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: "We are very pleased with the
results from our development drilling campaign during the first
half of 2023, which has been a key factor in our ongoing ramp up of
production and further demonstrates the quality of our assets and
our ability to execute on our strategy. By completing the majority
of our development program during the first half of 2023, Gran
Tierra is positioned to realize higher oil production for the rest
of the year, and with most of our development capital behind us,
this should allow us to maximize cash flow in the second half of
2023. The Company is well positioned to optimize value and grow
production from our assets through continued enhanced oil recovery
activities."
Operations Update:
-
Production
- During second
quarter 2023, Gran Tierra’s total average production was
approximately 33,800 BOPD, which is at the high end of the
Company’s 2023 previously disclosed average annual production
guidance range. Gran Tierra's total Company current average
production2 for third quarter 2023 to date is approximately 34,800
BOPD.
- During second
quarter 2023, Acordionero’s production averaged approximately
18,000 BOPD, another strong quarter of performance due to the
successful 2023 drilling program and ongoing prudent management of
the enhanced oil recovery waterflood scheme.
-
Development
- During the first
half of 2023, the Company drilled a total of 21 wells:
-
Acordionero: 10 wells were drilled; 6 are on
production, 4 are on water injection
-
Costayaco and Moqueta: Gran Tierra has completed
its drilling campaign at Costayaco and Moqueta which consisted of 7
wells (4 production and 3 water injection) and 4 wells (4
production), respectively. The CYC-54 well is the most northern
well drilled in the Costayaco field and the success of the well has
resulted in the identification of multiple additional drilling
opportunities to target un-swept portions of oil. A summary of the
recent 48-hour production test from the CYC-54 well on electric
submersible pump is as follows:
|
Average Production Test Rates over Period |
|
Well Name |
Oil (BOPD) |
|
Watercut (%) |
|
Gas-Oil Ratio(scf*/bbl) |
|
Producing Zones |
CYC-54 |
1,464 |
|
41 |
|
137 |
|
Villeta & Caballos |
*scf = standard cubic feet
Second Quarter 2023 Financial
Results: Gran Tierra will release second quarter financial
results post-market on August 1, 2023, followed by a conference
call the following day. Additional details, including how to
participate in the conference call, will be press released during
the week of July 24, 2023.
1Gran Tierra's total 2023 year-to-date average
production is for the period of January 1, 2023, to July 11,
2023.2Gran Tierra's total current average production is for the
period of July 1, 2023, to July 11, 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), expected capital
expenditures and anticipated results from the Company’s drilling
campaign. 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.
The estimates of future production and total
capital may be considered to be future-oriented financial
information or a financial outlook for the purposes of applicable
Canadian securities laws. Financial outlook and future-oriented
financial information contained in this press release about
prospective financial performance, financial position or cash flows
are provided to give the reader a better understanding of the
potential future performance of the Company in certain areas and
are based on assumptions about future events, including economic
conditions and proposed courses of action, based on management’s
assessment of the relevant information currently available, and to
become available in the future. In particular, this press release
contains projected operational and financial information for 2023.
These projections contain forward-looking statements and are based
on a number of material assumptions and factors set out above.
Actual results may differ significantly from the projections
presented herein. The actual results of Gran Tierra’s operations
for any period could vary from the amounts set forth in these
projections, and such variations may be material. See above for a
discussion of the risks that could cause actual results to vary.
The future-oriented financial information and financial outlooks
contained in this press release have been approved by management as
of the date of this press release. Readers are cautioned that any
such financial outlook and future-oriented financial information
contained herein should not be used for purposes other than those
for which it is disclosed herein. The Company and its management
believe that the prospective financial information has been
prepared on a reasonable basis, reflecting management’s best
estimates and judgments, and represent, to the best of management’s
knowledge and opinion, the Company’s expected course of action.
However, because this information is highly subjective, it should
not be relied on as necessarily indicative of future results.
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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