Bretaña, Peru
Gran Tierra Energy is an early mover and a significant land holder in Peru. We have a
100% working interest in Block 95 where we made one of the largest onshore oil discoveries in Latin America in 2013, the Bretaña field.
This includes replacing provisional accommodations and offices with more permanent structures, installing long-term testing equipment and storage tanks, and drilling a water disposal well. In addition, two heliports are being built to better service the drilling operations. We expect these projects to be completed through the second and third quarters of 2014. In parallel with these initiatives, we have expanded our Operations group to ensure we have the necessary experienced personnel to support the next stage of field development.
CONTINUE
Gran Tierra Energy is working closely with healthcare workers and volunteers to improve the quality of medical services and the general health of people living in Puinahua district. In partnership with the Loreto Regional Health Authority, Gran Tierra Energy is supporting health programs for young children and pregnant women in addition to an integral well-being program, providing general medical and dentistry services, vaccination campaigns, family planning courses, and laboratory services. In the Bretaña village, Gran Tierra Energy has donated medical equipment to supplement the community medical centre. In total, some 700 patients in 18 communities have benefited from these programs.
As we drill two wells in 2014, we are considering the involvement stakeholders will have. From the start of our exploratory project on Block 95, we have been working actively with a number of groups, holding consultations with stakeholders at the local, regional and national levels, involving residents, government authorities and non-governmental organizations (NGOs). We have invited tour operators and NGOs to participate in a series of informative workshops with the community as well in Citizen Participation Plans designed to improve stakeholder engagement. We believe all impacted groups have a voice in the development of our projects.
In the second half of 2014, Gran Tierra Energy intends to start a long-term test targeting production of approximately 2,500 barrels of oil per day. We expect our first oil production in the fourth quarter to make a small, yet important preliminary contribution to the Peruvian oil deficit. We expect to conduct a production test over a period of six months, with the potential for a six month extension.
FOURTH QUARTERTARGET PRODUCTION
~2,500
BARRELS OF OIL PER DAY
GOVERNMENTROYALTIES
5%
OF THE VALUE OF THE PRODUCTION
The regions, provinces and districts surrounding the Bretaña field are expected to benefit from additional income coming from the Canon Minero (a fee paid recognizing the exploitation of resources on their lands). In parallel with this production test, Gran Tierra Energy expects to start detailed development engineering, which is expected to introduce long-term sustainable projects that are expected to improve the standard of living for the local population. In addition, hundreds of direct and indirect jobs have been created by the contractors participating in these construction activities.
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Putumayo