In a news release, Alvopetro Energy Ltd. (ALV:TSX.V; ALVOF;OTCQX) announced it began commissioning work at its Caburé midstream natural gas project in Brazil.
Construction is finished of the new 11 kilometer (11 km) transfer pipeline and gas treatment facility, and commissioning work began there on April 21, after receipt of the requisite authorizations. Alvopetro delivered the first natural gas to the facility from the Caburé unit, or natural gas field. Commissioning is expected to be done in May.
Six of the seven wells of the Caburé unit recently were tied into the expanded facilities. The unit has a planned maximum gross production rate of 450,000 cubic meters per day.
Alvopetro will sell its natural gas under its long-term gas sales agreement with Bahiagás, the local distribution company for the state of Bahia. As part of the agreement, Bahiagás agreed to add another 15 kilometers to its distribution network and build a new gas receiving station at the facility site. Construction is in progress, and completion is expected in Q2/20. Once finished, Alvopetro intends to start delivering natural gas to the new station from the Caburé field.
As for Alvopetro's Gomo natural gas project, also in Brazil, the Calgary, Canada-based company requested an extension to "the existing phase deadline for this block to install a plunger lift system to evacuate the remaining completion and stimulation fluid in the wellbore and put the well on a 60-day, long duration test to obtain improved estimates of its full potential while working through the permitting process for the pipeline extension to tie the well into the Caburé infrastructure," according to the release.
Also, the gas firm noted that the COVID-19 pandemic has not affected its operations or supply chain. Regardless, Alvopetro continues its measures to protect staff, including having most employees, excluding field crew members, work at home and social distancing among those on site.
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