Page 17 - LatAmOil Week 20 2021

LatAmOil NEWS IN BRIEF LatAmOil

Parex provides our employees, contractors, service providers A National Strike Committee, which includes
and communities where we operate remains our Government and major union representatives,
production update related number one priority. has been created to foster national dialogue and
began meeting last week in order to negotiate an
Frontera Energy is a Canadian public Com-
to Colombian blockades pany involved in the exploration, development, end to the protests and the blockades.
Current Impact on Gran Tierra’s Production:
production, transportation, storage and sale of
Parex Resources is a company headquartered in oil and natural gas in South America, including Road blockades in the Putumayo Basin and the
Calgary that focuses on sustainable, profitable, related investments in both upstream and mid- Middle Magdalena Valley Basin (MMV) have
conventional oil and gas production. stream facilities. The Company has a diversified caused Gran Tierra to temporarily reduce oil
Production Guidance Revised Due to Trans- portfolio of assets with interests in 40 explora- production from the Company’s operations.
portation Blockades: A series of protests across tion and production blocks in Colombia, Ecua- Though these blockades are not directed at
Colombia during May 2021 have resulted in dor and Guyana, and pipeline and port facilities Gran Tierra, they are currently impeding the
transportation blockades that have restricted in Colombia. Frontera is committed to conduct- Company’s mobilisation of supplies, food, water,
the production and marketing of Parex’s crude ing business safely and in a socially, environmen- fuel and oil sales, all of which are necessary for
oil. Additionally, the transportation blockades tally and ethically responsible manner. operations.
impeded the supply of materials required for Frontera Energy, May 17 2021 The Company’s temporary oil production
capital expenditure activities, including drill- reductions comprise a combination of slow-
ing and completions. The blockades were not Gran Tierra Energy provides downs of some oil wells’ production rates, the
directly related to Parex’s activities or those of its shut-in of some oil wells in certain fields and the
industry partners. update on impact of complete shut-in of certain other fields.
Parex net production over the past week has As of May 16, 2021, Gran Tierra has shut-in
averaged approximately 31,000 boepd, with cur- Colombian national protests production of approximately 5,250 bpd, leav-
rent production approximately 40,000 boepd. ing the Company’s total current production at
Going forward we expect to continue restarting and blockades approximately 24,350 bpd, down from a recent
our normal operations and production, subject level prior to the national blockades of about
to the lifting of blockades in the Llanos Basin. In Gran Tierra Energy today announced an update 29,600 bpd.
that respect we note that the local government on the impact of the ongoing national protests in If the National Strike Committee is success-
and authorities have been proactive in working Colombia on the Company’s operations. All pro- ful at negotiating an end to the blockades of key
to lift the blockades and minimise the distur- duction volumes are unaudited and on a work- transportation routes, Gran Tierra expects to be
bances. Further, in many instances Parex has ing interest before royalties (WI) basis and are able to restore the shut-in production in a matter
continued to receive the support of the commu- expressed in barrels of oil per day (bpd), unless of one to two weeks.
nities where we operate, live and work. otherwise stated. Assuming a lifting of blockades within the
Although the current restrictions from the Colombian National Protests and Blockades: next two weeks, Gran Tierra expects to main-
transportation blockades are easing, Parex is As has been widely reported in the media, there tain the Company’s 2021 production guidance
withdrawing its Q2-2021 production guidance, are a number of protests and blockades across of 28,000-30,000 bpd.
as set forth in the press release dated April 15, Colombia. Several key transportation routes However, if the current blockade situation
2021, until the Company has greater visibility have been blockaded throughout the country, worsens, Gran Tierra may have to shut-in addi-
on its ability to access the local transportation actions which have led to food, fuel and med- tional production.
infrastructure. For the period April 1-May 16, icine shortages in both urban and rural com- No Impact Expected on Gran Tierra’s Oil
2021, Parex’s production has averaged approx- munities. All Colombian industries have been Reserves: With the proper and safe shut-in of
imately 44,100 boepd. Also, Parex is updating widely and negatively impacted as mobility is certain wells and fields in connection with the
its H2-2021 production guidance set forth in currently very restricted. Company’s temporary oil production reduc-
the press release dated April 15, 2021, at 48,000- The protests initially did not impact the tions, Gran Tierra is confident that production
50,000 boepd, with Parex expecting H2-2021 Colombian operations of Gran Tierra and other can be resumed efficiently to the same pre-sus-
production to average 44,000-50,000 boepd, energy companies. However, in the last few days, pension production levels once the blockades
with the lower end of the range incorporating the blockades of key roads have started to cause the are lifted.
impact of any additional minor and intermittent temporary shut-in of some oil wells and oil fields Gran Tierra also believes that these tempo-
blockades. throughout Colombia and are now affecting rary shut-ins will not have any negative impact
Parex Resources, May 17 2021 almost all energy companies in the country. on the Company’s oil reserves.
Gran Tierra’s oil fields have previously
Frontera maintains demonstrated their resiliency during 2020 when
world oil prices crashed. At that time, the Com-
production outlook pany temporarily shut-in some wells and fields
to protect the balance sheet and liquidity.
Frontera Energy today stated that it is maintain- Those temporary shut-ins in 2020 had no
ing its production outlook for the year as it has negative impact on Gran Tierra’s oil production
had no material impacts from recent events in capacity and reserves, as clearly demonstrated by
Colombia. The Company will, as it always has, the Company’s ability to restore total production
consult with its stakeholders, lever its strong to its current capacity of 28,000-30,000 bpd and
transportation and logistics network, monitor the Company’s strong 2020 year-end oil reserves
the situation and provide the market with any replacement.
updates as appropriate. The health and safety of Gran Tierra Energy, May 17 2021

Week 20 20•May•2021 www. NEWSBASE .com P17