GTE lost its Peruvian 2P reserves - Implications for PTAGTE lost a very big part of its Peruvian reserves in Bretana last week and the stock dropped a lot. The company spread high expectations about its Bretana wells in August 2014 before drilling them, but the final results in December 2014 were lower than expected.
In December 2013, GTE had 0 MMBoe Proved and 61.5 MMboe Probable reserves from PERU.
Also in 2014, GTE sold its Argentinean 2P reserves and exited Argentina because of the extremely high risk there (Kirchner, nationalizations like in Venezuela - see YPF case etc.)
Pro forma the sale of its Argentinean production and 2P reserves (14 MMboe) in 2014, GTE had 120 MMboe of 2P reserves in Colombia, Peru, Brazil.
So the recently lost Peruvian 2P Reserves were more than 50% of GTE's total 2P reserves.
Right now, GTE's 2P reserves are only in Colombia (more than 50% of its total 2P reserves), Peru (we wait for the updated reserves report) and Brazil (just 5% of its total 2P reserves).
See GTE's February 2014 press release for the details per country.
This means that GTE will try to partly (at least) replace the lost 0 MMboe Proven and 61.5 MMboe Probable Peruvian reserves asap. GTE has a strong balance sheet without debt, with a lot of cash, so they afford to acquire a Colombian company tomorrow morning.
This is one more reason that it is foolish to sell PTA now.