7:55AM Gran Tierra Energy misses estimates on top and bottom lines; raises its FY13 production outlook; revises Cap-ex lower (GTE) 7.75 : Reports Q3 EPS of $0.12 vs $0.20 CIQ estimate; revs increased 12% YoY to $189.7 mln vs $200.9 mln CIQ est.
Production:
Quarterly oil and natural gas production net after royalty and adjusted for inventory changes, was 21,978 barrels of oil equivalent per day, an increase of 13% from the comparable period in 2012. Production before adjustment for inventory changes in October 2013 averaged approximately 21,000 BOEPD NAR. Funds flow from operations increased to $284.7 million in the nine months ended September 30, 2013 from $206.5 million in the comparable period in 2012.
Guidance: Co revises its 2013 average production projections upwards (the second time this year) to range between 21,500-22,500 BOEPD NAR before inventory adjustments.
2013 Work Program and Capital Expenditure Program
Gran Tierra Energy's planned capital expenditure program for its exploration and production operations in Colombia, Brazil, Peru and Argentina for 2013 has been revised to $420 million from $454 million.
GTE reports
Re: GTE reports
I am working on it now. Here is the most important sentence.
"The successful testing on the Moqueta-11 well increases the known aerial extent of the oil field and significantly increases the oil column thickness, with positive implications for additional reserves in the field."
"The successful testing on the Moqueta-11 well increases the known aerial extent of the oil field and significantly increases the oil column thickness, with positive implications for additional reserves in the field."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GTE reports
Moqueta Field (will be significant growth story in 2014)
The Moqueta-11 appraisal well was drilled to the southern flank of the Moqueta structure and encountered oil in the T-Sandstone and Caballos formations. The T-Sandstone formation consisted of 81 feet true vertical depth ("TVD") gross reservoir or 65 feet TVD of net reservoir thickness. It was perforated and tested from 6,812 feet to 6,912 feet measured depth ("MD") for 46 hours at an average rate of 802 BOPD of 27.2° API oil with a 0.3% water cut. The underlying Caballos formation consisted of 237 feet TVD gross reservoir or 144 feet TVD net reservoir thickness. It was perforated and tested from 7,043 feet to 7,333 feet MD for 65 hours at an average rate of 756 BOPD of 27.4° API oil with a 0.3% water cut. The well was tested with a hydraulic jet pump. The top of the Villeta T-Sandstone is approximately 290 feet lower in the Moqueta-11 well compared to the lowest known oil encountered in the field at Moqueta-7 well, suggesting the oil column is 290 feet thicker than previously defined. The gross oil column in the Villeta T-Sandstone has now grown to 765 feet and the gross oil column in the underlying Caballos reservoir has now grown to 960 feet. No significant pressure decline was witnessed.
Results to date indicate additional oil potentially exists further down the flank of the Moqueta structure. As a result, three new appraisal wells have been added to the 2013 Moqueta work program. The Moqueta-12 appraisal well began drilling on September 23, 2013, and is targeting a reservoir that is further south in a previously untested block approximately 270 feet down dip of the lowest known oil encountered at Moqueta-11. Once evaluated, a sidetrack to Moqueta-12 will then be drilled, with the latter intended to be completed as a water injector for reservoir pressure support in the main field. This well is drilling ahead, with initial results expected in November 2013.
Gran Tierra Energy intends to drill two additional wells adjacent to the Moqueta field before year-end. The Corunta-1 well spud on November 5, 2013 and is drilling in a northeast direction from the Costayaco-17 well pad targeting a downthrown fault block west of the Moqueta field. The Zapotero-1 well is expected to spud in December 2013 and target the southeastern portion of the Moqueta structure.
The Moqueta-11 appraisal well was drilled to the southern flank of the Moqueta structure and encountered oil in the T-Sandstone and Caballos formations. The T-Sandstone formation consisted of 81 feet true vertical depth ("TVD") gross reservoir or 65 feet TVD of net reservoir thickness. It was perforated and tested from 6,812 feet to 6,912 feet measured depth ("MD") for 46 hours at an average rate of 802 BOPD of 27.2° API oil with a 0.3% water cut. The underlying Caballos formation consisted of 237 feet TVD gross reservoir or 144 feet TVD net reservoir thickness. It was perforated and tested from 7,043 feet to 7,333 feet MD for 65 hours at an average rate of 756 BOPD of 27.4° API oil with a 0.3% water cut. The well was tested with a hydraulic jet pump. The top of the Villeta T-Sandstone is approximately 290 feet lower in the Moqueta-11 well compared to the lowest known oil encountered in the field at Moqueta-7 well, suggesting the oil column is 290 feet thicker than previously defined. The gross oil column in the Villeta T-Sandstone has now grown to 765 feet and the gross oil column in the underlying Caballos reservoir has now grown to 960 feet. No significant pressure decline was witnessed.
Results to date indicate additional oil potentially exists further down the flank of the Moqueta structure. As a result, three new appraisal wells have been added to the 2013 Moqueta work program. The Moqueta-12 appraisal well began drilling on September 23, 2013, and is targeting a reservoir that is further south in a previously untested block approximately 270 feet down dip of the lowest known oil encountered at Moqueta-11. Once evaluated, a sidetrack to Moqueta-12 will then be drilled, with the latter intended to be completed as a water injector for reservoir pressure support in the main field. This well is drilling ahead, with initial results expected in November 2013.
Gran Tierra Energy intends to drill two additional wells adjacent to the Moqueta field before year-end. The Corunta-1 well spud on November 5, 2013 and is drilling in a northeast direction from the Costayaco-17 well pad targeting a downthrown fault block west of the Moqueta field. The Zapotero-1 well is expected to spud in December 2013 and target the southeastern portion of the Moqueta structure.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: GTE reports
Gran Tierra Energy (GTE): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group