Alvopetro posts higher output, boosts reserves after “transformational” 2025
Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) said on Wednesday it lifted production and reserves in 2025, buoyed by strong performance at its flagship Murucututu field in Brazil.
The Calgary-based oil and gas producer reported average daily sales of 2,523 barrels of oil equivalent per day (boepd) for 2025, up 41% from a year earlier, while proved plus probable (2P) reserves rose 43% to 13.1 million boe.
“2025 was a transformational year for Alvopetro,” CEO Corey Ruttan said, citing the success of the company’s 183-D4 well at Murucututu. Ruttan added the company is “well positioned for another exceptional year in 2026” following record production early in the year.
Alvopetro said it is now focused on expanding infrastructure at Murucututu, targeting an increase in production capacity to 600,000 cubic metres per day from about 150,000 currently. The company also plans to enhance gas processing capacity at its Caburé facility to support higher volumes.
Fourth-quarter production rose to 2,867 boepd, up 65% from a year earlier, driven primarily by Brazil, where output averaged 2,719 boepd. Revenue for the quarter climbed 54% to $15.8 million, reflecting higher sales volumes despite weaker realized prices.
Net income for the quarter increased to $5.6 million from $2.3 million a year earlier, while funds flow from operations rose to $10.6 million.
For the full year, Alvopetro reported net income of $23.1 million, up 42% from 2024, and funds flow from operations of $40.6 million. Capital expenditures totaled $33.5 million.
The company’s reserve growth was underpinned by the Murucututu development, with proved reserves rising 79% to 8.1 million boe and a production replacement ratio of 485%. The associated net present value of 2P reserves increased 20% to $393.6 million.
Alvopetro said it plans additional drilling in 2026, including a new well targeting the Caruaçu formation at Murucututu, with drilling expected to begin next month. At its Caburé project, the company intends to sidetrack an unfinished well from 2025.
In Canada, the company said it has drilled additional wells and expanded its land position in Saskatchewan, targeting heavy oil opportunities in the Mannville formation.
Alvopetro also declared a quarterly dividend of $0.12 per share.
