Gran Tierra Energy Inc.
(“Gran Tierra” or
the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) is
pleased to report that another significant milestone has been
achieved in Ecuador with a seventh successful oil discovery further
confirming the significant potential of the Arawana / Zabaleta
field area. In addition, we are excited to announce that Gran
Tierra (by way of its wholly-owned subsidiary) has entered into a
purchase and sale agreement with Logan Energy Corp.
(“
Logan”) (TSXV:LGN) pursuant to which Logan would
acquire 50% and operatorship of a portion of Gran Tierra’s
Simonette Montney assets (the “Assets”) for approximately C$52
million in cash, subject to customary adjustments. After the
closing of the Transaction, Gran Tierra would retain 50 percent
working interest in the Assets. The Transaction provides a
growth-focused platform to advance Gran Tierra’s Montney
development and is aligned with the Company’s corporate strategy of
long-term value creation. All dollar amounts are in Canadian
dollars, and production amounts are on an average working interest
(“
WI”) before royalties basis unless otherwise
indicated. Per barrel (“
bbl”) and bbls of oil
equivalent per day (“
BOEPD”) amounts are based on
WI sales before royalties.
Message to Shareholders
Gary Guidry, President and Chief Executive
Officer of Gran Tierra commented, “Gran Tierra is excited to
announce its seventh Ecuador oil discovery from the Zabaletea-K1
well. This well was a pivotal exploration well that has further
substantiated and delineated the Arawana / Zabaleta field area. The
Zabaleta-K1 was drilled over 4 kilometers from the Arawana-J1 well
drilled earlier this year and was charged with oil highlighting the
magnitude of this discovery. The success of this well solidifies
Gran Tierra’s understanding of the field area and will be a key
pillar of development growth plans in South America for years to
come.”
Seventh Ecuador Oil Discovery
Substantiates Significant Potential in the Arawana / Zabaleta Field
Area
-
The Zabaleta-K1 well is the fourth exploration well drilled in the
Chanangue Block and marks the seventh oil discovery by Gran Tierra
in Ecuador.
-
The successful Zabaleta test further validates the proven Basal
Tena geological model 4 kilometers away from Arawana-J1 and
supports the significant potential of the Arawana / Zabaleta
productive trend.
-
Gran Tierra has run production casing, cemented and perforated the
Basal Tena oil zone and has begun production testing.
-
The Basal Tena oil zone was perforated over 21.5 ft of reservoir
with 12.8 ft of net reservoir based on log evaluation. A jet pump
was run and the well has produced at stabilized rates over 24 hours
at 1,105 bbls of oil per day, 17-degree API gravity oil, a 2% water
cut, and a gas-oil ratio of 59 standard cubic feet per stock tank
barrel.
-
The rig has been moved to drill the Zabaleta Oeste exploration well
which was spud on November 21, 2024, which marks the fulfillment of
the final exploration commitment in the Chanangue block.
Message to Shareholders
“We are also thrilled to announce the sale of a
portion of our interest in the Simonette Montney play while keeping
a material stake in its future growth. This strategic partnership
with a top-tier operator, who already has established
infrastructure in the area, will significantly accelerate
development and generate near-term cash flow. We intend to use a
portion of the proceeds to deliver value to our shareholders
through development of other key assets in the portfolio and share
buybacks, while also strengthening our balance sheet by reducing
net debt. We are also pleased to monetize by diluting half of our
interest in one of the assets recently acquired in the i3 Energy
acquisition by selling approximately 4 percent of production, and
1P reserves we acquired for approximately 19 percent of total
consideration while still maintaining material interest and value
in the assets. This transaction validates Gran Tierra’s position as
a top-tier growth focused mid cap E&P company,” commented Gary
Guidry, President and Chief Executive Officer of Gran Tierra.
Strategic Rationale
-
Accelerates Simonette Asset Development: Leverages
pre-development work and infrastructure completed by Logan to
accelerate drilling on the Simonette Assets into the fourth quarter
of 2024 from the first quarter of 2026.
-
Partnering with a Leading Montney Operator:
Simonette operations will be spearheaded by an industry-leading
Montney oil producer with significant operating experience and
proven track record of success.
-
Strategic Infrastructure Already In-Place: Gain
access to Logan’s area infrastructure, which eliminates the need
for new projects, reduces upcoming capital spends and accelerates
asset development timelines and value.
-
Synergistic Operations Drive Cost Savings: Cost
reduction across the combined asset base led by increased
development scale, shared pad sites, personnel efficiencies,
gathering pipelines and access to infrastructure.
-
Attractive Transaction Metrics: Premium value
realized for the Assets with an opportunity to capture additional
upside through long-term asset development.
Disposition Highlights:
|
|
100% WI |
Asset Sold 50% WI |
Consideration2 |
|
- |
$52 million |
|
|
|
|
Net Sections of Land |
|
49 |
25 |
|
|
|
|
PDP reserves |
|
1.6 MMBOE |
0.8 MMBOE |
1P reserves |
|
7.8 MMBOE |
3.9 MMBOE |
2P reserves |
|
27.6 MMBOE |
13.8 MMBOE |
|
|
|
|
|
|
NPV AT 10% |
NPV AT 10% |
PDP |
|
$8.8 million |
$4.4 million |
1P |
|
$55.0 million |
$27.5 million |
2P |
|
$244.6 million |
$122.3 million |
|
|
|
|
Q3 2024 Production |
|
1,590 BOEPD |
795 BOEPD |
|
The Company maintains a 50% working interest in
the Assets, which include approximately 25 net sections of
Simonette Montney lands with 0.8 million bbls of oil equivalent
(“MMBOE”) of Proved Developed Producing
(“PDP”) reserves, 3.9 MMBOE of Proved
(“1P”) reserves and 13.8 MMBOE of
(“2P”) reserves, in each case, as at July 31,
20241. On a net present value discounted by 10% after tax basis,
the Assets were valued by GLJ Ltd. at $4.4 million for Proved
Developed Producing reserves, $27.5 million for Proved reserves and
$122.3 million for Proved plus Probable reserves. Finally, the
Assets and stated NPVs include Logan’s acquisition of Gran Tierra’s
entire interest in the gross overriding royalty over Logan’s land
in the corresponding area of the Simonette Montney play.
Consideration
In addition to the initial cash consideration,
Logan will carry the first development well in the Lower Montney
region valued at $3 million net to Gran Tierra. Gran Tierra will
obtain priority access and preferential terms on existing Logan
owned infrastructure as part of the newly formed joint venture.
Transaction Details
Total consideration from Logan includes $52
million in cash proceeds and carried development of the first
Simonette well drilled in the Lower Montney region for estimated
non-cash proceeds of $3 million net to Gran Tierra. The purchase
price will be subject to customary adjustments based on an
effective date of September 1, 2024. As a result of the
transaction, Gran Tierra expects to accelerate 2 wells at the 1-24
pad in the Simonette Montney area into the fourth quarter of 2024
which were originally anticipated to be drilled in the first
quarter of 2026. Closing of the transaction is expected to occur by
the end of 2024, subject to the satisfaction of customary closing
conditions.
(1) Based on the i3 Energy GLJ Report dated
July 31, 2024. See “Presentation of Oil and Gas Information”.
(2) Does not include the $3 million non-cash
proceeds relating to the capital carry of the first Simonette well
by Logan
Contact Information
For investor and media inquiries please
contact:
Gary Guidry President & Chief Executive
Officer
Ryan Ellson Executive Vice President & Chief
Financial Officer
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy
Inc.Gran Tierra Energy Inc. together with its subsidiaries
is an independent international energy company currently focused on
oil and natural gas exploration and production in Canada, Colombia
and Ecuador. The Company is currently developing its existing
portfolio of assets in Canada, Colombia and Ecuador and will
continue to pursue additional new growth opportunities that would
further strengthen the Company’s portfolio. The Company’s common
stock trades on the NYSE American, the Toronto Stock Exchange and
the London Stock Exchange under the ticker symbol GTE. Additional
information concerning Gran Tierra is available at
www.grantierra.com. Except to the extent expressly stated
otherwise, information on the Company’s website or accessible from
our website or any other website is not incorporated by reference
into and should not be considered part of this press release.
Investor inquiries may be directed to info@grantierra.com or (403)
265-3221.
Gran Tierra’s Securities and Exchange Commission (the
“SEC”) filings are available on the SEC website at
http://www.sec.gov. The Company’s Canadian securities regulatory
filings are available on SEDAR+ at http://www.sedarplus.ca and UK
regulatory filings are available on the National Storage Mechanism
website at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Forward Looking Statements and Legal
Advisories:This press release contains opinions,
forecasts, projections, and other statements about future events or
results that constitute forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995, Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and financial outlook and forward looking information within the
meaning of applicable Canadian securities laws (collectively,
“forward-looking statements”). All statements
other than statements of historical facts included in this press
release regarding our business strategy, plans and objectives of
our management for future operations, capital spending plans and
benefits of the changes in our capital program or expenditures, our
liquidity and financial condition, and those statements preceded
by, followed by or that otherwise include the words “expect,”
“plan,” “can,” “will,” “should,” “estimate,” and “believes,”
derivations thereof and similar terms identify forward-looking
statements. In particular, but without limiting the foregoing, this
press release contains forward-looking statements regarding: the
benefits of the transaction, the use of proceeds from the sale of
an interest in the Assets, the Company’s drilling program, access
to infrastructure and capital expenditures, future net cash flows
from oil and gas properties, and the Company’s future debt levels.
The forward-looking statements contained in this press release
reflect several material factors and expectations and assumptions
of Gran Tierra including, without limitation, that Gran Tierra will
continue to conduct its operations in a manner consistent with its
current expectations, pricing and cost estimates (including with
respect to commodity pricing and exchange rates), the ability of
Gran Tierra to successfully develop and drill wells, the
performance of Logan as operator of the Assets, and the ability of
Gran Tierra to execute its business and operational plans in the
manner currently planned.
Among the important factors that could cause our
actual results to differ materially from the forward-looking
statements in this press release include, but are not limited to
performance by Logan as operator in a manner different than
currently expected by the Company and the factors detailed from
time to time in Gran Tierra’s periodic reports filed with the
Securities and Exchange Commission, including, without limitation,
under the caption “Risk Factors” in Gran Tierra’s Annual Report on
Form 10-K for the year ended December 31, 2023 filed February 20,
2024, and its other filings with the SEC. These filings are
available on the SEC website at http://www.sec.gov and on SEDAR+ at
www.sedarplus.ca.
The forward-looking statements contained in this
press release are based on certain assumptions made by Gran Tierra
based on management’s experience and other factors believed to be
appropriate. Gran Tierra believes these assumptions to be
reasonable at this time, but the forward-looking statements are
subject to risk and uncertainties, many of which are beyond Gran
Tierra’s control, which may cause actual results to differ
materially from those implied or expressed by the forward looking
statements. All forward-looking statements are made as of the date
of this press release and the fact that this press release remains
available does not constitute a representation by Gran Tierra that
Gran Tierra believes these forward-looking statements continue to
be true as of any subsequent date. Actual results may vary
materially from the expected results expressed in forward-looking
statements. Gran Tierra disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable law. In addition, historical,
current and forward-looking sustainability-related statements may
be based on standards for measuring progress that are still
developing, internal controls and processes that continue to
evolve, and assumptions that are subject to change in the
future.
Presentation of Oil and Gas
Information
All reserves value, future net revenue and
ancillary information contained in this press release have been
prepared by i3 Energy plc’s (“i3 Energy”) (which
was acquired by Gran Tierra Energy on October 31, 2024) independent
qualified reserves evaluator GLJ Ltd. (“GLJ”) in a
fair market value report with an effective date of July 31, 2024
(the “i3 Energy GLJ Report”) and calculated in
compliance with National Instrument 51-101 – Standards of
Disclosure for Oil and Gas Activities (“NI
51-101”) and the Canadian Oil and Gas Evaluation Handbook
(“COGEH”), unless otherwise expressly stated.
Barrel of oil equivalents
(“boe”) have been converted on the basis of six
thousand cubic feet (“Mcf”) natural gas to 1 bbl
of oil. Boe’s may be misleading, particularly if used in isolation.
A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead. In
addition, given that the value ratio based on the current price of
oil as compared with natural gas is significantly different from
the energy equivalent of six to one, utilizing a boe conversion
ratio of 6 Mcf: 1 bbl would be misleading as an indication of
value.
The following reserves categories are discussed
in this press release: Proved, Proved plus Probable and Proved plus
Probable plus Possible and Proved Developed Producing. Proved
reserves are those reserves that can be estimated with a high
degree of certainty to be recoverable. It is likely that the actual
remaining quantities recovered will exceed the estimated proved
reserves. Probable reserves are those additional reserves that are
less certain to be recovered than proved reserves. It is equally
likely that the actual remaining quantities recovered will be
greater or less than the sum of the estimated proved plus probable
reserves. Possible reserves are those additional reserves that are
less certain to be recovered than probable reserves. There is a 10%
probability that the quantities actually recovered will equal or
exceed the sum of Proved plus Probable plus Possible reserves.
Proved developed producing reserves are those proved reserves that
are expected to be recovered from completion intervals open at the
time of the estimate. These reserves may be currently producing or,
if shut-in, they must have previously been on production, and the
date of resumption of production must be known with reasonable
certainty. Certain terms used in this press release but not defined
are defined in NI 51-101, CSA Staff Notice 51-324 – Revised
Glossary to NI 51-101 Standards of Disclosure for Oil and Gas
Activities (“CSA Staff Notice 51-324”) and/or the
COGEH and, unless the context otherwise requires, shall have the
same meanings herein as in NI 51-101, CSA Staff Notice 51-324 and
the COGEH, as the case may be.
Estimates of net present value and future net
revenue contained herein do not necessarily represent fair market
value. Estimates of reserves and future net revenue for individual
properties may not reflect the same level of confidence as
estimates of reserves and future net revenue for all properties,
due to the effect of aggregation. There is no assurance that the
forecast price and cost assumptions applied by GLJ in evaluating i3
Energy’s reserves will be attained and variances could be material.
There are numerous uncertainties inherent in estimating quantities
of crude oil and natural gas reserves. The reserves information set
forth in the i3 Energy GLJ Report are estimates only and there is
no guarantee that the estimated reserves will be recovered. Actual
reserves may be greater than or less than the estimates provided
therein. All evaluations of future net revenue contained in the i3
Energy GLJ Report are after the deduction of royalties, operating
costs, development costs, production costs and abandonment and
reclamation costs but before consideration of indirect costs such
as administrative, overhead and other miscellaneous expenses. It
should not be assumed that the estimates of future net revenues
presented in this press release represent the fair market value of
the reserves.
References to a formation where evidence of
hydrocarbons has been encountered is not necessarily an indicator
that hydrocarbons will be recoverable in commercial quantities or
in any estimated volume. i3 Energy’s reported production is a mix
of light crude oil and medium, heavy crude oil, tight oil,
conventional natural gas, shale gas and coal bed methane for which
there is not a precise breakdown since i3 Energy’s oil sales
volumes typically represent blends of more than one product type.
Well test results should be considered as preliminary and not
necessarily indicative of long-term performance or of ultimate
recovery. Well log interpretations indicating oil and gas
accumulations are not necessarily indicative of future production
or ultimate recovery. If it is indicated that a pressure transient
analysis or well-test interpretation has not been carried out, any
data disclosed in that respect should be considered preliminary
until such analysis has been completed. References to thickness of
“oil pay” or of a formation where evidence of hydrocarbons has been
encountered is not necessarily an indicator that hydrocarbons will
be recoverable in commercial quantities or in any estimated
volume.
Disclosure of Reserve Information and Cautionary Note to
U.S. Investors
Unless expressly stated otherwise, all estimates
of proved, probable and possible reserves and related future net
revenue disclosed in this press release have been prepared in
accordance with NI 51-101. Estimates of reserves and future net
revenue made in accordance with NI 51-101 will differ from
corresponding estimates prepared in accordance with applicable SEC
rules and disclosure requirements of the U.S. Financial Accounting
Standards Board (“FASB”), and those differences
may be material. NI 51-101, for example, requires disclosure of
reserves and related future net revenue estimates based on forecast
prices and costs, whereas SEC and FASB standards require that
reserves and related future net revenue be estimated using average
prices for the previous 12 months. In addition, NI 51-101 permits
the presentation of reserves estimates on a “company gross” basis,
representing Gran Tierra’s working interest share before deduction
of royalties, whereas SEC and FASB standards require the
presentation of net reserve estimates after the deduction of
royalties and similar payments. There are also differences in the
technical reserves estimation standards applicable under NI 51-101
and, pursuant thereto, the COGEH, and those applicable under SEC
and FASB requirements.
In addition to being a reporting issuer in
certain Canadian jurisdictions, Gran Tierra is a registrant with
the SEC and subject to domestic issuer reporting requirements under
U.S. federal securities law, including with respect to the
disclosure of reserves and other oil and gas information in
accordance with U.S. federal securities law and applicable SEC
rules and regulations (collectively, “SEC
requirements”). Disclosure of such information in
accordance with SEC requirements is included in the Company’s
Annual Report on Form 10-K and in other reports and materials filed
with or furnished to the SEC and, as applicable, Canadian
securities regulatory authorities. The SEC permits oil and gas
companies that are subject to domestic issuer reporting
requirements under U.S. federal securities law, in their filings
with the SEC, to disclose only estimated proved, probable and
possible reserves that meet the SEC’s definitions of such terms.
Gran Tierra has disclosed estimated proved, probable and possible
reserves in its filings with the SEC. In addition, Gran Tierra
prepares its financial statements in accordance with United States
generally accepted accounting principles, which require that the
notes to its annual financial statements include supplementary
disclosure in respect of the Company’s oil and gas activities,
including estimates of its proved oil and gas reserves and a
standardized measure of discounted future net cash flows relating
to proved oil and gas reserve quantities. This supplementary
financial statement disclosure is presented in accordance with FASB
requirements, which align with corresponding SEC requirements
concerning reserves estimation and reporting.
Logan Energy (TSXV:LGN)
過去 株価チャート
から 11 2024 まで 12 2024
Logan Energy (TSXV:LGN)
過去 株価チャート
から 12 2023 まで 12 2024