Alvopetro announces 2015 reserves and contingent resources
Alvopetro Energy Ltd. (TSX VENTURE: ALV) is pleased to announce our 2015 reserves and contingent resources.
- Alvopetro began 2015 with 11 conventional exploration prospects. We had two conventional exploration successes with our 197(2) and 182(B1) wells and ended 2015 with 22 prospects in our prospect inventory.
- We successfully tested three separate intervals in our significant 197(2) natural gas discovery. Pressure transient analysis forecasts potential post-stimulation rates with total deliverability averaging 15.9 MMcfpd (2,650 boepd) over the first three months of continuous production and averaging 10.2 MMcfpd (1,700 boepd) over the first year of continuous production.
- Alvopetro's 197(2) contingent resources are comprised of a 'best estimate' (2C) of 5.8 MMboe and our 2015 year-end reserves are 741 Mstb (total gross proved plus probable).
- Our 197(2) contingent resources have a NPV10 of US $91.3 million (2C) and our 2015 year-end reserves have a NPV10 of US $9.5 million (total gross proved plus probable). The NPV10 value of our contingent resources reflects the significant value of our first conventional natural gas discovery and highlights the potential of our prospect inventory. Upon elimination of certain of the contingencies to commerciality, Alvopetro expects resources currently classified as contingent resources to be re-classified as reserves.
- We brought our 182(B1) discovery on production.
- We strategically relinquished four non-prospective blocks in 2015 and one block in January 2016, with favourable exchange rates, reducing performance guarantee fees.
Our operating plan has provided Alvopetro with a solid foundation for growth as commodity prices improve. We continue our disciplined capital program in light of low commodity prices and our financial flexibility allows us to manage our capital spending in the near term without impairing our ability to grow when commodity prices recover.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
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