Calgary's Alvopetro Secures US$20M Credit to Drive Dual-Basin Natural Gas Growth
Strategic Financial Backing for Dual-Basin Development
Calgary-based Alvopetro Energy Ltd. (TSXV: ALV, OTCQX: ALVOF) announced a significant financial milestone on December 1, 2025: a US$20 million loan agreement. This credit facility was secured by its wholly-owned subsidiary, Alvopetro S.A. Extração de Petróleo e Gás Natural, with Itaú BBA International plc. The two-year term loan carries a fixed interest rate of 7% per annum, payable quarterly, with repayment scheduled in quarterly installments from November 30, 2026, after a 12-month grace period. Alvopetro Energy Ltd. will guarantee the obligations of Alvopetro S.A., including a standby letter of credit with Itaú Unibanco S.A. in Brazil, underscoring the company's commitment to its strategic investments. Corey C. Ruttan serves as President and CEO, with Alison Howard as CFO.
Accelerating Growth and Stakeholder Returns
Proceeds from the credit facility are earmarked for planned capital programs and general corporate purposes. Corey C. Ruttan, President and CEO, highlighted the impact: "This credit facility provides Alvopetro with significant additional financial flexibility allowing us to accelerate our capital programs focused on high rate of return growth opportunities in Brazil and the Western Canadian Sedimentary Basin." Alvopetro's strategy involves balancing capital investment across Canada and Brazil, leveraging its existing Caburé and Murucututu natural gas fields and associated midstream infrastructure.
Timely Investment Amidst Favorable Policy Shifts
This capital injection arrives at an opportune moment for Alberta's energy sector. Days prior to Alvopetro's announcement, a federal-Alberta Memorandum of Understanding (MOU) on November 27, 2025, suspended Clean Electricity Regulations (CER) in Alberta and confirmed no federal oil and gas emissions cap for the province. Furthermore, the federal carbon tax on natural gas for consumers was removed on April 1, 2025, contributing to a more predictable and supportive operating environment. These policy concessions provide greater regulatory certainty, particularly for natural gas producers operating within the Western Canadian Sedimentary Basin.
Calgary's Evolving Energy Landscape and Natural Gas Future
As Calgary continues its "energy transition" towards a hub for cleantech while leveraging its traditional strengths, Alvopetro's investment contributes directly to the city's energy vitality. Alberta's Natural Gas Vision and Strategy aims to expand the province's role as a global supplier of clean, responsibly sourced natural gas, including through LNG exports. While overall upstream oil and gas capital spending is forecasted to see a slight decline, the long-term outlook for natural gas remains encouraging, driven by global LNG demand and new export facilities like LNG Canada, which could stimulate further activity and specialized job growth in Calgary's corporate and technical energy workforce.
