Gran Tierra Energy Inc. has reported its seventh oil discovery in Ecuador, confirming the potential of the Arawana/Zabaleta field. The company is also divesting 50% of its Simonette Montney assets for CAD 52 million, which will allow for accelerated development and strengthen its financial position in the sector.
Gran Tierra Energy Inc. has announced its seventh oil discovery in Ecuador, underscoring the significant potential of the Arawana/Zabaleta field. The Zabaleta-K1 well, the fourth exploratory well in the Chanangue Block, substantiates the Basal Tena geological model’s reliability, which is located four kilometers from the Arawana-J1 site. The company has initiated production testing after cementing and perforating the Basal Tena oil zone. The rig has since shifted focus to the Zabaleta Oeste exploration well, fulfilling its final exploration commitment in the Chanangue block.
Gran Tierra’s President and CEO, Gary Guidry, emphasized that the well’s success enhances their understanding of the field, positioning it as a crucial element for future development in South America. Additionally, the company has decided to divest 50 percent interest and operatorship in part of its Simonette Montney assets for approximately CAD 52 million to Logan Energy Corp. After this transaction, Gran Tierra will retain half of the operational interest in approximately 25 sections of Simonette Montney, comprising substantial oil reserves.
As a result of this divestment, Gran Tierra anticipates expediting the drilling of two wells in the Simonette area, initially scheduled for early 2026. Guidry expressed enthusiasm about maintaining a significant stake in the Simonette Montney while collaborating with a strong operator to accelerate developments and generate immediate cash flow. The proceeds from this transaction will be directed toward enhancing shareholder value while also fortifying the company’s balance sheet by diminishing net debt. This strategy aligns with Gran Tierra’s reinforced position as a premier growth-focused mid-cap Exploration and Production company.
Gran Tierra Energy Inc. is a Calgary-based oil and gas exploration and production company, primarily focused on operations in South America. The company has been actively exploring oil reserves in Ecuador, with recent discoveries affirming the viability of the Arawana/Zabaleta field. The announcement of a divestiture reflects Gran Tierra’s strategic approach to streamline operations and enhance financial stability while continuing to invest in promising assets, such as the Simonette Montney play.
In summary, Gran Tierra Energy Inc. is solidifying its foothold in Ecuador with its latest oil discovery while strategically divesting a portion of its assets to facilitate financial growth and development. The company remains focused on enhancing shareholder value and maintaining a significant interest in its high-potential assets, positioning itself for future success in the oil and gas sector.
Original Source: www.rigzone.com
