Gran Tierra announced its financial and operating results for the quarter ended June 30, 2011. All dollar amounts are in United States dollars unless otherwise indicated.
Highlights for the quarter include:
- Quarterly production of 18,141 barrels of oil equivalent per day ("BOEPD") net after royalty ("NAR"), a 36% increase in average daily production from the same period in 2010 of 13,376 BOEPD due to additional production from existing field developments, new production from recent field discoveries, and production growth from the recently acquired assets of Petrolifera Petroleum Ltd. ("Petrolifera");
- Quarterly oil production of 17,525 barrels of oil per day ("BOPD") NAR, a 32% increase in average daily production from the same period in 2010 of 13,234 BOPD NAR;
- Quarterly gas production of 3.7 million cubic feet per day ("MMCFD") NAR, a 334% increase in average daily production from the same period in 2010 of 0.8 MMCFD NAR;
- Revenue and other income for the quarter of $162.1 million, a 93% increase over the same period in 2010;
- Net income of $31.6 million or $0.11 per share basic and diluted compared to net income of $17.4 million or $0.07 per share basic and diluted in the same period in 2010;
- Funds flow from operations of $88.6 million compared to $44.3 million for the same period in 2010;
- Cash and cash equivalents were $211.4 million at June 30, 2011 compared to $355.4 million at December 31, 2010 and working capital decreased to $215.4 million at June 30, 2011 compared to $265.8 million at December 31, 2010;
- Moqueta-5 delineation well testing was initiated from a single zone at production rates of approximately 730 BOPD over 10 days with a jet pump, with additional testing ongoing;
- Major infrastructure projects were completed including the construction and commissioning of the Moqueta to Costayaco flow-line with first short-term test production commencing in June, and the connection of the Costayaco field into Colombia's national electrical system;
- First production contribution from Gran Tierra Energy's Brazil assets in the Recôncavo Basin was recorded in the quarter;
- Continued to mature plans for robust exploration, delineation and development drilling campaigns in Colombia, Brazil, Peru and Argentina through 2011 and into 2012.
"Several significant milestones were achieved in the second quarter of 2011, positioning the Company to achieve continued growth into the future. The completion of the Moqueta to Costayaco flow-line and initiation of production was a major achievement. This is the first time that an oil field in Colombia has been discovered and test production initiated with operations entirely supported by helicopter and without access by road minimizing the environmental footprint of Gran Tierra Energy's operations at this early stage of development," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "We achieved record production in the quarter due to effective management of existing producing fields in Colombia and Argentina and new production from recent discoveries in Colombia and Brazil. Record cash flow, and progress in permitting and contracting, are supporting the execution of our planned exploration and drilling program scheduled for the balance of 2011 and into 2012," concluded Coffield.