Gran Tierra Energy Inc. Announces Operations Update

 
TIDMGTE 
 
   CALGARY, Alberta, July 10, 2019 (GLOBE NEWSWIRE) -- Gran Tierra Energy 
Inc. ("Gran Tierra" or the "Company") (NYSE 
American:GTE)(TSX:GTE)(LSE:GTE) today announced an operations update. 
Production amounts are unaudited and on an average working interest 
before royalties ("WI") basis unless otherwise indicated. 
 
   Key Highlights 
 
 
   -- Southern Putumayo Blockades Lifted -- Production Restored: Gran Tierra 
      has been able to restore oil production from both the Suroriente and 
      PUT-7 Blocks, which is currently approximately 4,500 barrels of oil per 
      day equivalent ("BOEPD") 
 
   -- Acordionero Commissioning On-Track: The commissioning of the expansion of 
      Acordionero's central processing and water injection facilities, as well 
      as the installation of gas-to-power turbines ("Acordionero Projects"), 
      are progressing as planned with first oil flowing through the new 
      additional processing equipment on July 3, 2019; the remaining water 
      treatment and power systems are scheduled to be commissioned by July 15, 
      2019, which is expected to allow a rapid increase in water injection in 
      the Acordionero field up to 40,000 barrels of water injected per day 
      ("bwipd") in August 2019 
 
   -- Acordionero Near-Term Drilling Targeting Lisama E Sand: The Company is 
      currently drilling the AC-48 development oil well, which is targeting the 
      Lisama E Sand (currently no reserves assigned to this sand) which, if 
      successful, would add reserves and production; if the E Sands are not 
      productive, the well would be completed in the Lisama A 
 
   -- Total Company Production: Current production is approximately 34,500 
      BOEPD, an increase of 5,500 BOEPD from the previously reported average 
      level of 29,000 BOEPD (5-day average during June 13 to 17, 2019); 4,500 
      BOEPD of this increase is attributable to the Company bringing the 
      Suroriente and PUT-7 Blocks fully back on-line; for second quarter 2019, 
      Gran Tierra's average production was approximately 35,550 BOEPD 
 
   -- Planned Update to Guidance: Gran Tierra expects to update its guidance 
      with its second quarter 2019 results press release, which is scheduled to 
      be issued before market open on August 8, 2019; by that time the Company 
      expects to have fully assessed the startup of the Acordionero Projects 
 
   -- 3D Seismic Update: The planned 341 square kilometer ("km") 3D seismic 
      shoot has been operating across the Alea-1848A, the Nancy-Burdine-Maxine, 
      PUT-4, and PUT-25 Blocks; the program is over 80% surveyed on the ground 
      and shot-recording has been initiated; the program is scheduled to finish 
      recording in August 2019, with a processed 3D volume expected to be 
      interpreted in September 2019 
 
   -- ANH Bid Round Awards: Gran Tierra has won two blocks in the recent 
      Agencia Nacional de Hidrocarburos ("ANH") bid round in Colombia, the 
      LLA-85 Block in the Llanos Basin and the VMM-24 Block in the Middle 
      Magdalena Valley ("MMV") Basin; the Company believes these blocks may be 
      highly prospective 
 
   -- Exploration Drilling: during the second half of 2019, Gran Tierra plans 
      to drill one exploration well in the PUT-1 Block (100% WI) and to 
      participate in the drilling of one exploration well in the LLA-10 Block 
      (50% WI) 
 
   -- HSE Update: Surpassed over 7.7 million person-hours without a lost time 
      incident 
 
 
   Gary Guidry, President and Chief Executive Officer of Gran Tierra, 
commented, "We are very pleased that the Colombian national government 
has successfully negotiated an end to the blockades in the southern 
Putumayo. Gran Tierra continues to seek additional ways to amplify our 
business benefits for the people near our operations. Through our 
operations, local hiring policies and social programs, we are providing 
legal, economic and entrepreneurship opportunities. Gran Tierra has also 
been awarded four "Work for Taxes" projects by the Colombian government. 
Through this program, the Company plans to develop infrastructure 
projects for communities that will be credited against our future tax 
liabilities. With our ongoing commissioning of the Acordionero water 
injection and gas-to-power projects, recent development drilling, as 
well as the lifting of the blockades which were affecting the southern 
Putumayo producing fields, we expect to restore the Company's production 
back to over 40,000 BOEPD.  Bringing our southern Putumayo production 
fully back on-line has been an important first step in this forecasted 
production increase. The next crucial step to get production back on 
track is the expected positive oil rate response at Acordionero due to 
our planned major ramp-up in water injection in August 2019." 
 
   Acordionero Update (100% WI, Operator) 
 
 
   -- Commissioning On-Track: deg  The planned full commissioning of the 
      Acordionero Projects during July 2019 is expected to allow expanded water 
      injection from a current level of approximately 19,000 bwipd to 40,000 
      bwipd by August 2019 and the release of rental facilities, which is 
      expected to reduce operating costsdeg  Water injection of 40,000 bwipd is 
      expected to replace voidage from production in both the Lisama A and C 
      Sands, increase the field's oil production rate, sweep oil to the 
      producers, and enhance ultimate recovery efficiency of oil and gas in the 
      Acordionero fielddeg  Start-up of the 20 megawatt gas-to-power project at 
      the same time is expected to significantly enhance power reliability, 
      improve electric submersible pump ("ESP") performance and significantly 
      lower operating costsdeg  All of these activities are expected to restore 
      Acordionero's production back to levels achieved in first quarter 2019 
      and to grow production in 2020 
 
   -- Drilling Efficiencies Continue to be Achieved:deg  The AC-42 and AC-43 
      wells were both drilled to total depth ("TD") in 4.4 days, which was 0.6 
      days faster than AC-41 and 2.3 days faster than AC-40, respectively; the 
      cost per well to TD has improved by 22% over these last 4 wells at the 
      Central Pad deg  Both the AC-42 and AC-43 wells are expected to be on 
      production prior to the end of July 2019 
 
   -- Production: deg As previously announced on June 18, 2019, the Company 
      proactively shut-in two oil producers (AC-21 and AC-13) with high gas-oil 
      ratios ("GOR"); the gas was produced predominately from the Lisama C Sand, 
      where 20% of the original oil in place is currently booked;  in 
      AC-21, the Company has isolated production from Lisama C, replaced the 
      well's ESP and restored production from the Lisama A only; the 
      Company plans to convert the AC-13 to a gas injection well to maximize 
      the oil recovery factor in the field deg  The AC-18 well went off-line as 
      a result of an ESP failure on June 10, 2019 and is expected to be back on 
      production on or around July 21, 2019 
 
   -- Upcoming Drilling Schedule: Plans are in place to drill approximately 
      five additional oil producers, three water injectors, and one water 
      source well at Acordionero through to the end of 2019 
 
 
   Suroriente Update (52% WI, Operator) 
 
 
   -- Cohembi Facility Expansion: deg  As part of an expanded water flood 
      program, activities have commenced to expand the Cohembi water treatment, 
      injection and processing facilities under a two-phase expansion 
      programdeg  Phase I is focused on expanding current water treatment and 
      injection facilities, while Phase II is focused on fluid handling and 
      processing trains beyond central processing facilities limitations by 
      first quarter 2020deg  This expansion is expected to boost injection 
      capacity from a current level of 19,000 bwipd to 60,000 bwipddeg 
      Cohembi's oil production is expected to increase to over 4,000 BOPD over 
      the course of the next year as a result (the Cohembi field alone had May 
      2019 WI average production of  2,774 BOEPD)deg  Water treatment and 
      injection facility expansion (Phase I) are scheduled for completion 
      during fourth quarter 2019 
 
 
   Costayaco Update (100% WI, Operator) 
 
 
   -- The CYC-39 infill oil well was drilled and cased in 18 days, within one 
      day of the fastest well drilled in the field; the well is currently being 
      completed and is expected to be on production later in July 2019 
 
   -- The CYC-40 well is planned to be spud in late July 2019 and expected to 
      be put on production during August 2019 
 
 
   Appraisal/Development Update - Middle Magdalena Valley 
 
   Ayombero Update (100% WI, Operator) 
 
 
   -- The Ayombero-1 well in the Ayombero-Chuira field was recently 
      successfully cleaned out, re-perforated across the Galembo formation of 
      the La Luna Carbonate and has reinitiated long-term production testing; 
      during July 1 to 6, 2019, the well has flowed naturally at a controlled 
      average rate of 205 barrels of oil per day (18 degree API gravity) with 
      an average GOR of 227 standard cubic feet per barrel, water cut of 0.1% 
      and natural flowing wellhead pressure of 1,515 pounds per square inch; 
      the well performance is being carefully monitored to determine if 
      additional production increases could be achieved by opening up the 
      restricted choke further 
 
   -- Gran Tierra is contracting and importing a snubbing unit (equipment 
      capable of working with high pressure wells) in order to continue with 
      completion operations in both the Ayombero-2 and Ayombero-3 wells 
 
   -- The Company continues to be encouraged by the three Ayombero wells 
      drilled to date which have confirmed similar lithologies, oil saturations 
      and over-pressure in the Galembo Member of the La Luna Carbonate 
      reservoir, suggesting reservoir and structural continuity; the Company's 

      estimates of oil in place and prospective resources are unchanged by 
      these short-term issues 
 
 
   Exploration Update 
 
   Putumayo Basin 
 
 
   -- The planned 341 square km 3D seismic shoot has been operating across the 
      Alea-1848A, the Nancy-Burdine-Maxine, PUT-4, and PUT-25 Blocks; the 
      program is over 80% surveyed on the ground and shot-recording has been 
      initiated; the program is scheduled to finish recording in August 2019, 
      with a processed 3D volume expected to be interpreted in September 2019; 
      the Company has identified multiple prospects over the area and the 3D 
      seismic is expected to significantly de-risk the program; Gran Tierra 
      expects to commence exploration drilling on the blocks in the first 
      quarter of 2020 
 
   -- The Company expects to drill the Vonu Este well in the fourth quarter of 
      2019 on the PUT-1 Block (100% WI); this well is designed to target the 
      fractured A-Limestone and the U Sand; the Vonu-1 well has produced 
      approximately 800,000 barrels of oil from the A-Limestone and is still 
      producing over 500 BOEPD; the Costayaco-19 well in the Chaza Block, has 
      produced over 730,000 barrels of oil from the A-Limestone 
 
 
   Llanos Basin 
 
 
   -- The Company has been awarded the LLA-85 Block following the recent ANH 
      bid round; this block covers 136,400 acres within the prolific Llanos 
      Basin in Colombia, and is on trend with fields that produce medium to 
      light oil from the Mirador, Une and Gacheta Formations; the block is 
      currently 65% covered with 3D seismic and the Company has preliminarily 
      identified four leads on the block with plans to start the environmental 
      permitting process for the future required 3D seismic program; under the 
      terms of the award of the block, the Company is committed to undertaking 
      a 50 square km 3D seismic survey and one exploration well within a six 
      year exploration period 
 
   -- Gran Tierra expects to participate in a non-operated exploration well 
      (50% WI) in the LLA-10 Block in the second half of 2019 
 
 
   MMV Basin 
 
 
   -- The Company has also been awarded the VMM-24 Block in the same ANH bid 
      round; the block covers 26,867 acres contiguous to Gran Tierra's core 
      assets in the prolific MMV Basin and is on-trend with the Colon, Juglar 
      and Acordionero oil fields, which produce medium gravity oil from 
      reservoirs such as the Umir, Lisama & La Paz sandstones intervals; this 
      block is close to Gran Tierra's facilities and other existing 
      infrastructure; the Company has preliminarily identified two leads on the 
      block and plans to start the environmental licensing process as soon as 
      possible; the Company is committed to undertaking an 80 square km 3D 
      seismic survey and two exploration wells within a six year exploration 
      period 
 
   -- The Company plans to test the Lisama E Sand in the AC-48 well, which is 
      currently being drilled; in a previous Acordionero well, over 90 feet of 
      potential pay was identified based on cuttings, oil shows and mud gas 
      data, but the zone was over-pressured and was not tested 
 
 
   Contact Information 
 
   For investor and media inquiries please contact: 
 
   Gary Guidry, Chief Executive Officer 
 
   Ryan Ellson, Executive Vice President & Chief Financial Officer 
 
   Rodger Trimble, Vice President, Investor Relations 
 
   [phone] 
 
   [e-mail] 
 
   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. 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" "guidance," "should," "would," 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: the Company's strategies, operations, and developments, 
including planned drilling and operation activities, the commissioning 
and expected benefits of the Acordionero Projects, the anticipated 
benefits of new blocks, new technology and techniques, and development 
wells in new areas, the Company's drilling plans and expected results, 
the Company's expectations as to future production amounts, the 
announcement of new guidance. 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 Colombia and 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 and other local events; 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 for the year ended 
December 31, 2018, as amended, and its other filings with the Securities 
and Exchange Commission. 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 
law. 
 
 
 
 

(END) Dow Jones Newswires

July 10, 2019 06:00 ET (10:00 GMT)

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