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May 29, 2014
16:40 EDTGTEGran Tierra to sell Argentina business to Madalena Energy for $69M
Gran Tierra Energy announced it has entered into agreements whereby Madalena Energy has agreed to acquire Gran Tierra Energy's Argentina business unit for an aggregate consideration of approximately US$69M, comprised of US$49M in cash, US$14M in Madalena shares, and expected working capital adjustments of approximately US$6M. Gran Tierra Energy has received a deposit of US$12.6M and Madalena is expected to raise the remainder of the cash required to complete the transaction pursuant to a subscription receipt offering on a bought deal basis. In 2013, the Argentina business unit contributed average annual production of 3,028 barrels of oil equivalent per day, net after royalty and spent US$6.5M of its 2014 planned Argentina capital program of US$48M in the first quarter. "With the April 30, 2014 effective date of the transaction, Gran Tierra Energy plans to reduce its 2014 corporate capital spending program by an amount comparable to the planned Argentina capital program of US$48M, less the amount spent up to the closing date of the transaction. This reduction in corporate capital spending, in addition to the approximate US$69M aggregate consideration, will further strengthen the balance sheet for future capital spending requirements and allow us to dedicate our resources to where they will have maximum impact and to focus on our more profitable operations," concluded CEO Coffield. The Madalena board of directors has unanimously approved the Agreements. The closing date is expected to be on or before June 30 and it is subject to TSX Venture Exchange approval
News For GTE From The Last 14 Days
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December 11, 2014
06:05 EDTGTEGran Tierra sees 2015 production 26K BOE/D-27K BOE/D gross working interest
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06:05 EDTGTEGran Tierra announces $310M capital spending program for 2015
Gran Tierra announced its 2015 Budget with a capital spending program of $310M for its exploration and production development operations in Colombia, Peru and Brazil. The capital spending program allocates $183M for drilling, $69M for facilities, equipment and pipelines, $56M for geological and geophysical activities and $2M associated with corporate activities. The capital spending program currently contemplates the drilling of 11 gross wells in Colombia and two gross wells in Peru. Approximately 70% of the drilling program is for development and appraisal drilling and approximately 30% is for exploration drilling. Gran Tierra Energy is expecting 2015 production to average 26K BOE/D-27KBOEP/D gross working interest or 21KBOE/D-22KBOE/D net after royalty assuming an average Brent oil price of $60 per barrel. Country Drilling Facilities & Pipelines Geological & Geophysical Total Colombia $94 $36 $26 $156 Peru $77 $24 $17 $118 Brazil $12 $9 $13 $34 Total $183 $69 $56 $310* *Total includes $2MM associated with corporate work (US$ MM Net) Gran Tierra Energy is expecting 2015 production to average between 26,000 and 27,000 barrels of oil equivalent per day ("BOEPD") gross working interest ("WI") or between 21,000 and 22,000 BOEPD net after royalty ("NAR") assuming an average Brent oil price of $60 per barrel used for 2015 Budget purposes. After royalty production numbers will increase with falling oil prices and conversely decrease with rising oil prices as a result of the royalty formula calculations related to our license contracts in Colombia. Production from Colombia is expected to deliver approximately 19,000 BOEPD NAR, with Costayaco contributing approximately 10,400 BOEPD NAR and Moqueta contributing approximately 6,100 BOEPD NAR assuming a 2% contingency for potential delivery disruptions. The 2015 Budget also includes first production from Peru of approximately 1,600 BOEPD NAR, and approximately 900 BOEPD NAR from Brazil. Production expectations do not include potential production from successful exploration wells. Approximately 99% of this expected production consists of oil, with the balance consisting of natural gas. Gran Tierra Energy had $360 million in cash and cash equivalents and no debt at the end of the third quarter 2014. Based on current oil prices, Gran Tierra Energy expects the 2015 work program and budget to be funded from cash flows from operations, cash on hand and periodic draws on our credit facility if needed.

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