Alvopetro Fuels Growth: A New Era of Energy Abundance
Expanding Horizons: Brazil's Drilling Triumph
Alvopetro's strategic investments in Brazil have yielded substantial returns, with successful drilling operations significantly bolstering its reserves. This includes the notable performance of the 183-D4 well within the Caruaçu Formation at the Murucututu natural gas field, which has added new proved undeveloped locations and contributed significantly to the overall reserve increase.
Strategic Acquisitions: Boosting Canadian Assets
The company's expansion into Canada has also played a pivotal role in its reserve growth. By integrating heavy oil assets in Saskatchewan's Mannville Stack, Alvopetro has diversified its portfolio and added considerable proved and probable reserves, further solidifying its position in the energy sector.
Robust Reserve Growth: A Detailed Overview
Alvopetro reported an impressive 79% increase in its total proved (1P) reserves, reaching 8.1 million barrels of oil equivalent (MMboe) by the end of December 2025. Furthermore, its proved plus probable (2P) reserves saw a 43% rise, totaling 13.1 MMboe, as confirmed by an independent evaluation.
Financial Valuation: Net Present Value Surges
The financial health of Alvopetro's reserves also shows a positive trajectory. The before-tax net present value discounted at 10% (NPV10) for 1P reserves escalated by 38% to $245.6 million, while the 2P NPV10 improved by 20% to $393.6 million, reflecting enhanced asset valuation and future earnings potential.
Exceptional Production Replacement Ratio
Alvopetro demonstrated an outstanding ability to replace its production, achieving a 1P production replacement ratio of 485% against 2025 production of 0.9 MMboe. The 2P replacement ratio was even higher at 530%, highlighting the company's efficiency in replenishing its resource base. The 2P reserves life index currently stands at a healthy 12.5 years.
Leadership's Perspective on Performance
CEO Corey Ruttan expressed satisfaction with the year-end results, emphasizing that the significant increase in 2P reserves and the high production replacement ratio underscore the company's commitment to disciplined capital allocation and sustainable organic growth, benefiting all stakeholders.
Operational Footprint and Future Dispositions
Alvopetro maintains a 100% working interest in Brazil's Murucututu field and a 56.2% interest in the Caburé unit. In Canada, it holds a 50% interest across 75 sections in western Saskatchewan. Looking ahead, the company has plans to divest its two Brazilian oil fields, Bom Lugar and Mãe-da-lua, pending regulatory approvals.
Record Production Levels Achieved
The company also announced record-breaking production figures for the fourth quarter, reaching 2,867 barrels of oil equivalent per day (boepd). This momentum continued into January, with production further increasing to 3,099 boepd, showcasing consistent operational excellence.
Contingent and Prospective Resources Outlook
While risked best estimate contingent resources decreased slightly to 3.8 MMboe with an NPV10 of $88.0 million due to reclassification into reserves, risked best estimate prospective resources surged by 19% to 12.1 MMboe, with an NPV10 of $264.3 million, indicating promising future growth potential in the Caruaçu Formation.