Corporate

PresentationJune 2018

Forward Looking Statements. This presentation contains forward-looking statements including management’s assessment of future plans, operations, expectations offuture production and capital expenditures. These statements are based on current expectations that involve numerous risks and uncertainties, which may cause actualresults to differ from those anticipated. These risks include, but are not limited to: the risks inherent in the oil and gas industry, 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 reserveestimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks; and fluctuation in foreigncurrency exchange rates and commodity price fluctuation. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

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-termperformance 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 ofexpected production or operational results for Alvopetro in the future.

Non-GAAP Measures. This presentation contains financial terms that are not considered measures under International Financial Reporting Standards (“IFRS”), such asfunds flow from operations, funds flow per share, operating netback, working capital and Earnings Before Interest, Depreciation, and Amortization (“EBIDA”). Thesemeasures are commonly utilized in the oil and gas industry and are considered informative for management and shareholders. We evaluate our performance based onfunds flow from operations. Funds flow from operations is a non-IFRS term that represents cash generated from operating activities before changes in non-cash workingcapital. Management considers funds flow from operations and funds flow per share important as they help evaluate performance and demonstrate the Alvopetro’s abilityto have or generate sufficient cash to fund future growth opportunities. Working capital surplus includes current assets less current liabilities and is used to evaluate theCompany's short-term financial leverage. Operating netback is determined by dividing oil sales less royalties, transportation and production expenses by sales volume ofproduced oil. Management considers operating netback important as it is a measure of profitability per barrel sold and reflects the quality of production. EBIDA is used tomeasure the Company’s operating performance and the cash available for reinvestment and distribution to stakeholders. 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 measures of financialperformance calculated in accordance with IFRS.

Net Present Value. The net present value of future net revenue attributable to Alvopetro’s reserves is stated without provision for interest costs and general andadministrative costs, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures, and well abandonmentcosts for only those wells assigned reserves by Sproule or GLJ respectively. It should not be assumed that the undiscounted or discounted net present value of future netrevenue attributable to the Alvopetro’s reserves estimated by Sproule and GLJ represent the fair market value of those reserves. Other assumptions and qualificationsrelating to costs, prices for future production and other matters are summarized herein. The recovery and reserve estimates of the Company's reserves provided herein areestimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater than or less than the estimates provided herein.

Cautionary Statements

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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 the construction of strategic infrastructure assets.

Upstream/midstream hybrid corporate vehicle to provide sustainable returns to our

stakeholders

Alvopetro’s Vision & Strategy

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Brazil Opportunity

Population 207 million

World’s 8th largest economy

GDP US$15,500 per capita

World’s 10th oil producer, #1 in Latam

Production 2.5 million bopd & 3.8 bcfpd

Proven reserves 12.8 billion bbls & 13 TCF

• Policy reforms to increase direct foreign investment

• Labour reform

• Relaxed local content requirements

• Repetro importation regime extended

• Gas to grow initiatives

• Petrobras divestitures

• Recurring bid rounds with lower financial guarantees

• Reducing royalties

• Initiatives to encourage reserve based lending

• Attractive fiscal regime: international commoditypricing, 11% royalties & 15% income tax on eligibleprojects

Resources:

http://www.anp.gov.br/images/Palestras/ANP_BritCham_23_05_2018.pdf

http://www.anp.gov.br/images/Palestras/State_art_pre-salt_Brazil_AAPG_2018.pdf

http://www.anp.gov.br/images/Palestras/PPT_ANP_Decio_Oddone_Brazilian_O&G_Market_Revival_02_05_2018.pdf

Corporate Overview

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Common shares (000’s)(1) 85,167

Market cap (Cdn000’s) (1) $25,550

Insider ownership %(1) 7.56%

Cash and financial resources (US000’s) (2) $6,628

Inventory (US000’s) (2) $2,793

Debt (US000’s) (1) Nil

Production Q1 2018 (bopd) (2) 21

2P Reserves (mboe) (3) 6,443

2P NPV 10%BT (US000’s) (3) $135,617

(1) As of June 6, 2018(2) As of March 31, 2018(3) Oil assets evaluated by Sproule effective 12/31/17, natural gas evaluated by GLJ effective 5/31/2018

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Reserves

1 Sproule effective 12/31/172 GLJ effective 5/31/183 GLJ effective 5/31/18, assigned reserves to drainage areas around 183-1 & 197-1 wells

MBOE – Company Interest NPV10% - Before Tax (US millions)

1P 2P 3P 1P 2P 3P

Oil fields1 - 697 869 - $11.6 $15.8

Caburé2 3,227 4,614 6,198 $73.2 $108.2 $142.3

Gomo3 349 1,132 2,467 $1.1 $15.8 $37.9

Total 3,576 6,443 9,534 $74.4 $135.6 $196.0

1 Sproule effective 12/31/172 GLJ effective 5/31/183 GLJ effective 5/31/18, assigned reserves to drainage areas around 183-1 & 197-1 wells

The Alvopetro Opportunity

• Experienced team with a strong track record

• Under-explored highly prospective land base (73,473 acres, 63,460 net acres) and a balanced suite of opportunities

• 2P reserves 6.4 mmboe (38.7 Bcfe)

• Base 2P Net Asset Value of C$2.20/share(1)

Core Natural Gas Development:

• Caburé gas field – precedent setting natural gas development

• 28 Bcfe of 2P reserves (ALV share)

• Gas sales agreement – Feb 2018 US$6.54/mmbtu

• Strategic natural gas midstream assets

Evolving Gomo Natural Gas Project:

• 2 existing wells assigned 7 BCF of 2P reserves

• Defined broader deep basin natural gas resource coveringmultiple Alvopetro blocks

• Significant additional development potential

Conventional Exploration Upside:

• 15 conventional prospects supported by reprocessed seismic

(1) Base net asset value includes; 2P NPV10 before tax of US$135.6 million, financial resources of US$6.6 million as at

March 31, 2018, and equipment inventory for use on future operations of US$2.8 million as at March 31, 2018.

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Caburé Natural Gas Project – Upstream + Midstream

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• Upstream - joint development of a conventional natural gas discovery (ALV 49.1%)

• Unitized development area (light blue )

• 4 existing wells

• 3-4 additional wells and surface facilities to be completed by end of 2019

• Midstream - 100% Alvopetro

• Precedent setting Gas Sales Agreement (GSA) with the State distribution company

• 11-km transfer pipeline from the Unit (dark blue )

• ALV Gas Plant (UPGN)

• Only non-Petrobras facility in state of Bahia capable of delivering ANP sales spec natural gas

• Strong asset values and cash flows

• Highly strategic legacy asset with excellent growth potential

• Platform to unlock Basin-wide natural gas potential

Core Assets – Caburé Natural Gas Unit (ALV 49.1%)

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ALV-197(2) ALV-198(A1)

Maracangalha Leste

Maracangalha Oeste

Marfim

Pojuca

IME-3IME-10

4 Existing Wells

• ALV share of 2P reserves 27.7 Bcfe (4.6 mmboe)

• ALV NPV10BT US$108.2 million

Caburé Unit Development Plan

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• Early production plateau up to 5.3 mmcf/d (150 e3m3/d) from 2 of 4 existing wells through low pressure production facilities to initially supply partner’s Thermal Power Project when dispatched (allocated against partner’s share of 2P reserves)

• Partner to fund 100% of drilling of Block 212 well in 2018

• 2019: drill 3 additional development wells, install a high pressure production facility, and tie in all wells

• Alvopetro estimated share of 2018/2019 unit capital, ~US$7 million, to be funded by March 2020 (1)

• Alvopetro production to commence at end of 2019

• Gross field production plateau of 15.9 mmcf/d (450 e3m3/d)

(1) Payable on the earlier of the date Alvopetro commences production allocations or March 30, 2020, net of equipment inventory contributed to the unit.(2) Development plan is subject to ANP approval.

Midstream Infrastructure (100% ALV)

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US$ millions

Alvopetro 11-km transfer pipeline $3.5

Alvopetro gas processing facility (UPGN) $0 - $101

Total 2018/2019 midstream capital $3.5 - $13.5

UPGN/City-gate location secured, required engineering and permitting work completed, and environmental permits submitted for approval end of April

Only non-Petrobras facility capable of processing to ANP sales spec

(1) Range of estimates includes contingency and using different contracting strategies for the UPGN; build/own/operate/maintain (leasing) model versus 100% ownership.(2) Subject to regulatory approvals

• Bahiagas to construct a 15-km distributionpipeline and a new Citygate with designcapacity of 35 mmcf/d (1,000 e3m3/d)

• Alvopetro constructing 11-km transferpipeline and gas processing plant (UPGN)

• Firm sales volume 5.3 mmcf/d (150 m3/d),adjustable annually

• Interruptible sales volume up to 12.4 mmcf/d(350 e3m3/d)

• Total contracted volume > 19.4 Bcf (550e6m3)

• Start of supply by 12/31/2019

• Price reset semi-annually based on rollingaverage basket of trailing benchmarkequivalent prices (Brent, US Henry Hub, UKNational Balancing Point)

• Feb 2018 price = US$6.54/mmbtu

• Floor US$5.00/mmbtu, cap US$8.50/mmbtu,both indexed to US inflation

Gas Sales Agreement - Bahiagas

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Alvopetro/Bahiagas Price Forecast

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(1) Based on 03/31/2018, GLJ escalated price forecasts.(2) Floor and caps escalated based on 2% US CPI inflation (5-year historical average).

183-1197-1Jan2

A A’

Tested Gas

3275m

3550m

• Long-term production results will define the broader deep basin development opportunity across our acreage

Gomo Deep Basin Natural Gas Project

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Tested Gas

Tested Gas

• Tested natural gas on an unstimulated basis from Sequence 5 in 197-1 and 183-1 wells

• 183-1 stimulation planned for Q4 2018

• 8km tie-in

• 2P reserves 6.8 Bcfassigned to drainage areas around existing 2 wells

• 5,460 acre geobody

Conventional Exploration Inventory

• Highly under-explored prospective land base (73,473 acres, 63,460 net acres)

• 15 conventional exploration prospects identified, all supported by reprocessed seismic

• Two conventional discoveries

• Average shallow conventional well cost expected to be $2MM to $3MM

• Portfolio of conventional prospects in an area of developed oil and gas infrastructure

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Key to Unlocking New Opportunities

• Key to success is reprocessing available data

– 1,400 km2 of reprocessed 3D seismic

– Reprocessed 2D lines show similar improvement

• High quality processing is fundamental to proper seismic interpretation

• Critical to all core focus areas:– Significantly derisks 15

conventional exploration prospects

– Defines deep basin Gomopotential

– Identifies development drilling potential on our lower risk BomLugar oil field

2001 Brazil Reprocessing ALV 2017 Reprocessing

Block 57-A1 Pre-Rift Oil Exploration Prospect

P90

P50

P10

Pre Rift Depth Converted Structure3-way Closure Against Fault

• 1500 metres (ALV 65%)• Pre-Rift multi-zone prospect (AG/Sergi/Boipeba) • P90 one fault seal dependency, maximum column height 100m, 491 acres. P50 two faults sealing,

maximum column height 170m, 1754 acres. P10 two faults sealing, maximum column height 310m, 4769 acres

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3FBL 0007 BA well projected 9km (closest well to penetrate below Sergi)

Basement

Basement

Sergi

Sergi

Pitanga

NW SE

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Block 182(C1) Multi-Zone Natural Gas Prospect

• 2900 meters TVD (100% WI)• 780-acre pre-rift prospect, maximum column height 135m • 8.5 km north of ALV UPGN• Seal potential is excellent for Sergi juxtaposed against Afligidos

and basement. Agua Grande juxtaposed against Boipeba Sands

• An upstream/midstream hybrid

opportunity

• Building a sustainable base of

distributable cash flow

• Finalized Unitization and Gas Sales

Agreements

• Strategic infrastructure

• Provides platform to unlock

remaining natural gas potential

• Gomo 2-well pilot

• Conventional exploration upside

• Third party processing upside –

nearby fields 0.3 Tcf of reserves,

>20 mmcf/d

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Building a Sustainable Upstream/Midstream Model

• Significant cash generating capacity just from development of 2P reserves

• Funds returns to stakeholders (50%) and high impact upstream reinvestment (50%)

• Does not reflect any incremental upside from additional upstream investments

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Upstream/Midstream Distributable Cash Model

Cash flow available for additional upstream investments

✓ Caburé unitization completed April 20, 2018

✓ ALV gas plant and pipeline construction permits filed April 30, 2018

✓ Bahiagas gas sales agreement signed May 7, 2018

✓ Independent reserve evaluation completed June 6, 2018

Project financing Q3 2018

Award gas plant and pipeline tenders Q3 2018

License to construct Q4 2018

Stimulate 183(1) Gomo natural gas well Q4 2018/Q1 2019

Gas plant and pipeline construction 2019

First ALV gas sales End 2019

Milestones

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0

1

2

3

197-1 183-1 197-2 182-2 170-B1 256-A1 198-A1 177-A1

M U

S$

Drilling Costs (Per Meter)

Operational Performance - Continuous Improvement

0

100

200

300

400

500

197-1 183-1 197-2 182-2 170-B1 256-A1 198-A1 177-A1

M U

S$

Drilling Location Costs

0

500

1000

1500

197-1 197-2 182-1 198-A1 183-1

M U

S$Testing Costs (Per Zone)

• In-house functionality • Hands-on approach • Reduced drilling costs per meter 61%• Optimized drilling location civil

construction costs• Well testing costs reduced by 77%• Demonstrated we can receive drilling

permits in less than 180 days

• Precedent setting natural gas sales agreement

• Highly strategic natural gas infrastructure assets

• Upstream/midstream hybrid model

• Basin-wide growth potential

• Attractive valuation

• Base 2P Net Asset Value of C$2.20/share(1)

• Brazil investment climate improving

• Motivated & experienced team

The Alvopetro Opportunity

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(1) Base net asset value includes; 2P NPV10 before tax od US$135.6 million, financial resources of US$6.6 million as at

March 31, 2018, and equipment inventory for use on future operations of US$2.8 million as at March 31, 2018.

Contact us:

Calgary, Canada:Alvopetro Energy Ltd.

Suite 1700, 525 – 8th Avenue SW

Calgary, Alberta, Canada

T2P 1G1

Tel: (587) 794-4224

Email: info@alvopetro.com

Salvador, Brazil:Alvopetro S/A Extração de Petróleo e Gás Natural

Rua Ewerton Visco, 290, Boulevard Side Empresarial,

Sala 2004, Caminho das Árvores, Salvador-BA

CEP 41.820-022

Tel: + 55 (71) 3432-0917

Email: info@alvopetro.com

www.alvopetro.comTSX-V: ALV