2014 Production Within Guidance,
Exploration and Appraisal Well Results in Colombia and Peru
CALGARY, Jan. 20, 2015 /PRNewswire/ - Gran Tierra
Energy Inc. ("Gran Tierra Energy") (NYSE MKT, TSX: GTE), a
company focused on oil exploration and production in South America, today provided an operations
update.
Production
Oil and natural gas production from continuing operations
averaged approximately 25,200 barrels of oil equivalent per day
("BOEPD") gross working interest ("WI") in 2014, or
approximately 19,300 BOEPD net after royalties ("NAR")
before adjustment for inventory changes and losses, or
approximately 18,500 BOEPD NAR adjusted for inventory changes and
losses. Approximately 99% of the 2014 production is oil, with
the balance consisting of natural gas.
Colombia
Chaza Block, Putumayo Basin
(100% WI and Operator)
The Eslabón Sur exploration well reached a true vertical depth
of 9,708 feet. Mud log and electric log data acquired during and
after drilling indicate only non-commercial hydrocarbons present in
the primary Caballos Reservoir. The secondary Kg Reservoir was
encountered twice as a result of faulting in the structure.
The upper Kg Reservoir encountered 24 feet of net oil pay and the
lower Kg Reservoir encountered 4 feet of net oil pay. The
Eslabón Sur well has been suspended for further evaluation of these
pay zones.
The Moqueta-16 and Moqueta-17 wells have successfully been
drilled, with Moqueta-16 tied in and currently on production, and
Moqueta-17 currently being tested.
Putumayo-1 Block, Putumayo Basin (55% WI and
Operator)
Work continues at the Vonu-1 exploration well location, which
will target the same Cretaceous sandstones encountered at the
Costayaco and Moqueta discoveries. Gran Tierra Energy expects
to begin drilling this well in the second quarter of 2015.
Peru
Block 95, Bretaña Field (Gran Tierra Energy 100% WI and
Operator)
The Bretaña Sur appraisal well completed drilling operations on
the L4 lobe on the Bretaña field and encountered approximately six
feet of oil pay above the oil-water contact in the Vivian Sandstone
Reservoir. This oil column is less than what was estimated by
Gran Tierra Energy prior to drilling and Gran Tierra Energy expects
the Bretaña Sur results will remove the Possible reserves that have
been booked for the Bretaña field. A reduction in Probable
reserves in the field is also expected, the magnitude of which is
unknown at the moment. Gran Tierra Energy will prepare a revised
reserve report and information respecting the exact amount of the
reduction in Gran Tierra Energy's reserves will be provided after
new mapping and the reservoir characterization is updated.
This is expected to follow our year-end 2014 reserve report, which
will not include this new data as it has only become available
after year-end.
Gran Tierra Energy is continuing with a design for a revised
development scenario based upon new resource estimates that
contemplates a field development from the existing northern (L2)
platform and associated oil processing facilities, consistent with
the first stage of the original draft development plan.
Equipment for the first long term test ("LTT") production
from the Bretaña discovery well has been delivered to the L2
platform and testing of facility components has begun, with first
production expected to begin in the second quarter of 2015.
The startup time, duration and level of production for the LTT may
be adjusted further within the context of the operating and oil
price environment at that time.
About Gran Tierra Energy Inc.
Gran Tierra Energy is an international oil and gas exploration
and production company, headquartered in Calgary, Canada, incorporated in the United States, trading on the NYSE MKT
(GTE) and the Toronto Stock Exchange (GTE), and operating in
South America. Gran Tierra Energy
holds interests in producing and prospective properties in
Colombia, Peru, and Brazil. Gran Tierra Energy has a strategy that
focuses on establishing a portfolio of producing properties, plus
production enhancement and exploration opportunities to provide a
base for future growth.
Gran Tierra Energy's Securities and Exchange Commission filings
are available on a web site maintained by the Securities and
Exchange Commission at http://www.sec.gov and on SEDAR at
http://www.sedar.com.
Forward Looking Statements and Advisories
This news release contains certain forward-looking information
and forward-looking statements (collectively,
"forward-looking statements") under the meaning of applicable
securities laws, including Canadian Securities Administrators'
National Instrument 51-102 - Continuous Disclosure
Obligations and the United States Private Securities Litigation
Reform Act of 1995. The use of the words "will", "expect", and
"anticipate" and derivations thereof and similar terms identify
forward-looking statements. In particular, but without limiting the
foregoing, this news release contains forward-looking statements
regarding: anticipated drilling and the expected timing of drilling
activities and results; the timing of first production from the
Bretaña discovery; Gran Tierra Energy's reserves relating the
Bretaña field including the expectation that Possible reserves will
be removed and Probable reserves will be reduced and that Gran
Tierra Energy will prepare a revised reserve report and provide
more detailed information following its year-end 2014 reserve
report. Statements relating to "reserves" and "resources" are
forward looking statements as they involve the implied assessment,
based on estimates and assumptions that the reserves and resources
described exist in the quantities predicted or estimated and can be
profitably produced in the future.
The forward-looking statements contained in this news release
reflect several material factors and expectations and assumptions
of Gran Tierra Energy including, without limitation: assumptions
relating to log evaluations; that Gran Tierra Energy will continue
to conduct its operations in a manner consistent with past
operations; the accuracy of reserve and resource estimates; the
accuracy of testing and production results and seismic data; the
effects of certain drilling techniques; current cost and price
estimates; and the general continuance of current or, where
applicable, assumed operational, regulatory and industry
conditions. Gran Tierra Energy believes the material factors,
expectations and assumptions reflected in the forward-looking
statements are reasonable at this time but no assurance can be
given that these factors, expectations and assumptions will prove
to be correct.
The forward-looking statements contained in this news release
are subject to risks, uncertainties and other factors that could
cause actual results or outcomes to differ materially from those
contemplated by the forward-looking statements, including, among
others: test results provide only an indication of resource amounts
and are not conclusive as to actual resource amounts, which may be
substantially different than indicated by the test results; Gran
Tierra Energy's operations are located in South America where unexpected problems can
arise due to guerilla activity and labour disruptions; unexpected
technical difficulties and operational difficulties may occur,
which could impact or delay the completion or continuation of
drilling; geographic, political and weather conditions can
interrupt drilling, which could impact or delay the commencement or
continuation of drilling; the risk that current global economic and
credit market conditions may impact oil prices and oil consumption
more than Gran Tierra Energy currently predicts, which could cause
Gran Tierra Energy to change its current drilling, production and
testing plans; and production data should be considered preliminary
until a full well test interpretation has been done. Further
information on potential factors that could affect Gran Tierra
Energy are included in risks detailed from time to time in Gran
Tierra Energy's Securities and Exchange Commission filings,
including, without limitation, under the caption "Risk Factors" in
Gran Tierra Energy's Quarterly Report on Form 10-Q filed
November 5, 2014. These filings are
available on a Web site maintained by the Securities and Exchange
Commission at http://www.sec.gov and on SEDAR at
www.sedar.com. The forward-looking statements contained
herein are expressly qualified in their entirety by this cautionary
statement. The forward-looking statements included in this press
release are made as of the date of this press release and Gran
Tierra Energy 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 securities legislation.
SOURCE Gran Tierra Energy Inc.