Gran Tierra Share Price (GTE)

FT Today......got oil?

Saudi Arabia has dropped a plan to expand the kingdom’s daily oil production capacity, in a major policy reversal by the world’s largest oil exporter.

State-run Saudi Aramco said on Tuesday that it had been asked by the energy ministry to abandon a plan to increase its maximum sustainable production capacity from 12mn barrels a day to 13mn b/d by 2027.

The multibillion-dollar investment programme had set the company apart from much of the industry, where spending on oil production is generally falling because of concerns about climate targets and future demand. Saudi Aramco accounts for about 10 per cent of the 100mn barrels of oil the world consumes every day.

"Gran Tierra Energy Inc - Calgary, Canada-based and South America-focused oil and gas company - Reports net asset value per share at December 31 of USD44.48 before tax at 1P, more than triple that in 2020, and USD79.13 at 2P, more than double that from 2020; and USD116.56 at 3P. Total production in 2023 averaged approximately 32,650 barrels of oil per day, up 6% from 2022 and within guidance. Plans to grow production in 2024 while adding new reserves and future growth through exploration. Company is "excited to restart drilling" in its high-impact exploration portfolio this year. Forecasts 2024 production of 32,000 to 35,000 bopd, up 4% year on year."

If the NAV is $44 a share then one might hope the sp would rise this year? Two issues for me, the cost of debt at 9.5% interest and political instability in Combia.

9.5% interest on loans to cover the debt.....ouch!

Gran Tierra Energy Inc - Colombia and Ecuador-focused oil and gas exploration and production company - Says it has issued new 9.500% senior secured amortising notes, due in 2029 and worth USD487.6 million. Issuance forms part of Gran Tierra's previously announced offers to exchange its 6.250% senior notes due 2025 and 7.750% notes due in 2027. Chief Executive Officer Gary Guidry says due to "successful completion" of offers, "[its] balance sheet is now stronger due to an improved amortisation schedule, less restrictive conditions, and overall reduced leverage."

OK first problem, Colombian unrest and a left wing government.

Second problem, oil and gas shares all down, GTE very much so.

The Good news 38,000 bopd with new wells online.

https://www.lse.co.uk/news/gran-tierra-energy-quarterly-production-rises-as-wells-brought-online-k95pk6r3ibnd1j2.html

Really?!!... on 2 trades?