Page 14 - LatAmOil Week 41 2021

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The process is expected to take approximately realisations of $62.6 per barrel for Q3-2021 (Q2- to balance of $175mn as of June 30, 2021, and
six to nine months and we will keep the market 2021: $59.4 per barrel) yielding a YTD 2021 $190mn as of December 31, 2020. As of October
updated on progress as appropriate. average of $58.1 per barrel (YTD Q3-2020: $37.3 8, 2021, the Company paid down its credit facil-
With a significant asset base of reserves and per barrel). Cash balance increased to $20.4mn ity balance by an additional $10mn to $140mn.
resources exceeding 50 mmbbls, Trinity’s port- (unaudited) as at September 30, 2021 (June 30, Financial Covenants: As of October 1, 2021,
folio offers full cycle exposure, consisting of: 2021: $19.0mn, unaudited) as a result of strong Gran Tierra has exited the financial covenant
current producing assets (both onshore and off- operating cash generation during the period and relief period, which provided relief from compli-
shore); existing brownfield development poten- despite a further increase in the VAT receivable ance with the ratio of Total Debt3 to EBITDAX3
tial (i.e. an extensive onshore RCP and drilling due. from June 1, 2020, to October 1, 2021, pursuant
inventory); greenfield developments (e.g. Echo, Strong production levels combined with to an amendment to the Company’s credit facil-
Foxtrot and Golf); exploration potential both strict cost controls helped maintain an operating ity between the Company and the syndicate of
onshore (e.g., North West District or NWD break-even of $28.2 per barrel (unaudited) year- lenders party thereto which had gone into effect
deeper Cretaceous to the shallower Pliocene to-date, despite additional COVID-related costs. on June 1, 2020.
with 3D seismic lens) and offshore (i.e., deeper The Company remains on track to meet its target Gran Tierra expects to be in full compliance
under-explored, near shore heavier oil). for average operating break-even (inclusive of with all financial covenants under its credit facil-
CEO Jeremy Bridglalsingh commented: “We hedging) of below $30.0 per barrel for FY 2021. ity on December 31, 2021.
continued to develop our business during the Trinity Exploration & Production, October 14 Gary Guidry, President and CEO of Gran
period, maintaining existing assets, laying the 2021 Tierra, commented: “After the challenges with
foundations for longer-term production growth blockades during the second quarter of 2021,
from our existing portfolio while also pursuing Gran Tierra Energy provides we are very proud of how our teams safely and
new growth opportunities. The Government’s diligently ramped operations back up through-
focus on stimulating the sector could provide operational and financial out our Colombia portfolio. During the third
significant opportunities for Trinity and we look quarter of 2021, with production back up to an
forward participating in the new bid rounds to update average level of approximately 29,000 bpd and an
be launched. average Brent oil price of $73.23 per barrel, Gran
“It goes without saying that this was an Gran Tierra Energy, an independent interna- Tierra was able to further strengthen its balance
extremely difficult period for the Company, with tional energy company currently focused on oil sheet. The fourth quarter of 2021 is off to an even
the passing of Bruce Dingwall affecting everyone and natural gas exploration and production in stronger start with the Company’s average cur-
in the business, and the operational challenges Colombia and Ecuador, has announced an oper- rent production at approximately 30,600 bpd
posed by COVID-19 continuing. The strong ations and financial update. and Brent2 averaging $81.74 per barrel, which
performance reported today is a testament to Production: As announced on May 17, has allowed us to pay down Gran Tierra’s credit
Bruce’s legacy, and means that we are able to look 2021, a number of blockades across Colombia facility balance to $140mn as of October 8, 2021,
forward with confidence as we seek to develop impacted several key transportation routes, down $50mn from a balance of $190mn as of
the numerous opportunities available to us, resulting in the temporary shut-in of some of December 31, 2020. With production restored,
building on our growing reputation in the region Gran Tierra’s wells and oil fields during the sec- a successful 2021 drilling programme, strong
which has been further enhanced by Derek Hud- ond quarter of 2021. world oil prices and a strengthened balance
son’s recent appointment to the Board.” The blockades were not directed at Gran sheet, we are very excited about the fourth quar-
Q3-2021 Operational Highlights: Broadly Tierra, but caused the Company to temporarily ter of 2021 and all of 2022.”
flat quarter-on-quarter production with Group curtail production during May and June 2021. Operational Update, Acordionero oilfield
average production volumes of 3,018 bpd for the As a result, approximately 597,000 barrels of oil (100% WI): When necessary, a workover rig
period (Q2-2021: 3,047 bpd) without any new production were deferred during the second was deployed during the third quarter of 2021 to
wells being drilled and despite constrained oper- quarter of 2021. Gran Tierra does not expect any restore existing wells to production if they went
ational conditions owing to COVID restrictions. negative impact on the Company’s oil reserves off line.
YTD 2021 (Q1 to Q3) average production due to this deferral.
volumes of 2,995 bpd represent a year-on-year As announced on July 12, 2021, the Colom-
decrease of 7% (YTD 2020: 3,232 bpd). bian government successfully negotiated the end
Two RCPs (Q2-2021: two) and 18 worko- of blockades affecting Gran Tierra’s operations,
vers (Q2-2021: 21) were completed during the which allowed the Company to restore its oil
period, with swabbing continuing across all production throughout its entire Colombian
onshore assets and extended to the west coast portfolio. During the third quarter of 2021, Gran
assets. A 25-year Galeota Licence, increase to Tierra achieved an average production rate of
100% Working Interest and significant improve- approximately 29,000 bpd, the Company’s high-
ment in commercial terms. est average rate since the first quarter of 2020.
Production volumes for the remainder of The Company’s current average production is
2021 will be dependent on several factors includ- even higher at approximately 30,600 bpd.
ing general market conditions and the impact of Gran’s Tierra’s average production during the
COVID restrictions. However, even without a third quarter of 2021 was up 26% from the sec-
resumption of drilling in the near term, net aver- ond quarter of 2021 and up 53% from the third
age production for 2021 is still expected to be in quarter of 2020.
the range of 2,900 - 3,100 bpd (2020: 3,226 bpd), Credit Facility Balance: As of September 30,
in line with our previous guidance. 2021, the Company had paid down its credit
Q3-2021 Financial Highlights: Average facility balance by $25mn to $150mn, compared

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