• Blockades Lifted, Production Ramping Back Up: Current Average Total Production1 of 29,000 BOPD
• No Impact To Reserves, Production Volumes Merely Deferred To Higher Brent Oil Price Environment
• Updated 2021 Guidance: Higher Brent Oil Price Underpins Stronger 2021 EBITDA2 and Cash Flow2
• Credit Facility Balance Paid Down To $175 Million

Gran Tierra Energy today announced an operations and financial update and updated 2021 guidance. 

Key Highlights:

• End of Colombian Blockades Affecting Gran Tierra: As previously announced by Gran Tierra on May 17, 2021, a number of protests and blockades across Colombia impacted several key transportation routes throughout the country, resulting in the temporary shut-in of some of Gran Tierra’s wells and oil fields. Though these blockades were not directed at Gran Tierra, these events caused the Company to implement temporary production curtailments during May and June 2021. The Colombian government has now successfully negotiated ends to all of the blockades in the areas that were affecting Gran Tierra’s operations, which has allowed the Company to commence restoring its oil production throughout its entire Colombian portfolio.
• Current Production Ramping Back Up: Gran Tierra’s current average total production is approximately 29,000 BOPD and is back to levels achieved earlier in 2021, prior to the disruptions caused by the blockades.
• Second Quarter 2021 Production: Gran Tierra’s actual second quarter 2021 total production averaged approximately 23,400 BOPD, down about 4% from first quarter average production of 24,463 BOPD. This reduction was due solely to the temporary impact of the blockades during second quarter 2021, all of which have since been lifted. Prior to the negative effects of the blockades, Gran Tierra had forecast second quarter 2021 production of about 28,000-30,000 BOPD.
• Strong Second Half 2021 Production: Gran Tierra forecasts second half 2021 total production to average approximately 30,000-32,000 BOPD.
• Acordionero Production: This field’s current average production1 is approximately 16,000 BOPD with clear indications that the waterflood is performing as expected.

Financial Highlights:

• Updated 2021 Guidance – Higher Brent Pricing Underpins Stronger 2021 EBITDA and Cash Flow: Gran Tierra now forecasts full-year 2021 average production to come in at or slightly below the low end of its previous guidance range and average 27,500-28,500 BOPD (previously 28,000-30,000 BOPD), due to the impact of blockades on production in second quarter 2021. However, due to the Company’s forecast second half 2021 production and currently strong Brent oil price environment, Gran Tierra now forecasts increased full-year 2021 EBITDA and cash flow with no change to the capital guidance range ($130-150 million). The Company now expects 2021 EBITDA of $265-285 million (previously $255-275 million) and 2021 cash flow of $215-235 million (previously $205-225 million).
• Credit Facility Paid Down: Despite the reduction in second quarter 2021 production, as of June 30, 2021, Gran Tierra had paid down its credit facility balance by $5 million (relative to March 31, 2021) to $175 million and had a cash balance of $19 million.

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: 
"We are very pleased that we have safely and diligently ramped operations back up throughout our extensive Colombian portfolio. The Colombian government has been very supportive in resolving blockades and disruptions in areas where we have operations. Although the blockades impacted Gran Tierra’s second quarter 2021 production volumes, we believe that barrels not produced that quarter were simply deferred to future quarters, with no expected impact on reserves. The stronger Brent oil price environment more than offset the effect of lower production volumes in second quarter 2021. As a result, we now forecast higher EBITDA and cash flow in 2021, which is the second time that we have increased our financial forecast this year. We are very proud of our team for safely and efficiently restoring the Company’s total average production to its current level of approximately 29,000 BOPD, close to the highest levels achieved so far in 2021. With a constructive oil price, a successful drilling program in the first of 2021 and our first half 2021 oil price hedges rolling off, we are very excited about the second half of 2021 and all of 2022."

KeyFacts Energy: Gran Tierra Colombia country profile