Investor Insight

Brazil’s expanding natural gas market, supported by an attractive and stable regulatory framework and fiscal regime offers a unique opportunity for Alvopetro Energy to leverage its high-potential assets and growth opportunities as an innovative natural gas company in the state of Bahia.

Overview

Alvopetro Energy (TSXV:ALV;OTCQX:ALVOF) is a pioneering independent natural gas producer in Brazil. The company was the first to deliver sales-specified natural gas onshore to the local distribution network previously dominated by the state oil company. This milestone, achieved on July 5, 2020, marked the beginning of a new era in Brazil’s gas market.

As an independent upstream and midstream operator, Alvopetro engages in the acquisition, exploration, development and production of natural gas and oil. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which cover an area of over 22,000 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy was incorporated in 2013 and is headquartered in Calgary, Canada.

State of Bahia – Reconcavo Basin

Alvopetro adheres to a balanced capital allocation model, reinvesting half of its funds flow from operations in organic growth opportunities while returning the remaining 50 percent back to stakeholders (through dividends, debt and interest payments and capital lease payments). Since production came online in July of 2020, funds flow from operations has reached ~$156 million with 43 percent being reinvested into capital expenditure initiatives, 48 percent being returned to stakeholders, and 9 percent going back to strengthening the company’s balance sheet.

Alvopetro continues to focus on minimizing its environmental impact, responsibly supplying energy, and having a positive influence on the communities where it operates. Alvopetro currently invests in various voluntary social programs that have been well received by the community. The company’s focus has been on the sustainable development of its rural communities, entrepreneurship, education, cultural and sporting activities, as well as biodiversity preservation.

Company Highlights

• Alvopetro is a leading independent upstream and midstream gas operator in the state of Bahia, Brazil.
• The company’s strategy is focused on unlocking Brazil’s on-shore natural gas potential, building off the development of its Caburé and Murucututu natural gas fields strategic midstream infrastructure.
• Over 95 percent of Alvopetro’s production is from natural gas and the company has a 2P reserve base of 9.6 MMboe.
• The company boasts high operating netbacks and profitability per unit of production, setting it apart from its Latin American and North American peers. The state of Bahia boasts a favorable fiscal regime with low royalties and a 15 percent income tax rate.

Key Projects

Caburé

The company’s flagship Caburé asset (56.2 percent Alvopetro) delivers the majority of Alvopetro’s current production. The project is a joint development (the unit) of a conventional natural gas discovery across four blocks, two of which are held by Alvopetro and two of which are held by its partner, with Alvopetro’s working interest being 56.2 percent following the first redetermination. The unit currently includes eight existing wells, with all production facilities already in place. The resource is well defined with 3D seismic surveys, particularly on the eastern side of a main bounding fault that runs roughly north-south through the Caruaçu formation. The company plans to drill an additional five wells in 2025 to further improve the productive capacity of the field.

Midstream – Infrastructure and marketing (100 percent Alvopetro)

All of Alvopetro’s natural gas produced from Caburé and Murucututu are shipped via 100 percent owned and operated natural gas pipelines to Alvopetro’s natural gas processing facility (UPGN). At the UPGN, the natural gas goes through a mechanical refrigeration process, with condensate and water removed during the process, and condensate then gets trucked out and sold at a premium to Brent. The natural gas gets delivered to a receiving station (city gate) that was built by the company’s offtaker, Bahiagás, the distribution company for the State of Bahia.

The gas then gets shipped via a newly built 15 km distribution pipeline to the Camacari industrial complex (~17.5 km away), where the vast majority of the natural gas in the state of Bahia gets consumed.

Natural gas is sold to Bahiagas under a long-term gas sales agreement, with pricing set quarterly based on Brent and Henry Hub benchmark prices. Alvopetro recently announced an updated gas sales agreement effective January 1, 2025, increasing firm sales volumes by 33 percent.

Organic Growth Opportunities

Maximizing the Gas Plant

In the near-to-mid term, Alvopetro has a goal to maximize its gas plant capacity to 18 million cubic feet per day (or 3,000 barrels of oil equivalent per day), with a plan to double its capacity in the coming years through both ongoing development at the Caburé Unit and a multi-year development of the Murucututu field.

Unit Development

Alvopetro’s working interest in the Caburé Unit was recently increased from 49.1 percent to 56.2 percent and as a result, Alvopetro is now entitled to higher production entitlements from the Unit. In addition, with the unit development drilling activities planned to commence in 2025, the overall productive capacity of the Unit is targeted to increase.

Murucututu Gas

Alvopetro’s Murucututu asset (100 percent owned) sits immediately north of Caburé. Independent reserve estimators, GLJ, highlight the potential for this field with 2P reserve totaling 4.6 million barrels of oil equivalent, risked best estimate contingent resource of 5.4 million barrels of oil equivalent and risked best estimate prospective resource of 9.6 million barrels of oil equivalent representing a significant addition to the company’s current 2P reserve base.

Alvopetro Energy finished the recompletion of its 183-A3 well in the third quarter of 2024. The well came on production in September prompting the company’s natural gas sales from the Murucututu field in Q4 2024 to increase by 262 percent compared to Q3 2024. The company has a follow-up well planned for the field in early 2025.

Management Team

Corey C. Ruttan – President, Chief Executive Officer and Director

Corey C. Ruttan is the president, chief executive officer and director of Alvopetro. He was the president and CEO of Petrominerales, from May 2010 until it was acquired by Pacific Rubiales Energy in November 2013. Prior to that, he was the vice-president of finance and chief financial officer of Petrominerales. From March 2000 to May 2010, Ruttan was the senior vice-president and chief financial officer of Petrobank Energy and Resources, and held increasingly senior positions with Petrobank since its inception in 2000. He also served as executive vice-president and chief financial officer of Lightstream Resources from October 2009 to May 2010; served as vice-president of Caribou Capital from June 1999 to March 2000; and manager financial reporting of Pacalta Resources from May 1997 to June 1999. He began his career at KPMG where he worked from September 1994 to May 1997. Ruttan obtained his Bachelor of Commerce degree majoring in accounting from the University of Calgary in 1994 and his chartered accountant designation in 1997.

Alison Howard – Chief Financial Officer

Alison Howard is a chartered accountant with over 20 years of experience in Canadian and international taxation, accounting and finance. Howard joined Petrominerales in July 2011 as a tax manager and was subsequently promoted to tax director. From May 2008 to July 2011, Howard was the tax manager at Petrobank Energy and Resources. Prior to that, Howard spent a number of years at Deloitte LLP in Calgary. She obtained her Bachelor of Commerce degree from the University of Saskatchewan in 1999.

Adrian Audet – VP, Asset Management

Adrian Audet joined Petrominerales in 2013 and has held increasingly senior roles with Alvopetro since its inception. Audet has spent extensive time in Bahia overseeing the operations, realizing extensive cost savings and improvements in efficiency. Previously, Audet held engineering roles with increasing responsibility in the oil and gas industry. Audet began his career in 2006 and completed his masters and undergraduate degrees in mechanical engineering at the University of Alberta. Audet is a professional engineer registered with APEGA and is a CFA charterholder.

Nanna Eliuk – Exploration Manager

Nanna Eliuk is a professional geophysicist (M.Sc.) with over 23 years of diversified petroleum exploration and development experience. She has expertise in conventional and unconventional plays in both carbonate and clastic reservoirs in different depositional and structural settings (including pre-salt) in various basins around the world. Prior to joining Alvopetro, Eliuk was the senior explorationist of Condor Petroleum (Kazakhstan) for two years, and prior thereto, she was the vice-president of geophysics and land for Waldron Energy. Eliuk started her career in 1997, holding progressively senior roles at Husky Energy for five years, and at Compton Petroleum for over six years. Her extensive experience includes geophysical evaluation and analysis for business development opportunities and new ventures in various international basins, along with regional mapping, play fairway analysis, petroleum system evaluation, prospect definition, and seismic attribute analysis. Eliuk holds a masters degree in geology and geophysics, and a BSc. in geology.

Frederico Oliveira – Country Manager

Frederico Oliveira has held increasingly senior roles since 2008 and has expertise in regulations, contracts, partnerships, management and cost efficiency. He has held management roles in large private companies in Brazil, performing strategic planning, project implementation, process restructuring, efficiency and productivity improvements, and cost control. Oliveira obtained an MBA from the Federal University of Minas Gerais in 2004 and a Bachelor of Science degree in Mechanical Engineering from the Pontificia Universidade Catolica de Minas Gerais.

Bitcoin and Ethereum price update

Bitcoin started the day trading at US$98,509, reflecting a 0.96 percent decline from its previous close. The day’s trading range saw a high of US$100,797 and a low of US$96,026.

Ether is priced at US$2,803.29, marking a 0.87 percent increase over 24 hours. The cryptocurrency reached an intraday high of US$2,870.86 and a low of US$2,634.37 on Tuesday (February 4).

Altcoin price update

SOL is currently valued at US$206.53, 1.6 percent lower across 24 hours, after hitting a daily high of US$218.29 and a low of US$202.45.

XRP fell to US$2.44 before North American markets opened and rose to its highest value of US$2.70 at 8:00 a.m. UTC. The cryptocurrency is currently valued at US$2.56.

SUI is trading at US$3.63, a 5.2 percent boost, after a daily high of US$3.89 and a low of US$3.44.

Meanwhile, ADA is still up, priced at US$0.7698, reflecting a 2.1 percent increase over 24 hours. Its highest price on Wednesday was US$0.7861 and its lowest was US$0.7242.

Crypto news to know

Trump’s tariff threats over the weekend led to a sharp selloff in the cryptocurrency market, with Bitcoin dropping from around US$105,000 to a low of US$92,000 before rebounding above US$100,000 on Monday.

The announcement of a temporary pause on tariffs against Mexican and Canadian goods helped stabilize market sentiment.

While Bitcoin managed to recover some losses, other cryptocurrencies faced continued pressure. Ethereum, Dogecoin, and several altcoins posted double-digit declines.

Even Trump’s own meme coin saw one of the steepest drops, trading at around US$19 on Monday—down 75 percent from its all-time high set during his second inauguration.

Meanwhile, in Washington, Trump’s administration is assessing the feasibility of establishing a U.S. Bitcoin reserve.

White House crypto czar David Sacks stated that an internal working group is reviewing the concept, though no formal decisions have been made. Sacks emphasized that the administration is in the early stages of developing its digital asset policies.

Investor Insight

Anteros Metals’ forward-thinking, diversified exploration strategy that leverages innovative data science to target high-potential mineral deposits offers a compelling opportunity for savvy investors to gain exposure and generate value in multiple stages of mineral exploration.

Overview

Anteros Metals (CSE:ANT) is a dynamic multimineral exploration company leveraging modern data science methodologies to systematically advance its projects across Newfoundland and Labrador, Canada. Focused on sustainable and cost-effective exploration, Anteros targets high-value deposits in underexplored yet geologically rich regions. With a portfolio covering 2,775 hectares and commodities critical to global technology and energy transitions, Anteros positions itself as a leading innovator in the junior mining sector.

The company’s strategic approach prioritizes asset acquisition in underexplored yet resource-rich regions, positioning Anteros to capitalize on growing global demand for critical and base metals. Its properties encompass nine metals and minerals, five of which are classified as critical minerals, reflecting the company’s alignment with the accelerating energy transition and technological advancement.

Applying proprietary algorithms and integrating historical exploration data allow the company to significantly reduce exploration risk while accelerating project timelines. This streamlined, data-driven approach underpins Anteros’ ability to generate long-term shareholder value through exploration, joint ventures and operational partnerships.

Furthermore, Anteros follows a structured approach to exploration, with projects strategically positioned across different stages of the mineral exploration lifecycle. By maintaining a balanced portfolio across various exploration stages, Anteros ensures a steady progression of projects toward resource definition and development.

Company Highlights

• Four 100 percent owned properties in Newfoundland and Labrador targeting critical and base metals. Commodities include copper, cobalt, nickel, manganese, zinc and others vital for green technologies.
• The flagship Knob Lake iron-manganese project is an advanced exploration project with a historical resource located near significant iron ore infrastructure in Schefferville, Quebec.
• Haven Steady is a proven VMS asset accessible by road and hosts silver-lead-zinc mineralization with high-grade intersections and untapped geophysical anomalies.
• The Strickland project includes seven mineralized zones with significant silver-lead-zinc and gold potential, located near the prolific Hope Brook gold deposit.
• The Hopedale asset has a nickel-copper-cobalt focus, situated 90 kilometers south of Vale’s Voisey’s Bay in a geologically favorable zone with unexplained geochemical anomalies and untested electromagnetic conductors.
• Anteros follows a structured approach, with projects at various exploration stages: prospecting (Hopedale), early-stage (Haven Steady), intermediate (Strickland), and advanced exploration (Knob Lake). By balancing its portfolio, Anteros ensures a continuous pipeline of project advancement, reducing risks and maintaining steady value creation.
• The company is led by an experienced team with over a century of combined expertise in exploration, mining and financial markets, ensuring robust project execution.

Key Projects

Knob Lake

Located within the Western Labrador Trough, just 2.5 km south of Schefferville, Québec, Knob Lake benefits from its proximity to extensive infrastructure, including rail lines, roads and nearby iron ore processing facilities. The property, covering 0.75 square kilometers across three claims, targets a superior-type iron deposit hosted within the Sokoman Formation, renowned for its high-grade direct shipping ore (DSO) potential. This property is in proximity to significant iron ore operations, including Tata Steel’s Timmins Mine and the historical James, Ruth Lake and Redmond mines.

Historical exploration includes 2,746 meters of diamond drilling, which delineated a historical resource of 5.08 million tons (Mt) at 54.7 percent iron (measured and indicated) and 643,800 tons at 51.5 percent iron (inferred)¹. The deposit remains open along strike and at depth, indicating significant potential for resource expansion.

As Anteros’ flagship project, Knob Lake, is in the advanced exploration stage, with historical drilling confirming significant resources of iron and manganese. The project benefits from detailed modeling, infrastructure readiness, and proximity to established mining operations.

Future exploration plans involve leveraging recent digital modeling and geophysical surveys to refine the geological understanding and define additional high-grade zones. Knob Lake’s excellent access to global shipping routes enhances its economic viability, positioning it as a flagship project for Anteros Metals.

^{¹This historical mineral resource estimate is from a Technical Report entitled Technical Report: Schefferville Area Phase I DSO Iron Projects Resource Update, Western Labrador – NE Québec, Canada by Maxime Dupéré dated June 27, 2014 and is filed on SEDAR (www.sedar.com). The Technical Report was prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101), NI 43-101F1, and with CIM standards and Mineral Resource best practices. The independent QP believed project data was suitable for mineral resource estimation at that time. The stated resource uses an iron cut-off grade of 50%, and grades were not capped. An independent Qualified Person will be required to compile and validate historic Property data, model the data, and estimate the mineral resource to obtain a current mineral resource. It is envisaged that this will involve open pit optimization. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource. Anteros Metals Incorporated is not treating the historical estimate as a current mineral resource.}

Haven Steady

Haven Steady is located 40 km southeast of Buchans in the Central Newfoundland Gold Belt, a prolific region for volcanogenic massive sulphide (VMS) deposits. Haven Steady is situated in a district renowned for Kuroko-style polymetallic mineralization.

The property hosts significant silver-lead-zinc mineralization along a 1,000-meter strike length, identified through 8,048 meters of historical drilling. Key intersections include up to 4.16 percent copper over 1.3 meters and multiple gold-enriched zones exceeding 1 gram per ton (g/t) gold. The deposit lies within altered felsic volcanics, typical of Kuroko-style VMS systems, and is surrounded by untested geophysical anomalies. This geological setting is comparable to the nearby Duck Pond mine, which produced high-grade copper and zinc. Future plans focus on detailed geophysical studies and phased drilling campaigns to test high-priority targets and expand known mineralized zones. The presence of enriched gold and copper zones within a proven VMS district makes Haven Steady a key asset for Anteros Metals.

Strickland

Strickland lies in the Central Newfoundland Gold Belt, a region with prolific epithermal gold and VMS deposits. The property features seven mineralized zones with a combined strike length exceeding 2 km. The mineralization is hosted within submarine felsic volcanic units, providing predictable horizons for efficient exploration.

Historical drilling of 7,857 meters has delineated zones with significant grades, including a historical mineral inventory of 260,000 tons at 195 g/t silver and 5.25 percent lead-zinc in the Main Zone². Historical assays from quartz veins report gold grades up to 17.9 g/t gold, emphasizing the property’s epithermal gold potential.

Proximity to the Hope Brook gold deposit, which holds an indicated resource of 5.5 Mt at 4.77 g/t gold³, further underscores the potential of Strickland. Upcoming exploration activities include advanced geophysical surveys, trenching and targeted drilling to define and expand the resource base.

^{²The resource inventories described are considered ‘historical’ in nature as defined by National Instrument 43-101, and do not conform to CIM Resource Classification Definitions.The historical estimate was reported by D.R. Prince in a 1981 Falconbridge Nickel Mines Ltd. report entitled “Summary of Work Performed from 1977 to 1980 on the Strickland-Porter Fee Simple Property, Newfoundland”. A qualified person has not done sufficient work to classify the historical estimates of the Strickland Deposit as current mineral resources. As a result, Anteros Metals Incorporated is not treating these historical estimates as current mineral resource estimates, but believes that these historic results provide an indication of the potential of the property and are relevant from a continuing exploration perspective.}

^{³Cullen, M.,Harrington, M. and Burke, J. (2021): NI 43-101 Technical Report for the Hope Brook Gold Project, Newfoundland and Labrador Canada. Prepared for Big Ridge Gold Corp. Effective date April 6th, 2021.}

Hopedale

Located in Labrador, 80 km south of the world-class Voisey’s Bay Mine, the Hopedale property targets magmatic nickel-copper-cobalt mineralization within the Churchill-Nain Suture Zone. The project spans 20 square kilometers and features troctolitic rocks intruded by northeast-trending gabbro dykes, a geological setting favorable for disseminated nickel-copper-cobalt mineralization.

Hopedale’s historical stream sediment sampling programs identified unexplained geochemical anomalies, with elevated nickel, copper and cobalt values near untested electromagnetic conductors. This project represents a significant greenfield exploration opportunity. Future exploration will focus on high-resolution geophysical surveys and drilling programs to evaluate these anomalies. Hopedale’s proximity to Voisey’s Bay and its favorable geological setting position it as a high-potential greenfield project for critical minerals essential to the clean energy transition.

Leadership Team

Trumbull Fisher – CEO

A seasoned professional with 17 years of experience in mining and capital markets, Trumbull Fisher has successfully led multiple resource companies and brings a wealth of expertise in project generation and financing. Fisher has grown both private and public resource companies in roles as chairman, president, board member and advisor. Fisher holds a BA from Carlton University.

Alan Rootenberg – CFO

With over 35 years in corporate finance, Alan Rootenberg’s extensive knowledge ensures Anteros maintains its strong financial foundation. Rootenberg holds a CPA, CA designation and has extensive experience in mineral and oil and gas exploration, serving as chief executive officer, chief financial officer and director to publicly listed companies.

Bill Kennedy – Director

Bill Kennedy is a second-generation prospector with 12 years of experience in exploration-centric business operations and development in Newfoundland and Labrador, and has over 20 years of experience in information technologies. Blending his passion for tech and mining, Kennedy continues to pioneer data science systems for mineral target vectorization.

Wesley Keats – Director

With an extensive background in mining and exploration, including global experience in seven countries, Wes Keats has 22 years of experience in the metals industry, having worked privately for major and junior mining companies. He is a fourth-generation prospector in Newfoundland and a current partner of Newfoundland based exploration services and mining development company Planet X. Keats was the co-recipient of the PDAC Bill Dennis award for significant contributions made towards a Canadian discovery.

Chris Morrison – Director

Chris Morrison has experience in the operation of multiple corporations, mining sector marketing and communications, and capital markets. Morrison is the marketing manager for Planet X Exploration and multiple public client companies, and the principal of SJ AV Studio – a digital multimedia audio/visual production facility focused on mining sector press and marketing material curation and distribution.

Bitcoin and Ethereum price update

Bitcoin started the day trading at US$98,509, reflecting a 0.96 percent decline from its previous close. The day’s trading range saw a high of US$100,797 and a low of US$96,026.

Ether is priced at US$2,803.29, marking a 0.87 percent increase over 24 hours. The cryptocurrency reached an intraday high of US$2,870.86 and a low of US$2,634.37 on Tuesday (February 4).

Altcoin price update

SOL is currently valued at US$206.53, 1.6 percent lower across 24 hours, after hitting a daily high of US$218.29 and a low of US$202.45.

XRP fell to US$2.44 before North American markets opened and rose to its highest value of US$2.70 at 8:00 a.m. UTC. The cryptocurrency is currently valued at US$2.56.

SUI is trading at US$3.63, a 5.2 percent boost, after a daily high of US$3.89 and a low of US$3.44.

Meanwhile, ADA is still up, priced at US$0.7698, reflecting a 2.1 percent increase over 24 hours. Its highest price on Wednesday was US$0.7861 and its lowest was US$0.7242.

Crypto news to know

Trump’s tariff threats over the weekend led to a sharp selloff in the cryptocurrency market, with Bitcoin dropping from around US$105,000 to a low of US$92,000 before rebounding above US$100,000 on Monday.

The announcement of a temporary pause on tariffs against Mexican and Canadian goods helped stabilize market sentiment.

While Bitcoin managed to recover some losses, other cryptocurrencies faced continued pressure. Ethereum, Dogecoin, and several altcoins posted double-digit declines.

Even Trump’ own meme coin saw one of the steepest drops, trading at around US$19 on Monday—down 75 percent from its all-time high set during his second inauguration.

Meanwhile, in Washington, Trump’s administration is assessing the feasibility of establishing a U.S. Bitcoin reserve.

White House crypto czar David Sacks stated that an internal working group is reviewing the concept, though no formal decisions have been made. Sacks emphasized that the administration is in the early stages of developing its digital asset policies.