Quarterly Natural Gas Pricing Update<\/i><\/p>\n

As previously announced, effective November 1, 2025<\/span>, our natural gas price under our long-term gas sales agreement was adjusted to BRL1.81<\/span>\/m3<\/sup> and will apply to firm natural gas sales (up to 400,000 m<\/span>3<\/sup>\/d) from November 1, 2025<\/span> to January 31, 2026<\/span>. Based on our average heat content to date and the October 31, 2025<\/span> BRL\/USD exchange rate of 5.38, our expected realized price at the new contracted price is $10.15<\/span>\/Mcf, net of applicable sales taxes, a decrease of 8% from the Q3 2025 realized price of $11.04<\/span>\/Mcf due mainly to lower Henry Hub prices in the third quarter.\u00a0Amounts ultimately received in equivalent USD will be impacted by exchange rates in effect during the period November 1, 2025<\/span> to January 31, 2026<\/span>. Natural gas sales above 400,000 m<\/span>3<\/sup>\/d are currently being sold on a flexible basis under spot contracts at discounts to our firm contracted price.<\/p>\n

Development Activities – Brazil<\/span><\/i><\/p>\n

On our 100% owned Murucututu field, the 183-D4 well was completed in seven intervals in the third quarter. With this well on production from the field since late August, third quarter natural gas sales from Murucututu increased to 3.6 MMcfpd (+199% from Q2 2025) and October natural gas sales increased further to 6.1 MMcfpd.<\/p>\n

Our joint development on the unitized area (‘the Unit’), which includes our Cabur\u00e9 field, continued in the third quarter and four wells (2.2 net) were drilled. Three of the wells have now been completed and brought on production. We are planning a sidetrack of the fourth well due to challenges encountered while executing the final phase of the well. The timing of drilling the fifth planned development well (0.6 net) is subject to the receipt of all necessary regulatory approvals.<\/p>\n

Development Activities \u2013 Western Canada<\/span><\/i><\/p>\n

In the third quarter, two additional wells were drilled (1.0 net to Alvopetro) and commenced production in September. As previously announced, we entered into an expanded area of mutual interest (‘Expanded AMI’) with our existing partner. Under the terms of the Expanded AMI, we have agreed to fund 100% of two earning wells to earn a 50% working interest in an additional 46.9 sections of land (15,010 net acres). The two earning wells are expected to commence drilling in late 2025. After drilling, Alvopetro will have a 50% interest in 74.4 sections of land (23,900 net acres).<\/p>\n

Financial and Operating Highlights \u2013 Third Quarter of 2025<\/b><\/p>\n

    \n
  • Average daily sales in Q3 2025 were 2,343\u00a0boepd(1)<\/sup> (+11% from Q3 2024 and -4% from Q2 2025). In Brazil<\/span>, daily sales averaged 2,205 boepd (+5% compared to Q3 2024 and -4% from Q2 2025) and in Canada<\/span>, oil sales averaged 138 bopd in the quarter (consistent with Q2 2025).<\/li>\n
  • Our average realized natural gas price was $11.04<\/span>\/Mcf (+1% from Q3 2024 and +4% from Q2 2025). Our overall averaged realized sales price per boe was $65.76<\/span>\/boe (-1% from Q3 2024 and +4% from Q2 2025).<\/li>\n
  • Our natural gas, oil and condensate revenue increased to $14.2 million<\/span> (+10% from Q3 2024 and +1% from Q2 2025). Compared to Q3 2024, the increase was driven by higher overall sales volumes, partially offset by lower realized prices. Compared to Q2 2025, the increase was as a result of higher realized prices, partially offset by lower sales volumes.<\/li>\n
  • Our operating netback(2)<\/sup> in the quarter was $55.90<\/span> per boe, a decrease of $3.29<\/span> per boe compared to Q3 2024 due mainly to addition of lower overall netbacks from Canadian operations. Compared to Q2 2025, our operating netback increased $1.18<\/span> per boe with higher realized prices, partially offset by higher royalties, production expenses and transportation expenses.<\/li>\n
  • We generated funds flows from operations(2)<\/sup> of $10.4 million<\/span> ($0.28<\/span> per basic and per diluted share), increases of $0.6 million<\/span> compared to Q3 2024 and $0.1 million<\/span> compared to Q2 2025.<\/li>\n
  • We reported net income of $4.6 million<\/span> ($0.12<\/span> per basic and diluted share), a decrease of $2.5 million<\/span> compared to Q3 2024 due mainly to impairment losses and higher depletion and depreciation expenses recognized in Q3 2025, partially offset by higher revenues with increased sales volumes, and lower tax expenses.<\/li>\n
  • Capital expenditures totaled $11.2 million<\/span>, including completion costs for the 183-D4 well on Alvopetro’s 100% Murucututu field, Alvopetro’s share of unit development costs on the Cabure field and Alvopetro’s share of costs to drill and equip an additional two wells (1.0 net) in Saskatchewan<\/span>.<\/li>\n
  • Our working capital(2)<\/sup> surplus was $2.2 million<\/span> as of September 30, 2025<\/span>, decreasing $4.6 million<\/span> from June 30, 2025<\/span>.<\/li>\n<\/ul>\n
    \n
    \n\n\n\n\n
    \n

    (1)<\/span><\/p>\n<\/td>\n

    		\n

    Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    (2)<\/span><\/p>\n<\/td>\n

    		\n

    See ‘Non-GAAP and Other Financial Measures<\/i>‘ section within this news release.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    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.<\/p>\n

    \n
    \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    <\/td>\n\n

    As at and Three Months Ended <\/b><\/span><\/p>\n

    September 30,<\/b><\/span><\/p>\n<\/td>\n

    		\n

    As at and Nine Months Ended <\/b><\/span><\/p>\n

    September 30,<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n

    		\n

    Change (%)<\/span><\/p>\n<\/td>\n

    		\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n

    		\n

    Change (%)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Financial<\/b><\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    ($000s, except where noted)<\/i><\/b><\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Natural gas, oil and condensate sales <\/span><\/p>\n<\/td>\n

    		\n

    14,175<\/b><\/span><\/p>\n<\/td>\n

    		\n

    12,879<\/span><\/p>\n<\/td>\n

    		\n

    10<\/span><\/p>\n<\/td>\n

    		\n

    42,198<\/b><\/span><\/p>\n<\/td>\n

    		\n

    35,303<\/span><\/p>\n<\/td>\n

    		\n

    20<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Net income<\/span><\/p>\n<\/td>\n

    		\n

    4,613<\/b><\/span><\/p>\n<\/td>\n

    		\n

    7,152<\/span><\/p>\n<\/td>\n

    		\n

    (36)<\/span><\/p>\n<\/td>\n

    		\n

    17,513<\/b><\/span><\/p>\n<\/td>\n

    		\n

    14,052<\/span><\/p>\n<\/td>\n

    		\n

    25<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Per share \u2013 basic ($)(1)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    0.12<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.19<\/span><\/p>\n<\/td>\n

    		\n

    (37)<\/span><\/p>\n<\/td>\n

    		\n

    0.47<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.38<\/span><\/p>\n<\/td>\n

    		\n

    24<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Per share \u2013 diluted ($)(1)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    0.12<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.19<\/span><\/p>\n<\/td>\n

    		\n

    (37)<\/span><\/p>\n<\/td>\n

    		\n

    0.46<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.37<\/span><\/p>\n<\/td>\n

    		\n

    24<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Cash flows from operating activities<\/span><\/p>\n<\/td>\n

    		\n

    12,153<\/b><\/span><\/p>\n<\/td>\n

    		\n

    10,714<\/span><\/p>\n<\/td>\n

    		\n

    13<\/span><\/p>\n<\/td>\n

    		\n

    31,443<\/b><\/span><\/p>\n<\/td>\n

    		\n

    27,787<\/span><\/p>\n<\/td>\n

    		\n

    13<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Per share \u2013 basic ($)(1)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    0.33<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.29<\/span><\/p>\n<\/td>\n

    		\n

    14<\/span><\/p>\n<\/td>\n

    		\n

    0.84<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.75<\/span><\/p>\n<\/td>\n

    		\n

    12<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Per share \u2013 diluted ($)(1)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    0.32<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.28<\/span><\/p>\n<\/td>\n

    		\n

    14<\/span><\/p>\n<\/td>\n

    		\n

    0.83<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.74<\/span><\/p>\n<\/td>\n

    		\n

    12<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Funds flow from operations(2)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    10,448<\/b><\/span><\/p>\n<\/td>\n

    		\n

    9,886<\/span><\/p>\n<\/td>\n

    		\n

    6<\/span><\/p>\n<\/td>\n

    		\n

    30,036<\/b><\/span><\/p>\n<\/td>\n

    		\n

    26,309<\/span><\/p>\n<\/td>\n

    		\n

    14<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Per share \u2013 basic ($)(1)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    0.28<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.27<\/span><\/p>\n<\/td>\n

    		\n

    4<\/span><\/p>\n<\/td>\n

    		\n

    0.81<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.71<\/span><\/p>\n<\/td>\n

    		\n

    14<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Per share \u2013 diluted ($)(1)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    0.28<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.26<\/span><\/p>\n<\/td>\n

    		\n

    8<\/span><\/p>\n<\/td>\n

    		\n

    0.79<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.70<\/span><\/p>\n<\/td>\n

    		\n

    13<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Dividends declared<\/span><\/p>\n<\/td>\n

    		\n

    3,673<\/b><\/span><\/p>\n<\/td>\n

    		\n

    3,295<\/span><\/p>\n<\/td>\n

    		\n

    11<\/span><\/p>\n<\/td>\n

    		\n

    10,976<\/b><\/span><\/p>\n<\/td>\n

    		\n

    9,887<\/span><\/p>\n<\/td>\n

    		\n

    11<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Per share(1)<\/sup>\u00a0(2)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    0.10<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.09<\/span><\/p>\n<\/td>\n

    		\n

    11<\/span><\/p>\n<\/td>\n

    		\n

    0.30<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.27<\/span><\/p>\n<\/td>\n

    		\n

    11<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Capital expenditures<\/span><\/p>\n<\/td>\n

    		\n

    11,249<\/b><\/span><\/p>\n<\/td>\n

    		\n

    4,747<\/span><\/p>\n<\/td>\n

    		\n

    137<\/span><\/p>\n<\/td>\n

    		\n

    28,610<\/b><\/span><\/p>\n<\/td>\n

    		\n

    10,623<\/span><\/p>\n<\/td>\n

    		\n

    169<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Cash and cash equivalents<\/span><\/p>\n<\/td>\n

    		\n

    12,081<\/b><\/span><\/p>\n<\/td>\n

    		\n

    24,515<\/span><\/p>\n<\/td>\n

    		\n

    (51)<\/span><\/p>\n<\/td>\n

    		\n

    12,081<\/b><\/span><\/p>\n<\/td>\n

    		\n

    24,515<\/span><\/p>\n<\/td>\n

    		\n

    (51)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Net working capital(2)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    2,209<\/b><\/span><\/p>\n<\/td>\n

    		\n

    15,848<\/span><\/p>\n<\/td>\n

    		\n

    (86)<\/span><\/p>\n<\/td>\n

    		\n

    2,209<\/b><\/span><\/p>\n<\/td>\n

    		\n

    15,848<\/span><\/p>\n<\/td>\n

    		\n

    (86)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Weighted average shares outstanding <\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Basic (000s)(1)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    37,263<\/b><\/span><\/p>\n<\/td>\n

    		\n

    37,300<\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n

    		\n

    37,273<\/b><\/span><\/p>\n<\/td>\n

    		\n

    37,286<\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Diluted (000s)(1)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    37,851<\/b><\/span><\/p>\n<\/td>\n

    		\n

    37,662<\/span><\/p>\n<\/td>\n

    		\n

    1<\/span><\/p>\n<\/td>\n

    		\n

    37,801<\/b><\/span><\/p>\n<\/td>\n

    		\n

    37,671<\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Operations<\/b><\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Average daily sales volumes(3)<\/sup>:<\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Brazil:<\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Natural gas (Mcfpd), by field:<\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 Cabur\u00e9 (Mcfpd)<\/span><\/p>\n<\/td>\n

    		\n

    8,735<\/b><\/span><\/p>\n<\/td>\n

    		\n

    11,378<\/span><\/p>\n<\/td>\n

    		\n

    (23)<\/span><\/p>\n<\/td>\n

    		\n

    10,741<\/b><\/span><\/p>\n<\/td>\n

    		\n

    9,817<\/span><\/p>\n<\/td>\n

    		\n

    9<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 Murucututu (Mcfpd)<\/span><\/p>\n<\/td>\n

    		\n

    3,558<\/b><\/span><\/p>\n<\/td>\n

    		\n

    616<\/span><\/p>\n<\/td>\n

    		\n

    478<\/span><\/p>\n<\/td>\n

    		\n

    2,286<\/b><\/span><\/p>\n<\/td>\n

    		\n

    490<\/span><\/p>\n<\/td>\n

    		\n

    367<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Total natural gas (Mcfpd)<\/span><\/p>\n<\/td>\n

    		\n

    12,293<\/b><\/span><\/p>\n<\/td>\n

    		\n

    11,994<\/span><\/p>\n<\/td>\n

    		\n

    2<\/span><\/p>\n<\/td>\n

    		\n

    13,027<\/b><\/span><\/p>\n<\/td>\n

    		\n

    10,307<\/span><\/p>\n<\/td>\n

    		\n

    26<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 NGLs \u2013 condensate (bopd)<\/span><\/p>\n<\/td>\n

    		\n

    147<\/b><\/span><\/p>\n<\/td>\n

    		\n

    95<\/span><\/p>\n<\/td>\n

    		\n

    55<\/span><\/p>\n<\/td>\n

    		\n

    137<\/b><\/span><\/p>\n<\/td>\n

    		\n

    83<\/span><\/p>\n<\/td>\n

    		\n

    65<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Oil (bopd)<\/span><\/p>\n<\/td>\n

    		\n

    9<\/b><\/span><\/p>\n<\/td>\n

    		\n

    12<\/span><\/p>\n<\/td>\n

    		\n

    (25)<\/span><\/p>\n<\/td>\n

    		\n

    8<\/b><\/span><\/p>\n<\/td>\n

    		\n

    12<\/span><\/p>\n<\/td>\n

    		\n

    (33)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Total (boepd) – Brazil<\/span><\/p>\n<\/td>\n

    		\n

    2,205<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2,106<\/span><\/p>\n<\/td>\n

    		\n

    5<\/span><\/p>\n<\/td>\n

    		\n

    2,315<\/b><\/span><\/p>\n<\/td>\n

    		\n

    1,813<\/span><\/p>\n<\/td>\n

    		\n

    28<\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Canada:<\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Oil (bopd) – Canada<\/span><\/p>\n<\/td>\n

    		\n

    138<\/b><\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n

    		\n

    93<\/b><\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Total Company (boepd)<\/span><\/p>\n<\/td>\n

    		\n

    2,343<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2,106<\/span><\/p>\n<\/td>\n

    		\n

    11<\/span><\/p>\n<\/td>\n

    		\n

    2,408<\/b><\/span><\/p>\n<\/td>\n

    		\n

    1,813<\/span><\/p>\n<\/td>\n

    		\n

    33<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    \u00a0<\/p>\n

    \n
    \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    <\/td>\n\n

    As at and Three Months Ended<\/b><\/span><\/p>\n

    September 30,<\/b><\/span><\/p>\n<\/td>\n

    		\n

    As at and Three Months Ended<\/b><\/span><\/p>\n

    September 30,<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n

    		\n

    Change (%)<\/span><\/p>\n<\/td>\n

    		\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n

    		\n

    Change (%)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Average realized prices(2)<\/sup>:<\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Natural gas ($\/Mcf)<\/span><\/p>\n<\/td>\n

    		\n

    11.04<\/b><\/span><\/p>\n<\/td>\n

    		\n

    10.92<\/span><\/p>\n<\/td>\n

    		\n

    1<\/span><\/p>\n<\/td>\n

    		\n

    10.69<\/b><\/span><\/p>\n<\/td>\n

    		\n

    11.70<\/span><\/p>\n<\/td>\n

    		\n

    (9)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 NGLs \u2013 condensate ($\/bbl)<\/span><\/p>\n<\/td>\n

    		\n

    74.16<\/b><\/span><\/p>\n<\/td>\n

    		\n

    86.70<\/span><\/p>\n<\/td>\n

    		\n

    (14)<\/span><\/p>\n<\/td>\n

    		\n

    75.83<\/b><\/span><\/p>\n<\/td>\n

    		\n

    88.77<\/span><\/p>\n<\/td>\n

    		\n

    (15)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Oil ($\/bbl)<\/span><\/p>\n<\/td>\n

    		\n

    50.42<\/b><\/span><\/p>\n<\/td>\n

    		\n

    68.36<\/span><\/p>\n<\/td>\n

    		\n

    (26)<\/span><\/p>\n<\/td>\n

    		\n

    49.36<\/b><\/span><\/p>\n<\/td>\n

    		\n

    68.48<\/span><\/p>\n<\/td>\n

    		\n

    (28)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Total ($\/boe)<\/span><\/p>\n<\/td>\n

    		\n

    65.76<\/b><\/span><\/p>\n<\/td>\n

    		\n

    66.46<\/span><\/p>\n<\/td>\n

    		\n

    (1)<\/span><\/p>\n<\/td>\n

    		\n

    64.19<\/b><\/span><\/p>\n<\/td>\n

    		\n

    71.06<\/span><\/p>\n<\/td>\n

    		\n

    (10)<\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Operating netback ($\/boe)(2)<\/sup><\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Realized sales price<\/span><\/p>\n<\/td>\n

    		\n

    65.76<\/b><\/span><\/p>\n<\/td>\n

    		\n

    66.46<\/span><\/p>\n<\/td>\n

    		\n

    (1)<\/span><\/p>\n<\/td>\n

    		\n

    64.19<\/b><\/span><\/p>\n<\/td>\n

    		\n

    71.06<\/span><\/p>\n<\/td>\n

    		\n

    (10)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Royalties <\/span><\/p>\n<\/td>\n

    		\n

    (3.54)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    (1.89)<\/span><\/p>\n<\/td>\n

    		\n

    87<\/span><\/p>\n<\/td>\n

    		\n

    (4.71)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    (1.94)<\/span><\/p>\n<\/td>\n

    		\n

    143<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Production expenses<\/span><\/p>\n<\/td>\n

    		\n

    (6.10)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    (5.38)<\/span><\/p>\n<\/td>\n

    		\n

    13<\/span><\/p>\n<\/td>\n

    		\n

    (5.58)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    (6.23)<\/span><\/p>\n<\/td>\n

    		\n

    (10)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Transportation expenses<\/span><\/p>\n<\/td>\n

    		\n

    (0.22)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n

    		\n

    (0.12)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n

    		\n

    –<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0\u00a0\u00a0\u00a0\u00a0 Operating netback<\/span><\/p>\n<\/td>\n

    		\n

    55.90<\/b><\/span><\/p>\n<\/td>\n

    		\n

    59.19<\/span><\/p>\n<\/td>\n

    		\n

    (6)<\/span><\/p>\n<\/td>\n

    		\n

    53.78<\/b><\/span><\/p>\n<\/td>\n

    		\n

    62.89<\/span><\/p>\n<\/td>\n

    		\n

    (14)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    \u00a0Operating netback margin(2)<\/sup><\/span><\/p>\n<\/td>\n

    		\n

    85\u00a0%<\/b><\/span><\/p>\n<\/td>\n

    		\n

    89\u00a0%<\/span><\/p>\n<\/td>\n

    		\n

    (4)<\/span><\/p>\n<\/td>\n

    		\n

    84\u00a0%<\/b><\/span><\/p>\n<\/td>\n

    		\n

    89\u00a0%<\/span><\/p>\n<\/td>\n

    		\n

    (6)<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    \n
    \n\n\n\n\n\n\n
    \n

    Notes:<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    (1)<\/span><\/p>\n<\/td>\n

    		\n

    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.<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    (2)<\/span><\/p>\n<\/td>\n

    		\n

    See ‘Non-GAAP and Other Financial Measures’ section within this news release.<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    (3)<\/span><\/p>\n<\/td>\n

    		\n

    Alvopetro reported volumes are based on sales volumes which, due to the timing of sales deliveries, may differ from production volumes.<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    Q3 2025 Results Webcast<\/b><\/p>\n

    Alvopetro will host a live webcast to discuss our Q3 2025 financial results at 8:00 am Mountain time on Thursday<\/span> November 6, 2025. Details for joining the event are as follows:<\/p>\n

    DATE: <\/b>November 6, 2025<\/span>
    TIME<\/b>: 8:00 AM<\/span> Mountain\/10:00 AM<\/span> Eastern
    LINK:<\/b>\u00a0https:\/\/us06web.zoom.us\/j\/87150507093
    DIAL-IN NUMBERS: <\/b>https:\/\/us06web.zoom.us\/u\/kdLidYPIoO
    WEBINAR ID: <\/b>871 5050 7093<\/p>\n

    The 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.<\/p>\n

    Corporate Presentation<\/b><\/p>\n

    Alvopetro’s updated corporate presentation is available on our website at:
    http:\/\/www.alvopetro.com\/corporate-presentation.\u00a0<\/p>\n

    Social<\/b>\u00a0Media<\/b><\/p>\n

    Follow Alvopetro on our social media channels at the following links:<\/p>\n

    X –\u00a0https:\/\/x.com\/AlvopetroEnergy
    Instagram – https:\/\/www.instagram.com\/alvopetro\/
    LinkedIn – https:\/\/www.linkedin.com\/company\/alvopetro-energy-ltd<\/p>\n

    Alvopetro Energy Ltd. <\/i><\/b>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<\/span> and Brazil<\/span> where we are<\/i>\u00a0building off the strength of our Cabur\u00e9 and Murucututu natural gas fields and the related strategic midstream infrastructure.<\/i><\/p>\n

    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.<\/i><\/b><\/p>\n

    Abbreviations:<\/b><\/p>\n

    \n
    \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    \n

    $000s<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0thousands of U.S. dollars<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    boepd<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0barrels of oil equivalent (‘boe’) per day<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    bopd<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0barrels of oil and\/or natural gas liquids (condensate) per day<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    BRL<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0Brazilian Real<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    e3<\/sup>m3<\/sup>\/d<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0thousand cubic metre per day<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    m3<\/sup>\u00a0<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0cubic metre<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    m3<\/sup>\/d<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0cubic metre per day<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Mcf<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0thousand cubic feet<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Mcfpd<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0thousand cubic feet per day<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    MMcf<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0million cubic feet<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    MMcfpd<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0million cubic feet per day<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    NGLs<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0natural gas liquids (condensate)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Q1 2025<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0three months ended March 31, 2025<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Q3 2024<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0three months ended September 30, 2024<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Q2 2025<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0three months ended June 30, 2025<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Q3 2025<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0three months ended September 30, 2025<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    USD<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0United States dollars<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    GAAP or IFRS<\/span><\/p>\n<\/td>\n

    		\n

    =<\/span><\/p>\n<\/td>\n

    		\n

    \u00a0 \u00a0 \u00a0IFRS Accounting Standards<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    Non-GAAP and Other Financial Measures<\/b><\/p>\n

    This 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<\/i>. 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 report 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<\/i>‘ section of the Company’s MD&A which may be accessed through the SEDAR+ website at\u00a0www.sedarplus.ca.<\/p>\n

    Non-GAAP Financial Measures<\/u><\/p>\n

    Operating Netback<\/i><\/p>\n

    Operating 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<\/i>‘ 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.<\/p>\n

    Non-GAAP Financial Ratios<\/u><\/p>\n

    Operating Netback per boe<\/i><\/p>\n

    Operating 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 note 3 of the interim condensed consolidated financial statements and in the ‘Operating Netback<\/i>‘ 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 on a per boe basis.<\/p>\n

    Operating netback margin<\/i><\/p>\n

    Operating 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:<\/p>\n

    \n
    \n\n\n\n\n\n\n\n
    <\/td>\n\n

    Three Months Ended<\/b><\/span><\/p>\n

    \u00a0September 30,<\/b><\/span><\/p>\n<\/td>\n

    		\n

    Nine Months Ended <\/b><\/span><\/p>\n

    September 30,<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n

    		\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Operating netback – $ per boe<\/span><\/p>\n<\/td>\n

    		\n

    55.90<\/b><\/span><\/p>\n<\/td>\n

    		\n

    59.19<\/span><\/p>\n<\/td>\n

    		\n

    53.78<\/b><\/span><\/p>\n<\/td>\n

    		\n

    62.89<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Average realized price – $ per boe<\/span><\/p>\n<\/td>\n

    		\n

    65.76<\/b><\/span><\/p>\n<\/td>\n

    		\n

    66.46<\/span><\/p>\n<\/td>\n

    		\n

    64.19<\/b><\/span><\/p>\n<\/td>\n

    		\n

    71.06<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Operating netback margin <\/span><\/p>\n<\/td>\n

    		\n

    85\u00a0%<\/b><\/span><\/p>\n<\/td>\n

    		\n

    89\u00a0%<\/span><\/p>\n<\/td>\n

    		\n

    84\u00a0%<\/b><\/span><\/p>\n<\/td>\n

    		\n

    89\u00a0%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    Funds Flow from Operations Per Share<\/i><\/p>\n

    Funds flow from operations per share is a non-GAAP ratio that includes all cash generated from operating activities and is 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 is as follows:<\/p>\n

    \n
    \n\n\n\n\n\n\n\n\n\n\n\n
    <\/td>\n\n

    Three Months Ended<\/b><\/span><\/p>\n

    \u00a0September 30,<\/b><\/span><\/p>\n<\/td>\n

    		\n

    Nine Months Ended <\/b><\/span><\/p>\n

    September 30,<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    $ per share<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n

    		\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Per basic share:<\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Cash flows from operating activities<\/span><\/p>\n<\/td>\n

    		\n

    0.33<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.29<\/span><\/p>\n<\/td>\n

    		\n

    0.84<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.75<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Funds flow from operations <\/span><\/p>\n<\/td>\n

    		\n

    0.28<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.27<\/span><\/p>\n<\/td>\n

    		\n

    0.81<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.71<\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Per diluted share:<\/span><\/p>\n<\/td>\n

    		<\/td>\n<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
    \n

    Cash flows from operating activities <\/span><\/p>\n<\/td>\n

    		\n

    0.32<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.28<\/span><\/p>\n<\/td>\n

    		\n

    0.83<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.74<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Funds flow from operations <\/span><\/p>\n<\/td>\n

    		\n

    0.28<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.26<\/span><\/p>\n<\/td>\n

    		\n

    0.79<\/b><\/span><\/p>\n<\/td>\n

    		\n

    0.70<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    Capital Management Measures<\/u><\/p>\n

    Funds Flow from Operations\u00a0<\/i><\/p>\n

    Funds flow from operations is a non-GAAP capital management measure that includes all cash generated from operating activities and is 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:<\/p>\n

    \n
    \n\n\n\n\n\n\n\n
    <\/td>\n\n

    Three Months Ended<\/b><\/span><\/p>\n

    \u00a0September 30,<\/b><\/span><\/p>\n<\/td>\n

    		\n

    Nine Months Ended <\/b><\/span><\/p>\n

    September 30,<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n

    		\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Cash flows from operating activities<\/span><\/p>\n<\/td>\n

    		\n

    12,153<\/b><\/span><\/p>\n<\/td>\n

    		\n

    10,714<\/span><\/p>\n<\/td>\n

    		\n

    31,443<\/b><\/span><\/p>\n<\/td>\n

    		\n

    27,787<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Changes in non-cash working capital<\/span><\/p>\n<\/td>\n

    		\n

    (1,705)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    (828)<\/span><\/p>\n<\/td>\n

    		\n

    (1,407)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    (1,478)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Funds flow from operations<\/span><\/p>\n<\/td>\n

    		\n

    10,448<\/b><\/span><\/p>\n<\/td>\n

    		\n

    9,886<\/span><\/p>\n<\/td>\n

    		\n

    30,036<\/b><\/span><\/p>\n<\/td>\n

    		\n

    26,309<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    Net Working Capital <\/i><\/p>\n

    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:\u00a0<\/p>\n

    \n
    \n\n\n\n\n\n\n\n
    <\/td>\n<\/td>\n\n

    As at September 30,<\/b><\/span><\/p>\n<\/td>\n<\/tr>\n

    <\/td>\n<\/td>\n\n

    2025<\/b><\/span><\/p>\n<\/td>\n

    		\n

    2024<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Total current assets<\/span><\/p>\n<\/td>\n

    		<\/td>\n\n

    18,582<\/b><\/span><\/p>\n<\/td>\n

    		\n

    30,197<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Total current liabilities<\/span><\/p>\n<\/td>\n

    		<\/td>\n\n

    (16,373)<\/b><\/span><\/p>\n<\/td>\n

    		\n

    (14,349)<\/span><\/p>\n<\/td>\n<\/tr>\n

    \n

    Net working capital<\/span><\/p>\n<\/td>\n

    		<\/td>\n\n

    2,209<\/b><\/span><\/p>\n<\/td>\n

    		\n

    15,848<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n

    Supplementary Financial Measures<\/u><\/p>\n

    ‘Average realized natural gas price – $\/Mcf<\/i>‘ is comprised of natural gas sales as determined in accordance with IFRS, divided by the Company’s natural gas sales volumes.<\/p>\n

    ‘Average realized NGL \u2013 condensate price – $\/bbl<\/i>‘ is comprised of condensate sales as determined in accordance with IFRS, divided by the Company’s NGL sales volumes from condensate.<\/p>\n

    ‘Average realized oil price – $\/bbl<\/i>‘ is comprised of oil sales as determined in accordance with IFRS, divided by the Company’s oil sales volumes.<\/p>\n

    ‘Average realized price – $\/boe<\/i>‘ 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).<\/p>\n

    ‘Dividends per share<\/i>‘ is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.<\/p>\n

    ‘Royalties per boe<\/i>‘ 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).<\/p>\n

    ‘Production expenses per boe<\/i>‘ 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).<\/p>\n

    ‘Transportation expenses per boe<\/i>‘ 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).<\/p>\n

    BOE Disclosure<\/b><\/p>\n

    The 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.<\/p>\n

    Contracted Natural Gas Volumes<\/b><\/p>\n

    The 2025 contracted daily firm volumes under Alvopetro’s long-term gas sales agreement of 400 e3<\/sup>m3<\/sup>\/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 7.8% higher than the contract reference heating value. Therefore, to satisfy the contractual firm deliveries Alvopetro would be required to deliver approximately 371e3<\/sup>m3<\/sup>\/d (13.1MMcfpd).<\/p>\n

    Well Results<\/b><\/p>\n

    Data obtained from the 183-D4 well identified in this press release, including initial production rates, should be considered preliminary. There is no representation by Alvopetro that the data relating to the 183-D4 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.<\/p>\n

    Forward-Looking Statements and Cautionary Language <\/b><\/p>\n

    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\u2010looking 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,\u00a0future 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, the timing and taxation of dividends and plans for dividends in the future, 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\u00a0 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.\u00a0The 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.\u00a0In 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\u00a0www.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.<\/p>\n

    www.alvopetro.com\u00a0
    <\/span>TSX-V:\u00a0<\/span>ALV, OTCQX:\u00a0<\/span>ALVOF<\/p>\n

    SOURCE Alvopetro Energy Ltd.<\/p>\n<\/p>\n

    View original content: http:\/\/www.newswire.ca\/en\/releases\/archive\/November2025\/05\/c9260.html<\/p>\n<\/p>\n<\/div>\n<\/div>\n

    News Provided by Canada Newswire via QuoteMedia<\/p>\n<\/p>\n

    This post appeared first on investingnews.com<\/div>\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

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