Gran Tierra Energy Inc. has reported its seventh oil discovery in Ecuador at the Zabaleta-K1 well, confirming the potential of the Arawana/Zabaleta field. The company is also divesting 50% of its Simonette Montney assets for $37.11 million to Logan Energy Corp., which will aid in accelerating development plans. CEO Gary Guidry highlighted the significance of these advancements for future growth in South America.
Gran Tierra Energy Inc. has announced a significant advancement in its oil exploration ventures with the discovery of its seventh oil site in Ecuador. The Calgary-based company identified this new discovery at the Zabaleta-K1 well, which marks the fourth exploration effort in the Chanangue Block. This latest successful test reinforces the viability of the Basal Tena geological model, which lies four kilometers from the previously discovered Arawana-J1 site, thereby showcasing the robust potential inherent in the Arawana/Zabaleta production area.
In a recent update, Gran Tierra confirmed that it has successfully completed the necessary production casing and perforation of the Basal Tena oil zone, initiating production testing. Following this achievement, the drilling rig has been repositioned to begin work on the Zabaleta Oeste exploration well, which was spud on November 21, fulfilling the last exploration commitment in the Chanangue Block.
Gary Guidry, the President and CEO of Gran Tierra, remarked, “The success of this well solidifies Gran Tierra’s understanding of the field area and will be a key pillar of development growth plans in South America for years to come.” Furthermore, Gran Tierra is in the process of divesting 50% interest and operatorship of a section of its Simonette Montney assets to Logan Energy Corp. for approximately $37.11 million CAD, a strategic move aimed at enhancing its development growth in the Montney region.
Post-transaction, Gran Tierra will hold onto a 50% working interest in the Simonette assets, which comprise about 25 net sections containing measurable reserves. The company anticipates that the proceeds from this transaction will expedite the drilling of wells in the Simonette area, which were initially planned for 2026.
Gary Guidry further stated, “We are also thrilled to announce the sale of a portion of our interest in the Simonette Montney play while keeping a material stake in its future growth. This strategic partnership with a top-tier operator… will significantly accelerate development and generate near-term cash flow.” This financial maneuver reflects Gran Tierra’s commitment to long-term value generation while enhancing shareholder returns.
Gran Tierra Energy Inc. is a Calgary-based oil and gas company focused on exploration and production, particularly in South America. The company has been actively engaged in discovering and developing oil resources, particularly in Ecuador, where they have now made multiple discoveries in the Arawana/Zabaleta field area. Their recent gain in operational focus includes divesting a portion of their assets to streamline growth and strengthen their financial position. The successful exploration efforts demonstrate their firm strategy of leveraging geological modeling to tap into potential reservoirs, thus positioning themselves strongly within the competitive energy sector.
In summary, Gran Tierra Energy Inc. has made notable strides in its oil exploration efforts in Ecuador, reflected in the recent discovery at the Zabaleta-K1 well. The transaction with Logan Energy Corp. aligns with the company’s growth strategies and reflects their ongoing commitment to reinforcing their position as a leading player in the oil and gas sector. With significant potential for future development and a clear path toward expanding their operational capabilities, Gran Tierra is poised for continued growth in South America.
Original Source: www.rigzone.com
