Gran Tierra Energy announces oil discovery in Ecuador
Published by Alfred Hamer,
Editorial Assistant
Oilfield Technology,
Gran Tierra Energy Inc. has announced 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, it has announced are that it (by way of its wholly-owned subsidiary) has entered into a purchase and sale agreement with Logan Energy Corp.
Pursuant to the agreement, Logan would acquire 50% and operatorship of a portion of Gran Tierra’s Simonette Montney assets for approximately CAN$52 million in cash, subject to customary adjustments. After the closing of the Transaction, Gran Tierra would retain 50% working interest in the assets.
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 km 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.”
He also commented, “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% 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.”
Read the article online at: https://www.oilfieldtechnology.com/exploration/28112024/gran-tierra-energy-announces-oil-discovery-in-ecuador/
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