Gran Tierra Energy Inc.
(“
Gran Tierra”
or
the “
Company”
) (NYSE
American:GTE)(TSX:GTE)(LSE:GTE) today announced an
operational update. All dollar amounts are in United States
dollars, and production amounts are on an average working interest
before royalties (“
WI”) basis unless otherwise
indicated. Per barrel (“
bbl”) and bbl of oil per
day (“
BOPD”) amounts are based on WI sales before
royalties.
Message to Shareholders
Gary Guidry, President and Chief Executive
Officer of Gran Tierra, commented: "During 2023 year-to-date, Gran
Tierra has completed most of its development program for 2023 with
the drilling of 19 development wells, consisting of 12 new
production wells and 7 new water injection wells. We remain on
track and on budget with our development and exploration drilling
programs for 2023. We are also very pleased with the exciting oil
production results that we are seeing from our Acordionero,
Costayaco and Moqueta infill development well drilling
programs.
The success of our 2023 development program has
been an important factor in our ongoing ramp up in oil production
during 2023 and continues to demonstrate the excellent production
capabilities of our major assets. We expect the ongoing positive
results from our waterflood projects in the Acordionero, Costayaco,
Moqueta and Suroriente fields to continue adding oil production
from existing and new wells for the remainder of 2023. We are also
beginning to see positive results in our polymer flood project in
Acordionero.
By completing the majority of our development
program in the first 5 months of 2023, we expect to realize higher
oil production for the rest of 2023. With most of our development
capital behind us, this should allow us to maximize cash flow. We
believe the Company is well positioned to optimize value and grow
production from our assets through continued enhanced oil recovery
activities as demonstrated by our total current average
production(1) of approximately 36,800 BOPD."
Operations Update:
Production
- Gran Tierra has
begun to ramp up production in the latter half of second quarter
2023, as newly drilled Acordionero, Costayaco and Moqueta oil wells
have been steadily brought online. Gran Tierra's total current
average production(1) is approximately 36,800 BOPD.
- During second
quarter-to-date 2023, The Company has achieved total average
production(2) of approximately 33,600 BOPD.
- During 2023
year-to-date, Gran Tierra has achieved total average production(3)
of approximately 32,400 BOPD, which is within the Company’s
previous forecast range for 2023 of 32,000-34,000 BOPD.
Development
- During 2023
year-to-date, Gran Tierra has drilled a total 19 development wells
in Colombia, consisting of 12 new production wells and 7 new water
injection wells:
-
Acordionero:
- Development
drilling resumed in January 2023 with a 10-well program that was
completed in April 2023.
- 6 wells are on
production and 4 wells are on water injection.
- As a result of
the development program and continued good performance of the
field’s enhanced oil recovery via waterflood, Acordionero has
achieved average production(2) of approximately 18,600 BOPD during
second quarter-to-date 2023, which is the highest level since May
2019.
- During second
quarter 2023, Gran Tierra achieved a new water injection record of
approximately 72,000 bbl of water injected per day.
- The polymer
flood pilot was expanded with the start up of a third polymer
injection well during second quarter 2023. Acordionero's polymer
flood pilot is expected to increase the field's ultimate oil
recovery.
-
Costayaco:
- Gran Tierra has
finished drilling all 7 wells in the Company’s 2023 Costayaco
development campaign. The program consisted of 4 production wells
and 3 water injection wells.
- 2 production
wells are currently on long-term production test and 2 water
injection wells started up during second quarter 2023.
- A summary of the
recent production tests for the 2 new Costayaco production wells is
provided below:
|
|
Average Production Test Rates over Period |
|
Well Name |
Date Range of Production Test |
Oil (bbl/day) |
Watercut (%) |
Gas-Oil Ratio (scf*/bbl) |
Producing Zones |
CYC-51 |
May 22-26/2023 |
976 |
17 |
150 |
Villeta & Caballos |
CYC-52 |
May 19-28/2023 |
3,340 |
45 |
312 |
Villeta & Caballos |
*scf = standard cubic feet
|
|
• |
The remaining 2 new production wells and 1 new water injection well
are expected to be completed and tied-in during June 2023. |
|
|
• |
The completion and stimulation of
the remaining production wells and waterflood optimization through
additional water injection are expected to continue to grow
Costayaco’s oil production throughout the year. |
° |
Moqueta: |
|
|
• |
2 production wells that were
drilled during first quarter 2023 have both been stimulated and
placed on production. |
|
|
• |
A summary of the recent
production tests for the 3 newest Moqueta production wells is
provided below: |
|
|
Average Production Test Rates over Period |
|
Well Name |
Date Range of Production Test |
Oil (bbl/day) |
Watercut (%) |
Gas-Oil Ratio (scf*/bbl) |
Producing Zones |
MQT-24 |
May 18-27/2023 |
1,021 |
17 |
554 |
Villeta & Caballos |
MQT-25 |
May 20-26/2023 |
650 |
39 |
418 |
Villeta & Caballos |
MQT-26 |
May 18-25/2023 |
474 |
52 |
39 |
Caballos |
*scf = standard cubic feet
|
|
• |
1 production
well is currently being drilled, with one additional production
well expected to be drilled during late June - early July
2023. |
|
|
• |
The 2 additional production wells, along with 2 planned
conversions of existing wells into water injection wells, are
expected to grow Moqueta’s oil production and optimize its
waterflood. |
1 Total current average production is for the
15-day period of May 14, 2023 to May 28, 2023.2 Total average
production during second quarter-to-date 2023 is for the period of
April 1, 2023 to May 28, 2023.3 Total average production during
2023 year-to-date is for the period of January 1, 2023 to May 28,
2023.
Corporate Presentation:
Gran Tierra’s Corporate Presentation is
available on the Company website at www.grantierra.com.
Contact Information:
For investor and media inquiries please
contact:Gary GuidryPresident & Chief Executive Officer
Ryan EllsonExecutive Vice President & Chief
Financial Officer
Rodger TrimbleVice President, Investor
Relations
+1-403-265-3221info@grantierra.com
About Gran Tierra Energy
Inc.
Gran Tierra Energy Inc. together with its
subsidiaries is an independent international energy company
currently focused on oil and natural gas exploration and production
in Colombia and Ecuador. The Company is currently developing its
existing portfolio of assets in Colombia and Ecuador and will
continue to pursue additional growth opportunities that would
further strengthen the Company’s portfolio. The Company’s common
stock trades on the NYSE American, the Toronto Stock Exchange and
the London Stock Exchange under the ticker symbol GTE. Additional
information concerning Gran Tierra is available at
www.grantierra.com. Information on the Company’s website (including
the Corporate Presentation referenced above) does not constitute a
part of this press release. Investor inquiries may be directed to
info@grantierra.com or (403) 265-3221.
Gran Tierra’s U.S. Securities and Exchange
Commission (“SEC”) filings are available on the SEC website at
www.sec.gov. The Company’s Canadian securities regulatory filings
are available on SEDAR at www.sedar.com and UK regulatory filings
are available on the National Storage Mechanism (“the NSM”) website
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. Gran
Tierra's filings on the SEC, SEDAR and the NSM websites are not
incorporated by reference into this press release.
Forward Looking Statements and Legal
Advisories:
This press release contains opinions, forecasts,
projections, and other statements about future events or results
that constitute forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and
financial outlook and forward-looking information within the
meaning of applicable Canadian securities laws (collectively,
“forward-looking statements”). The use of the words “expect,”
“plan,” “can,” “will,” “should,” “guidance,” “forecast,” “signal,”
“progress,” and “believes,” derivations thereof and similar terms
identify forward-looking statements. In particular, but without
limiting the foregoing, this press release contains forward-looking
statements regarding: the Company’s expected future production
(including as a result of our testing results), the Company’s
drilling program, and future free cash flow. The forward-looking
statements contained in this press release reflect several material
factors and expectations and assumptions of Gran Tierra including,
without limitation, that Gran Tierra will continue to conduct its
operations in a manner consistent with its current expectations,
pricing and cost estimates (including with respect to commodity
pricing and exchange rates), and the general continuance of assumed
operational, regulatory and industry conditions in Colombia and
Ecuador, and the ability of Gran Tierra to execute its business and
operational plans in the manner currently planned.
Among the important factors that could cause
actual results to differ materially from those indicated by the
forward-looking statements in this press release are: Gran Tierra’s
operations are located in South America and unexpected problems can
arise due to guerilla activity, strikes, local blockades or
protests; technical difficulties and operational difficulties may
arise which impact the production, transport or sale of our
products; other disruptions to local operations; global health
events; global and regional changes in the demand, supply, prices,
differentials or other market conditions affecting oil and gas,
including inflation and changes resulting from a global health
crisis, the Russian invasion of Ukraine, or from the imposition or
lifting of crude oil production quotas or other actions that might
be imposed by OPEC, and other producing countries and the resulting
company or third-party actions in response to such changes; changes
in commodity prices, including volatility or a decline in these
prices relative to historical or future expected levels; the risk
that current global economic and credit conditions may impact oil
prices and oil consumption more than Gran Tierra currently
predicts, which could cause Gran Tierra to further modify its
strategy and capital spending program; prices and markets for oil
and natural gas are unpredictable and volatile; the accuracy of
testing and production results and seismic data, pricing and cost
estimates (including with respect to commodity pricing and exchange
rates); the effect of hedges; the accuracy of productive capacity
of any particular field; geographic, political and weather
conditions can impact the production, transport or sale of our
products; the ability of Gran Tierra to execute its business plan
and realize expected benefits from current initiatives; the risk
that unexpected delays and difficulties in developing currently
owned properties may occur; the ability to replace reserves and
production and develop and manage reserves on an economically
viable basis; the risk profile of planned exploration activities;
the effects of drilling down-dip; the effects of waterflood and
multi-stage fracture stimulation operations; the extent and effect
of delivery disruptions, equipment performance and costs; actions
by third parties; the timely receipt of regulatory or other
required approvals for our operating activities; the failure of
exploratory drilling to result in commercial wells; unexpected
delays due to the limited availability of drilling equipment and
personnel; volatility or declines in the trading price of our
common stock or bonds; the risk that Gran Tierra does not receive
the anticipated benefits of government programs, including
government tax refunds; Gran Tierra’s ability to comply with
financial covenants in its credit agreement and indentures and make
borrowings under any credit agreement; capital market disruptions;
and the risk factors detailed from time to time in Gran Tierra’s
periodic reports filed with the Securities and Exchange Commission,
including, without limitation, under the caption “Risk Factors” in
Gran Tierra’s Annual Report on Form 10-K for the year ended
December 31, 2022 and its other filings with the Securities and
Exchange Commission. These filings are available on the Securities
and Exchange Commission website at http://www.sec.gov and SEDAR at
www.sedar.com.
The forward-looking statements contained in this
press release are based on certain assumptions made by Gran Tierra
based on management’s experience and other factors believed to be
appropriate. Gran Tierra believes these assumptions to be
reasonable at this time, but the forward-looking statements are
subject to risk and uncertainties, many of which are beyond Gran
Tierra’s control, which may cause actual results to differ
materially from those implied or expressed by the forward-looking
statements. In particular, the unprecedented nature of the current
economic downturn, pandemic and industry decline may make it
particularly difficult to identify risks or predict the degree to
which identified risks will impact Gran Tierra’s business and
financial condition. All forward-looking statements are made as of
the date of this press release and the fact that this press release
remains available does not constitute a representation by Gran
Tierra that Gran Tierra believes these forward-looking statements
continue to be true as of any subsequent date. Actual results may
vary materially from the expected results expressed in
forward-looking statements. Gran Tierra disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as expressly required by applicable law.
Presentation of Oil and Gas
Information:
References to a formation where evidence of
hydrocarbons has been encountered is not necessarily an indicator
that hydrocarbons will be recoverable in commercial quantities or
in any estimated volume. Gran Tierra’s reported production is a mix
of light crude oil and medium and heavy crude oil for which there
is not a precise breakdown since the Company’s oil sales volumes
typically represent blends of more than one type of crude oil. Well
test results should be considered as preliminary and not
necessarily indicative of long-term performance or of ultimate
recovery. Well log interpretations indicating oil and gas
accumulations are not necessarily indicative of future production
or ultimate recovery. If it is indicated that a pressure transient
analysis or well-test interpretation has not been carried out, any
data disclosed in that respect should be considered preliminary
until such analysis has been completed. References to thickness of
“oil pay” or of a formation where evidence of hydrocarbons has been
encountered is not necessarily an indicator that hydrocarbons will
be recoverable in commercial quantities or in any estimated
volume.
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