Page 14 - LatAmOil Week 04 2021

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The differences between the reserves estimated remained strong during Q4-2020 with volumes
by ANP/SPE definitions and those estimated averaging 3,206 bpd, yielding a full year 2020
using SEC regulation are mainly due to different average of 3,226 bpd (2019: 3,007 bpd) in line
economic assumptions and to the possibility of with market guidance. This represents a 7%
considering as reserves those quantities fore- increase over the prior year despite the chal-
casted to be produced after concession contract lenges presented by COVID-19 and no new
expiration in fields in Brazil according to ANP drilling activity taking place during the year.
reserves regulation. This is the third consecutive year of delivering
Petrobras, January 27 2021 production growth and meeting our stipulated
production targets.
Gran Tierra Energy operating break-even was $20.5 per barrel, meet-
Furthermore, the Group’s unaudited FY 2020
announces 2020 reserves ing the challenging target set in response to the
COVID-19 pandemic and being the fifth con-
and operational update secutive year of maintaining a sub-$30 per barrel
operating break-even.
Gran Tierra Energy, a company focused on oil This robust operational performance ensured
exploration and production in Colombia and Costayaco oil fields. With a keen focus on fur- cash generation remained strong during the
Ecuador, has announced the Company’s 2020 ther strengthening our balance sheet, we plan to period, with the Group’s unaudited cash balances
year-end reserves as evaluated by the Compa- direct free cash flow to ongoing debt reduction at the year-end 2020 being $20.2mn ($13.8mn
ny’s independent qualified reserves evaluator in 2021 and beyond. (audited) as at 31 December 2019).
McDaniel & Associates Consultants in a report “During Q4-2020, Gran Tierra resumed Strategic Highlights, Production: Third con-
with an effective date of December 31, 2020, and development activities throughout our portfolio, secutive year of production growth - targets met;
an operational update. including the ongoing well workover operations Proven operating model with a robust approach
Commenting on Gran Tierra’s 2020 year- and the restart of development drilling at Acor- to base management; Low operating break-even
end reserves, operational update and future dionero. We also restarted workover operations maintained, with targeted full year 2020 operat-
plans, Gary Guidry, President and Chief Exec- at Costayaco and look forward to a planned ing break-even of $20.5 per barrel (unaudited)
utive Officer of Gran Tierra, said: “Our teams in initiation of development drilling in that field being achieved; Automation of offshore east
Colombia, Ecuador and Canada rose to meet the during second quarter 2021. We forecast 2021 coast assets continues to generate low volatility/
many challenges of 2020 through their diligent average production of 28,000-30,000 bpd for the stable production; Wide scale roll-out of onshore
management of COVID-19 safety protocols and Company. automation continues; Extensive use of analyt-
sharp focus on maintaining and increasing the “Our 2021 plans are fully aligned with Gran ics, transition technologies and automation pro-
value of our assets. As a result, we are pleased to Tierra’s Beyond Compliance Policy, which vide a differentiated and scalable foundation for
announce significant reserve additions in both focuses on our commitments to environmental, continued growth.
the PDP and 1P categories, despite our large social and governance (ESG) excellence. Gran Assets: Solid reserves base and production
reductions in capital investment during 2020. Tierra looks for significant opportunities and profile are matched by an extensive development
This achievement demonstrates that the Com- benefits to the environment and communities by pipeline; Acquisition of onshore 3D & 2D seis-
pany’s core conventional oil assets continue to voluntarily and proactively taking steps to pro- mic data potentially transformative for onshore
show positive waterflood responses and low base tect the environment and provide social benefits licences; Onshore seismic is of good quality over
decline rates. because it is the right thing to do. In 2020, we much of the area and initial first pass screening
“The advancement of our waterflooding also had our best safety year in the history of the shows interesting prospective features not pre-
efforts in the Acordionero, Costayaco and Company. viously mapped; Development, appraisal and
Moqueta oil fields has clearly allowed Gran “We believe that Gran Tierra successfully exploration pipeline to be augmented following
Tierra to continue to convert Probable and Pos- navigated the exceptional challenges of 2020 3D onshore seismic interpretation (now under-
sible reserves into the Proved reserves categories. and are excited to return to an economically way); Echo development (offshore Galeota) well
Even though we decided during 2020 to reduce sound growth trajectory in 2021 and beyond, advanced; New, longer term onshore licences
capital spending, we believe the Company’s with a focus on free cash flow generation and expected to be finalised during Q1-2021; Sup-
excellent performance in terms of PDP and 1P debt reduction.” plemental Petroleum Tax (SPT) reforms have
reserves additions is a testament to the quality Gran Tierra Energy, January 27 2021 commenced.
of our assets. Partnerships: Partnership formed with Cairn
“With our strategy, we believe Gran Tierra is Trinity Exploration Energy to bid on material offshore Gulf of Paria
well-positioned for the resumption of prudent production and development asset (Jubilee) and
growth in 2021 and strong potential free cash announces Q4-2020 a potentially high impact onshore exploration
flow generation. We have already increased pro- play (North West District); Partnership estab-
duction approximately 24% from our Q3-2020 operational update lished with National Gas Co. of Trinidad and
average, which we believe reflects the strength Tobago Ltd. (NGC) to explore and develop new
of our Proved reserves. Our 2021 capital budget Trinity Exploration & Production, the inde- energy projects; Asset acquisitions and partner-
of $130-150mn is a balanced, returns-focused pendent E&P company focused on Trinidad and ships offer the potential to increase scale, share
programme [that] prioritises free cash flow Tobago, has provided an update on its operations risk and drive returns to shareholders; Strong
generation over the rate of development, explo- for the three-month period ended December 31, financial position means that Trinity is well
ration and production growth, with investment 2020. placed to take advantage of further commercial
primarily directed to the Acordionero and Q4-2020 Summary: Production levels opportunities as and when they arise.

P14 www. NEWSBASE .com Week 04 28•January•2021