Gran Tierra Energy Inc. has made its seventh oil discovery in Ecuador, confirming the potential of the Arawana/Zabaleta field. The company is also divesting part of its Simonette Montney assets to Logan Energy Corp. to enhance development and shareholder value, indicating a strategic focus on growth in the oil sector.
Gran Tierra Energy Inc. has announced a significant oil discovery in Ecuador, highlighting the impressive prospects of the Arawana/Zabaleta field. The company recently completed drilling its Zabaleta-K1 well, the fourth exploration well in the Chanangue Block, underscoring the effectiveness of the Basal Tena geological model. Gran Tierra has initiated production testing after successfully cementing and perforating the oil zone. Following this, the rig has transitioned to drilling the Zabaleta Oeste well, fulfilling exploration commitments in the block.
In addition to the Ecuador findings, Gran Tierra is divesting 50 percent and operatorship of some assets in the Simonette Montney region to Logan Energy Corp. for approximately $37.11 million CAD. After this transaction, Gran Tierra will maintain a 50 percent working interest in the remaining assets, which include significant Proved Developed Producing reserves. The company anticipates that this deal will facilitate further development in the Montney area, aligning with its corporate strategy of long-term growth.
The transaction further involves carried development for a new well, enhancing Gran Tierra’s future operational capacity. The company aims to expedite the drilling of wells in Simonette into the near term, moving projects originally scheduled for 2026 into 2024. Gran Tierra’s President and CEO Gary Guidry expressed optimism about this strategic partnership, as it aims to accelerate the company’s growth while benefiting shareholders through potential share buybacks and debt reduction initiatives.
Gran Tierra Energy Inc., a Calgary-based oil and gas company, has made notable advancements in the exploration and production of oil, particularly in Ecuador and Canada. The recent oil discovery in Ecuador emphasizes the company’s ongoing efforts to enhance its operational footprint in the region, showcasing the substantial oil reserves and geological understanding developed by the firm. Furthermore, the divestiture of part of the Simonette Montney assets illustrates Gran Tierra’s commitment to strategic partnerships and financial maneuvers aimed at driving growth and maximizing shareholder value.
In summary, Gran Tierra Energy Inc. has confirmed a significant oil discovery in Ecuador, validating the potential of the Arawana/Zabaleta field. Their strategic sale of a portion of Simonette Montney assets signifies a commitment to growth while maintaining a material stake in promising fields. The company’s proactive approach aims to accelerate development, strengthen the balance sheet, and ultimately deliver value to its shareholders, reflecting its status as a mid-cap E&P company focused on sustainable expansion.
Original Source: www.rigzone.com
