Current GTE Stock Info

Gran Tierra Energy Inc. (ticker: GTE) has released its 2018 capital budget and production guidance.

Highlights

  • 2018 average production of 36,500 to 38,500 BOEPD, representing growth of 20 to 27% over 2017 year to date average production
  • 2018 capital budget of $250-270 million
  • 2018 cash from operating activities forecast of $265-285 million at $57/barrel (Brent oil price)
  • The company operates over 90% of its production, 15 out of its 16 blocks in the Putumayo Basin and 4 out of its 4 blocks in the Middle Magdalena Valley Basin (MMV)
  • Focus on production growth, drilling 30 to 35 exploration wells over the next 3-5 years, all expected to be funded from expected cash from operating activities
  • Gran Tierra anticipates average annual production growth of 12 to 20% in 2019 over forecasted average annual production for 2018
Gran Tierra Energy Plans 27% Production Growth

Gran Tierra Company Snapshot

2018 capital budget and expenses – all for Colombia

Gran Tierra Energy Plans 27% Production Growth

Gran Tierra Energy 2018 Budget

Gran Tierra Energy Plans 27% Production Growth

Gran Tierra Acordionero (MMV) Snapshot

“In the Middle Magdalena Valley Basin, we anticipate an ongoing ramp-up in production at our Acordionero field, where results to date have exceeded our original expectations. At Acordionero, we expect to continuously drill both production and water injection wells throughout 2018 and beyond, while fully implementing a waterflood program for enhanced oil recovery during 2018,” said Gran Tierra President and CEO Gary Guidry. “We also plan to be generating our own power from associated natural gas production and injecting water from non-potable subsurface water production.”

Gran Tierra Energy Plans 27% Production Growth

Gran Tierra Putumayo Snapshot

“In the Putumayo Basin, we expect to further delineate the exciting A-Limestone and N-Sandstone plays by continuing to drill a mix of development, appraisal and exploration wells. We are the largest landholder in the Putumayo Basin with 16 blocks and approximately 1.1 million gross acres (0.9 million net acres) of land and our extensive and proprietary seismic database allows optimization of capital allocation and focused regulatory approval.

“Today, we are also announcing strategic farm-ins on the Alea 1848-A and 1947-C Blocks in the Putumayo Basin which will increase Gran Tierra’s WI in both blocks to 75% and designate the company as operator.

Alea 1848-A and 1947-C farm-ins

Gran Tierra has entered into two agreements to acquire, subject to approval from the Agencia Nacional de Hidrocarburos (ANH), additional working interests in the Alea 1848-A and 1947-C Blocks in the Putumayo Basin.

Under the terms of the agreements, Gran Tierra will increase its position to 75% working interest in each of the blocks and will carry the farm-ins on current contract phase obligations, to a combined maximum of $4.8 million. The applications for approval to be submitted to the ANH will include the appointment of Gran Tierra as operator of these blocks.

The Alea 1848-A and 1947-C Blocks are expected to provide drill-ready prospects targeting the multi-zone potential of the N, U and T Sands and the A-Limestone. Gran Tierra has already mapped several prospects on existing company 2D and 3D seismic data.

Additional budget details

Gran Tierra Energy Plans 27% Production Growth

Gran Tierra Additional Budget Details

Gran Tierra Energy Plans 27% Production Growth

Gran Tierra 2017-Q1 2018 Colombia Exploration Drilling Plan


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