Gran Tierra Energy Inc., Calgary, announced it obtained three blocks in Ecuador’s Orientie basin, marking the firm’s entry into Ecuador, pending regulatory approvals and finalization of participation contracts.
Gran Tierra bid for three blocks covering 140,000 acres, creating a contiguous acreage position extending from Gran Tierra’s assets in Colombia’s Putumayo basin.
The Ecuador blocks will consolidate Gran Tierra’s position in a conventional oil fairway. Ecuador’s Napo formation is believed equivalent to the Villeta formation in Putumayo basin. Both formations are believed to contain multizone potential in the same carbonate and sandstone reservoirs.
Once finalized, Gran Tierra is expected to hold 100% working interest and operatorship in Charapa block, Chanangue block, and Iguana block, which increases Gran Tierra’s gross acreage in the conventional resource plays in Ecuador and Colombia to more than 1.3 million acres.
Gran Tierra’s winning bids consisted of a work program bid by block, including plans to drill 14 exploration wells in 4 years across the blocks. The company’s share of revenues is tied to the Oriente oil blend price and to production volumes.
Ecuador exploration drilling is scheduled for 2020 with no anticipated changes to Gran Tierra’s previously issued 2019 guidance. Through the Charapa Block, Gran Tierra establishes a proven position in the B-Limestone play trend. Charapa field has produced oil from B limestone for 17 years. Previously, Gran Tierra bought assets in Colombia’s Putumayo and Llanos basins for $104.2 million (OGJ Online, Feb. 21, 2019).
