Gran Tierra Energy Inc., based in Calgary, Alberta, said Nov. 28 that it submitted winning bids, totaling a combined $30.4 million, for two blocks in the Putumayo Basin onshore Colombia.
Colombia’s Ecopetrol SA offered the Santana and Nancy-Burdine-Maxine blocks as part of the Ronda Campos Ecopetrol 2016 bid round in an electronic live auction held on Nov. 25.
A purchase and sale agreement relating to each block must be submitted to Ecopetrol by Dec. 7 and executed by Dec. 22.
Gran Tierra will finance these acquisitions with cash on hand and available revolving credit facility borrowings.
Ecopetrol holds operatorship and full working interest in the blocks. The ownership of assets, contracts, permits and licenses, and the full ownership of rights and obligations, will be transferred by entering into assignment agreements with Gran Tierra. Each assignment agreement would be subject to the prior approval of Colombia's Agencia Nacional de Hidrocarburos.
The blocks have average production of about 600 barrels per day (bbl/d) of oil and estimated 300 bbl/d behind-pipe.
Potential upside with EOR waterflooding was identified, and prospective resources were identified on the new lands from "N" sands and "A" Limestone exploration plays.
The blocks are on about 27,400 gross working interest acres.
Infrastructure and gathering facilities include 26 Mbbl/d of pipeline capacity, 25 Mbbl of oil storage, and capacity to load and unload between 11,500 bbl/d and 13,500 bbl/d by truck.
The infrastructure also includes the O.M.U and O.U.S pipelines connecting the Costayaco, Moqueta and Guayuyaco oil fields with the Santana station.
Gran Tierra operated the Santana Block through July 2015 when the contract expired, according to Gary Guidry, company president and CEO.
Recommended Reading
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
TechnipFMC Eyes $30B in Subsea Orders by 2025
2024-02-23 - TechnipFMC is capitalizing on an industry shift in spending to offshore projects from land projects.
First Solar’s 14 GW of Operational Capacity to Support 30,000 Jobs by 2026
2024-02-26 - First Solar commissioned a study to analyze the economic impact of its vertically integrated solar manufacturing value chain.
SunPower Begins Search for New CEO
2024-02-27 - Former CEO Peter Faricy departed SunPower Corp. on Feb. 26, according to the company.
Bobby Tudor on Capital Access and Oil, Gas Participation in the Energy Transition
2024-04-05 - Bobby Tudor, the founder and CEO of Artemis Energy Partners, says while public companies are generating cash, private equity firms in the upstream business are facing more difficulties raising new funds, in this Hart Energy Exclusive interview.