Gran Tierra Energy Down Nearly 2% on Capital Spending, Production News 04/11 08:50 AM
09:50 AM Eastern Daylight Time, 04/11/2011 (MidnightTrader) -- Gran Tierra Energy Inc. (GTE:$7.82,00$-0.1600,-2.01%) , a company focused on oil and gas exploration and production in South America, today announced capital spending plans on the recently acquired Petrolifera Petroleum Limited assets.
Including the Petrolifera assets, Gran Tierra also said it anticipates average production in 2011 to range between 17,500 and 19,000 barrels of oil equivalent per day, net after royalty, weighted approximately 95% to oil. According to Reuters, this is down from its earlier outlook of 21,500-23,500 boe/d.
On its capital program, Gran Tierra Energy (GTE:$7.82,00$-0.1600,-2.01%) intends to spend approximately $55 million on the newly acquired assets with approximately $25 million in Colombia, $14 million in Peru and $16 million in Argentina. Drilling and completion costs are expected to amount to $41 million, including $14 million in Colombia, $13 million in Peru and $14 in Argentina. Seismic costs total $12 million, mostly in Colombia and facilities costs total $2 million, mostly in Argentina.
This capital program is in addition to the $299 million 2011 capital program previously announced for Colombia, Peru, Brazil and Argentina by Gran Tierra Energy (GTE:$7.82,00$-0.1600,-2.01%) , which remains unchanged. This new combined capital program of approximately $355 million for 2011 is expected to be funded from existing cash reserves and cash flow.
Price: 7.53, Change: -0.12, Percent Change: -1.6
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