Gran Tierra Energy Inc. (“Gran Tierra”) (GTE) is pleased to announce that the Company has satisfied all outstanding conditions precedent to the effectiveness of the agreement previously announced on April 11, 2023 with Ecopetrol S.A. (“Ecopetrol”), the national oil company of Colombia, by which the parties renegotiated the terms and the duration of the contract for the Suroriente Block in the Department of Putumayo (“Suroriente”), which was scheduled to end in mid-2024 (the “Suroriente Continuation Agreement”). All dollar amounts are in United States (“U.S.”) dollars unless otherwise indicated.
The Suroriente Continuation Agreement provides the opportunity to add significant value, as well as economic life, to Suroriente by continuing its duration for 20 years from the Suroriente Continuation Agreement’s effective date, September 1, 2023. The additional term of the Suroriente Continuation Agreement allows long-term investment in infrastructure and work programs to enhance oil recovery efficiency in existing fields, and appraisal drilling to potentially prolong the life of the fields. Gran Tierra will continue to be the operator of Suroriente and is committing to a capital investment program of $123 million over a three-year period from the Suroriente Continuation Agreement’s effective date, expected to be funded by Gran Tierra’s internal cash flow.
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “As expected, Gran Tierra has met all conditions precedent to the effectiveness of the Suroriente Continuation Agreement including regulatory approval by the Superintendence of Industry and Commerce of Colombia. Having achieved this milestone, Gran Tierra is looking forward to the opportunity to continue to develop and expand Suroriente and has made this commitment to long-term capital projects and development programs in the area.”