Gran Tierra Energy Inc. Provides Update on Impact of Colombian National Protests and Blockades
17 Maio 2021 - 9:00PM
Gran Tierra Energy Inc. Provides Update on Impact of Colombian
National Protests and Blockades
Gran Tierra Energy Inc.
(“Gran Tierra” or
the “Company”) (NYSE American:GTE) (TSX:GTE) (LSE:GTE)
today announced an update on the impact of the ongoing national
protests in Colombia on the Company’s operations. All production
volumes are unaudited and on a working interest before royalties
(
“WI”) basis and are expressed in barrels of oil
per day (
“bopd”), unless otherwise stated.
Key Highlights:
Colombian National Protests and
Blockades:
- As has been
widely reported in the media, there are a number of protests and
blockades across Colombia. Several key transportation routes have
been blockaded throughout the country, actions which have led to
food, fuel and medicine shortages in both urban and rural
communities. All Colombian industries have been widely and
negatively impacted as mobility is currently very restricted.
- The protests
initially did not impact the Colombian operations of Gran Tierra
and other energy companies. However, in the last few days,
blockades of key roads have started to cause the temporary shut-in
of some oil wells and oil fields throughout Colombia and are now
affecting almost all energy companies in the country.
- A National
Strike Committee, which includes Government and major union
representatives, has been created to foster national dialogue and
began meeting last week in order to negotiate an end to the
protests and the blockades.
Current Impact on Gran Tierra’s
Production:
- Road blockades
in the Putumayo Basin (the “Putumayo”) and the
Middle Magdalena Valley Basin (the “MMV”) have
caused Gran Tierra to temporarily reduce oil production from the
Company’s operations. Though these blockades are not directed at
Gran Tierra, they are currently impeding the Company’s mobilization
of supplies, food, water, fuel and oil sales, all of which are
necessary for operations.
- The Company’s
temporary oil production reductions comprise a combination of
slowdowns of some oil wells’ production rates, the shut-in of some
oil wells in certain fields and the complete shut-in of certain
other fields.
- As of May 16,
2021, Gran Tierra has shut-in production of approximately 5,250
bopd, leaving the Company’s total current production at
approximately 24,350 bopd, down from a recent level prior to the
national blockades of about 29,600 bopd.
- If the National
Strike Committee is successful at negotiating an end to the
blockades of key transportation routes, Gran Tierra expects to be
able to restore the shut-in production in a matter of one to two
weeks.
- Assuming a
lifting of blockades within the next two weeks, Gran Tierra expects
to maintain the Company’s 2021 production guidance of 28,000-30,000
bopd.
- However, if the
current blockade situation worsens, Gran Tierra may have to shut-in
additional production.
No Impact Expected on Gran Tierra’s Oil
Reserves:
- With the proper
and safe shut-in of certain wells and fields in connection with the
Company’s temporary oil production reductions, Gran Tierra is
confident that production can be resumed efficiently to the same
pre-suspension production levels once the blockades are
lifted.
- Gran Tierra also
believes that these temporary shut-ins will not have any negative
impact on the Company’s oil reserves.
- Gran Tierra’s
oil fields have previously demonstrated their resiliency during
2020 when world oil prices crashed. At that time, the Company
temporarily shut-in some wells and fields to protect the balance
sheet and liquidity.
- Those temporary
shut-ins in 2020 had no negative impact on Gran Tierra’s oil
production capacity and reserves, as clearly demonstrated by the
Company’s ability to restore total production to its current
capacity of 28,000-30,000 bopd and the Company’s strong 2020
year-end oil reserves replacement.
Putumayo Operations:
-
Costayaco Oil Field (100% WI)
- The Company has
successfully finished its 2021 development drilling campaign of 3
new oil wells, prior to any impact from the national protests.
Currently, none of these 3 wells are on production, but Gran Tierra
expects to bring them all on-line by the end of the second quarter
of 2021.
- As of May 16,
2021, the Costayaco field continues to produce approximately 5,100
bopd.
- Moqueta
Oil Field (100% WI)
- As of May 16,
2021, the Moqueta field continues to produce approximately 2,300
bopd.
-
Suroriente Block (52% WI and Operator) and PUT-7 Block
(100% WI)
- Several
blockades in the southern Putumayo have caused Gran Tierra to
temporarily shut-in the Suroriente and PUT-7 Blocks, representing
production of approximately 3,000 bopd and 800 bopd,
respectively.
- Gran Tierra’s
operations team is ready to safely and quickly restore production
from these fields once the blockades are lifted.
MMV Operations:
-
Acordionero Oil Field (100% WI)
- The Company has
successfully finished its 2021 development drilling campaign of 11
new oil wells and 2 new water injection wells, prior to any impact
from the national protests.
- With regional
blockades affecting the Company’s ability to transport oil sales to
some delivery points, Gran Tierra has temporarily slowed down some
wells’ production rates and shut-in certain other wells.
- As of May 16,
2021, these temporary actions have reduced Acordionero’s production
by 1,300 bopd, from approximately 16,000 bopd to 14,700 bopd.
- Gran Tierra’s
operations team is ready to safely and quickly restore production
from these wells once the blockades are lifted.
Minor Field Operations:
- As of May 16,
2021, the Company has also reduced production from its minor fields
to approximately 2,250 bopd, down 150 bopd from a recent level
prior to the national blockades of about 2,400 bopd.
Message to Shareholders
Gary Guidry, President and Chief Executive
Officer of Gran Tierra, commented: "We have successfully completed
our 2021 drilling program on time and under budget with excellent
results. Assuming a near-term resolution to the blockades, we
remain confident that Gran Tierra can safely and efficiently
restore the Company’s total oil production to its current
productive capacity of 28,000-30,000 bopd, in the matter of several
days to a few weeks. We believe our temporary production reductions
are only a deferral, not a loss of oil reserves and that the high
quality and value of our low-cost and low-decline conventional oil
fields remain fully intact."
Contact Information
For investor and media inquiries please contact:
Gary GuidryPresident & Chief Executive Officer
Ryan EllsonExecutive Vice President & Chief Financial
Officer
Rodger TrimbleVice 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 Sustainability Report) 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 Securities and Exchange Commission
filings are available on the SEC 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
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Forward Looking Statements and Legal
Advisories:
This press release contains opinions, forecasts,
projections, expectations 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 "believe",
"expect", "anticipate", "intend", "estimate", "project" "forecast",
"guidance", "target", "goal", "plan", "budget" "objective",
"could", "should", and other terms identify forward-looking
statements. In particular, but without limiting the foregoing, this
press release contains forward-looking statements regarding: the
Company's 2021 production guidance and ability to restart
production quickly. 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 the timing and
extent of the protests and blockades across Colombia 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, 2020, many of which are beyond the Company's control.
These filings are available on the SEC 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.
The estimates of future production set forth in
this press release may be considered to be future-oriented
financial information or a financial outlook for the purposes of
applicable Canadian securities laws. Financial outlook and
future-oriented financial information contained in this press
release about prospective financial performance, financial position
or cash flows are provided to give the reader a better
understanding of the potential future performance of the Company in
certain areas and are based on assumptions about future events,
including economic conditions and proposed courses of action, based
on management’s assessment of the relevant information currently
available, and to become available in the future. These projections
may not be appropriate for other purposes. These projections
contain forward-looking statements and are based on a number of
material assumptions and factors set out above. Actual results may
differ significantly from the projections presented herein. These
projections may also be considered to contain future-oriented
financial information or a financial outlook. The actual results of
Gran Tierra’s operations for any period will likely vary from the
amounts set forth in these projections, and such variations may be
material. See above for a discussion of the risks that could cause
actual results to vary. The future-oriented financial information
and financial outlooks contained in this press release have been
approved by management as of the date of this press release.
Readers are cautioned that any such financial outlook and
future-oriented financial information contained herein should not
be used for purposes other than those for which it is disclosed
herein. The Company and its management believe that the prospective
operational and financial information has been prepared on a
reasonable basis, reflecting management’s best estimates and
judgments, and represent, to the best of management’s knowledge and
opinion, the Company’s expected course of action. However, because
this information is highly subjective, it should not be relied on
as necessarily indicative of future results.
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.