CALGARY, Alberta, March 12, 2019 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE American:GTE)(TSX:GTE)(LSE:GTE) is pleased to announce that, based on preliminary results, the Company has made a new-country entry into Ecuador through the submission of winning bids for a total of three blocks, which were offered by the Ministerio de Energia y Recursos Naturales No Renovables ("MERNR") in today's Ronda Intracampos. The three blocks are located in the Oriente Basin and are approximately 140,000 acres in total area, creating a contiguous acreage position extending from Gran Tierra's existing assets in the Putumayo Basin in Colombia. Final award of these blocks is contingent upon regulatory approvals and the execution of the Participation Contracts (the "Contracts").
- Establishes the Company as one of the top landholders in the play trend which extends from the Putumayo Basin in Colombia through to the Oriente Basin in Ecuador; the Putumayo and Oriente Basins are the same geological basin, with different names due to the international border between Colombia and Ecuador
- Further strengthens and consolidates Gran Tierra's position in what the Company considers is a conventional oil resource fairway; Ecuador's Napo Formation is equivalent to the Villeta Formation in the Putumayo Basin and has the same multi-zone potential in carbonate and sandstone reservoirs
- Gran Tierra has secured 100% working interest ("WI") and operatorship in the Charapa Block, Chanangue Block and Iguana Block (collectively, the "Blocks"), which increases Gran Tierra's gross acreage position in the conventional resource plays in Ecuador and Colombia from 1.2 million to over 1.3 million gross acres
- Gran Tierra's winning bids consisted of a work program bid by block, including the drilling of a total of 14 exploration wells over four years across the Blocks, and the Company's share of revenues which is tied to the Oriente Blend Oil Price and to production volumes; the Contracts are a sliding scale, with the Company take ranging from 87.5% at US$30 per barrel to 40% at US$120 per barrel; there is no consideration payable upon the signing of the Contracts and cash outlays begin with the commencement of the work program
- Gran Tierra expects to commence its Ecuador exploration drilling program in 2020 with no anticipated changes to the Company's previously issued 2019 guidance; this new exploration program is expected to be fully funded through the Company's forecasted net cash provided by operating activities
- Through the preliminary award of the Charapa Block, Gran Tierra establishes a proven position in the B-Limestone play trend; the Charapa field has had historic oil production from the B-Limestone over a 17-year period
- Contiguous acreage extending from Colombia's Putumayo Basin into Ecuador's Oriente Basin provides Gran Tierra with the ability to potentially construct strategic gathering infrastructure on 100%-operated acreage, which would allow the Company to potentially utilize the existing infrastructure in Ecuador
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented "We are excited about our new-country entry into Ecuador, an achievement which aligns with Gran Tierra's strategy - focusing on proven conventional hydrocarbon basins, with access to established infrastructure, in a strong stable economic environment, combined with a highly competitive fiscal regime. The Blocks would extend our dominant position in Colombia's Putumayo Basin into Ecuador's Oriente Basin, with assets that are highly complementary to our existing land base. Ecuador represents a unique opportunity in terms of scale for Gran Tierra. With our winning bids for the Blocks, we believe we are acquiring significant future potential exploration upside which could enhance our long-term growth strategy and be an excellent fit with Gran Tierra's diverse reserves and resources base in Colombia."
Below is a link to a map of the preliminarily awarded Blocks to Gran Tierra.
Link 1: Gran Tierra's New Land Position in the Oriente Basin
For investor and media inquiries please contact:
Gary Guidry, Chief Executive Officer
Ryan Ellson, Chief Financial Officer
Rodger Trimble, Vice President, Investor Relations
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company focused on oil and natural gas exploration and production in Colombia and Ecuador. The Company is focused on its existing portfolio of assets in Colombia and Ecuador and will pursue new growth opportunities throughout Colombia and South America, leveraging our financial strength. The Company's common shares trade on the NYSE American, Toronto Stock Exchange and 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 does not constitute a part of this press release. Investor inquiries may be directed to [email protected] or (403) 265-3221.
Gran Tierra's Securities and Exchange Commission filings are available on the Securities and Exchange Commission 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 www.morningstar.co.uk/uk/nsm.
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", "intend", "will" 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: our ability to complete the Contracts, the anticipated benefits of the Blocks and the Contracts to Gran Tierra and its shareholders, our expected timeframes for obtaining environmental and other regulatory approvals, our expected timeframes for commencing drilling, our ability to construct gathering infrastructure or access pipelines or other transport facilities, and any expected production from the Blocks. 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, the accuracy of testing and production results and seismic data, pricing and cost estimates (including with respect to commodity pricing and exchange rates), rig availability, the effects of waterflood and the general continuance of assumed operational, regulatory and industry conditions in 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: sustained or future declines in commodity prices and potential resulting future impairments and reductions in proved reserve quantities and value; Gran Tierra's operations are located in South America, and unexpected problems can arise due to guerrilla activity; technical difficulties and operational difficulties may arise which impact the production, transport or sale of our products; geographic, political and weather conditions can impact the production, transport or sale of our products; the risk that current global economic and credit conditions may impact oil prices and oil consumption more than Gran Tierra currently predicts; the ability of Gran Tierra to execute its business plan; the risk that unexpected delays and difficulties in developing properties may occur; the timely receipt of regulatory or other required approvals for our activities; the failure of exploratory drilling to result in commercial wells; unexpected delays due to the limited availability of drilling equipment and personnel; the risk that oil prices could continue to fall, or current global economic and credit market 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; 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 filed February 27, 2019. These filings are available on the Securities and Exchange Commission 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.