- 2024 Capital Expenditure Budget of $210-240 Million and Expected 2024 Cash Flow1 of $280-320 Million in Base Case
- Plan to Drill 13-17 Development Wells and 6-9 High Impact Near-Field Exploration Wells
- Forecast 2024 Production of 32,000-35,000 BOPD, Increases of 4% from 2023, 11% from 2022 and 28% from 2021
- Forecast 2024 Free Cash Flow2 of $175 Million Before Exploration, $75 Million After Exploration in Base Case
- Plan to Allocate Up to 50% of Free Cash Flow to Share Buybacks
- Met 2023 Production Guidance by Achieving 2023 Total Company Average Production of Approximately 32,650 BOPD, an Increase of 6% from 2022
- Strong Results from the Costayaco-56 Well Producing Over 2,000 BOPD
- Achieved Company's Best Safety Performance on Record in 2023
- Development Drilling Campaigns Underway in Acordionero and Costayaco Fields with Encouraging Results
CALGARY, Alberta, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE:GTE) (TSX:GTE) (LSE: GTE) today announced its 2024 capital budget and production guidance. All dollar amounts are in United States dollars and all production volumes are on a working interest before royalties basis and are expressed in barrels ("bbl") of oil per day ("BOPD"), unless otherwise stated.
Key Highlights:
- 2024 Guidance:
- Gran Tierra is forecasting the following ranges for the Company's 2024 budget:
2024 Budget | Low Case | Base Case | High Case |
Average Brent Oil Price ($/bbl) | 70.00 | 80.00 | 90.00 |
Total Company Production (BOPD) | 32,000-35,000 | 32,000-35,000 | 32,000-35,000 |
Operating Netback4 ($ million) | 380-420 | 450-490 | 530-570 |
EBITDA3 ($ million) | 335-395 | 400-460 | 480-540 |
Cash Flow1 ($ million) | 240-280 | 280-320 | 330-370 |
Total Capital ($ million) | 190-220 | 210-240 | 210-240 |
Free Cash Flow2 ($ million) | 20-90 | 40-110 | 90-160 |
Number of Development Wells (gross) | 13-17 | 13-17 | 13-17 |
Number of Exploration Wells (gross) | 4-7 | 6-9 | 6-9 |
- 2024 Base Capital Program – Profitable Production Growth and High Impact Near-Field Exploration:
- Building on a successful development campaign in 2023, Gran Tierra plans to continue to grow production, while also seeking to add new reserves and future growth through exploration. A key area of focus for the Company, that is underpinned by the 2023 announcement of the Suroriente Continuation Agreement, is the South Putumayo and Ecuador development and exploration corridor which includes the Suroriente, Alea-1848A, Put-7, Charapa and Chanangue Blocks. This corridor offers material growth potential through development and exploration. This core growth area for the Company is expected to provide years of drilling opportunities and profitable production growth.
- Development: Gran Tierra expects to allocate approximately 55-60% of its 2024 capital program towards development activities in its core assets in Colombia, including:
- Acordionero: the Company plans to drill 6 to 8 development wells in the Acordionero oil field in the Middle Magdalena Valley Basin. Acordionero's 2024 plans also include drilling pad extensions and ongoing waterflood optimization.
- Costayaco: in this oil field, located in the northern Putumayo Basin, Gran Tierra plans to drill 3 to 5 development wells.
- Suroriente: in the southern Putumayo Basin, Gran Tierra plans to commence development drilling later in second half 2024 in the Cohembi oil field located in the Suroriente Block, which would be the first wells drilled by the Company in this block since 2018. In addition to development drilling, the Company is also planning facility expansion, an increase in gas to power generation, new development well pads and social investment in the area. ...