Gran Tierra Energy allocates $363m for exploration and development operations in 2013

Canada-based oil exploration company Gran Tierra Energy will spend $363m on exploration and production operations in Colombia, Brazil, Peru and Argentina, as part of the company’s 2013 capital spending programme.

The allocation includes $202m for drilling; $65m for facilities, equipment and pipelines; $93m for seismic activities and $3m for related corporate activities.

The company will drill ten wells in Colombia, six wells in Argentina, two wells in Brazil and one well in Peru.

The funds will also be used for 1,148km of 2D and 308km² of 3D seismic acquisition programs in Colombia, Peru, Argentina and Brazil, in 2013 and beyond.

According to the company, about 50% of the budget will be spent for development and appraisal drilling, with the remaining 50% used for exploration drilling.

The company intends to produce about 27,000 barrels of oil equivalent per day in 2013, without any pipeline disruptions.

It is expected that average production will be about 20,000 barrels of oil equivalent per day, while about 96% of this production will include light oil and the remaining of natural gas.

Gran Tierra Energy president and CEO, Dana Coffield, said that the company will continue with its current strategy in 2013.

"Our focus on execution sees us entering 2013 with a robust drilling portfolio with a balanced mix of development drilling to maintain our base of reserves and production, and appraisal and exploration drilling to grow that base," Coffield added.

The company is allocating a capital budget of $224m for Colombia, where it plans to drill four gross exploration wells and six gross appraisal and development wells.

Gran Tierra allocated $38m for Peru, of which about $21m is for drilling and around $17m is for seismic acquisition and facility costs.
The company allocated $31m for Argentina, of which $19m will be for drilling.

For Brazil, $67m has been allocated, of which $18m will be for pipelines and facilities and $6m for G&G work and other costs.