08:27 AM EST, 02/05/2025 (MT Newswires) -- Alvopetro Energy ( ALVOF ) , which has operations in Brazil, on Wednesday said it plans to expand into Western Canada by taking a stake in two Saskatchewan oil wells as it looks for additional properties in the region.

The company will spend $4.5 million to fund 100% of the cost of two wells operated by Durham Creek Energy in exchange for a 50% stake in 12,243 acres of exploration lands with more than 100 potential drilling locations.

Alvopetro said it will also look for opportunities in the Mannville heavy oil fairway, which straddles Alberta and Saskatchewan.

"The Western Canadian Sedimentary Basin offers high-quality assets with large resources in place with access to a high-quality service industry, and leading-edge technology deployment. With our past experiences and our headquarters in Calgary , we are well positioned to create a complementary growth platform with the opportunity to deliver attractive returns for shareholders," the company said.

Alvopetro also said January production from its existing operations in Brazil totaled 2,547 barrels of oil equivalent per day, up 41% from its average output in the fourth quarter of 1,738 boepd.

The company's shares closed up $0.05 to $5.05 Tuesday on the TSX Venture Exchange.