Calgary-based Petroamerica Oil, an oil and gas company operating in Colombia, revised its 2014 production guidance down Friday as production restrictions drop output at the its Llanos and Putumayo basin sites in southwest Colombia.
Total combined annual average production for the company’s Llanos and Putumayo properties was revised down to 6,600 boepd of working interest production before royalties.
Extended production restrictions in the Putumayo properties have been in effect since July.
Petroamerica said the restrictions are in the process of being lifted.
The company expects normal production operations to resume by October 1.
Production at the Suroriente block in the Putumayo basin was halted in July due to regional community blockades but has since resumed. However, production is not yet at the pre-interruption level.
Petroamerica holds a 18.5 working interest in the Suroriente block.
The company plans to add up to seven exploration wells in the Llanos and Putumayo basins within the next six months.
Petroamerica expects to exit the year with a production rate of more than 7,400 barrels oil equivalent per day of working interest production before royalties. That projection is in line with the company’s initial guidance of about 6,000 boepd.
Based on capital expenditure and cash flow projections for the remainder of the year, the company said it will likely exit 2014 with a cash balance of over $60 million.
Petroamerica holds interests in 12 exploration and production contracts in the Llanos and Putumayo basins, covering more than 500,000 net acres.