GTE Reserve Report and Q4 production

[dan_s]

GTE's reserves report was very strong and Q4 production was almost exactly what I have in the forecast model.

HUGE increase in reserves and most of it is oil:

Keep in mind that GTE is DEBT FREE and generates a lot of free cash flow]
> Total Proved ("1P") reserves increased 43% to approximately 34.0 million barrels of oil equivalent (approximately 90% light and medium oil and liquids); < 0.12 bbls per share
> Total Proved plus Probable ("2P") reserves increased 56% to approximately 48.8 million barrels of oil equivalent (approximately 85% light and medium oil and liquids); < 0.17 bbls per share
> Total Proved plus Probable plus Possible ("3P") reserves increased 57% to approximately 85.8 million barrels of oil equivalent (approximately 69% light and medium oil and liquids); < 0.30 bbls per share

Reservoir performance expectations were exceeded at the Costayaco field in Colombia. Costayaco 1P reserves changed to 16.4 million barrels of oil at year-end 2011, from 17.7 million barrels of oil at year-end 2010 despite total production of 4.5 million barrels of oil NAR at the Costayaco field in 2011;

Appraisal drilling in 2011 within the area of mapped possible reserves in the Moqueta field in Colombia resulted in 1P reserves increasing 329% to approximately 5.1 million barrels of oil, 2P reserves increasing 157% to 7.7 million barrels of oil and 3P reserves increasing 2% to 9.9 million barrels of oil. The limits of the field have not yet been defined;

I am expecting production from the Moqueta Field to ramp up sharply during the 2nd half of this year.