Gran Tierra Energy reports its seventh oil discovery in Ecuador, confirming the potential of the Arawana/Zabaleta field. The company is now producing from the Basal Tena oil zone and progressing with drilling a new well as it also divests a portion of its Montney assets. This strategic shift aims to bolster growth while reducing debt and improving shareholder returns.
Gran Tierra Energy Inc. has announced its seventh oil discovery in Ecuador, highlighting the considerable potential of the Arawana/Zabaleta field area. The company’s Zabaleta-K1 well represents the fourth exploration well drilled in the Chanangue Block, confirming the efficacy of the Basal Tena geological model. Production casing has been installed in the Basal Tena oil zone, with production testing now initiated. In addition, the company has commenced drilling on the Zabaleta Oeste exploration well, fulfilling its final exploration commitment for the area.
Under the leadership of President and CEO Gary Guidry, Gran Tierra aims to solidify its understanding of the field, integral to its development plans in South America. Concurrently, Gran Tierra is divesting 50 percent of its Simonette Montney assets to Logan Energy Corp. for approximately $37.11 million CAD. Post-transaction, Gran Tierra will retain a significant interest in the assets, which include substantial Proved Developed Producing (PDP) reserves and further Proved and Possible reserves.
This transaction aligns with Gran Tierra’s strategic goal of long-term value creation, facilitating accelerated growth in the Montney development. The company anticipates drilling two wells in the Simonette area earlier than anticipated, further enhancing its operational efficiency. CEO Guidry emphasized the strategic benefits of this partnership with Logan Energy Corp., underscoring the potential for near-term cash flow and the strengthening of Gran Tierra’s balance sheet through reduced debt and shareholder value initiatives.
Gran Tierra Energy Inc. is an oil and gas exploration and production company based in Calgary, Alberta, with a focus on activities in South America, particularly in Ecuador. The recent oil discoveries in the Arawana/Zabaleta area signify the company’s successful exploration efforts within the Chanangue Block. The announcement of a strategic divestment of its Montney assets reflects a broader corporate strategy aimed at maximizing shareholder value while maintaining a strong operational foothold in key growth areas.
In summary, Gran Tierra Energy’s seventh oil discovery in Ecuador underlines its commitment to capitalizing on significant geological potential. With ongoing production tests and strategic partnerships, the company is poised for growth, particularly through its recent divestiture of assets that align with its long-term corporate goals. As Gran Tierra moves forward, the emphasis on operational efficiency and shareholder value remains central to its strategy.
Original Source: www.rigzone.com
