Gran Tierra Energy Inc. (‘Gran Tierra’), together with its subsidiaries, focuses on oil and gas exploration and production, with assets in Colombia, Canada and Ecuador.
The company’s Colombian properties represented 47%, its Canadian properties represented 46%, and its Ecuadorian properties represented 7% of its proved reserves NAR as of December 31, 2024. For the year ended December 31, 2024, 93% of its revenue was generated in Colombia, 3% of its revenue was generated in Canada, and 4% of the...
Gran Tierra Energy Inc. (‘Gran Tierra’), together with its subsidiaries, focuses on oil and gas exploration and production, with assets in Colombia, Canada and Ecuador.
The company’s Colombian properties represented 47%, its Canadian properties represented 46%, and its Ecuadorian properties represented 7% of its proved reserves NAR as of December 31, 2024. For the year ended December 31, 2024, 93% of its revenue was generated in Colombia, 3% of its revenue was generated in Canada, and 4% of the company’s revenue was generated in Ecuador.
Business Strategy
The company’s mandate is to develop high-value resource opportunities to deliver top-quartile returns. It intends to continue to high-grade its portfolio, with a continued focus on operational excellence, safety, and stakeholder returns.
Acquisitions
In 2024, the company acquired 29.6 MMBOE of proved undeveloped reserves in Canada (22.5 MMBOE in Central, 6.0 MMBOE in Simonette, and 1.1 MMBOE in Wapiti) through the acquisition of i3 Energy, with an effective date on October 31, 2024.
Marketing and Major Customers
Colombia represents approximately 85% of the company’s production, with oil reserves and production located in the Middle Magdalena Valley (‘MMV’) and Putumayo Basin. In MMV, the company’s largest field is the Acordionero field, where it produces approximately 17° API oil, which represented 44% of the total company’s production for the year ended December 31, 2024. Putumayo production is approximately 27° API for the Chaza Block and 18° API for the Suroriente Block, representing 27% and 9%, respectively, of the total company’s production for the year ended December 31, 2024.
The company has entered into numerous sales agreements for its production from MMV and the Putumayo Basin with domestic customers, selling crude oil for export purposes. These agreements are subject to renegotiation terms between twelve and thirty months. The volume of crude oil contemplated in these sales agreements does not include the volume of oil corresponding to royalties taken in-kind, and since October 2022, does include volumes relating to HPR royalties.
All of the company’s Putumayo production is sold at the wellhead. In order to capture the best market value and optimize its netback, the company’s marketing strategy is to sell a blend ‘Chaza Heavy’ of the entire Putumayo production, with an average quality of 23-25° API. Production from the Acordionero field in MMV is trucked and sold at various terminals or pipeline inlets, and various distances from the Acordionero field, depending on its marketing strategy to optimize the value.
In 2024, all of the company’s MMV and Putumayo production was sold to one domestic marketer. The sales agreement for Putumayo production expires on March 31, 2025, and for MMV production, it expires on March 31, 2026. The loss of any individual sales customer will not have a material adverse impact on the company, as customers can be substituted, or it could market the crude directly itself.
In Ecuador, Bocachico produces approximately 19° API oil, and Charapa produces approximately 28° API oil. All of Ecuador’s production was sold to one international marketer and is sold at the port of shipment. For the year ended December 31, 2024, Ecuador contributed 6% of the total company’s production.
For the company’s Canadian operations, marketing activities are focused on maximizing the value of production from its core assets, including the Simonette, Central Alberta, Wapiti, and Clearwater regions. The company’s Canadian oil production is approximately 40° API. The company’s strategy prioritizes minimizing production curtailments, maximizing realized commodity prices, and managing credit risk exposure across its customer base. The company’s production, consisting of crude oil, natural gas, and NGLs, is primarily sold to marketers and aggregators. Prices realized are based on prevailing regional market indices, influenced by supply-demand fundamentals, transportation infrastructure, and competing energy sources. The company’s Canadian sales were 9% of the total company’s production for the year ended December 31, 2024.
The company receives revenues for its Colombian and Ecuadorian oil sales in U.S. dollars, and for its Canadian oil, natural gas, and NGL sales in Canadian dollars. Oil prices for sales of the company’s crude oil are defined by agreements with the purchasers of the oil. They are based generally on an average price for crude oil, natural gas, and NGLs, referenced to ICE Brent, WTI, Mixed Sweet Blend (‘MSW’), and AECO natural gas, with adjustments for differences in quality, specified fees, transportation fees, and transportation tax. Pipeline tariffs are denominated in U.S. dollars for Colombia and Ecuador, and Canadian dollars for Canada, while trucking costs are in Colombian Pesos in Colombia and U.S. dollars in Ecuador. 100% of transportation in Canada is performed via pipelines.
Geographic Information
The company has three reportable segments based on the geographic organization: Colombia, Ecuador, and Canada. Long-lived assets are Property, Plant, and Equipment, which include all oil, natural gas, and NGL assets, furniture and fixtures, automobiles, computer equipment, and capitalized leases.
Regulation
The company operates in Colombia through Colombian branches of the following entities: Gran Tierra Energy Colombia GmbH, Gran Tierra Operations Colombia GmbH, and Gran Tierra Energy Resources Inc. These entities are currently qualified as operators of oil and gas properties by the ANH.
The company operates in Ecuador through the Ecuadorian branch of Gran Tierra Energy Colombia, GmbH.
The company operates in Canada through the Canadian subsidiary Gran Tierra Canada Ltd., registered in Alberta.
The company has a Corporate Health, Safety, and Environmental Management Policy and Plan, as well as a Corporate Environmental Management Plan (‘EMP’). It has an Environmental Management System, which is ISO14001:2015 certified, representing compliance with internationally recognized industry best practices, as well as the environmental risk management program and robust waste management procedures.
History
Gran Tierra Energy Inc. was founded in 2003.
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