Canada's Gran Tierra Energy preparing to drill oil wells in Ecuador's Charapa Block

Canada's Gran Tierra Energy has started civil works at Ecuador's eastern jungle Charapa Block in preparation for drilling two oil wells, COO Sebastien Morin said July 31.

Calgary-based Gran Tierra, which plans $240million-$280 million in capital expenditures this year, plans to drill the "high-impact" Conejo A-1 and Conejo A-2 wells in the Oriente Basin in the third quarter, Morin said on a quarterly conference call. The recently-drilled Charapa B-7 well in the same basin is testing for 1,800 boe/d, he said.

"We've had some significant wins within the portfolio as we continue to develop in Ecuador," Morin said. "The results will help guide further development plans in the region."

Gran Tierra, which also has operations in Colombia and Canada, aims to meet the upper end of its 47,000-53,000 boe/d 2025 production guidance despite pipeline shutdowns in Ecuador and protester roadblocks in Colombia in July, CEO Gary Guidry said on the same call.

Gran Tierra, which invested $51.2 million in the quarter, drilled a well at its Costayaco Block, brought into production two wells in its Cohembi Block and upgraded an electrical submersible pump at its Acordionero Block, all in Colombia. It also drilled two wells in the Simonette area in Alberta, Canada.

Gran Tierra, which acquired Calgary-based i3 Energy in 2024, averaged a record 47,196 boe/d in the second quarter, a 44% increase over the previous year, according to a company statement. Operating costs fell to $13.42/boe in the quarter from $16.17/boe a year earlier, while Gran Tierra sold crude at $36.64/boe in Q2 compared with $56.93/boe a year ago.