Page 15 - LatAmOil Week 28 2022

LatAmOil NEWS IN BRIEF LatAmOil

Gary Guidry, President and CEO of Gran Tierra, producers and 6 water injectors) in the Acordi- well in the Chaza Block on June 2, 2022, which
commented: “Gran Tierra remains on track and onero field. targeted a potential, separate reservoir located
on budget with our development and explora- The successful results of the 10 new oil wells between the Company’s Costayaco and Moqueta
tion drilling programmes for 2022. The positive contributed to the Company’s ability to steadily oilfields. While Churuco found the target reser-
results from our Acordionero and Costayaco increase oil production during first half 2022. voir, well log evaluation indicated that the reser-
infill development well programmes have been The Company continues to make progress voir was water-bearing. The Company plans to
key to our ability to steadily increase oil produc- with its planned polymer flood pilot project in plug and abandon the well in accordance with
tion during 2022. this field, with polymer injection planned to government regulations.
“At the same time, we have achieved a major begin in the newly drilled AC-95i injection well Financial Update: As previously announced,
milestone for the Company by completely pay- during third quarter 2022. Gran Tierra had completely paid off its
ing off our credit. We have significantly strength- Costayaco and Moqueta: All 5 of the 2022 bank-syndicated credit facility as of June 2, 2022.
ened our balance sheet by steadily reducing our planned Costayaco infill development oil wells As part of a focus on significant debt reduc-
credit facility balance from $207mn as of June have been drilled and are on production. tion, the Company steadily reduced its credit
30, 2020, to $0 as of June 2, 2022. Gran Tierra The Moqueta work programme of 3 infill facility balance from $207mn as of June 30, 2020,
has a strong balance sheet with cash of $109mn development wells is expected to begin in fourth to $0 as of June 2, 2022.
as of June 30, 2022. We have also terminated our quarter 2022 and is planned to continue into Over the same time period, the Company
current credit facility and plan to replace it with 2023. built its cash position from $17mn as of June 30,
a smaller facility which aligns with our current Exploration, Ecuador: Gran Tierra is in 2020, to $109mn as of June 30, 2022.
business objectives. The material strengthening the final stages of wellsite construction for the Gran Tierra has terminated its current credit
of Gran Tierra’s balance sheet over the past two planned Bocachico-1 exploration well in the facility and plans to replace it with a new, smaller
years is a testament to the Company’s commit- Chanangue Block and expects to start drilling credit facility once all securities pledges against
ment to capital discipline, high quality oil and this well during third quarter 2022. the current facility are released.
low-cost oil assets and higher commodity prices. The Company has also started construction At present, the Company has no oil price
“After a two-year pause during the low and of the Charapa-B drilling pad in the Charapa hedges in place for second half 2022. Therefore,
volatile oil price environment of 2020 and 2021, Block. all of Gran Tierra’s oil production is receiving the
we are excited to once again be drilling high-im- Environmental licences are in place for Gran full benefit of the Brent oil price which is cur-
pact exploration wells. Tierra’s multi-well exploration programme in rently above $100 per bbl.
“In Ecuador, we remain on-track to spud our both the Chanangue and Charapa Blocks. Gran Tierra Energy, July 11 2022
first planned exploration well in that country on Significant progress has also been made with
the Chanangue Block during third quarter 2022. Gran Tierra’s environmental licensing for explo- Maha’s Tie-5 free flows
In Colombia, we are progressing our exploration ration drilling in the Iguana Block with approval
activities and we look forward to the planned expected during second half 2022. 766 boepd through Tie
drilling during second half 2022 of the Rose Colombia: Gran Tierra plans to spud the
exploration well in the Putumayo Basin and the Gaitas exploration well in the Middle Magda- permanent facilities
Gaitas exploration well in the Middle Magdalena lena Valley Basin, which is designed to target the
Valley Basin. Lisama Formation, which is the producing for- without pump
“We believe Gran Tierra is well positioned to mation at the Acordionero oil field. The Gaitas
optimise value from each of our assets through location is approximately 7 km south-southwest Maha Energy has announced that the recently
continued development and enhanced oil of Acordionero’s Southwest Pad and is expected completed Tie-5 well is now producing through
recovery activities in 2022. Our waterflood spud in late July 2022. the Tie field’s permanent production facilities.
programmes across all our assets continue to In the Putumayo Basin, Gran Tierra contin- The well is naturally flowing, without the assis-
perform well, as demonstrated by our second ues progressing its exploration activities. The tance of an Electrical Submersible Pump (ESP),
quarter 2022 total average production of 30,607 wellsite construction has started for the planned 766 boepd(1) (590 bpd of oil and 1,054 mcf per
bpd of oil, up 25% from second quarter 2021.’ Rose-1 exploration well in the ALEA-1848A day) with a stable tubing-head flowing pressure
Operations Update, Production: Gran Tier- Block, which has a planned spud date in third of 220 psi and less than 1% water. The corporate
ra’s total average production during second quarter 2022. annual average production guidance of 4,000-
quarter 2022 was 30,607 bpd of oil, which was Gran Tierra spud the Churuco exploration 5,000 boepd for 2022 remains.
in-line with management expectations, and up
4% from first quarter 2022 and up 33% from
second quarter 2021. This was the Company’s
highest quarterly total average production since
fourth quarter 2019.
Gran Tierra was able to consistently increase
production during second quarter 2022 despite
the temporary impact of brief intermittent farm-
ers’ blockades in the southern Putumayo Basin.
The Company believes that these blockades,
since resolved, reduced the Company’s sec-
ond quarter 2022 total average production by
approximately 1,100 bpd of oil or 3.5%.
Acordionero: During first half 2022, Gran
Tierra successfully drilled 16 wells (10 oil

Week 28 14•July•2022 www. NEWSBASE .com P15