Gran Tierra details 2017 plans
CALGARY, December 20, 2016 – Gran Tierra unveiled its strategy for 2017 late on Wednesday, with the company targeting a major increase in production.
The company’s capital spending budget for next year will hover between USD 200 million and USD 250 million, 93% of which will be directed towards operations in Colombia. Fifty-seven percent of the budget will be allocated to development while 43% is earmarked for exploration.
Gran Tierra aims to drill as many as 23 wells in 2017 using six rigs. The budget call for 12-14 development wells and 7-9 exploration wells, all in Colombia. Between 30 and 35 exploration wells in total are planned for the next three years.
The company expects its 2017 net production to increase by 25-40% to between 34,000 boepd and 38,000 boepd. In order to cope with increased output, Gran Tierra will be investing in expanding the production capacity of its facilities at the Acordionero field to 15,000 boepd.
Commenting on the company’s operations, President and CEO Gary Guidry said the 2017 campaign builds on a successful 2016 strategy. “Gran Tierra operates over 90 percent of its production and 23 out of 33 blocks in Colombia. Therefore, we have significant control and flexibility on capital allocation and timing. The Company now has a robust portfolio of reserves to develop that can be paced with oil price recovery,” Guidry noted.
“We expect to further delineate the exciting new “A” Limestone play at Costayaco. We will also continue drilling “N” sands and “A” Limestone exploration prospects throughout the Putumayo Basin where our first “N” sands well, the Cumplidor-1 on the Putumayo-7 Block, was declared a discovery on December 12, 2016,” Gran Tierra’s chief executive said of next year’s plans.
“In the Middle Magdalena Valley Basin, we anticipate an ongoing ramp up in production at our Acordionero field, where results to date have exceeded our original expectations. At Acordionero, we expect to continuously drill both development and water injection wells throughout 2017 and beyond.”