MEC Assets Restricted (ASX: MMR) – Buying and selling Halt

Firm Highlights

• Alvopetro is a number one impartial upstream and midstream gasoline operator within the state of Bahia, Brazil.
• The corporate’s technique is targeted on unlocking Brazil’s on-shore pure gasoline potential, constructing off the event of its Caburé and Murucututu pure gasoline fields strategic midstream infrastructure.
• Over 95 % of Alvopetro’s manufacturing is from pure gasoline and the corporate has a 2P reserve base of 9.6 MMboe.
• The corporate boasts excessive working netbacks and profitability per unit of manufacturing, setting it other than its Latin American and North American friends. The state of Bahia boasts a good fiscal regime with low royalties and a 15 % revenue tax charge.

The corporate’s flagship Caburé asset (56.2 % Alvopetro) delivers the vast majority of Alvopetro’s present manufacturing. The undertaking is a joint growth (the unit) of a standard pure gasoline discovery throughout 4 blocks, two of that are held by Alvopetro and two of that are held by its companion, with Alvopetro’s working curiosity being 56.2 % following the primary redetermination. The unit presently consists of eight present wells, with all manufacturing amenities already in place. The useful resource is effectively outlined with 3D seismic surveys, significantly on the jap aspect of a most important bounding fault that runs roughly north-south by means of the Caruaçu formation. The corporate plans to drill a further 5 wells in 2025 to additional enhance the productive capability of the sector.

Midstream – Infrastructure and advertising and marketing (100% Alvopetro)

All of Alvopetro’s pure gasoline produced from Caburé and Murucututu are shipped by way of 100% owned and operated pure gasoline pipelines to Alvopetro’s pure gasoline processing facility (UPGN). On the UPGN, the pure gasoline goes by means of a mechanical refrigeration course of, with condensate and water eliminated in the course of the course of, and condensate then will get trucked out and offered at a premium to Brent. The pure gasoline will get delivered to a receiving station (metropolis gate) that was constructed by the corporate’s offtaker, Bahiagás, the distribution firm for the State of Bahia.

The gasoline then will get shipped by way of a newly constructed 15 km distribution pipeline to the Camacari industrial complicated (~17.5 km away), the place the overwhelming majority of the pure gasoline within the state of Bahia will get consumed.

Pure gasoline is offered to Bahiagas beneath a long-term gasoline gross sales settlement, with pricing set quarterly based mostly on Brent and Henry Hub benchmark costs. Alvopetro just lately introduced an up to date gasoline gross sales settlement efficient January 1, 2025, growing agency gross sales volumes by 33 %.

Natural Development Alternatives

Maximizing the Fuel Plant

Within the near-to-mid time period, Alvopetro has a objective to maximise its gasoline plant capability to 18 million cubic toes per day (or 3,000 barrels of oil equal per day), with a plan to double its capability within the coming years by means of each ongoing growth on the Caburé Unit and a multi-year growth of the Murucututu area.

Unit Improvement

Alvopetro’s working curiosity within the Caburé Unit was just lately elevated from 49.1 % to 56.2 % and in consequence, Alvopetro is now entitled to larger manufacturing entitlements from the Unit. As well as, with the unit growth drilling actions deliberate to begin in 2025, the general productive capability of the Unit is focused to extend.

Murucututu Fuel

Alvopetro’s Murucututu asset (100% owned) sits instantly north of Caburé. Impartial reserve estimators, GLJ, spotlight the potential for this area with 2P reserve totaling 4.6 million barrels of oil equal, risked greatest estimate contingent useful resource of 5.4 million barrels of oil equal and risked greatest estimate potential useful resource of 9.6 million barrels of oil equal representing a major addition to the corporate’s present 2P reserve base.

Alvopetro Vitality completed the recompletion of its 183-A3 well in the third quarter of 2024. The effectively got here on manufacturing in September prompting the corporate’s pure gasoline gross sales from the Murucututu area in This autumn 2024 to extend by 262 % in comparison with Q3 2024. The corporate has a follow-up effectively deliberate for the sector in early 2025.

Administration Group

Corey C. Ruttan – President, Chief Government Officer and Director

Corey C. Ruttan is the president, chief govt officer and director of Alvopetro. He was the president and CEO of Petrominerales, from Could 2010 till it was acquired by Pacific Rubiales Vitality in November 2013. Previous to that, he was the vice-president of finance and chief monetary officer of Petrominerales. From March 2000 to Could 2010, Ruttan was the senior vice-president and chief monetary officer of Petrobank Vitality and Assets, and held more and more senior positions with Petrobank since its inception in 2000. He additionally served as govt vice-president and chief monetary officer of Lightstream Assets from October 2009 to Could 2010; served as vice-president of Caribou Capital from June 1999 to March 2000; and supervisor monetary reporting of Pacalta Assets from Could 1997 to June 1999. He started his profession at KPMG the place he labored from September 1994 to Could 1997. Ruttan obtained his Bachelor of Commerce diploma majoring in accounting from the College of Calgary in 1994 and his chartered accountant designation in 1997.

Alison Howard – Chief Monetary Officer

Alison Howard is a chartered accountant with over 20 years of expertise in Canadian and worldwide taxation, accounting and finance. Howard joined Petrominerales in July 2011 as a tax supervisor and was subsequently promoted to tax director. From Could 2008 to July 2011, Howard was the tax supervisor at Petrobank Vitality and Assets. Previous to that, Howard spent quite a few years at Deloitte LLP in Calgary. She obtained her Bachelor of Commerce diploma from the College of Saskatchewan in 1999.

Adrian Audet – VP, Asset Administration

Adrian Audet joined Petrominerales in 2013 and has held more and more senior roles with Alvopetro since its inception. Audet has spent in depth time in Bahia overseeing the operations, realizing in depth price financial savings and enhancements in effectivity. Beforehand, Audet held engineering roles with growing duty within the oil and gasoline business. Audet started his profession in 2006 and accomplished his masters and undergraduate levels in mechanical engineering on the College of Alberta. Audet is an expert engineer registered with APEGA and is a CFA charterholder.

Nanna Eliuk – Exploration Supervisor

Nanna Eliuk is an expert geophysicist (M.Sc.) with over 23 years of diversified petroleum exploration and growth expertise. She has experience in standard and unconventional performs in each carbonate and clastic reservoirs in several depositional and structural settings (together with pre-salt) in numerous basins all over the world. Previous to becoming a member of Alvopetro, Eliuk was the senior explorationist of Condor Petroleum (Kazakhstan) for 2 years, and prior thereto, she was the vice-president of geophysics and land for Waldron Vitality. Eliuk began her profession in 1997, holding progressively senior roles at Husky Vitality for 5 years, and at Compton Petroleum for over six years. Her in depth expertise consists of geophysical analysis and evaluation for enterprise growth alternatives and new ventures in numerous worldwide basins, together with regional mapping, play fairway evaluation, petroleum system analysis, prospect definition, and seismic attribute evaluation. Eliuk holds a masters diploma in geology and geophysics, and a BSc. in geology.

Frederico Oliveira – Nation Supervisor

Frederico Oliveira has held more and more senior roles since 2008 and has experience in laws, contracts, partnerships, administration and price effectivity. He has held administration roles in massive non-public firms in Brazil, performing strategic planning, undertaking implementation, course of restructuring, effectivity and productiveness enhancements, and price management. Oliveira obtained an MBA from the Federal College of Minas Gerais in 2004 and a Bachelor of Science diploma in Mechanical Engineering from the Pontificia Universidade Catolica de Minas Gerais.