Shares of Gran Tierra Energy Inc (TSX:GTE, LSE:GTE, NYSE-A:GTE, ETR:G1P) rose in Wednesday morning trading as it told investors it had repaid its credit facility. credit and confirmed the successful ramp-up of production as new wells came online in South America.
The Colombia and Ecuador-focused firm, which specializes in enhanced oil recovery, said production so far averaged 30,556 barrels of oil per day in the second quarter and, in addition, the rate for the last sixteen days had reached 33,140 bopd.
Cash flows of approximately US$410-430 million are projected in the company’s base case, based on an average oil price of US$95 per barrel and average production of up to 32 500 bopd, according to a recent investor presentation released by the company.
Since the start of the year, the company has drilled seven oil producing wells at the Acordionero field in Colombia, and four more remain on schedule, while at the Costayaco project all five planned wells have been drilled. , the last in the sequence currently in production testing. At Moqueta, three wells are planned later this year and production is expected to continue through 2023.
GTE pointed out that as of June 2, it had fully repaid its credit facility, having steadily reduced the balance by US$207 million in June 2020.
With its improved financial means, the company said it is now resuming exploration projects for the first time since the pandemic.
“After a two-year hiatus in the low and volatile oil price environment of 2020 and 2021, we are pleased with the restart of the Gran Tierra exploration drilling campaign,” said Managing Director Gary Guidry.
“We started the Churuco exploration well in Colombia’s Putumayo Basin on June 2, 2022, which is expected to reach target depth by mid-June 2022.
“In Ecuador, we secured all necessary licenses and secured a drilling rig that put Gran Tierra on track to launch its first planned exploration well on the Chanangue Block during the third quarter of 2022.”
In London, Gran Tierra shares rose more than 11% to change hands at 150 pence each.
A separate updated stock market statement on the company’s tender offer process to its loan noteholders.