Gran Tierra Energy announces $220M in capex for 2022

Gran tierra energy

Gran Tierra Energy, an international oil and natural gas producer currently developing assets in Colombia and Ecuador, announced its capital guidance for 2022 this week. The plan includes $220 to $240 million in capital expenditure budget.

The company’s planned capital program will help fund developments activities in its core assets and possible high-impact exploration. According to the statement, up to 70% of the 2022 capital budget will go to these activities.

Particularly, $70 million will go to the Acordionero field in the Middle Magdalena Valley Basin, in Colombia. Further $40 million and $30 million respectively will go to the Costayaco and Moqueta fields in the Putumayo Basin.

Moreover, the Moqueta work program will begin in the second half of 2022 through 2023. The company states that the remaining 30% of the capital program will go to exploration-related activities throughout its portfolio; including up to 6-7 new exploration wells: 4 wells in Colombia and 2-3 wells in Ecuador.

The company has 100% working interest in and operatorship of the assets in Colombia and Ecuador. This full control will give the company the flexibility to quickly optimize its development and exploration programs with changes in the market.

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Gran Tierra Energy expects $270 million in cash flow

On the other hand, Gran Tierra Energy forecasts $270-290 million in cash flow, based on an assumed $70.00/bbl Brent oil price. These are figured established in the company’s Base Case, also part of the capital program.

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented on the matter. “We plan to allocate modest capital to prioritized exploration drilling opportunities. Our forecast 2022 capital budget is a balanced, returns-focused program which is expected to provide free cash flow generation, ongoing strengthening of our balance sheet, optimization of ultimate oil reserves value and exposure to exploration upside.”

He also said. “We see material potential in our exploration portfolio located in highly prospective geological trends in Colombia and Ecuador.”

Finally, the executive remarked on the work of his team during 2021, which “positioned the Company for continued development and enhanced oil recovery activities in 2022 to optimize the value from each of our assets.”

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