Gran Tierra Energy Inc. an oil and gas exploration and production company; announced financial and operating results for the fourth quarter and the year ended on December 31, 2021.
Oil and gas production
Firstly, despite impacts on production in the oil and gas sector; due to national protests in the 2Q of 2021 and localized blockades in South Putumayo during the Quarter; Gran Tierra achieved 2021 average working interest production of 26,507 BOPD); a 17% increase from 2020.
Secondly, the increase in production was the direct result of successful drilling and workover campaigns; in the Acordionero and Costayaco oil fields; combined with ongoing waterflood optimization throughout the Company’s portfolio.
“After the many challenges in 2020 that the world faced, 2021 was a year of strong recovery for the energy industry and Gran Tierra. Our top tier, low-decline, onshore, conventional asset base continued to prove its high quality as the Company returned to strong growth in 2021 in production, reserves, funds flow from operations2, free cash flow2, and after-tax NAV per share.
Gary Guidry, President, and Chief Executive Office.
In addition, the Company’s total current average production is approximately 30,000 BOPD. The current production level demonstrates the effectiveness of the Company’s water flooding operations.
Also, Gran Tierra forecasts 2022 production of 30,500-32,500 BOPD, a 15-23% increase from 2021.
Projects for the next months
Consequently, this projected 2022 manufacture increase would result from the drilling program of 14-16 wells in Acordionero; 4-5 in Costayaco, and three wells in Moqueta.
Finally, Gran Tierra plans to drill 6-7 exploration wells in 2022.
“Looking to 2022, we are very excited for our planned development drilling programs in the Middle Magdalena Valley and Putumayo Basins in Colombia. And the restart of our exploration drilling program, in which we expect to include our first exploration wells in Ecuador.”
Gary Guidry, President, and Chief Executive Officer.
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Gran Tierra and the environment
Through the NaturAmazonas project in the Putumayo Basin, in partnership with Conservation International; Gran Tierra has committed to reforesting 1,000 hectares of land and securing and maintaining 18,000 hectares of forest..
Furthermore, Gran Tierra has planted a total of 1,193,241 trees and has conserved, preserved, or reforested 2,805 hectares of land.
For more information, visit https://www.grantierra.com/sustainability/naturamazonas
Reducing GHG Emissions
For the last five years, Gran Tierra has voluntarily released an assessment of its GHG emissions.
Also, Gran Tierra is reducing GHG emissions at its facilities through gas-to-power projects that conserve excess natural gas.
Finally, the NaturAmazonas project alone expects to sequester approximately 8.7 million tonnes of carbon dioxide over its lifetime; equivalent to 215 billion passenger miles driven or the energy use of 10 million homes for one year.
Social
Gran Tierra works with the Colombian national and local governments and communities to further their peace-building efforts.
In 2021, the Company invested $2.9 million locally in projects identified by communities to meet their needs. The projects included the installation of sanitary units for rural families and infrastructure improvements to local schools and rural roads.
Oil and gas economic opportunities
Gran Tierra maintains its commitment to contribute to the social and economic development of the regions; where it operates by maximizing local hiring and contracting local goods and services.
Through this commitment, the Company awarded over $53 million to local companies during 2021.
The company’s human rights
Over the past two years, 3,750 people benefited from Gran Tierra’s human rights; initiatives with the UN Guiding Principles for Business and Human Rights policy.
In 2021, Gran Tierra Energy declared the Puerto Vega-Teteyé corridor in the Putumayo free of land mine contamination.
In addition, nearly 3,000 residents of nearby towns have attended mine-risk education workshops.
Also, Gran Tierra, in partnership with the Colombia Institute of Anthropology and History; the Colombian Ministry of Culture, and Corpoamazonia, opened the Suruma Museum.
Gran Tierra operational update
First during the Quarter, at Acordionero Oil Field, it drilled five new wells and executed a combined total of 16 completion and workover operations.
Secondly,, along the first quarter of 2022-to-date, Acordionero had average production of 15,673 BOPD, the highest quarterly rate since 2Q of 2019.
The field’s 2022 development drilling program (14-16 wells) starts in the 1Q of 2022 with one rig on the Southwest Pad.
The program is focus on quick-cycle times to maintain low drilling and completion costs while increasing oil recovery factors through the Company’s waterflood program.
On the other hand, the first 2022 Costayaco development well is scheduled to spud in the first quarter of 2022.
The Moqueta development drilling program of three wells begins in the second half of 2022 and is planned to continue into 2023.
Oil and gas exploration
Gran Tierra is in the process of obtaining all final approvals and licensing in preparation to drill its first exploration well in Ecuador; during the second quarter of 2022.
The Company is also progressing its 2022 exploration campaign in Colombia.
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 assets in Colombia and Ecuador and will continue to pursue additional new growth opportunities.
For more information on Gran Tierra please go to: www.grantierra.com
