Alvopetro Energy Ltd (TSX-V:ALV, OTC:ALVOF, FRA:A6Y0) has logged potential natural gas pay at a new infill well on its Murucututu field in Brazil, the company said on Tuesday, as it also declared a quarterly dividend.
Open-hole logs at the 183-D1 well, drilled to a total measured depth of 3,263 metres on Alvopetro’s 100%-owned Murucututu natural gas field, indicated an aggregate 47.7 metres total vertical depth of potential natural gas pay across two formations
The logs also indicated potential pay in the lowermost Caruaçu Member, known as Sequence 6.1, of the Maracangalha Formation — a zone with 21.9 metres of calculated net pay, average porosity of 10.2% and water saturation of 21.8% that has not previously been incorporated into the company’s reserves or resources assessments. The well also encountered potential pay in the Gomo Member of the Candeias Formation. Overall, the well logged average porosity of 10.0% and average water saturation of 29.2% across all pay intervals.
Alvopetro plans to complete the well in up to seven intervals, including Sequence 6.1, and expects to bring it on production in July. Separately, the company’s board declared a quarterly dividend of US$0.12 per common share