Gran Tierra upbeat on near-term Colombia drilling outlook

Gran Tierra will continue exploration drilling in Colombia in the coming quarters regardless of a government proposal to stop issuing new drilling permits, CEO Gary Guidry said on Thursday.

President Gustavo Petro, who was sworn into office on August 7, has vowed to end bidding rounds for new E&P contracts and raise taxes on producers as part of broader plans to prioritize investments in renewable energy. 

"Petro has clearly said there will be no new exploration projects in Colombia, [but] Gran Tierra is in a very good position," Guidry said during a quarterly earnings call. 

"We're focused in all three of the basins in Colombia. The Putumayo [basin] is the big one for us but we also have assets in the Middle Magdalena and the Llanos basins. We have an inventory of areas that we plan to drill over the next couple of years.

"President Petro has not said anything about existing lands and we've found that it's business as usual for the regulators and the government, who are cooperating with what we're doing."

Colombia is home to 100% of Calgary-based Gran Tierra's current production, which mainly comes from blocks in the Middle Magdalena Valley and Putumayo basins.

The company also owns 100% operating stakes in the Charapa, Chanangue and Iguana exploration blocks – which represent combined acreage of 57,000ha – in Ecuador's Oriente basin.

It is there where Gran Tierra could turn its focus as the company seeks to fulfill a 14-well commitment.

"We're quite comfortable with what we're doing in Ecuador and where we're going prospectivity-wise today and in terms of what are we planning next year," Guidry said. 

"We're planning for an additional four wells in Ecuador. That could increase, certainly with the success that we're having," he added.