Corporate Presentation - October 2021 TSXV: ALV OTCQX: ALVOF
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Corporate Presentation October 2021 TSXV: ALV OTCQX: ALVOF
Cautionary Statements
• Forward Looking Statements. This presentation contains forward-looking statements including forecasted future earnings and sales volumes, the anticipated
timing of projects, future exploration and development plans (including the timing and associated spending of such), the Company’s dividend policy and plans
for dividends and other returns to stakeholders in the future, and results from future operations. These statements are based on current assumptions and
judgments that involve numerous risks and uncertainties, which may cause actual results to differ from those anticipated. These risks include, but are not limited
to: the timing of regulatory licenses and approvals, the impact of the COVID-19 pandemic, the ability to access capital markets, the risks inherent in the oil and
gas industry, operational risks relating to exploration, development and production; potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs
and expenses, and health, safety and environmental risks; and fluctuations in foreign currency exchange rates and commodity prices. As a consequence, actual
results may differ materially from those anticipated in the forward-looking statements. Certain of these risks are set out in more detail in our 2020 MD&A and in
our 2020 Annual Information Form all of which are available on SEDAR and can be accessed at www.sedar.com.
• Test results. There is no representation by Alvopetro that the data relating to any well test results contained in this presentation is necessarily indicative of long-
term performance or ultimate recovery. The reader is cautioned not to unduly rely on such data as such data may not be indicative of future performance of the
well or of expected production or operational results for Alvopetro in the future.
• Non-GAAP Measures. This presentation contains financial terms that are not considered measures under International Financial Reporting Standards (“IFRS”),
such as funds flow from operations, funds flow per share, operating netback, funds flow netback, net debt and net working capital (deficit) surplus. For further
information and reconciliation to these GAAP measures, see “Non-GAAP Measures” in our most recent MD&A. This presentation also refers to Net Asset Value,
Net Asset Value per Share, and Earnings Before Interest, Tax, Depreciation, and Amortization (“EBITDA”). These measures are commonly utilized in the oil and
gas industry and are considered informative for management and shareholders. Net Asset Value represents the value of the underlying assets held by the
Company less net debt and Net Asset Value per Share is used to indicate the per unit market value. See Endnote 2 at the end of this presentation for further
details as to how Net Asset Value and Net Asset Value per Share is computed. EBITDA is used to measure the Company’s operating performance and the cash
available for reinvestment and distribution to stakeholders. Its most comparable GAAP measure is the Company’s net loss and is reconciled to such by adding
back depletion and depreciation, impairment, interest and taxes, as presented on the Company’s Statement of Operations and Comprehensive Loss. The non-
GAAP measures within this presentation may not be comparable to those reported by other companies nor should they be viewed as an alternative to measures
of financial performance calculated in accordance with IFRS.
2
Cautionary Statements
• Net Present Value. The net present value of future net revenue attributable to Alvopetro’s reserves is stated without provision for interest costs and general and
administrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures, well
abandonment and reclamation costs for only those wells assigned reserves and material dedicated gathering systems and facilities for only those wells assigned
reserves by GLJ Ltd. (“GLJ”) respectively. The GLJ evaluation was dated March 8, 2021 with an effective date of December 31, 2020 (the “GLJ Report”). Full
disclosure with respect to the Alvopetro’s reserves as at December 31, 2020 is included in the annual information form which is filed on SEDAR
(www.sedar.com). It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Alvopetro’s
reserves estimated GLJ represent the fair market value of those reserves. Actual reserves may be greater than or less than the estimates provided herein.
Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities
actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.
• Prospective Resources. This presentation discloses estimates of Alvopetro’s prospective resources as evaluated by GLJ with an effective date of July 31, 2020 (as
announced by Alvopetro on September 8, 2020) and as evaluated by GLJ with an effective date of December 31, 2020 (as announced by Alvopetro on March 23,
2021). Estimates of prospective resources involve additional risks over estimates of reserves. The accuracy of any resources estimate is a function of the quality
and quantity of available data and of engineering interpretation and judgment. While resources presented herein are considered reasonable, the estimates
should be accepted with the understanding that reservoir performance subsequent to the date of the estimate may justify revision, either upward or downward.
Prospective resources have both a chance of discovery and a chance of development, which combined represent for any undiscovered accumulation its chance
of commerciality. Please refer to the noted news releases dated September 8, 2020 and March 23, 2021 for additional information as well as supplementary
information contained in the Company’s annual information form which has been filed on SEDAR.
• Contingent Resources. This news release discloses estimates of Alvopetro’s contingent resources and the net present value associated with net revenues
associated with the production of such contingent resources as evaluated by GLJ with an effective date of December 31, 2020 (as announced by the Company on
March 23, 2021). There is no certainty that it will be commercially viable to produce any portion of such contingent resources and the estimated future net
revenues do not necessarily represent the fair market value of such contingent resources. Estimates of contingent resources involve additional risks over
estimates of reserves. For additional details with respect to Alvopetro’s contingent resources, please refer to our news release dated March 23, 2021 and
supplementary information contained in Alvopetro’s annual information form for the year-ended December 31, 2020 which has been filed on SEDAR
(www.sedar.com).
• Currency. All amounts within this presentation are in U.S. dollars, unless otherwise noted.
3
Alvopetro - A Leading Brazilian Independent Gas Company
First Brazilian integrated onshore natural gas producer
• 9.6 mmboe 2P (88% natural gas) with focus on core Caburé field & Gomo tight gas potential
• Strategic midstream infrastructure to support organic growth (100% working interest)
• Near-term high impact exploration and tight gas development catalysts
Strong operating and financial results well ahead of expectations
• Strong production averaging 2,086 boepd in 1st year of operations, 2,431 boepd in August
• Gas sales to AA-rated offtaker, realized price +24% to $7.72/mcf (5) effective Aug 1/21
• 2021 EBITDA guidance increased from $17 million to over $23 million (+35%)
Balanced reinvestment and stakeholder return model – accelerated shareholder dividends
• Supported by low leverage, high margins, and strong cash flows
• Already repaid 57% of initial project finance loan ($6.5 million outstanding)
• Quarterly dividend of $0.06/share to shareholders of record on September 29, 2021
Demonstrated ESG commitment
• Our commitment to social and environmental responsibility takes us beyond regulations
• Delivering affordable clean energy to the local community
• 53% reduction in greenhouse gas emissions when compared to fuel oil
Proven management team with successful LatAm track record
• Experience building and managing growth portfolios from 0 to 40+ kboe/d at Petrominerales
(Colombia) and Pacalta Resources (Ecuador)
• Managed successful exits of both businesses, generating ~$2.8 billion in proceeds
All references to “$” refers to U.S. dollars. C$ refers to Canadian dollars
4
Brazil a Growing Market with Attractive Fundamentals
Largest oil producer in S. America and 9th
globally
New natural gas market. 48% of supply is
currently imported
World’s 9th largest economy
Brazil
Attractive fiscal regime with 5.5-11%
royalties & 15%-34% income tax
Stable regulatory framework attracting new
investments
Significant growth opportunities through
Petrobras divestments
Brazil is ripe for growth -- carrying out the most pro-business reforms in the past year (World Bank)
Resources:
World Bank; ANP.gov.br - Development Perspective presentation (May 2018), Pre-Salt Exploration presentation (May 2018), Brazilian O&G Market Revival presentation (May 2018),
ANP presentation, Pathway for Energy Transition post COVID-19 (June 2020)
5
State of Bahia – Reconcavo Basin
• Oldest producing basin in Brazil
• Reconcavo Basin: 23.9 mbopd + 2.2 e6m3/d (77 mmcf/d)
• Brazil's 4th largest city Salvador (pop 2.9 million)
• Important natural harbor All Saints Bay
• Major industrial complex Camacari
• Alvopetro SA operating in Brazil since
2006, acquired blocks in Rounds 7, 9, 11,
12, & 13
• Alvopetro produces 18% of Basin's
natural gas production
• Brazil’s 14th largest producer
• First independently owned UPGN (gas
processing facility)
• First independent gas sales agreement
with the local distribution company
6
Corporate Overview – Operating and Financial Results
Capital structure
Common shares outstanding (000’s) (1) 33,710
October 4, 2021 share price(1) C$4.50/$3.57
52 week high/low–C$/share (1) C$4.75/C$1.62
Q3 2021 dividend per common share $0.06
Annualized yield at last share price 6.7%
Market cap (000’s) (1) C$151,696/$120,346
Insider ownership % (1) 10.4%
Financial & Reserves
Q2 2021 Operating Netback
Cash ($000’s) (3) $4,249
Average realized prices(3)
Net debt($000’s) (3),(7) $3,046
Natural gas ($/mcf) 6.06
NGL – condensate ($/bbl) 74.47 Q2 2021 funds flow from operations ($000’s) (3) $5,471
Oil ($/bbl) 59.63 - Per basic/diluted share $0.05
Total ($/boe) 38.08
Net debt/LTM EBITDA(7) 0.17x
Operating netback ($/boe) (3)
Realized sales price 38.08 2P reserves (mboe) (4) 9,593
Royalties (2.82) 2P reserve life index (years) 13.7
Production expenses (3.68)
Net asset value ($000’s) (2) $191,049
Operating netback 31.58
Funds flow netback(3) 25.46 Net asset value per share (2) C$7.13/$5.67
All references to “$” refers to U.S. dollars. C$ refers to Canadian dollars
7
Caburé – Asset Overview (49.1% ALV)
• Upstream – core asset is a joint development of a conventional
natural gas discovery - ALV 49.1% (light blue )
• Unitized development area - 7 wells and all production facilities
• Designed gross production plateau 15.9 mmcf/d (450 e3m3)
Mmscf/d Bcf
12.0
Caburé ALV Gas Production profile (Case: 2P)*
37.5
9.0 30.0
22.5
6.0
15.0
3.0
7.5
- -
1 2 3 4 5 6 7 8 9 10 11
Average daily production Cumulative production
(mmcf/d) (Bcf)
*Caburé only, ALV company working interest, based on
Virtual Field Tour:
GLJ 12/31/20 reserve report forecast 8
https://www.youtube.com/watch?v=p1AvDNX0YXk&t=16s
Midstream - Infrastructure & Marketing (100% ALV) • ALV owned 11-km transfer pipeline from the Unit (red ) • ALV Gas Plant (UPGN) constructed by Enerflex with 18 mmcfpd capacity • Bahiagás 15-km pipeline (black ) & 70 mmcfpd citygate at our plant site completed in July 2020 • The first non-Petrobras gas plant in state of Bahia capable of delivering ANP sales specified natural gas • Gas deliveries commenced on July 5, 2020 • Precedent setting long-term GSA signed with Bahiagas gas distribution company (majority owned by Mitsui – Fitch AA rating) • Gas price floor of US$5.52/mmbtu and cap of US$9.38/mmbtu (indexed to US CPI) as of August 1, 2021 • Current natural gas price: August 1, 2021 – January 31, 2022 of BRL$1.31/m3 (+24%), US$7.72/mcf(5)* • Forecasted natural gas price: February 1, 2022 to July 31, 2022 of BRL$1.81/m3 (+38%), US$10.07/mcf(5)* • Highly strategic legacy asset that positions ALV to unlock remaining natural gas potential *Natural gas prices will be impacted by fluctuations in BRL/USD currency exchange. Gas volumes are heat-content adjusted so that Alvopetro receives payments on an energy basis. 9
Caburé – Unit Development HUB
N
10Gas Treatment Facility and City Gate
N
11ESG – First Year of Caburé Operations
12Growth Plan (100% working interest)
Objective is to fully utilize our strategic
midstream assets (18 mmcfpd)
• Highly under-explored prospective land base (23,527 acres,
100% working interest)
• Eight exploration prospects identified, supported by high
quality reprocessed seismic
• 2021 exploration program with unrisked prospective
resource evaluated by GLJ (best estimate)(8):
• ALV-182-C1 4.6 mmboe
• ALV-183-B1 5.9 mmboe
• Gomo/Murucututu tight gas play
– Declared commerciality, 2 existing wells
– 183(1) tie-in early 2022
– Broader development plan starting in 2022
• Petrobras divesting all onshore production
• Midstream processing opportunities
132021 Natural Gas Exploration Drilling Program (100% ALV)
Fazenda Belem
Tie Miranga
Agua Grande
Biriba
Sussuarana
Rio Pojuca
ALV-183-B1
A
ALV-182-C1
A’
• ALV-182-C1 & ALV-183-B1 Pre-Rift natural gas
prospects (100% WI)
Caburé • Unrisked prospective resource evaluated by
Remanso
GLJ (best estimate)(8)
Mata Sao Joao
• ALV-182-C1 4.6 mmboe (47% COS)
Riacho Sao Pedro • ALV-183-B1 5.9 mmboe (44% COS)
• Prospects defined on reprocessed 3D seismic
data
• Key analog fields
Jaquipe • Biriba OGIP 55 BCF (9.2 mmboe)
• Sussuarana OGIP 26 BCF (4.3 mmboe)
14Gomo Deep Basin Natural Gas Resource (100% ALV)
A A’
Jan2 197- 183-
1 1
3275m
3550m
• 5,460-acre tight gas resource Tested Gas
• Confirmed natural gas resource in 197-1 and 183-1 wells
• Environmental permit for 8-km tie-in approved. Initiated installation.
• 2P reserves 3.3mmboe (19.7 Bcfe) (4) including two development locations at 183-1
• Best Estimate Risked Contingent Resource 3.5mmboe (20.7Bcfe)(9)
• Best Estimate Risked Prospective Resource 12.1mmboe (72.4Bcfe)(9)
• Planning “fit for purpose” development wells
15Indicative Gomo/Murucututu Development Plan
16Reserves & Resources – Near-term Catalysts
Reserves (mboe) 1P 2P 3P Reserves NPV10BT ($000’s) 1P 2P 3P
Caburé 4,098 6,018 7,668 Caburé 107,524 146,901 177,496
Gomo 843 3,276 5,951 Gomo 8,047 44,389 88,751
Other 167 300 589 Other 893 3,925 8,569
Total Company Reserves(4) 5,108 9,593 14,209 Total Company Reserves(4) 116,463 195,215 274,816
Resource (mboe) Low Best High Resource NPV10BT ($000’s) Low Best High
Risked Contingent – Gomo(9) 2,874 3,451 5,665 Risked Contingent - Gomo(9) 31,329 37,711 70,937
Risked Prospective - Gomo(9) 6,555 12,072 17,827 Risked Prospective - Gomo(9) 65,565 144,784 220,437
Unrisked Prospective – 183-B1(8) 2,065 5,901 13,429
Unrisked Prospective – 182-C1(8) 1,168 4,618 16,757
Risked Prospective – 183-B1(8) 901 2,574 5,859
Risked Prospective – 182-C1(8) 545 2,157 7,825
17Track Record of Delivery
April-May 2018 October 2018 Through June 2019 September 2019 Mid 2019 - May 2020 July 5, 2020 July 2020>
Caburé Unitization Equity Support for Award Development Project Financing Portfolio First Exceeding
& Signed GSA Project Development Contracts Secured Growth Caburé Gas Expectations
• The unitization • Completed a private • UPGN facility & • Entered into a $15mm • Unit facilities • Gas sales commenced
$5.00 agreement at Cabure • Strong first year of
placement for operating agreement Credit Agreement with construction & July 5, 2020 operations: 2,086 boepd,
encompasses 4 existing aggregate gross • 11km transfer pipeline Cordiant Capital development drilling • Supports shareholder funds flow from
$4.50 wells the first of which proceeds of C$5.2mm contract award • The Facility is secured increased 2P reserves returns, and organic operations $18.1 million
was drilled in 2014 ($4.0mm) • Environmental licenses by all of Alvopetro's by 30% to 7.9 mmboe growth • July 2021: 2,412 boepd
• After considerable time • The Placement was and ANP authorizations assets, matures in 3 • Completed final • Increased 2P reserves
$4.00 and effort, that • Aug 2021: 2,431 boepd
priced at C$0.45/sh received years and bears a 9.5% construction of Caburé by 21% to 9.6 mmboe • Sept 2021: 2,536 boepd
agreement was ($0.35/sh), equal to the interest rate, payable development • September 7, 2021: • Forecasted 2021 EBITDA
$3.50 finalized between all 5-day VWAP monthly • Stimulated and tested Completed effective 3:1 >$23 million
commercial and • The transaction • The net proceeds 183(1) Gomo well share consolidation • Repaid 57% of project
regulatory participants, brought in strategic US funded: exploration and repurchased 1.3% debt financing to-date
$3.00 paving the way for the investors drilling; Cabure of shares outstanding • Completed effective 3:1
eventual monetization • Underpinned listing on Transfer Pipeline; Gas share consolidation and
of the asset OTCQX" Treatment Facility;
$2.50 repurchased 1.3% of
Caburé & Gomo shares outstanding
development costs • Quarterly dividends
$2.00 commenced in Q3 2021
at $0.06/share
$1.50
$1.00
$0.50
$0.00
Consistent growth and execution has generated a 757% (1) shareholder return since 2018
18Why Invest?
• Stable production profile with little to no maintenance capital and a 13.7-year
reserve life index
• Highly strategic infrastructure in heart of the Basin near major industrial demand
• Attractive long-term gas sales agreement with $5.52/mmbtu floor price, realized
price increase 24% to $7.72/mcf effective August 1, 2021, forecasting further
increase to $10.07/mcf effective February 1, 2022 (5)
• High margin production – Q2 2021 operating netback of $31.58/boe and funds flow
from operations of $5.5 million ($0.05 per basic and diluted share)
• 2021 EBITDA guidance increased from $17 million to >$23 million (+35%)
• Low leverage with net debt to EBITDA of just 0.17 times(7)
• Disciplined & balanced stakeholder return and reinvestment model
• Commenced quarterly dividends in Q3 2021 at $0.06/share
• Strong organic growth plan
• Near-term, high-impact exploration catalysts + Gomo development upside
• Attractive valuation relative to Brazilian peers – trading at 63% of 2P NAV
Virtual Field Tour: https://www.youtube.com/watch?v=p1AvDNX0YXk&t=16s 19TSXV: ALV
OTCQX: ALVOF Calgary, Canada:
Alvopetro Energy Ltd.
Suite 1920, 215 – 9th Avenue SW
Calgary, Alberta, Canada
T2P 1K3
Tel: (587) 794-4224
Email: info@alvopetro.com
Salvador, Brazil:
Alvopetro S/A Extração de Petróleo e Gás Natural
Rua Ewerton Visco, 290, Boulevard Side Empresarial,
Sala 2004, Caminho das Árvores, Salvador-BA
CEP 41.820-022
Tel: + 55 (71) 3432-0917
Email: info@alvopetro.com
www.alvopetro.com
Follow Alvopetro on our social media channels:
Twitter - https://twitter.com/AlvopetroEnergy
Instagram - https://www.instagram.com/alvopetro/
LinkedIn - https://www.linkedin.com/company/alvopetro-energy-ltd
YouTube: https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w
20Endnotes
1. As of October 4, 2021. C$ share price and C$ market cap (TSXV), $ share price and $ market cap (OTCQX). Share price return 2018-2020 YTD from December 29, 2017
to October 4, 2021(TSXV). All share prices have been adjusted for effective 3:1 consolidation following September 7, 2021 share restructuring.
2. Net Asset Value of $191.0 million ($5.67/share, C$7.13/share) includes; 2P NPV10 before tax of $195.2 million of reserves as evaluated by GLJ as at 12/31/20 less net
debt of $3.0 million as of June 30, 2021 and adjusted for share repurchases associated with the Share Restructuring completed effective September 7, 2021 for $1.1
million (C$1.4 million). Per share value based on 33,710,230 shares outstanding as of October 4, 2021. C$/share based on October 4, 2021 exchange rate of
C$1.2583/$1US.
3. Cash balance and Net Debt as of June 30, 2021. Operating netback and funds flow from operations for three months ended June 30, 2021. Net Asset Value per share
computed pro-forma Share Restructuring has been reduced by 1,265,306 pre-Consolidation shares repurchased at a cost of C$1.12/share for a total cost of C$1.4
million ($1.1 million).
4. Proved (“1P”) reserves, proved plus probable (“2P”) reserves, and proved plus probable plus possible (“3P”) reserves evaluated by GLJ as of December 31, 2020.
5. The natural gas price is set semi-annually in Brazilian Real/m3. Forecasted US$ price of $7.72/mcf as of August 1, 2021 based on average heat content to date of 7%
and July 30, 2021 foreign exchange rate of 5.12. The natural gas price as of February 1, 2022 is based on actual commodity prices to September 30, 2021, forecasted
commodity prices by GLJ Ltd. as of October 1, 2021, the September 30, 2021 foreign exchange rate of 5.44 and US CPI inflation to August 31, 2021. See GLJ’s price
forecast at https://www.gljpc.com/sites/default/files/pricing/oct21.pdf.
6. Based on EIA & EPA average energy and emissions intensities.
7. Net Debt is computed as the carrying amount of the Credit Facility, decreased by net working capital surplus or increased by net working capital deficit. As of June 30,
2021, Alvopetro’s Net debt is $3.0 million. Net Debt/LTM (Last Twelve Months) EBITDA is based on Net Debt of $3.0 million as of June 30, 2021 and EBITDA for the
period July 1, 2020 to June 30, 2021 of $18.4 million. For purposes of net asset value computations post-Share Restructuring on September 7, 2021, net debt has been
adjusted to include cost of shares repurchased.
8. Undiscovered Petroleum Initially in Place (“UPIIP”) and Prospective Resources evaluated by GLJ with an effective date of July 31, 2020. See Alvopetro press release
dated September 8, 2020 for further details. UPIIP values do not include an implied truncation for minimum economic field size. Prospective resources have been
truncated for minimum economic field size of 2.2 BCF. Prospective resources have both a chance of discovery and a chance of development, which combined
represent for any undiscovered accumulation its chance of commerciality. For the 182-C1 prospect, the chance of discovery is 0.48, with a chance of development of
0.98, for an overall chance of commerciality of 0.47. For the 183-B1 prospect, the chance of discovery is 0.44, with a chance of development of 1.00, for a chance of
commerciality of 0.44. The chance of commerciality has been included in the estimation of the risked prospective resources.
9. Contingent and Prospective Resources on Alvopetro’s Gomo property as evaluated by GLJ with an effective date of December 31, 2020. See Alvopetro press release
dated March 23, 2021, for further details and supplementary information contained in the Company’s annual information form which has been filed on SEDAR
(www.sedar.com).
21Appendix Additional Technical Materials
ALV-183-B1 Pre-Rift Agua Grande/Sergi Gas Prospect
A A A” A
’ 182-C1 Block
183-B1 Block
Biriba Sussuarana
A’
A”
• 3100 meters TVD (100% WI)
• Gas prospect defined on
reprocessed 3D seismic
Basement Basement
• 1300-acre Pre-Rift prospect
• GLJ independent prospective resource assessment, gross lease • Seal potential for Agua Grande
unrisked prospective resource 5.9 mmboe(8) Fm and Sergi Fm similar to the
• 44% chance of discovery, 100% chance of development fault set up for the offsetting
Biriba analog gas field
• Sand/sand juxtaposition in
analogs indicates sealing faults
23ALV-182-C1 Agua Grande/Sergi Gas Prospect
NW SE
• 2900 meters TVD (100% WI)
• 780-acre pre-rift prospect, maximum
Pitanga column height 135m
• Gas prospect defined on reprocessed
3FBL 0007 BA well projected
9km (closest well to
3D seismic
• Seal potential is excellent for Sergi Fm
penetrate below Sergi)
juxtaposed against basement. Agua
Sergi
Grande Fm is juxtaposed against
Afligidos shale
Basement
• GLJ independent prospective resource
Sergi
assessment gross lease unrisked
prospective resource 4.6 mmboe(8)
• 48% chance of discovery, 98%
Basement
chance of development
24Gomo Development Plan – Reserves and Resource
Development Plans
• Reserves: Pipeline to current well locations. 2 development wells
• Contingent Resource: 4 additional development wells from the current well locations
• Prospective Resource: 10 additional wellbores from 3 future multi-well development
locations. Additional pipeline capacity for increased production.
25Gomo Development: Single Well Economics
2P assessment (GLJ):
• 5.2Bcf sales gas+129mbbls
of condensate = 1.0 mmboe
• Year 1 average production rate:
1.34 mmcfpd, 257 boepd
(including condensate)
• Field condensate rate is
24bbl/mmcf. Sales based on
field heat content (no
assumption for UPGN
condensate yield)
• Capex: $5.8MM
• F&D: $5.80/boe
• First year NOI: $3.5MM
• Full cycle IRR: 45%
• Simple payout: 1.8 years
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