Gran Tierra Energy announced some updates and benefits this would bring, as well as some of their achievements.
They are an independent international energy company focusing on oil and natural gas exploration and production in Colombia and Ecuador.
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “Gran Tierra is in a strong position for the continued development and enhanced oil recovery activities in 2022 to optimize value from each of our assets. Gran Tierra’s balance sheet has significantly strengthened since 2020, and paying off the entire credit facility will be a major milestone for the Company. At the end of the year, we are forecasting a net debt to EBITDA ratio of under 0.8 times. In addition, we plan to allocate capital to prioritized, high-impact exploration drilling opportunities. Our waterflood programs across all of our assets continue to perform well, and we expect another strong year of free cash flow from these high quality, low decline assets.”
Highlights on the Grand Tierra Energy’s corporate updates:
- First Quarter 2022 Production: Here, we will compare the last quarter of 2021 production to the first quarter of 2022 production. This year’s production was 29,362 BOPD, leaving it approximately flat compared with 2021, up to 20%.
- Expectations on meeting 2022 production guidance: The Company’s ongoing development drilling campaigns in the Acordinero and Costayaco made the average production of 30,500-32,500.
- Significant debt reduction: At the end of last year’s last quarter, Grand Tierra Energy has a debt of $67.5 million. The Company made that amount go down to $40 million by March 31, 2022. That is 40% less in the balance. The Company expects to fully pay the debt by the end of the second quarter of this year.
- 2022 Financial Forecasts and Plans: First is divined by the Company that the 2022 capital program of $220-240 million will generate over the year a cash flow of $330-350. Also, the Company has kept its 2022 Brent at $95/bbl. That is to maintain the Company’s 2022 capital at 220-240 million. The cash flow, in that case, will be $410-430 million. The cash balance would be $210-230 million by the end of the year.
You also might want to read “Gran Tierra Energy Inc. announces 2021 4Q & Year-End results”
There will be some operational changes in each location, and we would also like to highlight the most relevant ones.
- Acordionero: The first one is the assignment capital of $70 million for 2022 development activities. The next one is the plan to get all wells in production by the end of April 2022. Also, there are expectations on beginning the drilling of the subsequent 9-11 wells by the end of the month.
- Costayaco and Mosqueta: Grand Tierra has allocated capital of $40 million and $30 million, respectively. The purpose of it is for Costayaco 4-5 development wells and Mosqueta 3 development wells.