Alvopetro Energy Ltd. announces that our Board of Directors has declared a quarterly dividend of US$0.06 per common share, payable in cash on October 15, 2021 to shareholders of record on September 29, 2021. This dividend is designated as an "eligible dividend" for Canadian income tax purposes. Alvopetro's cash flows are linked to US dollars and as such, dividends are being paid in US dollars. Alvopetro has also given our lender notice of an additional US$1.0 million repayment of our credit facility that will bring the amount outstanding under the loan to US$6.5 million.
Corey C. Ruttan, President and Chief Executive Officer, commented:
"We have had a long-standing objective of implementing a disciplined model that balances reinvestment in organic growth opportunities with stakeholder returns. With the repayment of over half of our initial debt project financing and with ongoing strong production and financial results we are pleased to be implementing quarterly dividends to our shareholders, six months ahead of our previous indication."
Dividend payments to non-residents of Canada will be subject to withholding taxes at the Canadian statutory rate of 25%. Shareholders may be entitled to a reduced withholding tax rate under a tax treaty between their country of residence and Canada.
In July, we commenced construction on our 8.5 kilometer Gomo/Murucututu pipeline that will connect our 183(1) well to our Caburé transfer pipeline. Over 46% of the pipe has now been welded and 15% has been installed and buried. We expect that construction will be completed and the 183(1) well to be tied-in and on production early in 2022.
We also plan to drill our 182-C1 and 183-B1 natural gas exploration wells. Based on the status of rig maintenance we do not expect to commence drilling the first of these wells before the end of November.
2021 EBITDA Guidance
Alvopetro anticipates sales to continue to the end of 2021 at average rates between 1,900 boepd and 2,400 boepd. Assuming GLJ Ltd.'s July 1, 2021 commodity price and a Brazilian Real exchange rate of 5.25BRL:1USD for the remainder of the year, we now expect to generate EBITDA of over $23 million for 2021, a 15% increase from our prior 2021 guidance of US$20 million and a 35% increase from our original 2021 guidance of $17 million.