Gran Tierra Energy Inc on Tuesday said that its 2023 sales had been hit by sinking oil prices, though the company hopes that its scheduled drilling programmes in 2024 will improve its fortunes.

Gran Tierra is an oil and gas exploration and production company focused on the acquisition and development of energy assets in South America.

For the year ended December 31, Gran Tierra’s oil sales decreased 10% to $637.0 million from $711.4 million, which the company attributes to a 17% drop in brent prices alongside higher Castilla blend and Vasconia crude differentials. Oil sales in the fourth quarter were down 4.7% to $154.9 million from $162.6 million a year prior.

Adjusted earnings before interest, tax, depreciation and amortisation were $377.6 million for the year, down 20% from $471.7 million in 2022. Fourth quarter adjusted Ebitda was $93.0 million, down from $106.8 million.

In the fourth quarter, Gran Tierra’s net income was $7.7 million, up 18% from $6.5 million the same quarter in 2022.

Gran Tierra realised a net loss for the year of $6.3 million, compared to net income of $139.0 million the previous year.

Basic earnings per share dropped to $0.19, a fraction of the $3.76 per share earned in 2022.

Operating expenses were up 15% for the year, to $186.9 million from $162.4 million.

As of December 13, Gran Tierra had $62.1 million in cash and cash equivalents, down from $126.9 million at the end of 2022.

At year-end, Gran Tierra had 90 million barrels of oil equivalent year-end 1P reserves, with a net present value of $1.95 billion at a 10% discount. 2P reserves totalled 147 million barrels, similarly valued at $3.06 billion, as well as 207 million barrels worth of 3P reserves worth $4.37 billion.

The company met its production guidance by achieving production of 32,647 barrels of oil per day, up 6% from the previous year.

Looking ahead, Gran Tierra is targeting production of between 32,000 and 35,000 barrels of oil per day for 2024, which the company said it will hit thanks to scheduled development drilling at its Acordionera and Costayaco oil fields in Colombia, and development drilling at its Suroriente block later in the year.

In the year so far, Gran Tierra is averaging 32,300 barrels of oil per day, though it expects this to increase during March as additional wells are brought on production.

Chief Executive Officer Gary Guidry commented: ‘We are particularly excited about the prospects of our 2024 exploration initiatives in Ecuador and Colombia, where we are set to drill between 6 to 9 low-risk, high-impact exploration wells. These prospects are potentially significant catalysts in our commitment to unlock new reserves and drive sustainable growth. With a robust and diverse portfolio of assets, Gran Tierra is poised to capitalize on emerging opportunities and deliver value to all our stakeholders.’

Shares in Gran Tierra were flat at 450.80 pence each in London on Tuesday.

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