Mr. Corey Ruttan reports

ALVOPETRO EXPANDS ITS WESTERN CANADIAN GROWTH PLATFORM WITH MANNVILLE HEAVY OIL FARM-IN

Alvopetro Energy Ltd. has entered into an earning agreement in the Mannville heavy oil fairway, adding 28 gross sections (14 net) of high-quality heavy oil lands to complement and expand on the company's existing Mannville position. All amounts contained in this new release are in United States dollars, unless otherwise stated and all tabular amounts are in thousands of United States dollars, except as otherwise noted.

Under the agreement, Alvopetro has agreed to drill five earning wells commencing in Q4 2026, at an estimated cost of $8.5-million (Canadian). The program will employ proven open-hole multilateral well designs along with single-leg horizontal wells using recirculation strings to unlock new reservoirs across the portfolio.

Key highlights

• Adding 28 gross sections (14 net), in the Mannville heavy oil fairway, complementing the company's existing Mannville position;
• Partnered with an established operator (Courser Energy) with a demonstrated track record in the Mannville play fairway with a strong land position and an inventory of ready-to-drill opportunities;
• Commencing a fully financed $8.5-million (Canadian), five-well program expected to commence in Q4 2026;
• Payout structure reduces risk by accelerating return of capital to Alvopetro by earning a 75-per-cent working interest prepayout of the earning wells and a 50-per-cent interest post-payout along with a 50-per-cent interest in all surrounding undeveloped land;
• A potential drilling inventory exceeding 75 gross locations.

President and chief executive officer Corey C. Ruttan commented:

"The Courser team has built an impressive land position from strong technical work. This new partnership provides exposure to an attractive inventory of ready-to-drill locations within the Mannville heavy oil fairway to complement and expand on our existing position. The program also gives us exposure to multiple well designs in attractive reservoirs creating added optionality across our wider Mannville portfolio."

About Alvopetro Energy Ltd.

Alvopetro Energy is deploying a balanced capital allocation model where the company seeks to reinvest roughly half its cash flows into organic growth opportunities and return the other half to stakeholders. Alvopetro's organic growth strategy is to focus on the best combinations of geologic prospectivity and fiscal regime. Alvopetro is balancing capital investment opportunities in Canada and Brazil where the company is building off the strength of its Cabure and Murucututu natural gas fields and the related strategic mid-stream infrastructure.

We seek Safe Harbor.