Gran Tierra Energy Inc. (TSX: GTE) released Tuesday night some production updates, highlighted by an average production of 30,556 barrels of oil per day (bopd) during Q2 2022. This already meets the lower end of the previously announced 2022 guidance of 30,500 – 32,500 bopd, and an increase from Q1 2022’s 29,362 bopd.
As the company previously said, it was expected to ramp up its production in the latter half of Q2 2022 as the new Acordionero and Costayaco oil wells go online.
“We are very pleased with the positive production results that we are seeing with both our Acordionero and Costayaco infill development well programs, which have been an important factor in our ongoing ramp up in oil production during 2022,” said CEO Gary Guidry.
Following the news release, the company’s share price rose by 9.52% after hours, trading at its highest level year-to-date.
The throughput is seemingly increasing as the firm increases its average production to 33,140 bopd for the last 16 days ended June 6, 2022–exceeding the upper guidance for the year.
Also as previously mentioned, the firm was able to zero out its outstanding credit facility within the quarter.
The company also announced that it has obtained all necessary licensing and secured a drilling rig to spud its first planned exploration well on the Chanangue Block in Ecuador. The exploration project is expected to start in Q3 2022, alongside starting the construction project in another block, Chanangue.
Gran Tierra Energy last traded at $2.53 on the TSX.
Information for this briefing was found via Sedar and Gran Tierra Energy. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.