Gran Tierra Energy Inc. Announces Formal Signing of Ecuador Blocks

Source Press Release
Company Gran Tierra Energy Inc. 
Tags Licensing Rounds, Deals, Upstream Activities
Date May 22, 2019

Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) is pleased to announce that the Company has officially signed Participation Contracts (“Contracts”) for three blocks located in Ecuador. The three blocks were preliminarily awarded to the Company in March 2019 by the Ministerio de Energia y Recursos Naturales No Renovables (“MERNR”) in the Ronda Intracampos. The three blocks are located in the Oriente Basin and are approximately 140,000 acres in total area, creating a contiguous acreage position extending from Gran Tierra’s existing assets in the Putumayo Basin in Colombia.

Key Highlights

  • Establishes the Company as one of the top landholders in the play trend which extends from the Putumayo Basin in Colombia through to the Oriente Basin in Ecuador; the Putumayo and Oriente Basins are the same geological basin, with different names due to the international border between Colombia and Ecuador

  • Further strengthens and consolidates Gran Tierra’s position in what the Company considers is a conventional oil resource fairway; Ecuador has the same multi-zone potential in carbonate and sandstone reservoirs found in the Putumayo Basin, including the prolific Napo Formation (Villeta equivalent) and Hollin Formation (Caballos equivalent), which contribute to the majority of reserves and production in the Oriente-Putumayo petroleum system

  • Gran Tierra has secured 100% working interest (“WI”) and operatorship in the Charapa, Chanangue and Iguana Blocks (collectively, the “Blocks”), which increases Gran Tierra’s gross acreage position in the conventional resource plays in Ecuador and Colombia from 1.1 million to over 1.2 million gross acres

  • Gran Tierra expects to commence its Ecuador exploration drilling program in 2020; this new exploration program is expected to be fully funded through the Company’s forecasted net cash provided by operating activities

  • Contiguous acreage extending from Colombia’s Putumayo Basin into Ecuador’s Oriente Basin provides Gran Tierra with the ability to potentially construct strategic gathering infrastructure on operated 100% WI acreage, which would allow the Company to potentially utilize the existing infrastructure in Ecuador

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented, "This is a momentous event for Ecuador, one that marks material change for the oil and gas industry, and we are proud to be a part of this initiative. Our entry into Ecuador is very much aligned with Gran Tierra’s strategy – focusing on proven conventional hydrocarbon basins, with access to established infrastructure, in a strong stable economic environment, combined with a highly competitive fiscal regime. The Blocks extend our dominant position in Colombia’s Putumayo Basin into Ecuador’s Oriente Basin, with assets that are highly complementary to our existing land base. Ecuador represents a unique opportunity in terms of scale for Gran Tierra. We believe we are acquiring significant future potential exploration upside which could enhance our long-term growth strategy and be an excellent fit with Gran Tierra’s diverse reserves and resources base in Colombia.”

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd