Blog Coverage Gran Tierra Shares its Production and Cost Guidance for 2017

Upcoming AWS Coverage on Panhandle Oil and Gas Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 20, 2016 / Active Wall St. blog coverage looks at the headline from Gran Tierra Energy Inc. (NYSE: GTE) (“Gran Tierra”) as the Canadian Oil & Gas Company revealed on December 19, 2016, its Production and Cost Guidance for 2017. Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.

One of Gran Tierra Energy’s competitors within the Independent Oil & Gas space, Panhandle Oil and Gas Inc. (NYSE: PHX), reported on December 12, 2016, its financial and operating results for the fiscal year ended Sept. 30, 2016. AWS will be initiating a research report on Panhandle Oil and Gas in the coming days.

Today, AWS is promoting its blog coverage on GTE; touching on PHX. Get all of our free blog coverage and more by clicking on the links below:

http://www.activewallst.com/registration-3/?symbol=GTE

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Calgary, Canada-based Gran Tierra, along with its subsidiaries, is an international energy Company dealing in oil and gas acquisition, exploration, development and production. It owns oil and gas assets in Colombia, Peru, and Brazil. Gran Tierra. The Company, which was incorporated in June 2003, was earlier known as Goldstrike Inc.

In September 2005, Gran Tierra first acquired oil and gas producing and non-producing properties in Argentina followed by acquisitions in Colombia, Peru, Argentina and Brazil. The Company’s largest acquisitions are Solana Resources Limited which was acquired in 2008 and Petrolifera Petroleum Limited which was acquired in 2011. Gran Tierra sold off their Argentinian business in 2014 and reduced spending on their assets in Brazil and Peru. Gran Tierra is now completely focused on its business in Columbia.

Sharing his thoughts on the future plans, Gary Guidry, President and CEO of Gran Tierra said:

“Our 2017 capital budget is expected to be fully funded from cash from operating activities and to deliver strong organic production and reserves growth as we drill development and exploration oil wells throughout our newly diverse Colombian opportunity set.”

The Key Points of the Cost Guidance / Capital Budget for 2017

For the calculations, the Company has assumed that Brent oil price to be $56.00 per barrel. Based on this price, the company forecasts that its operations will generate cash revenues in the range of $240 million – $260 million. Against this the Company’s capital budget is expected to be in the range of $200 million – $250 million. Gran Tierra plans to undertake drilling of 30 – 35 exploration wells within the next three years. The costs of drilling the new wells would be funded using the cash generated from the Company’s production.

Gran Tierra plans to focus on their business in Columbia where it operates over 90% of its production and 23 out of 33 blocks. The capital budget for 2017 is concentrated on this business and 93% of the budget allocations have been planned for this area. This represents a capital budget of $185 million – $235 million for operations in Columbia.

Of the total spending outlay, Gran Tierra plans to allocate 57% of its funds for development activities and balance 43% on exploration activities. An outlay if 15% – 40% would be made by the Company on facilities expansion and mainly at its Acordionero field. Gran Tierra plans to increase the production capacity at Acordionero field to 15,000 barrels of oil equivalent per day (“boepd”) by the end of 2017. The capital budget also assumes that at least six of the Company’s drilling rigs will remain operational in 2017.

The Key Points of the Production guidance for 2017

Gran Tierra expects that its assets from Columbia and Brazil will yield an average working interest (“WI”) production before royalties in the range of 34,000 – 38,000 boepd in 2017. Out of this the production from Brazil’s contribution is 1,200 – 1,500 boepd. This translates to a 25% to 40% increase in production when compared to the average WI production before royalties of 27,200 boepd in 2016.

The Production guidance figures are representing only the current operations and expected development projects. Any volumes resulting from the success from explorations is not included.

Recent development in the Company

Gran Tierra made three strategic acquisitions in 2016. In November 2016, Gran Tierra made a combined winning bid of $30.4 million for two blocks – the Santana and Nancy-Burdine-Maxine Blocks located in the Putumayo Basin. The acquisition was the result of a winning bid made by Gran Tierra on the live electronic auctions which were conducted by Colombia’s national oil company Ecopetrol S.A. In July 2016, Gran Tierra acquired PetroLatina Energy Ltd. for $525 million in cash. PetroLatina is a private, independent exploration and production company with assets primarily in the Middle Magdalena basin of Colombia.

Gran Tierra raised $130 million from the sale of its shares through a public offering at $3.00 per share in November 2016. The funds raised would be used by the company to pay off its debts and other corporate expenses.

On November 07, 2016, Gran Tierra had announced the results for the quarter ended on September 30, 2016. It reported revenue of $48.2 million for the third quarter from its operating activities. Gran Tierra’s WI production before royalties for third quarter 2016 averaged 25,835 barrels of oil equivalent per day.

Stock Performance

At the close of trading session on December 19, 2016, Gran Tierra Energy’s stock price ended the day flat at $2.91. A total volume of 869.48 thousand shares were exchanged during the session. The company’s share price has rallied 24.89% in the past twelve months and 34.10% on YTD basis. The stock currently has a market cap of $1.13 billion.

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