CALGARY, ALBERTA -- (Marketwired) -- 10/07/15 -- Following Brazil's 13th Bid Round ("Bid Round"), administered by the Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis of Brazil ("ANP"), Alvopetro Energy Ltd. (TSX VENTURE: ALV) ("Alvopetro") is pleased to announce that we were the successful bidder on 4 blocks in partnership with ENGIE (GDF SUEZ E&P Brasil Participacoes Limitada), all located in the Reconcavo Basin, onshore Brazil.
Alvopetro will operate all of the blocks and have a 65% participating interest, with ENGIE holding the 35% remaining participating interest. All of the blocks have an initial three year exploratory phase.
Successful 13th Bid Round Blocks Acquired
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Alvopetro Share Work
of Bid Bonus Commitment
Block Gross Acres (BRL Real) (EWU)(1) Work Commitment
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REC-T-57 7,752 117,273 303 30 km of 2D
Seismic
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REC-T-62 7,715 124,961 303 30 km of 2D
Seismic
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REC-T-71 5,409 109,600 207 21 km of 2D
Seismic
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REC-T-145 7,734 111,298 303 30 km of 2D
Seismic
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(1) Exploration Work Units (EWU) can be satisfied by; acquiring 2D seismic
(1 km of 2D seismic = 10.04 EWU), acquiring 3D seismic (1 square km of 3D
seismic = 28.889 EWU), or drilling a well (1 well = 1,000 EWU).
The Bid Round success further strengthens both Alvopetro's and ENGIE's exploration and production positions in Brazil and contributes to ENGIE's strategy to achieve a significant presence along the entire energy value chain in the country. Alvopetro and ENGIE have identified at least one exploration prospect or lead on each of the blocks acquired jointly at target depths ranging between 1,100 to 2,500 metres. We are delighted to commence this partnership with ENGIE in Brazil. ENGIE is a global energy player and an expert operator in the three businesses; electricity, natural gas and energy services. ENGIE has upstream assets in 14 countries and is the largest independent power producer in the world, with power generation capacity of 115 Gigawatts. In Brazil, ENGIE is the largest private power producer with 8,765 Megawatts in operation and 4,515 Megawatts under construction.
Alvopetro Energy Ltd.'s vision is to be the premier independent exploration and production company in Brazil, maximizing shareholder value by applying innovation to underexploited opportunities. Our strategy is to focus on three core opportunities including lower risk development drilling on our mature fields, shallow conventional exploration, and the development of the significant hydrocarbon potential present in our deep Gomo resource play.
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.
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", "intend" and other similar words or expressions are intended to identify forward-looking information. More particularly and without limitation, this news release contains forward-looking information concerning blocks awarded to Alvopetro in Brazil's 13th Bid Round, exploration and development commitments of Alvopetro and the expected timing of certain of Alvopetro's operational activities. The forward-looking statements are based on certain key expectations and assumptions made by Alvopetro, including expectations and assumptions concerning the expected execution of the contracts associated with the blocks awarded to Alvopetro in the bid round, the timing of regulatory licenses and approvals, availability of capital, the success of future drilling and development activities, prevailing commodity prices and economic conditions, the availability of labour and services, the ability to transport and market our production, timing of completion of infrastructure and transportation projects, weather and access to drilling locations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Alvopetro are included in Alvopetro's annual information form which may be accessed through the SEDAR website at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Contacts:
Alvopetro Energy Ltd.
Corey C. Ruttan
President, Chief Executive Officer and Director
587.794.4224
www.alvopetro.com
