Gran Tierra Sees Faster Peru Output on Permitting Changes

Gran Tierra Energy Inc. (GTE) envisages a quicker production ramp-up at its Bretana oil discovery than previously planned as Peru speeds up permitting processes.

The company, based in Calgary, will produce 2,500 barrels a day at Bretana by the end of the year and hopes to bring forward a 2017 target of 6,000 barrels a day by one year, according to Chief Executive Officer Dana Coffield.

“It’s going ahead,” Coffield said in a telephone interview today, referring to the permitting reforms. “We’re seeing things get approved quickly.”

Peru’s push to achieve oil self-sufficiency by streamlining rules and boosting output should make it possible for Gran Tierra to accelerate a 2021 Bretana production target of 20,000 to 40,000 barrels a day by “a couple of years,” Coffield said.

State oil contracting agency Perupetro didn’t immediately reply to an e-mail seeking comment on permitting changes.

Gran Tierra will drill an appraisal well in central Bretana this year, with the additional information helping to upgrade the field’s reserve assessment, meaning the likely transfer of a “significant percentage” of oil reserves in the possible category to probable, Coffield said.

The field’s probable oil reserves now stand at 58 million barrels of recoverable oil, with a further 47 million barrels in the possible category.

Based on seismic data, Gran Tierra expects to make larger oil discoveries than Bretana on its existing Peru acreage in the coming years and sees “substantial growth potential” in the country, he said.

The bulk of Gran Tierra’s production comes from Colombia.

To contact the reporter on this story: Andrew Willis in Bogota at awillis21@bloomberg.net

To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net Stephen Cunningham

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