TIDMGTE
CALGARY, Alberta, July 10, 2019 (GLOBE NEWSWIRE) -- Gran Tierra Energy
Inc. ("Gran Tierra" or the "Company") (NYSE
American:GTE)(TSX:GTE)(LSE:GTE) today announced an operations update.
Production amounts are unaudited and on an average working interest
before royalties ("WI") basis unless otherwise indicated.
Key Highlights
-- Southern Putumayo Blockades Lifted -- Production Restored: Gran Tierra
has been able to restore oil production from both the Suroriente and
PUT-7 Blocks, which is currently approximately 4,500 barrels of oil per
day equivalent ("BOEPD")
-- Acordionero Commissioning On-Track: The commissioning of the expansion of
Acordionero's central processing and water injection facilities, as well
as the installation of gas-to-power turbines ("Acordionero Projects"),
are progressing as planned with first oil flowing through the new
additional processing equipment on July 3, 2019; the remaining water
treatment and power systems are scheduled to be commissioned by July 15,
2019, which is expected to allow a rapid increase in water injection in
the Acordionero field up to 40,000 barrels of water injected per day
("bwipd") in August 2019
-- Acordionero Near-Term Drilling Targeting Lisama E Sand: The Company is
currently drilling the AC-48 development oil well, which is targeting the
Lisama E Sand (currently no reserves assigned to this sand) which, if
successful, would add reserves and production; if the E Sands are not
productive, the well would be completed in the Lisama A
-- Total Company Production: Current production is approximately 34,500
BOEPD, an increase of 5,500 BOEPD from the previously reported average
level of 29,000 BOEPD (5-day average during June 13 to 17, 2019); 4,500
BOEPD of this increase is attributable to the Company bringing the
Suroriente and PUT-7 Blocks fully back on-line; for second quarter 2019,
Gran Tierra's average production was approximately 35,550 BOEPD
-- Planned Update to Guidance: Gran Tierra expects to update its guidance
with its second quarter 2019 results press release, which is scheduled to
be issued before market open on August 8, 2019; by that time the Company
expects to have fully assessed the startup of the Acordionero Projects
-- 3D Seismic Update: The planned 341 square kilometer ("km") 3D seismic
shoot has been operating across the Alea-1848A, the Nancy-Burdine-Maxine,
PUT-4, and PUT-25 Blocks; the program is over 80% surveyed on the ground
and shot-recording has been initiated; the program is scheduled to finish
recording in August 2019, with a processed 3D volume expected to be
interpreted in September 2019
-- ANH Bid Round Awards: Gran Tierra has won two blocks in the recent
Agencia Nacional de Hidrocarburos ("ANH") bid round in Colombia, the
LLA-85 Block in the Llanos Basin and the VMM-24 Block in the Middle
Magdalena Valley ("MMV") Basin; the Company believes these blocks may be
highly prospective
-- Exploration Drilling: during the second half of 2019, Gran Tierra plans
to drill one exploration well in the PUT-1 Block (100% WI) and to
participate in the drilling of one exploration well in the LLA-10 Block
(50% WI)
-- HSE Update: Surpassed over 7.7 million person-hours without a lost time
incident
Gary Guidry, President and Chief Executive Officer of Gran Tierra,
commented, "We are very pleased that the Colombian national government
has successfully negotiated an end to the blockades in the southern
Putumayo. Gran Tierra continues to seek additional ways to amplify our
business benefits for the people near our operations. Through our
operations, local hiring policies and social programs, we are providing
legal, economic and entrepreneurship opportunities. Gran Tierra has also
been awarded four "Work for Taxes" projects by the Colombian government.
Through this program, the Company plans to develop infrastructure
projects for communities that will be credited against our future tax
liabilities. With our ongoing commissioning of the Acordionero water
injection and gas-to-power projects, recent development drilling, as
well as the lifting of the blockades which were affecting the southern
Putumayo producing fields, we expect to restore the Company's production
back to over 40,000 BOEPD. Bringing our southern Putumayo production
fully back on-line has been an important first step in this forecasted
production increase. The next crucial step to get production back on
track is the expected positive oil rate response at Acordionero due to
our planned major ramp-up in water injection in August 2019."
Acordionero Update (100% WI, Operator)
-- Commissioning On-Track: deg The planned full commissioning of the
Acordionero Projects during July 2019 is expected to allow expanded water
injection from a current level of approximately 19,000 bwipd to 40,000
bwipd by August 2019 and the release of rental facilities, which is
expected to reduce operating costsdeg Water injection of 40,000 bwipd is
expected to replace voidage from production in both the Lisama A and C
Sands, increase the field's oil production rate, sweep oil to the
producers, and enhance ultimate recovery efficiency of oil and gas in the
Acordionero fielddeg Start-up of the 20 megawatt gas-to-power project at
the same time is expected to significantly enhance power reliability,
improve electric submersible pump ("ESP") performance and significantly
lower operating costsdeg All of these activities are expected to restore
Acordionero's production back to levels achieved in first quarter 2019
and to grow production in 2020
-- Drilling Efficiencies Continue to be Achieved:deg The AC-42 and AC-43
wells were both drilled to total depth ("TD") in 4.4 days, which was 0.6
days faster than AC-41 and 2.3 days faster than AC-40, respectively; the
cost per well to TD has improved by 22% over these last 4 wells at the
Central Pad deg Both the AC-42 and AC-43 wells are expected to be on
production prior to the end of July 2019
-- Production: deg As previously announced on June 18, 2019, the Company
proactively shut-in two oil producers (AC-21 and AC-13) with high gas-oil
ratios ("GOR"); the gas was produced predominately from the Lisama C Sand,
where 20% of the original oil in place is currently booked; in
AC-21, the Company has isolated production from Lisama C, replaced the
well's ESP and restored production from the Lisama A only; the
Company plans to convert the AC-13 to a gas injection well to maximize
the oil recovery factor in the field deg The AC-18 well went off-line as
a result of an ESP failure on June 10, 2019 and is expected to be back on
production on or around July 21, 2019
-- Upcoming Drilling Schedule: Plans are in place to drill approximately
five additional oil producers, three water injectors, and one water
source well at Acordionero through to the end of 2019
Suroriente Update (52% WI, Operator)
-- Cohembi Facility Expansion: deg As part of an expanded water flood
program, activities have commenced to expand the Cohembi water treatment,
injection and processing facilities under a two-phase expansion
programdeg Phase I is focused on expanding current water treatment and
injection facilities, while Phase II is focused on fluid handling and
processing trains beyond central processing facilities limitations by
first quarter 2020deg This expansion is expected to boost injection
capacity from a current level of 19,000 bwipd to 60,000 bwipddeg
Cohembi's oil production is expected to increase to over 4,000 BOPD over
the course of the next year as a result (the Cohembi field alone had May
2019 WI average production of 2,774 BOEPD)deg Water treatment and
injection facility expansion (Phase I) are scheduled for completion
during fourth quarter 2019
Costayaco Update (100% WI, Operator)
-- The CYC-39 infill oil well was drilled and cased in 18 days, within one
day of the fastest well drilled in the field; the well is currently being
completed and is expected to be on production later in July 2019
-- The CYC-40 well is planned to be spud in late July 2019 and expected to
be put on production during August 2019
Appraisal/Development Update - Middle Magdalena Valley
Ayombero Update (100% WI, Operator)
-- The Ayombero-1 well in the Ayombero-Chuira field was recently
successfully cleaned out, re-perforated across the Galembo formation of
the La Luna Carbonate and has reinitiated long-term production testing;
during July 1 to 6, 2019, the well has flowed naturally at a controlled
average rate of 205 barrels of oil per day (18 degree API gravity) with
an average GOR of 227 standard cubic feet per barrel, water cut of 0.1%
and natural flowing wellhead pressure of 1,515 pounds per square inch;
the well performance is being carefully monitored to determine if
additional production increases could be achieved by opening up the
restricted choke further
-- Gran Tierra is contracting and importing a snubbing unit (equipment
capable of working with high pressure wells) in order to continue with
completion operations in both the Ayombero-2 and Ayombero-3 wells
-- The Company continues to be encouraged by the three Ayombero wells
drilled to date which have confirmed similar lithologies, oil saturations
and over-pressure in the Galembo Member of the La Luna Carbonate
reservoir, suggesting reservoir and structural continuity; the Company's
estimates of oil in place and prospective resources are unchanged by
these short-term issues
Exploration Update
Putumayo Basin
-- The planned 341 square km 3D seismic shoot has been operating across the
Alea-1848A, the Nancy-Burdine-Maxine, PUT-4, and PUT-25 Blocks; the
program is over 80% surveyed on the ground and shot-recording has been
initiated; the program is scheduled to finish recording in August 2019,
with a processed 3D volume expected to be interpreted in September 2019;
the Company has identified multiple prospects over the area and the 3D
seismic is expected to significantly de-risk the program; Gran Tierra
expects to commence exploration drilling on the blocks in the first
quarter of 2020
-- The Company expects to drill the Vonu Este well in the fourth quarter of
2019 on the PUT-1 Block (100% WI); this well is designed to target the
fractured A-Limestone and the U Sand; the Vonu-1 well has produced
approximately 800,000 barrels of oil from the A-Limestone and is still
producing over 500 BOEPD; the Costayaco-19 well in the Chaza Block, has
produced over 730,000 barrels of oil from the A-Limestone
Llanos Basin
-- The Company has been awarded the LLA-85 Block following the recent ANH
bid round; this block covers 136,400 acres within the prolific Llanos
Basin in Colombia, and is on trend with fields that produce medium to
light oil from the Mirador, Une and Gacheta Formations; the block is
currently 65% covered with 3D seismic and the Company has preliminarily
identified four leads on the block with plans to start the environmental
permitting process for the future required 3D seismic program; under the
terms of the award of the block, the Company is committed to undertaking
a 50 square km 3D seismic survey and one exploration well within a six
year exploration period
-- Gran Tierra expects to participate in a non-operated exploration well
(50% WI) in the LLA-10 Block in the second half of 2019
MMV Basin
-- The Company has also been awarded the VMM-24 Block in the same ANH bid
round; the block covers 26,867 acres contiguous to Gran Tierra's core
assets in the prolific MMV Basin and is on-trend with the Colon, Juglar
and Acordionero oil fields, which produce medium gravity oil from
reservoirs such as the Umir, Lisama & La Paz sandstones intervals; this
block is close to Gran Tierra's facilities and other existing
infrastructure; the Company has preliminarily identified two leads on the
block and plans to start the environmental licensing process as soon as
possible; the Company is committed to undertaking an 80 square km 3D
seismic survey and two exploration wells within a six year exploration
period
-- The Company plans to test the Lisama E Sand in the AC-48 well, which is
currently being drilled; in a previous Acordionero well, over 90 feet of
potential pay was identified based on cuttings, oil shows and mud gas
data, but the zone was over-pressured and was not tested
Contact Information
For investor and media inquiries please contact:
Gary Guidry, Chief Executive Officer
Ryan Ellson, Executive Vice President & Chief Financial Officer
Rodger Trimble, Vice President, Investor Relations
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. together with its subsidiaries is an independent
international energy company focused on oil and natural gas exploration
and production in Colombia and Ecuador. The Company is focused on its
existing portfolio of assets in Colombia and Ecuador and will pursue new
growth opportunities throughout Colombia and South America, leveraging
our financial strength. The Company's common shares trade on the NYSE
American, Toronto Stock Exchange and London Stock Exchange under the
ticker symbol GTE. Additional information concerning Gran Tierra is
available at www.grantierra.com. Information on the Company's website
does not constitute a part of this press release. Gran Tierra's
Securities and Exchange Commission filings are available on the
Securities and Exchange Commission website at http://www.sec.gov and on
SEDAR at http://www.sedar.com and UK regulatory filings are available on
the National Storage Mechanism website at www.morningstar.co.uk/uk/nsm.
Forward Looking Statements and Legal Advisories:
This press release contains opinions, forecasts, projections, and other
statements about future events or results that constitute
forward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, and financial outlook and forward
looking information within the meaning of applicable Canadian securities
laws (collectively, "forward-looking statements"). The use of the words
"expect", "plan", "intend", "will" "guidance," "should," "would," and
"believes", derivations thereof and similar terms identify
forward-looking statements. In particular, but without limiting the
foregoing, this press release contains forward-looking statements
regarding: the Company's strategies, operations, and developments,
including planned drilling and operation activities, the commissioning
and expected benefits of the Acordionero Projects, the anticipated
benefits of new blocks, new technology and techniques, and development
wells in new areas, the Company's drilling plans and expected results,
the Company's expectations as to future production amounts, the
announcement of new guidance. The forward-looking statements contained
in this press release reflect several material factors and expectations
and assumptions of Gran Tierra including, without limitation, that Gran
Tierra will continue to conduct its operations in a manner consistent
with its current expectations, the accuracy of testing and production
results and seismic data, pricing and cost estimates (including with
respect to commodity pricing and exchange rates), rig availability, the
effects of waterflood and the general continuance of assumed operational,
regulatory and industry conditions in Colombia and Ecuador, and the
ability of Gran Tierra to execute its business and operational plans in
the manner currently planned.
Among the important factors that could cause actual results to differ
materially from those indicated by the forward-looking statements in
this press release are: sustained or future declines in commodity prices
and potential resulting future impairments and reductions in proved
reserve quantities and value; Gran Tierra's operations are located in
South America, and unexpected problems can arise due to guerrilla
activity and other local events; technical difficulties and operational
difficulties may arise which impact the production, transport or sale of
our products; geographic, political and weather conditions can impact
the production, transport or sale of our products; the risk that current
global economic and credit conditions may impact oil prices and oil
consumption more than Gran Tierra currently predicts; the ability of
Gran Tierra to execute its business plan; the risk that unexpected
delays and difficulties in developing properties may occur; the timely
receipt of regulatory or other required approvals for our activities;
the failure of exploratory drilling to result in commercial wells;
unexpected delays due to the limited availability of drilling equipment
and personnel; the risk that oil prices could continue to fall, or
current global economic and credit market conditions may impact oil
prices and oil consumption more than Gran Tierra currently predicts,
which could cause Gran Tierra to further modify its strategy and capital
spending program; and the risk factors detailed from time to time in
Gran Tierra's periodic reports filed with the Securities and Exchange
Commission, including, without limitation, under the caption "Risk
Factors" in Gran Tierra's Annual Report on Form 10-K for the year ended
December 31, 2018, as amended, and its other filings with the Securities
and Exchange Commission. These filings are available on the Securities
and Exchange Commission website at http://www.sec.gov and on SEDAR at
www.sedar.com.
The forward-looking statements contained in this press release are based
on certain assumptions made by Gran Tierra based on management's
experience and other factors believed to be appropriate. Gran Tierra
believes these assumptions to be reasonable at this time, but the
forward-looking statements are subject to risk and uncertainties, many
of which are beyond Gran Tierra's control, which may cause actual
results to differ materially from those implied or expressed by the
forward looking statements. All forward-looking statements are made as
of the date of this press release and the fact that this press release
remains available does not constitute a representation by Gran Tierra
that Gran Tierra believes these forward-looking statements continue to
be true as of any subsequent date. Actual results may vary materially
from the expected results expressed in forward-looking statements. Gran
Tierra disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by applicable
law.
(END) Dow Jones Newswires
July 10, 2019 06:00 ET (10:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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