Alvopetro Inc. announced financial and operating results for the fourth quarter and year ended December 31, 2012. For the fourth quarter, the company reported natural gas sales were $183,000, compared to $316,000 for the last year. Funds used in operations were $888,000 or $0.02 per basic and diluted share, compared to $812,000 or $0.01 per basic and diluted share for the last year. Net income was $1,831,000 or $0.03 per basic and diluted share, compared to net loss of $2,124,000 or $0.04 per basic and diluted share for the last year.

For the year, the company reported natural gas sales were $800,000, compared to $855,000 for the last year. Funds used in operations were $3,812,000 or $0.07 per basic and diluted share, compared to $3,428,000 or $0.06 per basic and diluted share for the last year. Net loss was $2,177,000 or $0.04 per basic and diluted share, compared to net loss of $7,104,000 or $0.13 per basic and diluted share for the last year.

For the fourth quarter, total average production was 464 Mcfe/d, compared to 688 Mcfe/d for the last year. Average sales price was $4.28 per Mcfe, compared to $4.99 per Mcfe for the last year. Operating netback was $1.94 per Mcfe, compared to $0.97 per Mcfe for the last year.

For the year, total average production was 581 Mcfe/d, compared to 474 Mcfe/d for the last year. Average sales price was $3.77 per Mcfe, compared to $4.94 per Mcfe for the last year. Operating netback was $1.18 per Mcfe, compared to $1.64 per Mcfe for the last year.

The company expected that drilling will commence in the fourth quarter of 2013 with four wells being drilled offsetting legacy wells in the main depocentre of the exploration blocks targeting the tight Gomo sands and one development well on the Bom Lugar property. It is expected that the drilling rig contracted will run continuously on follow-up wells thereafter through 2014.