CALGARY, Alberta, May 04, 2021 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. (Gran Tierra or the Company) (NYSE:GTE)(TSX:GTE)(LSE:GTE) today announced the Company's financial and operating results for the quarter ended March31, 2021 (the Quarter).All dollar amounts are in United States dollars and production amounts are on an average working interest before royalties (WI) basis unless otherwise indicated. Per barrel (bbl) amounts are based on WI sales before royalties. For per bbl amounts based on net after royalty (NAR) production, see Gran Tierra's Quarterly Report on Form 10-Q filed May4, 2021.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: During 2021, we have significantly increased Gran Tierra's total production. Our ability to ramp up Gran Tierra's production to the highest level in over a year clearly demonstrates our team's success at optimizing our core oil fields under waterflood, while preserving and maximizing the long-term value of all of our assets.
Based on our significant progress in increasing production during the first quarter of 2021, we reaffirm Gran Tierra's 2021 full-year production guidance of 28,000-30,000 bbl/day (BOPD'). With the strong recovery in the Brent oil price, we are also significantly revising upwards our 2021 forecasts for cash flow2 to $205-225 million, free cash flow2 of $75 million and adjusted EBITDA1 of $255-275 million. Our 2021 capital budget of $130-150 million remains a balanced, returns-focused program which prioritizes free cash flow2 generation and debt reduction. The significant free cash flow2 that we now forecast for 2021 is expected to allow us to further accelerate debt reduction through the remainder of 2021, with our projected bank credit facility balance decreasing to $70-90 million by December 31, 2021. We also continue to advance exploration-related activities for our prioritized, high impact exploration program and we expect to increase activity in 2022.
In the second half of 2021, funds flow from operations1 and free cash flow2 is expected to accelerate as production increases and our first half 2021 hedges roll off and are replaced with hedges with much higher prices. Our first half 2021 Brent hedges on 15,000 BOPD had an average floor of $45.13/bbl and ceiling of $51.38/bbl, whereas our second half 2021 hedges on 10,000 BOPD have an average floor of $57.03/bbl and ceiling of $65.29/bbl. During the second half of 2021, we expect the Company to generate funds flow from operations1 of $130-150 million and adjusted EBITDA1 of $155-175 million.