Tag: Energy

Release – U.S. Department of Agriculture Selects Gevo’s Climate-Smart Farm-to-Flight Proposal with a Funding Ceiling of $30MM

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on GEVO

September 19, 2022

ENGLEWOOD, Colo., Sept. 19, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) is pleased to announce that the U.S. Department of Agriculture has selected Gevo’s Climate-Smart Farm to Flight proposal for funding with an award ceiling of up to $30 million. Gevo’s project was one of the 70 projects selected by the USDA under the first pool of the Partnerships for Climate-Smart Commodities funding opportunity totaling $2.8 billion. The project aims to create critical structural climate-smart market incentives for low carbon-intensity corn as well as to accelerate the production of sustainable aviation fuel to reduce the sector’s dependency on fossil-based fuels.  

“We are honored that our proposal was selected for funding as part of this historic partnership for Climate-Smart Commodities from the U.S. Department of Agriculture,” says Dr. Paul Bloom, Chief Carbon Officer and Chief Innovation Officer for Gevo. “We look forward to working with the great team of partners we’ve assembled to lower our carbon footprint throughout the entire SAF business system while delivering high-quality carbon accounting and rewarding growers for their contributions.”

The project will also focus on the importance of immutable tracking and tracing of the carbon-intensity score starting at the farm production level, through biofuels production, all the way to the sale to an airline company. Gevo plans to accomplish this with further development and implementation of Verity Tracking, a blockchain enabled solutions platform for carbon tracking through the entire business system.

About Gevo
Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have the potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, without limitation, including Gevo’s technology, U.S. Department of Agriculture, the production of SAF, the attributes of Gevo’s products, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2021, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Investor and Media Contact
Heather L. Manuel
303-883-1114
IR@gevo.com

Release – Alvopetro Confirms US$0.08 Per Share Q3 2022 Dividend

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on ALVOF

Sep 15, 2022

CALGARY, AB, Sept. 15, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV) (OTCQX: ALVOF) announces that our Board of Directors has declared a quarterly dividend of US$0.08 per common share, payable in cash on October 14, 2022, to shareholders of record at the close of business on September 29, 2022. This dividend is designated as an “eligible dividend” for Canadian income tax purposes. 

Dividend payments to non-residents of Canada will be subject to withholding taxes at the Canadian statutory rate of 25%.  Shareholders may be entitled to a reduced withholding tax rate under a tax treaty between their country of residence and Canada.  For further information, see Alvopetro’s website at  https://alvopetro.com/Dividends-Non-resident-Shareholders.

Corporate Presentation

Alvopetro’s updated corporate presentation is available on our website at:http://www.alvopetro.com/corporate-presentation. 

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergy Instagram – https://www.instagram.com/alvopetro/ LinkedIn – https://www.linkedin.com/company/alvopetro-energy-ltd

Alvopetro Energy Ltd.’s vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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.

Forward-Looking Statements and Cautionary Language. This news release contains “forward-looking information” within the meaning of applicable securities laws. The use of any of the words “will”, “expect”, “intend” and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning the Company’s plans for dividends in the future, the timing and amount of such dividends and the expected tax treatment thereof. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to equipment availability, the timing of regulatory licenses and approvals, the success of future drilling, completion, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic and other significant worldwide events, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, expectations regarding Alvopetro’s working interest in properties and the outcome of any redeterminations, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. In addition, the declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro’s SEDAR profile at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

www.alvopetro.comTSX-V: ALV, OTCQX: ALVOF

SOURCE Alvopetro Energy Ltd.

Is a Rail Strike an Economic Train Wreck or an Opportunity?

Posted on by cpatches
Image Credit: Katherine Johnson (Flickr)

Any Rail Strike Would Surely Cause Transitory Inflation

There is something I taught myself years ago as a young trader on Wall Street. I appreciate this “skill” less and less as the years go on, but it has served me well. When news breaks, my mind shifts to asking, “for what sectors is this bullish and for what sectors is this bearish?” No attachment except money movement. There will be time for personal involvement with the event after the market closes. The news of a train strike that may begin on Friday is a good example. My investor mind was quick to try and determine what companies would benefit and also which could be hurt. I have no control over whether or not it happens, but I may be able to add to portfolio returns from it.  Meanwhile, at home, I’m stocking up on a few of the items often shipped by rail.

Below is some helpful information about this segment of the freight and shipping industry.

Background

Rail workers may go out on strike as early as Friday, September 16.

In the U.S. the Rail network runs almost 140,000 miles. Freight rail is an $80-billion industry operated by seven Class I railroads (railroads with operating revenues of $490 million or more), and 22 regional and 584 local/short line railroads.

More than 167,000 are employed across the U.S. It’s a safer and often more efficient means of shipping as it uses less energy and rides on a more cost-effective and safer infrastructure than trucking.

Heavy freight such as coal, lumber, metals, and liquids going long distances are likely to travel by rail or some combination of truck, rail, water, or pipeline. The rail network accounts for approximately 28% percent of U.S. freight movement by ton-miles (the distance and weight freight travels). So, by weight, 28% of what is shipped within the U.S. may get stalled in the event of a strike. This would significantly add to any supply chain issues currently being experienced. 

Unlike roadways, U.S. freight railroads are owned by private organizations that are responsible for their own maintenance and improvements.

What Would be Impacted

In all, 52 percent of rail freight cars carry bulk commodities such as agriculture and energy products, automobiles and components, construction materials, chemicals, equipment, food, metals, minerals, paper, and pulp. The remaining 48 percent onboard is generally being shipped in packaging that allows it to easily be moved onboard a plane, van, or other non-bulk carrier.

Source: Federal Railroad Administration

A rail strike would stop a high percentage of the transportation of food, lumber, coal, oil and other goods across the U.S.

Current Status

Rail stocks like Union Pacific ($UNP) and CSX ($CSX) are underperforming the market this week as rail workers’ unions continue to negotiate for higher pay and benefits. The unionized workers have the legal go-ahead to strike at the end of the week if no agreement is reached. This could impact all major U.S. railroads and cripple the supply chain on many raw materials until the dispute is settled. An immediate but temporary impact would be material shortages that would push prices up, largely at the producer level. These shortages should be resolved when the strike ends as increased price pressures should come back down. But the short-lived inflation will be additive to final goods prices for a period of time.

Eight of 12 labor unions have reached tentative agreements with railroad carriers. However, there are still disagreements over vacation, sick days, and attendance policies.

A “cooling off” period expires Friday, at which time workers can strike.

A freight rail shutdown would be expected to cost the U.S. economy around $2 billion per day, according to the Association of American Railroads. It would especially hit the energy sector hard as rail is the number one mode of transportation used by coal producers, according to the Energy Information Administration (EIA).

Take Away

A rail strike would hit multiple sectors as it could stop the transportation of food, lumber, coal, and other goods across the country. Much of what is shipped by train can’t easily be shipped by the already overburdened trucking industry.

A strike, if any, would put upward pressure on lumber, energy, and food prices. Assuming the strike gets resolved, these transit-related higher price pressures should prove to be transitory. As individuals, whether or not there is a strike is beyond our ability to change. If there is an industry sector or company that stands to improve earnings or a sector that may suffer losses, there should be no investor guilt in positioning investments in a way where the investor may prosper.

Paul Hoffman

Managing Editor, Channelchek

Sources

https://railroads.dot.gov/rail-network-development/freight-rail-overview#:

https://www.bts.gov/sites/bts.dot.gov/files/docs/browse-statistical-products-and-data/pocket-guide-transportation/224731/pocket-guide-2019.pdf

https://www.barrons.com/articles/railroad-strike-truck-stocks-51663161990

Release – The Gevo NW Iowa RNG Project Achieves Important EPA Milestone Ahead of Schedule

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on GEVO

ENGLEWOOD, Colo., Sept. 13, 2022 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) is pleased to announce that its Northwest Iowa Renewable Natural Gas project, Gevo NW Iowa RNG, LLC (Gevo RNG), was granted registration approval by the Environmental Protection Agency (EPA), allowing Gevo RNG to participate in the Renewable Fuel Standard (RFS) program.

Gevo previously estimated that approval for RFS Renewable Identification Numbers (RINS) through RFS and carbon credits through California’s Low Carbon Fuel Standard (LCFS) program would happen in late 2022 or early 2023. This early approval is a result of the quality work by Gevo’s expert operations, sustainability, and compliance teams as well as Gevo’s dedicated project partners.

“The work we are doing at the Northwest Iowa RNG operations is critical to Gevo’s work in the reduction of the carbon intensity of fuels. While Gevo RNG is just one piece of the circular economy that Gevo is building, the capture of manure to make RNG in the production of transportation fuels is a very important component, said Dr. Chris Ryan, President and Chief Operating Officer at Gevo, Inc. Meeting the EPA registration requirements ahead of schedule is the direct result of the efforts of a dedicated team of hard-working individuals who demonstrate our collective commitment to this mission.”

The RNG Project generates renewable natural gas captured from dairy cow manure. The manure for the RNG Project is supplied by three dairy farms located in Northwest Iowa totaling over 20,000 milking cows. At full operational capacity, the RNG Project is expected to generate approximately 355,000 MMBtu of RNG per year, which is marketed by BP Canada Energy Marketing Corp. and BP Products North America Inc. (collectively, “bp”) in California on behalf of Gevo.

About Gevo
Gevo’s mission is to transform renewable energy and carbon into energy-dense liquid hydrocarbons. These liquid hydrocarbons can be used for drop-in transportation fuels such as gasoline, jet fuel and diesel fuel, that when burned have the potential to yield net-zero greenhouse gas emissions when measured across the full life cycle of the products. Gevo uses low-carbon renewable resource-based carbohydrates as raw materials, and is in an advanced state of developing renewable electricity and renewable natural gas for use in production processes, resulting in low-carbon fuels with substantially reduced carbon intensity (the level of greenhouse gas emissions compared to standard petroleum fossil-based fuels across their life cycle). Gevo’s products perform as well or better than traditional fossil-based fuels in infrastructure and engines, but with substantially reduced greenhouse gas emissions. In addition to addressing the problems of fuels, Gevo’s technology also enables certain plastics, such as polyester, to be made with more sustainable ingredients. Gevo’s ability to penetrate the growing low-carbon fuels market depends on the price of oil and the value of abating carbon emissions that would otherwise increase greenhouse gas emissions. Gevo believes that its proven, patented technology enabling the use of a variety of low-carbon sustainable feedstocks to produce price-competitive low-carbon products such as gasoline components, jet fuel and diesel fuel yields the potential to generate project and corporate returns that justify the build-out of a multi-billion-dollar business.

Gevo believes that the Argonne National Laboratory GREET model is the best available standard of scientific-based measurement for life cycle inventory or LCI.

Learn more at Gevo’s website: www.gevo.com

Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to a variety of matters, without limitation, including Gevo RNG, the EPA registration approval, Gevo’s production of renewable natural gas, and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of the management of Gevo and are subject to significant risks and uncertainty. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and Gevo undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Although Gevo believes that the expectations reflected in these forward-looking statements are reasonable, these statements involve many risks and uncertainties that may cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. For a further discussion of risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of Gevo in general, see the risk disclosures in the Annual Report on Form 10-K of Gevo for the year ended December 31, 2021, and in subsequent reports on Forms 10-Q and 8-K and other filings made with the U.S. Securities and Exchange Commission by Gevo.

Media Contact
Heather L. Manuel
+1 303-883-1114
IR@gevo.com

Release – InPlay Oil Corp. Announces Participation in Noble Capital Markets C-Suite Interview Series

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on IPOOF

September 12, 2022 09:00 ET | Source: InPlay Oil Corp.

CALGARY, Alberta, Sept. 12, 2022 (GLOBE NEWSWIRE) — InPlay Oil Corp. (TSX: IPO) (OTCQX: IPOOF) (“InPlay” or the “Company”) today announced their participation in Noble Capital Markets’ C-Suite Interview Series, presented by Channelchek.

InPlay Oil (IPOOF)(IPO.V) President & CEO Doug Bartole sat down with Noble Capital Markets Senior Research Analyst Michael Heim for this exclusive interview. Topics covered include:

  • How has InPlay reacted to recent energy sector strength?
  • How have drilling costs been affected by inflation and increased production?
  • Behind the decision to raise their credit facility while paying down debt
  • The current acquisition landscape
  • How sustainable are the current oil prices?
  • Why is InPlay an attractive way to invest in the energy space?

The interview was recorded on August 30, 2022 and is available now on Channelchek.

About InPlay Oil Corp.

InPlay is a junior oil and gas exploration and production company with operations in Alberta focused on light oil production. The company operates long-lived, low-decline properties with drilling development and enhanced oil recovery potential as well as undeveloped lands with exploration possibilities. The common shares of InPlay trade on the Toronto Stock Exchange under the symbol IPO and the OTCQX Exchange under the symbol IPOOF.

About Noble Capital Markets

Noble Capital Markets, Inc. was incorporated in 1984 as a full-service SEC / FINRA registered broker-dealer, dedicated exclusively to serving underfollowed small / microcap companies through investment banking, wealth management, trading & execution, and equity research activities. Over the past 37 years, Noble has raised billions of dollars for these companies and published more than 45,000 equity research reports. www.noblecapitalmarkets.com email: contact@noblecapitalmarkets.com.

About Channelchek
Channelchek (.com) is a comprehensive investor-centric portal – featuring more than 6,000 emerging growth companies – that provides advanced market data, independent research, balanced news, video webcasts, exclusive c-suite interviews, and access to virtual road shows. The site is available to the public at every level without cost or obligation. Research on Channelchek is provided by Noble Capital Markets, Inc., an SEC / FINRA registered broker-dealer since 1984. www.channelchek.com email: contact@channelchek.com

For further information please contact:

Doug Bartole
President and Chief Executive Officer
InPlay Oil Corp.
Telephone: (587) 955-0632		 Darren Dittmer
Chief Financial Officer
InPlay Oil Corp.
Telephone: (587) 955-0634

Planned Changes for a Greener Blockchain Leaves Uncertainties

Posted on by cpatches
Image Credit: Edwin Chewin (Flickr)

The Ethereum Merge Could Kick Off a Transformation in Crypto’s Battered Reputation

Cryptocurrencies might still be a very long way from their highs of 2021, but some of the major ones have staged some decent recoveries in the past couple of months. Notably ether (ETH), the second largest cryptocurrency after bitcoin, is trading at almost $US1,700 (£1,463) at the time of writing, having dropped as low as $US876 in mid-June.

Ether, which was created by Canadian/Russian programmer Vitalik Buterin, is the cryptocurrency used for transactions on Ethereum, the leading platform on which developers can applications using blockchain technology.

Blockchains are online ledgers that run without been controlled by any single company. Much of these applications revolve around smart contracts, which are automated contracts that remove the need for intermediaries such as lawyers and are seen as having huge potential for the future.

Ether Price ($US)

Source: Trading View

One of the main catalysts for ether’s rebound has been the Ethereum merge, a huge project to change the way the underlying blockchain operates. Where transactions on Ethereum are currently validated using an energy-intensive system known as proof-of-work (PoW), in which lots of very powerful computers compete to solve complex mathematical puzzles, from around September 15 it will shift to a new system known as proof of stake (PoS).

PoS basically means that transactions on the blockchain will be validated not by all these computations but by a network of investors whose commitment is demonstrated by the fact that they own at least 32 ether (yours for about $US54,000).

The idea is that this gives them an economic incentive to enhance the security of the network, and are therefore very unlikely to try and sabotage it. Whereas bitcoin transactions all depend on PoW, lots of newer cryptocurrencies use PoS, including Ethereum rivals such as Solana and Cardano.

Going Green

When the Ethereum merge takes place, power consumption on the blockchain will be reduced by 99%. Since it is currently the most used blockchain in terms of transactions, this will save a huge amount of electricity each year, corresponding to Chile’s power consumption.

As a result of the merge, some analysts expect ether to overtake bitcoin as the leading crypto in terms of the total value of all the coins (in crypto circles this is referred to as the “flippening”). Ether is currently worth just over US$204 billion, while bitcoin is worth US$396 billion.

Bitcoin vs Ether

Bitcoin = yellow, Ether = blue. Trading View

Until now, cryptocurrencies and bitcoin in particular have suffered from a bad reputation. Bitcoin was initially conceived with the egalitarian goal of allowing investors access to a financial system with no need for banks and with money that isn’t controlled by countries. It has been championed for its ability to enable billions of people without bank accounts to transact online, and to facilitate things like microfinance and ultra-cheap cross-border trading.

Yet bitcoin has come to be associated with environmental degradation and criminal activities. The mainstream media has endlessly linked the leading cryptocurrency – and by extension the whole space – with money laundering, online drug dealing, Ponzi schemes and exchange hacking.

Netflix documentaries have further reinforced this negative public image. Recent scandals in the crypto world, such as the fall of Ethereum rival Luna and the bankruptcy of Celsius and other crypto lenders, have not helped either.

One major consequence has been that major financial institutions like investment banks and pension funds have been cautious of ploughing money into this space, despite the leap forward in technology that blockchains represent.

But if the most widely adopted crypto platform successfully shifts to PoW in the coming days, many believe that this will overcome the biggest institutional objection and see much more money flowing into the space (there are already early signs, such as Fidelity’s new crypto fund for retail investors). This is likely to accelerate the global regulatory framework that would minimise undesirable activities.

By closing down the environmental objections to crypto, other advantages to ether are likely to come to the fore. The merge will offer a return to investors in the form of rewards in exchange for locking up their money for a period of time (“staking”).

Although you need to stake 32 ether to become one of the network’s validators, numerous companies have set up systems to enable smaller investors to pool their money so that they can participate. For example, Binance, the world’s largest crypto exchange, offers investors 6% annual percentage yield for pooled staking on ether.

Staking will therefore create a win-win situation with guaranteed returns and a very liquid system that makes it easy for people to move their money in and out of ether. This will further enhance the appeal of ether and PoS cryptos in general.

This could help to accentuate other positives around crypto, another of which is humanitarian donations. When Russia invaded Ukraine, for instance, the Ukrainian government called for donations in bitcoin and ether to support its efforts against invaders. This quickly attracted substantial amounts of money.

Tonga was similarly successful with a campaign after its volcanic eruption earlier this year. By being able to cross borders easily and cheaply, cryptocurrencies are the ideal vehicle for international donations.

Lingering Uncertainties

All that said, it is uncertain how the Ethereum blockchain will function after the merge in terms of transaction speeds and costs. One major problem with Ethereum in the past has been that transactions have been ludicrously expensive, sometimes running to thousands of US dollars at peak times in 2021.

The developers of the Ethereum Foundation do not expect the merge to make a big difference in these respects (currently “gas” fees are averaging between $US1 and $US4 per transaction depending on which platform you are using). Much more important is likely to be another shift in ethereum’s journey to “Ethereum 2.0” known as sharding, which is due to happen in 2023.

We will also have to wait and see how smooth the merge is. Synchronisation and update bugs could see problems such as validators disconnected from the blockchain. Negative stories like these could see investors staying away for fear of instability. But on the whole, while the merge will not be a miraculous event, it could help improve the image of cryptocurrencies and attract institutional and retail investors. At a time when sustainable investing is increasingly high priority, the ether merge and its attractive returns have the potential to put ether at the top of the list.

This article was republished  with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Jean-Philippe Serbera, Senior Lecturer in Banking And Financial Markets, Sheffield Hallam University.

Release – Alvopetro Announces Discovery at Caburé Unit-C Well, August 2022 Record Sales Volumes and an Operational Update

Posted on by aweinsoff@channelchek.com

Research, News, and Market Data on ALVOF

Sep 08, 2022

CALGARY, AB, Sept. 8, 2022 /CNW/ – Alvopetro Energy Ltd. (TSXV: ALV); (OTCQX: ALVOF) announces a discovery at our 49.1% Caburé Unit C well, record August sales volumes and an operational update. 

7-CARN-2D-BA Well (“Unit-C Well”)

The Unit-C well at the Caburé Unit (49.1% Alvopetro) was spud in July and drilled to a total measured depth (“MD”) of 2,096 metres. Based on Alvopetro’s analysis of open hole logs and fluid samples confirming hydrocarbons, the well has potential net pay in multiple formations using a 6% porosity cut-off, 50% Vshale cut-off and 50% water saturation cut-off. The well was drilled with development objectives in the Pojuca and Marfim sands that are producing from, or tested hydrocarbons in, the offsetting Unit well (IMET-10).  The well was also drilled with exploratory objectives in the deeper Maracangalha sands that are producing on the eastern side of the bounding fault. The well encountered a total of 52.6 metres of potential net hydrocarbon pay at an average 37.2% water saturation and average porosity of 16.8% in multiple formations. Fluid samples were also collected using a formation testing tool with natural gas being recovered from a sand in the Maracangalha Formation at 1,443.5 metres total vertical depth and oil from a deeper sand at 1,633.6 metres total vertical depth. Potential net pay is summarized, by formation, as follows:

FormationObjectiveNet Pay (metres)Water Saturation (%)Porosity (%)
PojucaDevelopment19.931.924.6
MarfimDevelopment3.930.412.1
MaracangalhaExploration28.841.712.1
Total52.637.216.8

August 2022 Sales Volumes

Our August daily sales volumes averaged 2,727 boepd, including natural gas sales of 15.6 MMcfpd, and associated natural gas liquids sales from condensate of 120 bopd, based on field estimates. Our August sales volumes are a record for Alvopetro, 8% above July sales volumes of 2,514 boepd and 16% above average volumes in the second quarter of 2022 of 2,359 boepd.

Operational Update

On August 26th, we spud our 182-C2 well on Block 182 (100% Alvopetro).  The 182-C2 well is a follow-up well to our 182-C1 well drilled earlier this year and targets the Agua Grande and Sergi Formations further east from the bounding fault encountered during drilling of the 182-C1 well.

On our Murucututu project, the ANP inspection of our fiscal meter station at our 183-1 location was completed last week and, subject to receipt of all finalized reports, we expect to commence production from our 183-1 well this month.

Corporate Presentation

Alvopetro’s updated corporate presentation is available on our website at:

http://www.alvopetro.com/corporate-presentation. 

Social Media

Follow Alvopetro on our social media channels at the following links:

Twitter – https://twitter.com/AlvopetroEnergyInstagram – https://www.instagram.com/alvopetro/LinkedIn – https://www.linkedin.com/company/alvopetro-energy-ltdYouTube: https://www.youtube.com/channel/UCgDn_igrQgdlj-maR6fWB0w

Alvopetro Energy Ltd.’s vision is to become a leading independent upstream and midstream operator in Brazil. Our strategy is to unlock the on-shore natural gas potential in the state of Bahia in Brazil, building off the development of our Caburé natural gas field and our strategic midstream infrastructure.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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.

Abbreviations:
boepd                   =       barrels of oil equivalent (“boe”) per day
bopd                     =       barrels of oil and/or natural gas liquids (condensate) per day
MMcf                     =         million cubic feet
MMcfpd                 =           million cubic feet per day

BOE Disclosure. The term barrels of oil equivalent (“boe”) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this news release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.

Testing and Well Results. Data obtained from the Unit C well identified in this press release, including hydrocarbon shows, open-hole logging, net pay and porosities, should be considered to be preliminary until testing, detailed analysis and interpretation has been completed. Hydrocarbon shows can be seen during the drilling of a well in numerous circumstances and do not necessarily indicate a commercial discovery or the presence of commercial hydrocarbons in a well. There is no representation by Alvopetro that the data relating to the Unit C well contained in this press release 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.

Cautionary statements regarding the filing of a Notice of Discovery. The unit operator has submitted a Notice of Discovery of Hydrocarbons to the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (the “ANP”) with respect to the Unit C well. All operators in Brazil are required to inform the ANP, through the filing of a Notice of Discovery, of potential hydrocarbon discoveries. A Notice of Discovery is required to be filed with the ANP based on hydrocarbon indications in cuttings, mud logging or by gas detector, in combination with wire-line logging. Based on the results of open-hole logs, a Notice of Discovery has been filed for the Unit C well. These routine notifications to the ANP are not necessarily indicative of commercial hydrocarbons, potential production, recovery or reserves.

Forward-Looking Statements and Cautionary Language. This news release contains “forward-looking information” within the meaning of applicable securities laws. The use of any of the words “will”, “expect”, “intend” and other similar words or expressions are intended to identify forward-looking information. Forward‐looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the expectations discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events. Accordingly, when relying on forward-looking statements to make decisions, Alvopetro cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties. More particularly and without limitation, this news release contains forward-looking information concerning potential hydrocarbon pay in the Unit C well, exploration and development prospects of Alvopetro and the expected timing of certain of Alvopetro’s testing and operational activities. The forward‐looking statements are based on certain key expectations and assumptions made by Alvopetro, including but not limited to expectations and assumptions concerning results of the Unit C well, equipment availability, the timing of regulatory licenses and approvals, the success of future drilling, completion, testing, recompletion and development activities, the outlook for commodity markets and ability to access capital markets, the impact of the COVID-19 pandemic, the performance of producing wells and reservoirs, well development and operating performance, foreign exchange rates, general economic and business conditions, weather and access to drilling locations, the availability and cost of labour and services, environmental regulation, including regulation relating to hydraulic fracturing and stimulation, the ability to monetize hydrocarbons discovered, expectations regarding Alvopetro’s working interest and the outcome of any redeterminations, the regulatory and legal environment and other risks associated with oil and gas operations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.  Although Alvopetro believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because Alvopetro can give no assurance that it will prove to be correct. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on factors that could affect the operations or financial results of Alvopetro are included in our annual information form which may be accessed on Alvopetro’s SEDAR profile at www.sedar.com. The forward-looking information contained in this news release is made as of the date hereof and Alvopetro undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Alvopetro Energy Ltd.

Inflation, Energy Prices, and Public Policy

Posted on by cpatches
Image Credit: Robert So (Pexels)

How Long Can the Imbalance of Energy Production and Demand Continue?

During the first 19 months after taking office, the Biden administration has leased fewer acres for oil and gas drilling than any president’s first 19 months since Harry Truman (1945-46). Not long ago, Candidate Biden promised to stop drilling on federal lands to help force a transition to cleaner energy. This promise has mostly been kept. But it is getting more difficult for the 46th POTUS. Demand pressures and reduced output caused oil prices to already be off its pandemic lows when Russia’s invasion of Ukraine gave way to a semi-embargo on Russian goods, which included oil and gas.

President Biden’s Interior Department leased 126,228 acres for drilling through Aug. 20, during his first 19 months in office. Analysts at the Wall Street Journal uncovered that no president since Nixon in 1969-70 leased out fewer than 4.4 million acres at this stage in their occupation of the White House.

Truman was the most recent to lease out fewer acres, 65,658. This was just after WWII at a time when offshore drilling was just beginning and the federal government didn’t yet control the deep-water leases that are the largest portion of the federal oil-and-gas program today.


The leasing program had tapered during the past decade as fracking shale became preferable to drilling offshore or on federal land. Biden’s use of land and deep-sea leases represents a decline of 97% as compared to the same time period of Trump’s stewardship which had declined 39% compared to his predecessor.

A record high number of drilling permits for existing leases were filed last year, according to The Interior Department . Department spokeswoman Melissa Schwartz told the Wall Street Journal that industry trends have driven most U.S. production to private and state-owned lands, and that of the roughly 35 million acres now leased from the federal government, about 60% aren’t actively producing.

As for offshore leases, the Biden administration has yet to complete a sale. It did hold one, on Nov. 17, offering 80 million acres in the Gulf of Mexico in a sale originally proposed by the Trump administration that would have been the largest offshore sale in U.S. history. It sold 1.7 million acres, but a federal judge invalidated the sale in January, ruling that the administration failed to do a proper environmental analysis.


One can either appreciate the resolve of the current administration in its effort to foster fewer emmited pollutants, or fault him for his role in curbing energy production and its contribution to higher prices and less energy independence.  If the measurement had been made as of the first 17 months of his presidency,  the acreage number would be zero, there were no onshore lease sales. The government then held five June 29-30.

Leases for oil and natural gas drilling is the beginning of the petroleum product supply chain. But, while there is no shortage of federal land, an escalation of lease sales now, or under any successor’s policies, would take years to build and deliver its first barrel.

The increase in gasoline and oil prices has caused the president to take steps to boost oil supplies. In late March the President said he’d be releasing as much as 180 million gallons from the strategic oil reserves over the following 180 days. This was unprecedented in its magnitude and a response to the doubling and tripling of gasoline prices.

Energy independence has been the goal of many of Biden’s predecessors. We live at a time when the call has been to prioritize policy that encourages transitioning to non-fossil fuel. This naturally has caused investors in resources like lithium and uranium to see price increases. Large oil price increases have also come from lower growth of petroleum supplies. Part of the relief valve the administration used, is tapping into the finite supply of strategic oil reserves. The current pace of using this resource is unsustainable.

This could indicate that energy investors, in fossil fuels and alternatives may see strong markets with demand outstripping supply going forward for some time.

Paul Hoffman
Managing Editor, Channelchek

Sources

https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/leasing/regional-lease-sales

https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/leasing

https://www.tri-cityherald.com/news/environment/article261303202.html

https://www.washingtonpost.com/climate-environment/2022/03/31/strategic-petroleum-reserve-release-biden/
https://www.wsj.com/articles/federal-oil-leases-slow-to-a-trickle-under-biden-11662230816

Should Investors Pay Attention to US Strategic Reserve Replenishment?

Posted on by cpatches
Image Credit: Paul B (Flickr)

Will Drivers Continue to be Dogged by High Gas Prices as US Strategic Oil Reserve is Replenished?

The last time the US Strategic Oil Reserves was this low was January 1985. The US population was then 238 million, The Cosby Show was the top-rated on TV, the threat of the AIDS virus was just beginning to be understood, and a newly appointed NIH Director named Anthony Fauci had just been promoted. In 37 years, some things have changed, and some things have not. One that has not is the need for reliable energy.

The Reserves reached its peak in April 2011 with 726.5 million barrels; today we sit with 453.1 million. Will it take 37 years to replenish the more than 200 million barrels, 160 million that have been siphoned off since March of this year?


The barrels that are being used in 2022, were ordered released by the White House to offset domestic loss of production, pipeline distribution, and less supply compounded by global shortages resulting from a partial embargo against Russia. The order is intended to work to lower gas prices today and help reduce the impact oil prices are having on unacceptably high inflation.

President Biden said in March that the US would release one million barrels of oil a day for six months as petroleum products spiked following the start of the Russian/Ukrainian war. The White House then said, in late July, the US would release another 20 million barrels.

To some degree, it worked as intended. There has been a fall in the price at the gas pumps over the past two months. Much of this has been supply related helped by the reserve releases, and to a lesser extend, demand has also slowed from receding economic activity. WTI crude, the US benchmark price, has dropped around 24%.


That decline has brought US gasoline prices down from above $5 a gallon in June to $3.89 on Tuesday, August 17. Globally, other countries are tapping into their own strategic reserves as well.

What Happens When we Refill It?

The US consumed about 20 million barrels of oil a day on average in 2021, according to the EIA. During the same year, it produced 11 million barrels a day. The Biden administration is proposing to refill the stockpiles under a plan that is likely to see it order 60 million barrels this fall for delivery at an unspecified time in the future. That leaves at least another 100 million barrels to bring the country back to where we were in March 2022 – over two hundred more to bring us back to the peak. It took 37 years last time for the country to stockplile the same amount.

The current infrastructure is not supporting additional oil output, or companies would be pumping now. On July 1, President Biden made public a five-year proposal for offshore oil and gas development in areas of existing production and said the final plan might have anywhere from zero to 11 lease sales.

The range of proposed options were, between two auctions a year and none at all. The plan seemed conflicted with a desire to balance the administration’s efforts to reduce the use of fossil fuels and its calls to increase needed oil and gas.

Energy Demand Moving Forward

Does restocking the Reserves point toward high petroleum demand for a much longer time period than ever expected? Does it also create opportunities for producers of biofuels, for example GEVO?

The current fuel issues are not going to disappear overnight. Borrowing from the future with an intent, and now a plan to pay it back, will require more production than before. Companies that produce are not inclined to make big investments in building out a platform when the political climate is one of wanting to shut production down as soon as possible.

The cost of reducing energy output and then borrowing from reserves, especially when an unexpected embargo is placed on a major supplier, could keep the price of all energy elevated for a much longer time than, the end of a war, of installation of coastal wind farms.

Paul Hoffman

Managing Editor, Channelchek 

Sources

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCSSTUS1&f=M

https://www.eia.gov/petroleum/gasdiesel/gas_geographies.php#pricesbyregion

https://www.whitehouse.gov/briefing-room/statements-releases/2022/07/26/fact-sheet-department-of-energy-releases-new-notice-of-sale-as-gasoline-prices-continue-to-fall/

https://www.niaid.nih.gov/about/director

https://www.energy.gov/articles/doe-announces-additional-notice-sale-crude-oil-strategic-petroleum-reserve

https://www.reuters.com/business/energy/biden-administration-proposes-offshore-drilling-plan-focused-mainly-us-gulf-2022-07-01/