TIDMGTE
-- Gran Tierra Met Production Guidance with 2022 Total Company Average
Production of Approximately 30,800 BOPD
-- Fourth Quarter 2022 Total Company Average Production of Approximately
32,600 BOPD, an Increase of 10% from Fourth Quarter 2021
-- Strong Exit with Total Company Average Production During December 2022 of
Approximately 33,800 BOPD
-- Moqueta Development Campaign Underway with Second Development Well Spud
-- First Moqueta Development Well Yielding Encouraging Results
-- Bought Back 23 Million Gran Tierra Shares of Common Stock During 2022
CALGARY, Alberta, Jan. 09, 2023 (GLOBE NEWSWIRE) -- Gran Tierra
Energy Inc. ("Gran Tierra" or the "Company") (NYSE
American:GTE)(TSX:GTE)(LSE:GTE) today announced an operational and
financial update. All dollar amounts are in United States dollars,
and production amounts are on an average working interest before
royalties ("WI") basis unless otherwise indicated. Per barrel
("bbl") and bbl of oil per day ("BOPD") amounts are based on WI
sales before royalties.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran
Tierra, commented: "We are excited to announce that our 2022 total
Company average production was approximately 30,800 BOPD which was
within our guidance despite several social disruptions and a delay
in our Moqueta drilling program. Our Moqueta development campaign
is well underway with two of the five planned wells having been
spud thus far. The initial production results of the first well are
encouraging with a stable average rate of 1,312 BOPD. We are very
excited for what 2023 holds for the Company and expect to build off
the momentum from the strong finish to 2022."
Operations Update:
-- Production
-- During fourth quarter 2022, Gran Tierra's total average production
was approximately 32,600 BOPD.
-- December 2022 total Company average production was approximately
33,800 BOPD.
-- Gran Tierra's total average production for the full year 2022 was
approximately 30,800 BOPD which is within the Company's prescribed
guidance.
-- Colombia Development:
-- Moqueta Development Campaign:
-- Testing began on the first Moqueta well which was spud on
November 28, 2022. From December 23, 2022, to January 9,
2022, the Moqueta-24 well has been producing on a jet pump
at a stable average rate of 1,312 BOPD (28-degree API
gravity) and 193 bbl of water ("BWPD") with a gas-oil ratio
of 170 standard cubic feet per stock tank bbl.
-- On January 3, 2023, the Company spud its second development
well in the Moqueta field. This well is expected to reach
its planned total depth by mid-January 2023.
-- Acordionero Development:
-- Waterflood success at Acordionero resulted in December 2022
total Company average production for this field of
approximately 17,800 BOPD, the highest level since the
second quarter of 2019.
-- Water injection at Acordionero reached a new record of over
60,000 BWPD in December 2022.
-- Suroriente Development:
-- As a result of the successful increase in water injection,
expansion of facilities, and minimal disruptions, the
Suroriente Block produced an average of 8,700 BOPD gross
(4,500 BOPD WI) in the fourth quarter of 2022, the highest
level since the second quarter of 2015 despite not drilling
a well since the first quarter of 2018.
Shareholder Returns:
-- Share Buybacks: Pursuant to Gran Tierra's current normal course issuer
bid, Gran Tierra purchased approximately 23 million shares during 2022,
representing about 6.2% of shares outstanding as of June 30, 2022.
Debt Repayment:
-- As part of Gran Tierra's focus on significant debt reduction, the Company
reduced its total debt by $87.6 million in 2022 and by a further $122.5
million in 2021, for a reduction of total debt of $210.1 million over the
past two fiscal years.
Corporate Presentation:
Gran Tierra's Corporate Presentation is available on the Company
website at www.grantierra.com.
Contact Information
For investor and media inquiries please contact:
Gary Guidry
President & 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 currently focused on oil
and natural gas exploration and production in Colombia and Ecuador.
The Company is currently developing its existing portfolio of
assets in Colombia and Ecuador and will continue to pursue
additional growth opportunities that would further strengthen the
Company's portfolio. The Company's common stock trades on the NYSE
American, the Toronto Stock Exchange and the 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 (including the Corporate Presentation referenced
above) does not constitute a part of this press release. Investor
inquiries may be directed to info@grantierra.com or (403)
265-3221.
Gran Tierra's U.S. Securities and Exchange Commission ("SEC")
filings are available on the SEC website at www.sec.gov. The
Company's Canadian securities regulatory filings are available on
SEDAR at www.sedar.com and UK regulatory filings are available on
the National Storage Mechanism ("the NSM") website at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism. Gran
Tierra's filings on the SEC, SEDAR and the NSM websites are not
incorporated by reference into this press release.
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," "can," "will,"
"should," "guidance," "forecast," "signal," "progress," 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 expected future production (including as a
result of our testing results), the Company's drilling program, the
Company's potential debt repayments and share repurchases. 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, pricing and cost estimates (including with
respect to commodity pricing and exchange rates), 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: Gran Tierra's operations are
located in South America and unexpected problems can arise due to
guerilla activity, strikes, local blockades or protests; technical
difficulties and operational difficulties may arise which impact
the production, transport or sale of our products; other
disruptions to local operations; global health events (including
the ongoing COVID-19 pandemic); global and regional changes in the
demand, supply, prices, differentials or other market conditions
affecting oil and gas, including inflation and changes resulting
from a global health crisis, the Russian invasion of Ukraine, or
from the imposition or lifting of crude oil production quotas or
other actions that might be imposed by OPEC, and other producing
countries and the resulting company or third-party actions in
response to such changes; changes in commodity prices, including
volatility or a decline in these prices relative to historical or
future expected levels; the risk that current global economic and
credit 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; prices
and markets for oil and natural gas are unpredictable and volatile;
the accuracy of testing and production results and seismic data,
pricing and cost estimates (including with respect to commodity
pricing and exchange rates); the effect of hedges; the accuracy of
productive capacity of any particular field; geographic, political
and weather conditions can impact the production, transport or sale
of our products; the ability of Gran Tierra to execute its business
plan and realize expected benefits from current initiatives; the
risk that unexpected delays and difficulties in developing
currently owned properties may occur; the ability to replace
reserves and production and develop and manage reserves on an
economically viable basis; the risk profile of planned exploration
activities; the effects of drilling down-dip; the effects of
waterflood and multi-stage
fracture stimulation operations; the extent and effect of
delivery disruptions, equipment performance and costs; actions by
third parties; the timely receipt of regulatory or other required
approvals for our operating activities; the failure of exploratory
drilling to result in commercial wells; unexpected delays due to
the limited availability of drilling equipment and personnel;
volatility or declines in the trading price of our common stock or
bonds; the risk that Gran Tierra does not receive the anticipated
benefits of government programs, including government tax refunds;
Gran Tierra's ability to obtain a new credit agreement and to
comply with financial covenants in its credit agreement and
indentures and make borrowings under any credit agreement; 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, 2021 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 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. In particular, the unprecedented nature of the current
economic downturn, pandemic and industry decline may make it
particularly difficult to identify risks or predict the degree to
which identified risks will impact Gran Tierra's business and
financial condition. 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.
Presentation of Oil and Gas Information
References to a formation where evidence of hydrocarbons has
been encountered is not necessarily an indicator that hydrocarbons
will be recoverable in commercial quantities or in any estimated
volume. Gran Tierra's reported production is a mix of light crude
oil and medium and heavy crude oil for which there is not a precise
breakdown since the Company's oil sales volumes typically represent
blends of more than one type of crude oil. Well test results should
be considered as preliminary and not necessarily indicative of
long-term performance or of ultimate recovery. Well log
interpretations indicating oil and gas accumulations are not
necessarily indicative of future production or ultimate recovery.
If it is indicated that a pressure transient analysis or well-test
interpretation has not been carried out, any data disclosed in that
respect should be considered preliminary until such analysis has
been completed. References to thickness of "oil pay" or of a
formation where evidence of hydrocarbons has been encountered is
not necessarily an indicator that hydrocarbons will be recoverable
in commercial quantities or in any estimated volume.
(END) Dow Jones Newswires
January 09, 2023 17:05 ET (22:05 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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