RE:RE:RE:RE:RE:RE:RE:RE:crazy stock market Gary Guidry, president and chief executive officer of Gran Tierra, commented:
"Despite temporary reductions in production during the quarter, Gran Tierra demonstrated ongoing strong financial performance in terms of net income, EBITDA and funds flow from operations while maintaining a strong balance sheet. Subsequent to the end of the quarter, we achieved an important milestone with the successful commissioning of the Acordionero facilities projects. These projects have been under way for two years and are key to the long-term value of the Acordionero asset by providing water supply and injection for enhanced oil recovery, expanded fluid processing, and reliable power generation using produced natural gas. We have a similar waterflood expansion project for enhanced oil recovery under way in the Southern Putumayo, where our production is back on stream.
"We are excited about recent results from the AC-48 well, which opens up a new Lisama E light oil development using the same Acordionero infrastructure that we have just expanded. With this recent well result, along with the waterflood expansion and performance at the Acordionero and Cohembi fields, we expect positive proved and probable reserve additions at year-end. The second half of 2019 has many potential catalysts, including the drilling of 13 [to] 15 development and exploration wells, with planned appraisal of the Lisama E sand in Acordionero and drilling of Vonu Este-1 well targeting fractured A-limestone and the U sand.
"With our facilities expansion now complete at Acordionero and the planned completion of our large 3-D seismic program in the Putumayo during third quarter 2019, we forecast Gran Tierra will generate free cash flow in fourth quarter 2019 and 2020. Looking to 2020, we plan to focus on our sustainable free cash flow profile, which is forecasted to be used for net debt reduction and share buybacks. We expect strong production and cash flow growth into 2020 and beyond, while maintaining an active exploration program of six to 10 wells per year.
"While the temporary reduction in production was unfortunate, underlying asset value has not changed and the company is in an excellent position with a strong free cash flow profile, visible production growth, strong balance sheet, and a world-class exploration portfolio comprised of 34 blocks across four proven and prolific basins in Colombia and Ecuador."