CALGARY, ALBERTA--(Marketwired - Apr 17, 2015) - Alvopetro Energy Ltd. (TSX VENTURE:ALV) is pleased to announce the pressure transient analysis conducted on the first interval of our 197(2) well and the results of the test of the second interval.
In December 2014, our 197(2) well located on Block 197 in the Recôncavo basin in the State of Bahia, Brazil, reached a total depth of 1,669 metres, discovered natural gas, and was cased and cemented. Based on logs, the well encountered 78 metres of potential net natural gas pay, with an average 33% water saturation and an average porosity of 12%, using an 8% porosity cut-off. We perforated and completed the deepest sandstone interval, at 1,460 - 1,469 metres, and completed a 72 hour wireline perforated cased-hole test. This average 12.6% porosity interval flowed natural gas, on an unstimulated basis, at an average rate of 101,000 m3/d (3.6 MMcfpd or 600 boepd), with a 32/64" choke, using 2-7/8 inch tubing, from the Caruaçu Member of the Maracangalha Formation. The initial pressure transient analysis of this first interval forecasts potential post-stimulation rates at 261,000 m3/d (9.2 MMcfpd or 1,530 boepd) after three months of continuous production and 125,000 m3/d (4.4 MMcfpd or 730 boepd) after one year of continuous production, in both instances at 1,000 psi sandface pressure.
We have now completed our second test, including the intervals from 1,371 - 1,376 and 1,384 - 1,389 metres, which contained 10.5 metres of potential net pay and 13.6% average porosity. Over the 72 hour tubing conveyed perforated cased-hole test, the second intervals flowed natural gas, on an unstimulated basis, at an average rate of 53,000 m3/d (1.9 MMcfpd or 310 boepd), with a 32/64" choke, using 2-7/8 inch tubing, from the Caruaçu Member of the Maracangalha Formation.
At commencement of the test, the flowing tubing pressure at the wellhead was 3,100 kPa (450 psig) and decreased to 2,140 kPa (310 psig) at the end of the test. The initial shut-in casing pressure in the wellbore at commencement of the test was 9,970 kPa (1446 psig) and the ending shut-in casing pressure was 2,480 kPa (360 psig). Cumulatively, over the duration of this 72 hour test, the well produced 158,000 m3 (5.6 MMcf) of natural gas. During the course of this test, in addition to the natural gas and not included in any flow rates reported in this press release, we recovered 7 barrels of 60° API condensate and 2 barrels of water.
The 197(2) well is currently shut-in to measure reservoir pressure and obtain pressure build-up data to undertake a pressure transient analysis, which will allow Alvopetro to predict the deliverability of this second interval. After completing the pressure build-up test, the second interval will be temporarily suspended with a retrievable bridge plug and the completion will proceed up-hole to test the third interval within the gas column. The third interval test will assess a sandstone reservoir at 1,322 - 1,327 metres that has no stratigraphic equivalent in the offset well.
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, while maintaining our focus on being a low cost operator. Our strategy is to pursue development of our highly prospective land base with a three-pronged approach targeting lower risk development drilling on our mature fields, shallow conventional exploration opportunities, and the development of the significant hydrocarbon opportunity present in our deep Gomo resource play. Alvopetro's strong financial position, along with our exceptionally talented technical team, local operating capabilities, and highly prospective land base, position us to successfully develop our opportunities.
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.
Test Results. Any references in this news release to test results, production from testing and performance rates are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which such well will continue production and decline thereafter. Test results are not necessarily indicative of long-term performance of the relevant well or fields or of ultimate recovery of hydrocarbons.
| Abbreviations: |
| m3 | = | cubic metre |
| m3/d | = | cubic metre per day |
| Mcfpd | = | thousand cubic feet per day |
| MMcf | = | million cubic feet |
| MMcfpd | = | million cubic feet per day |
| Boepd | = | barrels of oil equivalent per day |
| kPa | = | kilopascals (103) |
| psig | = | pounds per square inch gauge |
| mD | = | millidarcies |
| ° API | = | degrees API (American Petroleum Institute) |
BOE Disclosure. 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 (6mcf/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 press 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", "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 potential hydrocarbons, test results, exploration and development prospects of Alvopetro and the expected timing of certain of Alvopetro's testing and operational activities. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including expectations and assumptions concerning testing results, 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.
