Corporate

Presentation
November 2014

Cautionary Statements
Forward Looking Statements. Statements in this presentation may contain forward-looking statements including managements assessment of future plans,
operations, expectations of future production and capital expenditures. Information concerning reserves may also be deemed to be forward-looking statements as such
estimates involve the implied assessment that the resources described can be economically produced. These statements are based on current expectations that involve
numerous risks and uncertainties, which will cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks of the oil and gas
industry (e.g. 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), fluctuation in foreign currency exchange rates and commodity price fluctuation. As a consequence, actual results may differ materially
from those anticipated in the forward-looking statements.
Undiscovered Petroleum Initially-In-Place (UPIIP), equivalent to undiscovered resources, are those quantities of petroleum that are estimated, on a given date, to
be contained in accumulations yet to be discovered. The recoverable portion of UPIIP is referred to as prospective resources, the remainder as unrecoverable.
Undiscovered resources carry discovery risk. There is no certainty that any portion of these resources will be discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the resources. A recovery project cannot be defined for this volume of UPIIP at this time.
Discovered Petroleum Initially-In-Place (DPIIP), equivalent to "discovered resources", is that quantity of oil that is estimated, as of a given date, to be contained in
known accumulations prior to production. The recoverable portion of DPIIP includes production, reserves, and contingent resources; the remainder is unrecoverable. A
recovery project cannot be defined for these volumes of DPIIP at this time. There is no certainty that it will be commercially viable to produce any portion of the
resources.
Total Petroleum Initially-In-Place ("TPIIP) is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that
quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations
yet to be discovered. There is no certainty that undiscovered resources will be discovered. If discovered, there is no certainty that it will be commercially viable to
produce any portion of the resources.
Non IFRS 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 and working capital. These measures are commonly utilized in the oil and gas industry and are
considered informative for management and shareholders. We evaluate our performance based on funds flow from operations. Funds flow from operations is a nonIFRS term that represents cash generated from operating activities before changes in non-cash working capital. Management considers funds flow from operations and
funds flow per share important as they help evaluate performance and demonstrate the Companys ability to generate sufficient cash to fund future growth opportunities
and repay debt. Working capital surplus includes current assets less current liabilities and is used to evaluate the Company's short-term financial leverage. Operating
netback is determined by dividing oil sales less royalties, transportation and operating expenses by sales volume of produced oil. Management considers operating
netback important as it is a measure of profitability per barrel sold and reflects the quality of production. Funds flow from operations, funds flow per share, working capital
and operating netbacks may not be comparable to those reported by other companies nor should they be viewed as an alternative to cash flow from operations, net
income or other measures of financial performance calculated in accordance with IFRS.
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.

Alvopetros Vision and Strategy

Our vision is to be the premier
independent exploration and production
company
in
Brazil,
maximizing
shareholder value by being the lowest
cost operator and applying innovation to
underexploited opportunities.
Three-pronged strategy:
Mature fields
Shallow conventional exploration
Large tight hydrocarbon resource

History and Formation of Alvopetro Energy Ltd.

December 2012: Petrominerales Ltd. acquired a 75% interest in seven exploration blocks in the
Recncavo Basin (Blocks 131, 132, 144, 157, 182, 196, 197) and three mature producing fields (Bom
Lugar, Jiribatuba and Aracaju).
May 2013: Acquired Blocks 170 and Block 183, and awarded Blocks 106 and 107 in the Recncavo
Basin, and Block 177 in the Tucano Basin in the Brazil 11th Bid Round.
November 19, 2013: Petrominerales acquired the remaining 25% interest in Alvopetro for $9 million.
November 28, 2013: Alvopetro was formed as a result of a plan of arrangement involving
Petrominerales Ltd. and Pacific Rubiales Energy Corp., with Alvopetro capitalized with C$100 million
cash and holding all of Petrominerales' former Brazil assets, including a talented team of technical
professionals in Brazil and certain of the former Leadership Team and Board members of
Petrominerales. Through the completed Arrangement, Pacific Rubiales acquired all of Petrominerales
outstanding shares, with former shareholders of Petrominerales receiving, for each Petrominerales
share held, cash consideration of C$11.00 per share and one share of Alvopetro.
Alvopetro Energy Ltd., with its current Leadership Team and Board, commenced operations as a new
resource company. Alvopetro was awarded Blocks REC-T 169, REC-T 198, REC-T 255 and REC-T
256 in the Recncavo Basin in the Brazil 12th Bid Round.

Our Opportunity

Experienced Leadership Team and Board of Directors

Well capitalized - $63.7 million(1) of cash and working capital resources

85.1 million shares outstanding

148,500 gross acres (147,808 net acres)

Highly under-explored area

Large unconventional resource

Shallow exploration potential

3 mature fields

Compelling fiscal regime

Note: (1) As at September 30, 2014, includes cash, restricted cash (current and non-current) and other working capital resources.

Recncavo Basin, Brazil

Total Area: 10,000 sq km

First oil drilled (1939)

6,000 wells drilled

86 producing fields

Developed infrastructure

TPIIP 6.3 billion bbls

(conventional)

OGIP 3.2 TCF (conventional)

Cumulative production
1.5 billion bbls

34 degree API light oil

Oil production 41,000 bbl/d

Natural gas production 120

mmcf/d
Alberta outline
compared to
Parnaiba Basin

Focused Land Base

148,500 gross acres (147,808 net acres)

16 exploration blocks

1,055 km2 of 3D seismic

Initial focus is to demonstrate the commercial

deliverability of Gomo sands

Captured majority of deep Gomo play fairway in

Miranga Low

14 wells with Gomo pay

Initial Gomo view - 1.2 billion bbls of UPIIP(1)(2)

Shallow conventional exploration potential 9

prospects (250 million boe TPIIP, mid-point)

3 mature fields - NPV10 (AT) 2P reserves of

US$21.8 million

6 km

Notes:
(1) Does not include Blocks REC-T 169, REC-T 198, REC-T 255 and REC-T 256 awarded to Alvopetro in the Brazil 12th Bid
Round.
(2) Internal Management estimate.

Seismic Processing is Critical

BL-001
~300 MB EUR

BL-001
~300 MB EUR

SW

NE

NE

SW

Pojuca

Marfim
Producing Zone

Pre-Rift

Processed Version from BDEP

Reprocessed 3D

Recncavo Basin Geological Model

Gomo Play Fairway

ANP 4th Bid round - Modified from Braga et al., 1987

Block 197 and 183 - Gomo Resource

197(1) Well

Encountered 43 metres of potential net

hydrocarbon pay
Recovered over 78 metres of core
Lower zone, well flowed natural gas, at an
average rate of 40 mcf/day, unstimulated

183(1) Well
Encountered 189 meters of potential net
hydrocarbon pay (3 key zones)
Upper thick zone - 46m of indicated net oil pay,
average porosity 10%
3m, 14% porosity zone
Deep natural gas 93m of net pay, average
porosity 7%

A major step in proving the commercial viability

of the Gomo resource opportunity.
Added deep basin natural gas potential over a
large mapped area

10

Block 197/183 Geobodies

A

A
Jan2

183-1

197-1

Deep Natural Gas Geobody

Mapped off reprocessed
3D seismic
1.3 TCF TPIIP (natural
gas)
Upper Gomo Geobody
If oil, greater than 600
mmbbls TPIIP
Deep Gas Geobody 5,460 Acres

Tested Gas

A
3275m

3550m

183-1

A
197-1
Gas Geobody Isopach 20 m C.I.

Seismic sequences can be mapped and aerial extent defined.

Brazil: Gas Marketing Environment

Bahia, Brazil - Comparison between Natural Gas Prices for the
Industrial Market (20,000 m/day) and Fuel Oil

High demand for natural gas in Brazil,

approx. 1.3 Tcf demand/year, 35% imported
gas
Gas infrastructure nearby Alvopetros
operations
Opportunity exists to sell natural gas
directly to nearby large industrial end users

March 2014 Brazil Natural Gas Prices:

Brazil*:
US$12.35/MMBtu
Brazil**:
US$8.19/MMBtu (discounted)
Reference:
Price paid for gas imported from Bolivia: US$10.29/MMBtu
Fuel Oil:
US$13.37/MMBtu
Liquefied petroleum gas: US$11.19/MMBtu
Henry Hub: US$ 4.40/MMBtu

Sources: Brazilian Association of Large Industrial Energy Consumers and Free Consumer, and Brazil Ministry of Energy
*Without discount
** In accordance with regulations, Petrobras may market its natural gas to large gas distribution companies at a price discounted by no more than a
set amount.

12

Recncavo Basin: Favourable Comparison to Analogous

Oil Plays
Canadian Bakken

Cardium

Argentina

Brazil

Basin

ViewField

West Pembina

Mata Mora

Reconcavo

Geologial Age

Devonian /Mississpian

Cretaceous

Cretaceous

Cretaceous

Target Zone

Middle Bakken

Cardium

Vaca Muerta

Gomo

Lithology

Sand/Siltstone

Sandstone

Silicoclastic Shale

Sandstone

Thickness

5m

5 - 8m

34 - 100m

10 - 200m

Depth

1,500 - 2,000m

2,000m

3000 - 3500m

2500 - 3500m

Porosity

10%

6 - 12%

4 - 14%

8 - 15%

Permeabilities

0.2 - 0.6md

2 - 10 md

0.1 - 5.0md

0.1 - 4.0md

Pressures

0.48psi/ft

0.53psi/ft

0.67 - 0.97 psi/ft

0.48 psi/ft

30 Day Average Rates

100 - 200 bbl/d

125 - 300 bbl/d

160 - 600 bbl

To be determined

Oil Saturations

50%

85%

75 - 85%

62 - 78%

TPIIP Per Section

4.5 5 mmbbl

5.0 - 8.0 mmbbl

10 65 mmbbl

20 100 mmbbl

Recovery Factor

10 - 15%

15%

10 - 15%

10 - 15%

EUR Per Well

100,000 175,000 bbl

175,000 250,000 bbl

160,000 700,000 bbl

300,000 650,000 bbl

Source: Industry Reports

13

Recncavo Basin: Favourable Comparison to Analogous

Gas Plays
Barnett

Duvernay

Horn River

Montney

Brazil

Basin

Fort Worth

Western Canadian
Sedimentary Basin

Horn River Basin

Western Canadian
Sedimentary Basin

Reconcavo

Geological age

Mississippian

Devonian

Devonian

Triassic

Cretaceous

Approximate age (years)

340 million

370 million

380 million

240 million

110 million

Estimated area (sq. miles)

5,000

10,000

10,000

25,000

4,000

Depth (m)

1,800 - 2,750

2,700 - 4,000

1,600 - 3,000

1,600 - 2,800

2500 - 3500

Porosity (%)

3-9

3-8

3-9

3 - 18

3 - 15

Thermal maturity

1.2 - 2.0

1.6 - 2.0

2.2 - 3.8

0.8 - 2

0.9 1.4

Gross thickness

90 - 150

20 - 90

50 - 200

10 - 275

200 1,200 *

Quartz (%)

40 - 60

55 - 80

55 - 80

30 - 60

45 - 65

Clay (%)

10 - 30

7 - 10

7 - 20

5 - 30

10 - 30

Brittleness

High

High

High

Varies

Medium

Pressure gradient

0.46 0.53

0.5 - 0.7

0.5 - 0.7

0.45 - 0.6

0.4

Total organic content (%)

38

2-5

2-7

1-5

1-5

Recovery factor (%)

20 - 40

20 - 40

20 - 40

20 - 70

20 - 70

Estimated ultimate recovery (Bcf/well)

1-4

3-6

3 - 12

2-7

27

Source: Industry Reports

* Bruhn, 1999

14

2015 Capital Plan and Strategy

Alvopetros three-pronged strategy is to pursue our:

Mature Fields; development drilling focused on generating near-term oil

production and sustainable operating cash flows;
Shallow Conventional Oil Exploration; targeting prospects generated from our
reprocessed 3D seismic database; and
Large Tight Hydrocarbon Resource; proving the commercial viability of the
Gomo resource in the Recncavo Basin.

Our $25 million 2015 capital forecast, includes:

Drilling 2 wells on our Bom Lugar mature field;

Drilling one conventional exploration well; and
Advancing our resource play by completing and testing the 183(1) well and
defining deliverability through the use of fracture stimulations and reservoir
modelling.

15

Accomplishments

Completed the Alvopetro reorganization from the sale of Petrominerales Ltd.

Assembled high-quality team

Acquired 25% working interest partner

Secured seven new blocks at 2013 Brazil bid rounds and two by acquisition

Reprocessed all available 3D seismic

Successfully drilled and tested first Gomo well, 197(1), to 3,275 metres exceeded
expectations

Successfully drilled 183(1) well to 3,550 metres

Drilled the two deepest wells in the area in the past 20 years (197(1) and 183(1))

Established an extensive deep natural gas resource opportunity

Built an initial 9-well inventory of conventional exploration prospects

16

Alvopetro - Early Stage Investment Opportunity

Attractive land position and fiscal regime

Captured majority of deep Gomo play fairway

Large resource opportunity

Shallow exploration potential

Mature fields

Well capitalized

Experienced Leadership Team and Board, holding >10% of Alvopetros basic shares
outstanding

Strong operating platform in Brazil

Operational excellence and innovation

17

Contact us:
Calgary, Canada:
Alvopetro Energy Ltd.
Suite 1175, 332 6th Ave. SW
Calgary, Alberta, Canada
T2P 0B2
Tel: (587) 794-4224
Email: info@alvopetro.com

Salvador, Brazil:
Alvopetro S/A Extrao de Petrleo e Gs Natural
Rua Ewerton Visco, 290, Boulevard Side Empresarial,
Sala 2004, Caminho das rvores, Salvador-BA
CEP 41.820-022
TEL: + 55 (71) 3432-0917
Email: info@alvopetro.com

www.alvopetro.com
TSX-V: ALV