Gran Tierra Energy is expecting 2014 production to average between 30,000 and 31,000 barrels of oil equivalent per day ("BOEPD") gross working interest or between 23,500 and 24,500 BOEPD net after royalty ("NAR") with Costayaco contributing approximately 12,000 BOEPD NAR and Moqueta contributing approximately 4,700 BOEPD NAR assuming a 4% contingency for potential delivery disruptions and $95 average price for Brent. Approximately 96% of this production consists of oil, with the balance consisting of natural gas. Production expectations are based on the development of existing discoveries and could prove to be conservative with exploration success in Colombia.
Production guidance above is in-line with my forecast model. - Dan
Gran Tierra Energy had $353 million in cash and equivalents and no debt at the end of the third quarter 2013. Based on current oil prices, Gran Tierra Energy expects the 2014 work program and budget to be funded primarily from cash flows from operations and cash on hand.
"Gran Tierra Energy is poised to execute the largest capital spending program in our history in 2014 ($467 million), as a direct result of our success in managing existing reserves, production and cash flow, finding new reserves to develop during this year and setting the stage to explore for new reserves during the coming year. As 2013 is coming to an end, Gran Tierra Energy remains financially strong, and expects to remain debt free and fund the 2014 capital spending program from cash flow and cash on hand at current oil prices and expected higher production levels. The development of our diverse assets has provided a range of risk and reward drilling opportunities that has positioned Gran Tierra Energy for significant reserves and production growth in the years to come. Key milestones in 2014 include attaining the Global Development Permit for the Moqueta field and subsequent development activity in Colombia, booking reserves and initiating long-term test production from our new Bretaña oil development in Peru and ongoing operations in Brazil and Argentina," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "We look forward to sharing news on our wells currently drilled and testing, and our progress on an exciting 2014 capital spending program as it unfolds."
My Fair Value Estimate is $11.50/share.
GTE
Re: GTE
http://finance.yahoo.com/news/gran-tier ... 00018.html
I see two major catalysts just ahead for GTE.
> Their year-end reserve report should be very impressive
> Approval of plan to develop Moqueta Field. Production should ramp up very quickly to over 10,000 bopd and maybe much higher.
"With the continued successful appraisal of the Moqueta oil discovery throughout 2013, plans are in place to continue drilling in the field with the Moqueta-13, -14, -15 and -16 wells. Gran Tierra Energy is continuing to pursue its application for a Global Development Permit, which it expects to be granted in the first quarter of 2014."
I see two major catalysts just ahead for GTE.
> Their year-end reserve report should be very impressive
> Approval of plan to develop Moqueta Field. Production should ramp up very quickly to over 10,000 bopd and maybe much higher.
"With the continued successful appraisal of the Moqueta oil discovery throughout 2013, plans are in place to continue drilling in the field with the Moqueta-13, -14, -15 and -16 wells. Gran Tierra Energy is continuing to pursue its application for a Global Development Permit, which it expects to be granted in the first quarter of 2014."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group