Alvopetro reports sharp rise in proved reserves at year-end Proactive uses images sourced from Shutterstock

Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) said its proved reserves jumped 79% at the end of 2025, driven by drilling success in Brazil and the addition of Canadian assets, as the company also outlined its 2026 capital plan.

The Calgary-based oil and gas producer reported total proved (1P) reserves of 8.1 million barrels of oil equivalent (MMboe) at the end of December 2025. Proved plus probable (2P) reserves rose 43% to 13.1 MMboe, according to an independent evaluation.

Before-tax net present value discounted at 10% (NPV10) of 1P reserves increased 38% to $245.6 million, while 2P NPV10 rose 20% to $393.6 million.

Alvopetro said it replaced 2025 production of 0.9 MMboe nearly five times on a proved basis, with a 1P production replacement ratio of 485%. On a 2P basis, the replacement ratio reached 530%. The 2P reserves life index stood at 12.5 years.

CEO Corey Ruttan said the year-end reserves reflected “another strong year” for the company, highlighting results from the 183-D4 well in the Caruaçu Formation at its Murucututu natural gas field in Brazil and the addition of Canadian heavy oil assets. The 183-D4 well, which began production in August 2025, added five proved undeveloped locations to 1P reserves and contributed to eight undeveloped locations included in 2P reserves. The company also booked 0.3 MMboe of 1P reserves and 0.7 MMboe of 2P reserves from its Canadian assets in Saskatchewan’s Mannville Stack heavy oil fairway.

“We significantly strengthened our asset base in 2025, increasing 2P reserves by 43%, replacing 2025 production more than 5 times, and with a 2P reserve life index of 12.5 years,” Ruttan told shareholders. “This further strengthens our disciplined capital allocation model, balancing returns to stakeholders and organic growth.”

Alvopetro holds a 100% working interest in the Murucututu field and a 56.2% working interest in the Caburé unit in Brazil, as well as a 50% interest in 75 sections of land in western Saskatchewan. The company has agreed to dispose of its two Brazilian oil fields, Bom Lugar and Mãe-da-lua, subject to regulatory approvals.

The company reported record fourth-quarter production of 2,867 barrels of oil equivalent per day (boepd), rising to 3,099 boepd in January.

Alvopetro also disclosed risked best estimate contingent resources of 3.8 MMboe with an NPV10 of $88.0 million, down from a year earlier due to the reclassification of volumes into reserves at Murucututu. Risked best estimate prospective resources increased 19% to 12.1 MMboe, with an NPV10 of $264.3 million, reflecting additional potential in the Caruaçu Formation adjacent to the existing reserves area.

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