Dallas, Texas 07/07/2015 (Financialstrend) – Gran Tierra Energy Inc. (NYSEMKT:GTE) push to steer its investments away from Peru and Brazil has seen it increase its 2015 capital program by $45 million. The company plans to spend $185 million this year on its core drilling assets in the Putumayo Basin in Colombia. The company also plans to carry out accelerated laboratory and feasibility studies at the Costayaco and Moqueta fields.
Focus on Colombia
Gran Tierra Energy Inc. (NYSEMKT:GTE) expects to close a number of deals in Colombia as it seeks to increase its output reserves that could come under pressure with the closure of operations in Peru and Brazil. Investments in the Andean nation could involve potential joint ventures, takeovers and asset purchases.
Gran Tierra Energy Inc. (NYSEMKT:GTE) has already spent $74 million of the $140 million 2015 capital program. Under the new allocation, $55 million is to be directed to Colombia projects that the company is aggressively pursuing. The funds should go a long way in drilling three wells each at the Moqueta and Costayaco fields.
Capital Spending Plan
The revised capital program will see Peru investment slashed to $49 million with $11 million allocated for the remainder of the year. Gran Tierra Energy Inc. (NYSEMKT:GTE) plans to reduce capital expenditures, general and administrative expenses in Peru. However, it is also exploring options on how to maximize shareholder value of its assets in the country.
Capital investments in Brazil should total $20 million of which $6 million is to be spent for the remainder of the year. Gran Tierra Energy Inc. (NYSEMKT:GTE) plans to finance its 2015 capital program through cash flows and cash on hand
Gran Tierra Energy Inc. (NYSEMKT:GTE) expects its 2015 gross working interest production to be between 22,500 and 23,500 barrels of oil equivalent per day. With attention being shifted to Colombia production from wells in Costayaco, NAR and Moqueta should amount to 17,850 barrels of oil per day.