Alvopetro Energy Ltd, a key player in the energy sector, has recently announced a significant enhancement to its natural gas sales operations in Brazil. Through a newly revised long-term agreement with Bahiagás, the company is set to substantially increase its contracted gas volumes for the upcoming years. This strategic development is expected to drive a notable uplift in production and sales, reinforcing Alvopetro's market position. The agreement not only expands the quantity of gas to be supplied but also incorporates favorable pricing adjustments, positioning the company for robust financial performance in the dynamic Brazilian energy landscape.

Alvopetro Secures Enhanced Gas Sales in Brazil with Bahiagás Partnership

In a pivotal announcement made on Wednesday, April 1, 2026, Alvopetro Energy Ltd, headquartered in Calgary, Canada, disclosed an expanded long-term natural gas sales agreement with Bahiagás. This revised accord is projected to significantly elevate Alvopetro's firm gas sales by an impressive 25%, reaching 500 thousand cubic meters per day. An additional 100 thousand cubic meters per day will be delivered between January 2026 and December 2027, with pricing linked to 10.5% of the preceding quarter's average Brent crude oil prices.

This expanded partnership builds upon existing favorable pricing structures, including a previous adjustment that raised Alvopetro's base gas price to 1.85 Brazilian reais per cubic meter for the period spanning February to April 2026. Consequently, Alvopetro anticipates a weighted average realized gas price of approximately $10.09 per thousand cubic feet from February to April. This figure is forecasted to climb to $10.68 for May through July, and further to $12.87 for August through October, based on current exchange rates and benchmark predictions.

With these increased contracted volumes, Alvopetro projects its average 2026 sales volumes in Brazil to reach roughly 2,900 barrels of oil equivalent per day, representing an approximate 20% surge from 2025 levels. This growth will be underpinned by both natural gas and associated condensate production. Furthermore, the company reported an outstanding first quarter in 2026, achieving record production with sales volumes averaging 3,124 boepd, a substantial 24% increase compared to 2025. March production alone hit 3,209 boepd, including 17 million cubic feet per day of natural gas in Brazil, alongside condensate and a modest contribution from oil production.

From an operational standpoint, Alvopetro recently concluded stimulation work on a lower interval of its 183-1 well. However, this effort yielded low reservoir inflow, leading to the well's temporary shutdown as remedial strategies are being evaluated. Demonstrating its commitment to advancing its Brazilian asset base, Alvopetro is actively preparing to mobilize a drilling rig later this month to commence work on its 183-D1 Caruaçu development well.

This latest agreement with Bahiagás underscores Alvopetro's strategic vision and its successful efforts to capitalize on Brazil's growing energy demands. By securing higher sales volumes and favorable pricing, the company is well-positioned for sustained growth and increased profitability. The continued focus on optimizing production and exploring new development opportunities further highlights Alvopetro's commitment to expanding its presence and delivering value in the Brazilian energy market.