Page 17 - LatAmOil Week 09 2021

LatAmOil NEWS IN BRIEF LatAmOil

PERFORMANCE replacement ratios.
The Company forecasts 2021 WI production
Canacol Energy provides of 28,000 to 30,000 bpd, for annual growth of
24% to 33%.
February gas sales and additions, in particular in the Company’s core
Reserves: Achieved material Proved reserves
drilling update assets as a result of the continued positive reser-
voir responses from waterflooding; the Proved
Canacol Energy is pleased to provide the follow- Developed Producing (PDP) reserves replace-
ing information concerning its February 2021 ment ratio was 133% with PDP reserves addi-
natural gas sales and drilling programme. tions of 11.0mn barrels of oil equivalent, while
Gas sales: Realised contractual natural gas the Total Proved (1P) reserves replacement ratio
sales (which are gas produced, delivered, and was 100%, with 1P reserves additions of 8.3mn
paid for) were 187 mcf per day for February boe. Capital Expenditures: As expected, the
2021, a 6% increase from average gas sales of 177 The Company’s strong 1P reserves replace- Quarter’s expenditures of approximately $40mn
mcf per day for the month of January 2021. ment resulted in 1P reserves of 79mn boe (100% increased significantly from the Prior Quarter’s
Flauta 1 and Oboe 2: The Flauta 1 exploration oil) as of year-end 2020; at December 31, 2020, level of $7mn, reflecting the restart of develop-
well, which completed drilling in February 2021, 1P net present value discounted at 10% (NPV10) ment drilling operations at the Acordionero
did not encounter commercial gas and has been was $1.2bn before tax and 1P net asset value field; the Company also accelerated certain
plugged and abandoned. The Oboe 2 develop- (NAV) was $1.15 per share before tax; Total budgeted H1-2021 capital expenditures into the
ment well has been completed as a successful Proved plus Probable (2P) NPV10 was $2.0bn Quarter to maximise operational efficiencies.
gas producer and is being tied into the Jobo gas before tax and 2P NAV was $3.25 per share Acordionero Oilfield: Utilising 2 workover
processing facility. The rigs are currently being before tax. Realised PDP and 1P Finding and rigs, Gran Tierra continues to workover Acor-
mobilised to drill the Cañahuate 4 development Development (F&D) Costs of $5.06 and $2.65/ dionero oil wells that went offline during the
well and the Milano 1 exploration well, both of boe, respectively. decline in oil prices during 2020, in order to
which are anticipated to spud the second week Drilling and Completion Capital Cost Reduc- restore them to production; in connection with
of March 2021. Each will take approximately five tions: During the Quarter, as a result of ongoing the improving oil price environment in second
weeks to drill and test. cost saving initiatives, the Company successfully half 2020, this workover programme started at
Canacol is a natural gas exploration and pro- reduced per well drilling and completion capital the beginning of the Quarter. The Company also
duction company with operations focused in costs at Acordionero by approximately 18% and restarted development drilling at Acordionero
Colombia. The Corporation’s common stock 52%, respectively, compared to 2019 averages; on November 30, 2020, and has since drilled 8
trades on the Toronto Stock Exchange, the the Company also expects future per well drill- wells (6 producers and 2 injectors) of the 10-well
OTCQX in the United States of America, and the ing and completion capital costs to be reduced programme at the new South West pad; all six
Colombia Stock Exchange under ticker symbol by approximately 18% at Costayaco compared producers are currently on production.
CNE, CNNEF, and CNE.C, respectively. to 2019; the 2021 Costayaco drilling campaign All 10 wells South West pad wells are sched-
Canacol Energy, March 02 2021 is scheduled to begin in early Q2-2021. uled to be drilled by the end of the first quarter
Net Loss and EBITDA: Gran Tierra realised of 2021; once complete, the rig is scheduled to
Gran Tierra Energy a net loss of $778mn or $(2.12) per share (basic move to Pad-6 in the field to drill an additional
and diluted), and EBITDA of $(635)mn for the five producers. The AC-69 drill achieved a
announces results for 2020 year ended 2020, both of which included a non- record cycle time, from spud to on-production,
cash ceiling test and inventory impairment of of 11.5 days, at a total drill and complete capital
Gran Tierra Energy today announced the Com- $564mn and a non-cash goodwill impairment cost of $1.9mn. The combination of the work-
pany’s financial and operating results for the of $103mn. over and drilling programmes has resulted in
fourth quarter and year ended December 31, Adjusted EBITDA and Funds Flow: During Acordionero’s total WI production averaging
2020.(1) the Quarter, the Company realised a net loss approximately 13,000 bpd during February 2021
Production: With the unprecedented impact of $48mn, Adjusted EBITDA of $22mn, and month-to-date, with approximately 2,500 bpd of
of the COVID-19 pandemic and the related funds flow from operations(5) of $9mn or $0.02 additional production to be added from existing
crash in world oil prices, Gran Tierra took deci- per share (basic and diluted), compared with wells over the next few months.
sive action during the first half of 2020 to shut-in $108mn, $22mn and $8mn, respectively, in the Acordionero’s WI production dipped below
minor fields, curtail drilling activity and defer Prior Quarter. 10,000 bpd in the early part of the second half
workovers in order to protect the Company’s Oil Sales and Operating Netback: During the of 2020 due to last year’s temporary suspension
balance sheet and liquidity, while still achieving Quarter, Gran Tierra generated Fourth Quarter of workover and development drilling activities;
2020 average working interest (WI) production oil sales of $65mn, up 22% or $12mn from the Acordionero’s production is expected to return
of 22,624 barrels of oil per day (bpd) (100% oil). Prior Quarter, largely driven by a 16% increase to the production levels realised in February
In the lo oil price environment, Gran Tierra in WI production and a 4% increase in Brent oil 2020 with minimal capital spend over the next
made the prudent decision not to maximise price; the Quarter’s operating netback of $17.67 few months.
production and to defer growth until oil prices per barrels was only $6.78 per barrel lower than Costayaco Oilfield: Efforts are underway
rebounded in the second half of 2020. Gran fourth quarter 2019’s operating netback of to restart development drilling during early
Tierra took these actions while maintaining $24.45 per barrels, despite a $17.16 per barrel Q2-2021, with a three-well programme; the rig
proper reservoir management and protecting drop in Brent oil price, as a result of lower oper- is currently stacked on location over the planned
the long term value of the Company’s assets ating expenses and royalties; the Brent oil price CYC-42 infill oil well location.
as demonstrated by the strong 2020 reserves averaged $45.26 per barrels during the Quarter. Gran Tierra Energy, February 24 2021

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