Gran Tierra has shut-in 2,500 b/d of oil with the temporary suspension of most minor fields with zero or negative netbacks at current oil prices.
Another 4,000 b/d remains shut-in and waterflood operations remain suspended at the Suroriente and PUT-7 Blocks in the southern Putumayo region in Colombia due to a local farmers’ blockade.
Production and waterflood operations are expected to resume to pre-suspension levels once COVID-19, blockade, and economic restrictions pass.
An additional 4,800 b/d of oil production awaiting routine mechanical workovers will remain offline during the low-price environment. While the Colombian government has deemed the oil and gas industry essential during the COVID-19 pandemic, mobility and logistics issues may result in oil field restart and workover services delays.
In March, the company reduced its 2020 capital program to $60-80 million from $200-220 million. The company said it remains focused on ongoing production and waterflooding of Acordionero, Costayaco, and Moqueta, which represent 81% of the company’s working interest total proved reserves as of Dec. 31, 2019.