Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) said on Wednesday it has secured additional firm natural gas sales for 2026 and 2027 under an amended long-term agreement with Bahiagás, increasing contracted volumes and supporting higher expected production.

The Calgary-based company said the revised deal raises firm gas sales by 25% to 500 thousand cubic metres per day, with an additional 100 thousand cubic metres per day to be supplied between January 2026 and December 2027. The incremental volumes will be priced at 10.5% of average Brent crude oil prices in the preceding quarter.

Alvopetro said the expanded agreement builds on existing pricing terms, including a previously announced adjustment that lifted its base gas price to 1.85 Brazilian reais per cubic metre from February through April 2026.

The company expects a weighted average realized gas price of about $10.09 per thousand cubic feet for the February-to-April period, rising to $10.68 for May through July and further to $12.87 for August through October, based on benchmark forecasts and current exchange rates.

At the higher contracted volumes, Alvopetro said it anticipates average 2026 sales volumes in Brazil of roughly 2,900 barrels of oil equivalent per day, up about 20% from 2025 levels, supported by both natural gas and associated condensate output.

The company also reported record production in the first quarter of 2026, with sales volumes averaging 3,124 boepd, a 24% increase from 2025. March output reached 3,209 boepd, including 17 million cubic feet per day of natural gas in Brazil, alongside condensate and modest oil production.

Operationally, Alvopetro said it recently completed stimulation work on a lower interval of its 183-1 well but encountered low reservoir inflow, and the well is currently shut in while remedial options are assessed.

The company added it is mobilizing a drilling rig to begin work on its 183-D1 Caruaçu development well later this month, as it continues to advance its Brazilian asset base.