This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Gran Tierra Energy Announces Production, Capital Budget And Exploration Update

Second quarter production impacted by OTA downtime

CALGARY, July 12, 2012 /PRNewswire/ - Gran Tierra Energy Inc. ("Gran Tierra Energy") (NYSE MKT: GTE, TSX: GTE), a company focused on oil exploration and production in South America, today provided a production and capital budget update and updates for its exploration operations in Colombia.

Production Update

Preliminary corporate production estimates, net after royalties ("NAR") and before changes in inventory and losses, for the three months ending June 30,2012 averaged approximately 16,300 barrels of oil equivalent per day (" BOEPD") consisting of approximately 12,350 BOEPD in Colombia, 3,800 BOEPD in Argentina and 150 BOEPD in Brazil.   Approximately 96% of this production consists of light oil, with the balance consisting of natural gas.  Due to changes in inventory and pipeline losses, sales volumes in the quarter may be lower than stated production.

Second quarter 2012 production and sales have been impacted by oil delivery restrictions due to disruptions on the Ecopetrol-operated Oleoducto Transandino (" OTA") pipeline in Colombia, the latest of which occurred on July 3, 2012.  Gran Tierra Energy continued production at a reduced rate while the OTA pipeline was down, selling a portion of its crude through trucking and storing excess crude. The OTA pipeline continues to be offline with production expected to return to normal levels early next week.

Due to the repeated OTA pipeline disruptions that have occurred to date, Gran Tierra Energy does not expect to attain its previously announced expected average production for 2012 of approximately 20,000 - 21,000 BOEPD NAR. Current production capacity stands at approximately 21,000 BOEPD NAR; uninterrupted consolidated production in April 2012 averaged approximately 20,700 BOEPD NAR before inventory adjustments. Revised expected average production guidance will be provided once stable production is established; exit production rate of 20,000 to 21,000 BOEPD NAR remains unchanged.

Capital Budget Update

In connection with curtailed production and lower commodity prices experienced this year, Gran Tierra Energy is targeting approximately $60 million capital expenditure deferments from its previously announced 2012 budget of $440 million.   Deferred expenditures are expected to be from areas which do not impact production capacity or near term high value reserve addition projects.

Exploration Update

Garibay Block, Llanos Basin, Colombia (Gran Tierra Energy 50% working interest, CEPSA 50% working interest and operator)

The Bordon-1 exploration well reached true vertical depth of 9,680 feet on June 16, 2012. Mud log and open hole log data acquired during and after drilling indicate only non-commercial hydrocarbons present.  The Bordon-1 well was plugged and abandoned.

Azar Block, Putumayo Basin, Colombia (Gran Tierra Energy 40% WI and operator, Lewis Energy 40%, Gold Oil 20%)

La Vega Este-1 oil exploration well is currently drilling ahead after initiating sidetrack operations, and is now expected to reach total depth in early August.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs