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Alvopetro tastes gas in the Recôncavo Basin onshore Brazil

16th December 2014

Alvopetro Energy has announced that its 197(2) well, located on Block 197 in the Recôncavo Basin in the State of Bahia, Brazil, has discovered natural gas

Alvopetro Energy has announced that its 197(2) well, located on Block 197 in the Recôncavo Basin in the State of Bahia, Brazil, has discovered natural gas
Based on these results, and consistent with Alvopetro’s natural gas commercialisation objectives, it plans to commence a testing programme on the 197(2) well with a service rig in early 2015

The 197(2) well reached a total depth of 1,669 metres and has been cased and cemented.

Based on cased-hole sonic and neutron logs, the 197(2) well encountered 78 metres of potential net natural gas pay, with an average 33 per cent water saturation, and an average porosity of 12 per cent, using an 8 per cent porosity cut-off.

The 197(2) well offsets an existing discovery that has 67 metres of net pay. This offsetting well tested 3.6 mmcf/d and 21 bbls/d of condensate from a 4-metre perforated interval in the Caruaçu Member of the Maracangalha Formation, over a final 16-hour flow period, with a 32/64" choke and 1,267 psi flowing sand-face pressure.

The operator of this offsetting well has submitted a delineation plan to the ANP.

Based on these results, and consistent with Alvopetro’s natural gas commercialisation objectives, it plans to commence a testing programme on the 197(2) well with a service rig in early 2015, subject to customary regulatory approvals and equipment availability.

Additional technical work and testing is required to determine the extent, if any, of potential commercial hydrocarbons associated with the 197(2) well.

This successful result is a significant milestone for a natural gas business in Bahia and supports Alvopetro’s additional natural gas exploration prospects and its broader plans to develop the extensive Gomo natural gas potential we have discovered in its 197(1) and 183(1) wells drilled earlier this year.

Alvopetro’s 197(2) discovery is its second discovery on Block 197.

Its 197(1) well was drilled to a total depth of 3,275 metres and encountered 43 metres of potential net hydrocarbon pay over several separate intervals.

The lowermost six metres of net pay was perforated and flowed natural gas, without stimulation, at a rate of 40 mcf/day, with no water. This gas interval is part of a large geobody that Alvopetro has mapped using 3D seismic over a large area, confirmed by its 183(1) well results.

Based on logs, mapping and ongoing technical analysis, Alvopetro internally estimates 1.3 TCF of total petroleum initially-in-place (TPIIP) (natural gas) in this 5,460 acre geobody.

Alvopetro plans to complete and test the 183(1) well in early 2015.

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