Alvopetro lifts revenue 36% to $19.3 million in third quarter
Key Facts
Alvopetro Energy said on November 5 that revenue from gas, oil and condensate reached $19.3 million in the third quarter ended September 30, 2026, up 36% from the same period a year earlier. The company attributed the increase to higher sales volumes and realized selling prices. Chief Executive Corey Rutan said quarterly revenue was $19.3 million and linked the operational update to well 183-G2 in Brazil's Murucututu field. Preliminary well logs showed 97 meters of potential net gas pay. The development puts operating results and plans to connect the well to the production facility among the main points in the company's update.
Average total daily sales were 2,966 barrels of oil equivalent in the third quarter, up 27% year over year but down 3% from the second quarter of 2026. The company said Brazil sales were affected by a scheduled shutdown to complete an upgrade to the gas-processing facility. Quarter over quarter, revenue rose $0.1 million from the second quarter despite a 2% decline in sales volume, which the company attributed to higher realized selling prices. The divergence shows that improved prices supported revenue in a period when volumes declined from the previous quarter. Annual sales comparisons remained positive, with average daily sales up 27% from the third quarter of 2025.
The average realized gas price was $11.49 per thousand cubic feet, up 4% from the third quarter of 2025 and 5% from the second quarter of 2026. The average total selling price was $70.62 per barrel of oil equivalent, up 7% year over year and 3% quarter over quarter. These increases are consistent with the company's explanation for revenue growth, which included higher selling prices alongside annual growth in sales volumes. By contrast, sales volumes fell 3% quarter over quarter, based on the reported average daily sales. As a result, quarterly revenue increased despite lower volumes, with the company citing higher realized prices.
The company completed drilling well 183-G2 at Murucututu. Rutan said preliminary well logs showed 97 meters of potential net gas pay, 65 meters updip from well 183-D4. The company plans to connect the well to the production facility in early 2027. After connection, it plans to complete the well in up to 13 intervals, targeting the start of production in the first quarter of 2027. The announced connection and completion schedule makes production from the well a subsequent step to the drilling results and preliminary logs. The company did not report that production had started during the third quarter.
The well program is tied to the expansion of the Murucututu facility and gas pipelines, which the company said will increase capacity from 150,000 cubic meters per day to 600,000 cubic meters per day. The company expects to complete the expansion project in early 2027. The announced expansion timeline falls within the same period in which the company is targeting connection of well 183-G2 to the production facility, with production set to begin in the first quarter of the year. The company also reported estimated October sales of 3,200 barrels of oil equivalent per day, including 3,095 barrels of oil equivalent per day from Brazil and 105 barrels of oil per day from Canada. It said the October figures are based on field estimates.
Looking ahead to prices, the company expects the weighted average realized price for gas in its fixed-price sales to be $11.10 per thousand cubic feet from November 1, 2026, to January 31, 2027, down 3% from the third-quarter average. In Canada, it plans to begin drilling its first five commitment wells in the coming days, as part of a program targeting completion of all five wells by early 2027. The company estimated the program's cost at about C$8.5 million. Net debt was $1.5 million, while working capital reached $2.5 million as of September 30, 2026. These figures represent the reported financial position at quarter-end, alongside the timelines for drilling, expansion and production plans over the following months.