Gran Tierra scoops up Putumayo blocks

Gran Tierra late on Monday announced it had submitted two winning bids in the Ronda Campos Ecopetrol 2016.

The auction saw Gran Tierra pick up the Santana and Nancy-Burdine-Maxine blocks for a combined USD 30.4 million. It will now have to submit a purchase agreement to Ecopetrol by December 7 in order to finalise the deal for a 100% working interest.

While the fields have a 2016 average output before royalties of some 600 bopd, Gran Tierra said it can raise output using waterflooding. The acquired gross acreage covers an area of some 111 square kilometres. The assets’ pipeline capacity is 26,000 bopd and comes with a storage capacity of 25,000 barrels.

Also on Monday, the Ministry of Mines and Energy’s planning unit, UPME, said Colombia would require annual investments of USD 6 billion per year until 2035 if it is to add natural gas reserves.