Gran Tierra Energy to reduce budget to $140 million
This is a reduction of $170 million from the previously announced budget of $310 million. The revised budget for operations in Colombia, Peru and Brazil allocates $50 million to drilling, $40 million to facilities, equipment and pipelines, $49 million for geological and geophysical activities and $1 million associated with corporate activities.
Of the $140 million approximately $43 million had already been spent or committed. Approximately $37 million of the capital program is dedicated to the maintenance of existing production while approximately $18 million is dedicated to drilling in Colombia.
"The capital spending deferrals we are announcing form part of the refocusing effort by the Company to enhance delivery of value to shareholders. Gran Tierra will target increased capital spending efficiency to extract maximum value from the Company's portfolio.
"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. ■