Corporate

Presentation

May 15, 2018

Forward Looking Statements. Statements in this presentation may contain forward-looking statements including management’s assessment of future plans, operations, expectations offuture production and capital expenditures. Information concerning resources is deemed to be forward-looking statements as such estimates involve the implied assessment that theresources described can be economically produced. These statements are based on current expectations that involve numerous risks and uncertainties, which may cause actual results todiffer 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 reserve and resource estimates; the uncertainty ofestimates and projections relating to production, costs and expenses, and health, safety and environmental risks; and fluctuation in foreign currency exchange rates and commodity pricefluctuation. 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 inaccumulations 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.

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 accumulationsprior to production. The recoverable portion of DPIIP includes production, reserves, and contingent resources; the remainder is unrecoverable. There is no certainty that it will becommercially 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 isestimated, 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 thatundiscovered resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

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 ultimaterecovery. 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 forAlvopetro in the future.

Non-GAAP Measures. This presentation contains financial terms that are not considered measures under International Financial Reporting Standards (“IFRS”), such as funds flow fromoperations, 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 managementand shareholders. We evaluate our performance based on funds flow from operations. Funds flow from operations is a non-IFRS term that represents cash generated from operating activitiesbefore 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 theAlvopetro’s ability to have or generate sufficient cash to fund future growth opportunities. Working capital surplus includes current assets (including current restricted cash and assets heldfor sale) less current liabilities (excluding the current portion of decommissioning liabilities) and is used to evaluate the Company's short-term financial leverage. Operating netback isdetermined by dividing oil sales less royalties, transportation and production expenses by sales volume of produced oil. Management considers operating netback important as it is a measureof 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 tothose reported by other companies nor should they be viewed as an alternative to measures of financial performance calculated in accordance with IFRS.

Net Present Value. The net present value of future net revenue attributable to Alvopetro’s reserves and resources is stated without provision for interest costs and general and administrativecosts, but after providing for estimated royalties, production costs, development costs, other income, future capital expenditures, and well abandonment costs for only those wells assignedreserves or resources by Sproule or D&M respectively. It should not be assumed that the undiscounted or discounted net present value of future net revenue attributable to the Alvopetro’sreserves and resources estimated by Sproule and D&M represent the fair market value of those reserves. Other assumptions and qualifications relating to costs, prices for future productionand other matters are summarized herein. The recovery, reserve and resource estimates of the Company's reserves and resources provided herein are estimates only and there is noguarantee that the estimated reserves or resources will be recovered. Actual reserves or resources may be greater than or less than the estimates provided herein and the estimated netpresent values will change following completion of the unitization process and finalization of a gas sales agreement .

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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Corporate Overview

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Common shares (000’s)(1) 85,167

Market cap (Cdn$000’s) (1) 25,976

D&O ownership %(1) 7.56%

Cash and financial resources (US$000’s) (2) 6,628

Inventory (US$000’s) (2) 2,793

Debt (US$000’s) (1) Nil

Production Q1 2018 (bopd) (2) 21

2P Reserves (mbbl) (3) 697

2C Resource (mboe) (4) 5,815

2P+2C (mboe) (3) & (4) 6,512

2P+2C NPV 10%BT (US$000’s) (3) & (4) 102,985

(1) As of May 15, 2018(2) As of March 31, 2018(3) As of December 31, 2017(4) As of June 30, 2015

The Alvopetro Opportunity

• Experienced team with a strong track record

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

• Base 1C/2C Net Asset Value of C$1.26-$1.70/share(1)

Core Proven Assets:

• Existing reserves, production + 5% GORR on Blocks 107/108

• Caburé gas field – D&M best estimate 33 BCF contingentresource (ALV share)

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

• Strategic natural gas midstream assets

Discovered Gomo Resource:

• 2-well pilot project drilled

• Defined deep basin natural gas resource over a large mappedarea

• Significant development potential

Conventional Exploration:

• 15 conventional prospects supported by reprocessed seismic

(1) Base net asset value includes; financial resources of US$6.6 million as at March 31, 2917, contingent resources of

Caburé gas discovery, NPV10 before tax as at June 30, 2015 (to be updated with reserve report/valuation in Q2 2018), of

US$61.9 million (1C) to US$91.3 million (2C), 2P reserves on two mature fields of US$11.6 million (NPV10 before tax as at

December 31, 2017), and equipment inventory for use on future operations of US$2.8 million as at March 31, 2018.5

ANP assessment of OGIP:

• Imetame - 50.9%, 10.8 mmboe(64.7 Bcf)

• Alvopetro - 49.1%, 10.4 mmboe(62.4 Bcf)

D&M Recoverable Resource Assessment ALV Share (Oct 2015):

• 33.5 Bcf (2C), 19.5 Bcf (1C), 46.5 Bcf (3C)

Engaged GLJ to complete a reserve evaluation incorporating the Unitization and the Bahiagas Gas Sales Agreement

Core Assets – Caburé Natural Gas Unit

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

Maracangalha Leste

Maracangalha Oeste

Marfim

Pojuca

IME-3IME-10

Caburé Unit Development Plan

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• Early production plateau - up to 150,000 m3/d (5 mmcfpd) from 2 of 4 existing wells through early low pressure production facilities for supply of Imetame Thermal Power Project when dispatched (allocated against Imetame’s share of 2P reserves)

• Imetame 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)

• Gross field production plateau of 450,000 m3/d (16 mmcfpd)

(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.

• Bahiagas to construct a 15-km distributionpipeline and a new Citygate with designcapacity of 35 mmcfpd (1.0 million m3/d)

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

• Firm sales volume 5.3 mmcfpd (150,000m3/d), adjustable annually

• Interruptible sales volume up to 12.4 mmcfpd

(350,000 m3/d)

• Total contracted volume > 19.4 Bcf (0.55billion m3)

• Start of supply by 12/31/2019

• Price set semi-annually based mainly ontrailing rolling average basket of 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 1.8% US CPI inflation (5-year historical average).

Natural Gas Commercial Solution (100% ALV)

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US$ millions1

Alvopetro 11-km transfer pipeline $3.5

Alvopetro gas processing facility (UPGN) $0 - $10

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

Caburé Net Operating Income Sensitivity

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Incremental potential: Gomo, conventional gas exploration, third party revenues

• ALV share of planned unit production 7.8 mmcfpd (221,000 m3/d) • ALV can take uncontracted/unnominated partner gas• Current partner contracted demand from the unit is 5.3 mmfpd (150,000 m3/d)• ALV share of unit production including uncontracted partner gas = 10.6 mmcfpd

(300,000 m3/d)

Net Operating Income (2020)

Floor GLJ Escalated Ceiling

$5.14 USD/MMBTU $7.84 USD/MMBTU $8.73 USD/MMBTU

221 e3m3/d (7.8MMSCFPD) $12.5 MMUSD $19.3 MMUSD $21.6 MMUSD

261e3m3/d (9.2MMSCFPD) $15.0 MMUSD $23.1 MMUSD $25.7 MMUSD

300 e3m3/d (10.6MMSCFPD) $17.5 MMUSD $26.8 MMUSD $29.8 MMUSD

Sales Price (USD/MMBTU)

Gas Rate

183-1197-1Jan2

A A’

Tested Gas

3275m

3550m

• Defined deep basin natural gas resource over a 5,460 acre mapped area in a non-structural setting

Discovered Gomo Resource – 197/183 Geobodies

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Tested Gas

Tested Gas

• Tested gas on an unstimulated basis in Sequence 5 in 197-1 (40 mcfpd) and 183-1 (240 mcfpd) wells

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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Seismic Processing is Critical - Bid Round 13 Examples

• Key to success is reprocessing of existing data

• Seismic reprocessed across majority of Alvopetro’s blocks

– 1,400 km2 of reprocessed 3D seismic– Reprocessed 2D lines show similar

improvement– All supported by reprocessed seismic

• Critical to all core focus areas in Alvopetro

– Significantly derisks 15 conventional prospects

– Provides better understanding of tight gas resource concept

– Identifies development drilling potential on our lower risk Bom Lugar 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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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

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

Basement

Basement

Sergi

Sergi

Pitanga

NW SE

• 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

• Third party processing upside –

nearby fields 0.3 Tcf of

reserves, >20 mmcfpd

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Building a Sustainable Upstream/Midstream Model

Objective is to maximize returns to existing shareholders by targeting non-dilutionary funding

• Capital lease for gas processing facility

• Vendor backed financing for gas processing facility

• Rights offering: common shares, preferred shares, or subordinated debt

• Project financing

• Reserve based loan

• Strategic partner

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Financing Alternatives

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

• Brazil investment climate improving

• Attractive natural gas sales agreement

• Highly strategic natural gas infrastructure assets

• Upstream/midstream hybrid

• Attractive valuation

• Base Net Asset Value 1C/2C of C$1.26 - 1.70/share(1)

before exploration and Gomo resource potential

• Small, motivated & experienced team

The Alvopetro Opportunity

1) Base net asset value includes; financial resources of US$6.6 million as at March 31, 2018, contingent resources of Caburé gas discovery, NPV10before tax as at June 30, 2015, of US$61.9 million (1C) to US$91.3 million (2C), 2P reserves on two mature fields of US$11.6 million (NPV10before tax as at December 31, 2017), and equipment inventory of $2.8 million for use on future operations as at March 31, 2018. 20

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