Alvopetro Energy Ltd ( TSX-V:ALV , OTC:ALVOF , FRA:A6Y0 ) said it was awarded four blocks in Brazil's Tucano Basin, adding 462.4 square kilometres of land north of its core operating area in the state of Bahia.
The blocks were awarded in the 6th Cycle of the Permanent Concession Offer run by Brazil's National Agency of Petroleum, Natural Gas and Biofuels (ANP). They include three exploration blocks (TUC-T-142, TUC-T-151 and TUC-T-174) and one marginal field, Subauma Mirim.
The signing bonus to acquire the blocks totalled 0.6 million Brazilian reais ($0.1 million), with a minimum work commitment value of 8.3 million reais ($1.7 million).
Alvopetro has three years to fulfil the work commitments for Subauma Mirim and six years for the three exploration blocks.
"We are excited to add this large land position creating an additional platform for future growth," CEO Corey Ruttan said. "We look forward to applying our experiences in the Recôncavo Basin to this emerging Basin just to the north of our existing core operating area."
Alvopetro uses a balanced capital allocation model, reinvesting roughly half its cash flows into organic growth and returning the other half to stakeholders. Its organic growth strategy focuses on the best combinations of geologic prospectivity and fiscal regime.
The company has assets in Canada and Brazil, building on its Caburé and Murucututu natural gas fields and related strategic midstream infrastructure.
