Gran Tierra Power Inc. mentioned its subsidiary has signed an settlement to promote its wholly owned subsidiary Gran Tierra North Sea Restricted (GTNSL) to personal upstream firm NEO Power for $7.5 million.
GTNSL holds a one hundred pc fairness curiosity in United Kingdom Continental Shelf (UKCS) license P2358, which incorporates the Serenity Discovery, the corporate mentioned in a information launch.
The completion of the transaction, anticipated within the third quarter, is topic to sure customary circumstances precedent, together with consent from the North Sea Transition Authority with respect to the change of management of GTNSL, in response to the discharge.
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First-Quarter Outcomes
Gran Tierra reported first-quarter whole common working curiosity earlier than royalties (WI) manufacturing of 46,647 barrels of oil equal per day (boepd), 14 % increased than the earlier quarter and 45 % increased yr over yr.
The upper manufacturing was as a result of recognition of three full months of manufacturing from Canada and constructive exploration nicely leads to Ecuador, the corporate mentioned in its most up-to-date earnings launch.
Gran Tierra incurred a internet lack of $19 million for the quarter, in comparison with a internet lack of $34 million within the prior quarter.
Gran Tierra President and CEO Gary Guidry mentioned, “Our first-quarter efficiency displays sturdy operational execution and disciplined monetary administration. Our front-loaded 2025 capital program, which had as much as 5 rigs lively through the quarter, delivered document drilling occasions and price efficiencies throughout our key belongings. We proceed to generate returns by means of our share buyback program and ongoing debt discount. Decreasing leverage stays a key precedence as we give attention to tasks which ship fast cycle returns and preserve flexibility to put money into high-return alternatives throughout our portfolio”.
“Our targeted exploration efforts additionally proceed to ship profitable outcomes, reinforcing the standard of our belongings and long-term technique to create worth. With present manufacturing of roughly 48,400 boepd and a powerful hedge place for the rest of the yr we’re nicely positioned to generate worth whereas remaining resilient amid commodity worth volatility,” Guidry added.
In Ecuador, Gran Tierra mentioned it efficiently drilled two extra oil discoveries, the Iguana B1 and Iguana B2 wells on the Iguana Block. The mixed wells have a mean oil manufacturing charge over 30 days of round 1,684 barrels of oil per day from the U-Sand formation.
The Iguana B1 nicely was drilled and accomplished in document time and beneath price range, “establishing a brand new pace-setting nicely in Gran Tierra’s Ecuador exploration marketing campaign,” the corporate mentioned.
The corporate reported first-quarter capital expenditures of $95 million, increased than the $79 million within the prior quarter and better than $55 million yr over yr, ensuing from the addition of the Canadian improvement program, an lively Ecuador exploration program, and improvement actions within the Cohembi discipline in Colombia.
For the quarter, Gran Tierra mentioned it had three rigs lively in Canada, one in Ecuador, and one in Colombia.
Gran Tierra Power describes itself as an impartial worldwide power firm targeted on oil and pure gasoline exploration and manufacturing in Canada, Colombia and Ecuador.
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