Good news for PTA: GTE lost ALL its Reserves in PeruSee the latest news from GTE. It was out last night. GTE lost ALL its Reserves in Peru and GTE's 2P reserves plunged in December 2014.
GTE's expansion in Colombia is now inevitable. Find the takeover target and make money.
GTE's production will drop in 2015 and GTE is now dependent on only 2 oil fields in Colombia (Costayaco and Moqueta).
And, 90% of GTE's 2P reserves are now in Colombia and about 10% are in Brazil.
But GTE cannot buy CNE, PXT, GPRK, PRE because they are expensive as they produce more than 20,000 boepd.
GTE's cheaper options now are junior producers with extensive acreage, but there are not more than 2 available juniors in Colombia now. PTA and AMER.
Heavily indebted IOX.OL (InterOil) with only 1,500 boepd was acquired by Andes Energia (AEN.L) for approximately US$65 million a few weeks ago. Andes Energia has production in Argentina too, but GTE does not like highly risky Argentina. GTE exited Argentina in 2014. So GTE will not acquire Andes Energia.
Amerisur Resources (AMER) is also a junior producer in Colombia with 4,500 bopd but it costs about US$430 million now on the London Stock exchange.
A few weeks ago, GTE's CEO was also talking about opportunistic acquisitions in 2015. I quote:
"A key driver of the reduced capital spend is to preserve a strong balance sheet and maximize the Company's potential for growth from both our existing portfolio as well as through the opportunistic capture of external value enhancing opportunities," said Duncan Nightingale, Interim President and Chief Executive Officer.