Gran Tierra Energy (NYSE American: GTE) shares exploded 77.28% to $0.54 in the after-hours after a strategic update, and the Company’s 2021 capital budget and production guidance were reported yesterday. Both dollar figures are in United States dollars. As otherwise specified, all production volumes are on a working interest basis until royalty and are expressed in oil barrels per day.
The banks’ syndicate has agreed to amend the Gran Tierra bank-syndicated revolving credit facility as follows:
Under the credit facility, the allocated funding base has been redefined to $215 million.
$200 million, including $15 million prior approval of most lenders, would be readily available.
In November 2022, the credit facility matures.
The Corporation estimates the credit facility’s balance as of December 31, 2020, to be approximately $185 million.
Gran Tierra aims to direct almost 60 percent of the 2021 capital budget to the sustained growth of the Acordionero field in the Middle Magdalena Valley Basin. Another 35 percent to the Putumayo Basin production activities and the remaining 5 percent to the Company’s portfolio of exploration-related activities in Colombia and Ecuador.
Gran Tierra has a 100% operating interest in and running the critical properties of the Group in Colombia and Ecuador; this total ownership enables the Business the freedom to optimize its production and exploration programs for up or downshifts in oil prices.