Gran Tierra Energy Inc. Announces Formal Signing of Ecuador Blocks
23 May 2019 - 8:18AM
Gran Tierra Energy Inc.
(“Gran Tierra” or the
“Company”)
(NYSE
American:GTE)(TSX:GTE)(LSE:GTE) is pleased to announce
that the Company has officially signed Participation Contracts
(
“Contracts”) for three blocks located in Ecuador.
The three blocks were preliminarily awarded to the Company in March
2019 by the Ministerio de Energia y Recursos Naturales No
Renovables (
“MERNR”) in the Ronda Intracampos. The
three blocks are located in the Oriente Basin and are approximately
140,000 acres in total area, creating a contiguous acreage position
extending from Gran Tierra’s existing assets in the Putumayo Basin
in Colombia.
Key Highlights
- Establishes the Company as one of
the top landholders in the play trend which extends from the
Putumayo Basin in Colombia through to the Oriente Basin in Ecuador;
the Putumayo and Oriente Basins are the same geological basin, with
different names due to the international border between Colombia
and Ecuador
- Further strengthens and
consolidates Gran Tierra’s position in what the Company considers
is a conventional oil resource fairway; Ecuador has the same
multi-zone potential in carbonate and sandstone reservoirs found in
the Putumayo Basin, including the prolific Napo Formation (Villeta
equivalent) and Hollin Formation (Caballos equivalent), which
contribute to the majority of reserves and production in the
Oriente-Putumayo petroleum system
- Gran Tierra has secured 100%
working interest (“WI”) and operatorship in the
Charapa, Chanangue and Iguana Blocks (collectively, the
“Blocks”), which increases Gran Tierra’s gross
acreage position in the conventional resource plays in Ecuador and
Colombia from 1.1 million to over 1.2 million gross acres
- Gran Tierra expects to commence its
Ecuador exploration drilling program in 2020; this new exploration
program is expected to be fully funded through the Company’s
forecasted net cash provided by operating activities
- Contiguous acreage extending from
Colombia’s Putumayo Basin into Ecuador’s Oriente Basin provides
Gran Tierra with the ability to potentially construct strategic
gathering infrastructure on operated 100% WI acreage, which would
allow the Company to potentially utilize the existing
infrastructure in Ecuador
Gary Guidry, President and Chief Executive
Officer of Gran Tierra, commented, "This is a momentous event for
Ecuador, one that marks material change for the oil and gas
industry, and we are proud to be a part of this initiative. Our
entry into Ecuador is very much aligned with Gran Tierra’s strategy
– focusing on proven conventional hydrocarbon basins, with access
to established infrastructure, in a strong stable economic
environment, combined with a highly competitive fiscal regime. The
Blocks extend our dominant position in Colombia’s Putumayo Basin
into Ecuador’s Oriente Basin, with assets that are highly
complementary to our existing land base. Ecuador represents a
unique opportunity in terms of scale for Gran Tierra. We believe we
are acquiring significant future potential exploration upside which
could enhance our long-term growth strategy and be an excellent fit
with Gran Tierra’s diverse reserves and resources base in
Colombia.”
Maps
Below is a link to a map of the Blocks awarded
to Gran Tierra
Link 1: Gran Tierra's Land Position
in the Oriente Basin
Contact Information
For investor and media inquiries please
contact:
Gary Guidry, Chief Executive Officer
Ryan Ellson, Chief Financial Officer
Rodger Trimble, Vice President, Investor
Relations
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy
Inc.
Gran Tierra Energy Inc., together with its
subsidiaries, is an independent international energy company
focused on oil and natural gas exploration and production in
Colombia and Ecuador. The Company is focused on its existing
portfolio of assets in Colombia and Ecuador and will pursue new
growth opportunities throughout Colombia and South America,
leveraging our financial strength. The Company’s common shares
trade on the NYSE American, Toronto Stock Exchange and 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 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 Securities and Exchange Commission
filings are available on the Securities and Exchange Commission
website at http://www.sec.gov and on SEDAR at http://www.sedar.com,
and UK regulatory filings are available on the National Storage
Mechanism website at www.morningstar.co.uk/uk/nsm.
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”, “intend”, "will" 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 anticipated benefits of
the Blocks and the Contracts to Gran Tierra and its shareholders,
our expected timeframes for obtaining environmental and other
regulatory approvals, our expected timeframes for commencing
drilling, our ability to construct gathering infrastructure or
access pipelines or other transport facilities, and any expected
production from the Blocks. 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,
the accuracy of testing and production results and seismic data,
pricing and cost estimates (including with respect to commodity
pricing and exchange rates), rig availability, the effects of
waterflood and the general continuance of assumed operational,
regulatory and industry conditions in 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: sustained or
future declines in commodity prices and potential resulting future
impairments and reductions in proved reserve quantities and value;
Gran Tierra's operations are located in South America, and
unexpected problems can arise due to guerrilla activity; technical
difficulties and operational difficulties may arise which impact
the production, transport or sale of our products; geographic,
political and weather conditions can impact the production,
transport or sale of our products; the risk that current global
economic and credit conditions may impact oil prices and oil
consumption more than Gran Tierra currently predicts; the ability
of Gran Tierra to execute its business plan; the risk that
unexpected delays and difficulties in developing properties may
occur; the timely receipt of regulatory or other required approvals
for our activities; the failure of exploratory drilling to result
in commercial wells; unexpected delays due to the limited
availability of drilling equipment and personnel; the risk that oil
prices could continue to fall, or current global economic and
credit market 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;
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 filed February 27, 2019.
These filings are available on the Securities and Exchange
Commission website at http://www.sec.gov and on 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. 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.
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