Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) today announced that it, through its wholly owned subsidiary Gran Tierra Energy Colombia GmbH, a Swiss limited liability company (the “Seller”), has entered into a crude oil sales and purchase agreement and a related addendum for advance payment (collectively referred to as the “Oriente Crude Oil”). Agreements”).
Under the Oriente Crude Oil Agreements, Seller will receive an initial advance of up to $150 million and may, subject to certain conditions, receive an additional advance of up to $50 million. These advances will be met through scheduled deliveries of Ecuadorian Oriente crude oil production by the seller. The proceeds from these upfront payments are intended to strengthen the company’s balance sheet and increase financial flexibility.
In connection with the execution of the Oriente Crude Oil Agreements, Gran Tierra further optimized its capital structure through its Colombian credit facility (the “ Change “). The Amendment, among other things, agrees to and permits Seller and the Company to execute and perform the Oriente Crude Oil Agreements, reduces the borrowing base under the Credit Agreement from the then current amount of $75 million to $60 million and modifies certain financial covenants to reflect the prepayment structure.
Ryan Ellson, Chief Financial Officer of Gran Tierra, said today:
“The prepayment agreement we signed today increases Gran Tierra’s financial flexibility and further strengthens our capital structure. Securing this agreement in this current market environment demonstrates the strong confidence our partners have in Gran Tierra’s operations and underlines our position as a leading operator in Ecuador and as a renowned international producer. We remain fully committed to maintaining financial discipline and generating of sustainable free cash flow through low drawdown and high netback production, along with sensible capital. assignment.”
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements of future events that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial forecasts and forward-looking information within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). All statements other than statements of historical fact contained in this press release, including statements preceded by, followed by or otherwise containing the words “expects,” “anticipates,” “plans,” “may,” “will,” “would” and “believes,” derivatives thereof and similar terms identify forward-looking statements. The forward-looking statements contained in this press release reflect various material factors, expectations and assumptions of Gran Tierra, including, but not limited to, that Gran Tierra will continue to conduct its business in a manner consistent with its current expectations, price and cost estimates (including with respect to commodity prices and exchange rates), the general continuation of assumed operating, regulatory and industry conditions in Ecuador, and Gran Tierra’s ability to conduct its business and operating activities. plans in the way that is currently planned.
Important factors that could cause our actual results to differ materially from the forward-looking statements in this press release include the impact and benefits of the Amendment and the Oriente Crude Oil Agreements; the company’s cash flows and liquidity; and the factors described from time to time in Gran Tierra’s periodic reports filed with the Securities and Exchange Commission, including, but not limited to, under the heading “Risk Factors” in Gran Tierra’s Annual Report on Form 10-K for the year ended December 31, 2024, filed on February 24, 2025, and its other filings with the SEC. These documents are available on the SEC website at http://www.sec.gov and on SEDAR+ at www.sedarplus.ca. All forward-looking statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by Gran Tierra that Gran Tierra believes these forward-looking statements will remain true as of any subsequent date. Gran Tierra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
ABOUT Gran Tierra Energy Inc.
Gran Tierra Energy Inc. is, together with its subsidiaries, an independent international energy company currently focused on the exploration and production of oil and natural gas in Canada, Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Canada, Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company’s portfolio. The Company’s common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information about Gran Tierra is available at www.grantierra.com. Unless otherwise expressly stated, information on the Company’s website or accessible from our website or any other website is not incorporated by reference into this press release and should not be considered part of this press release. Investor questions can be directed to info@grantierra.com or (403) 265-3221.
Gran Tierra’s filings with the U.S. Securities and Exchange Commission (the “SEC”) are available on the SEC’s website at http://www.sec.gov. The Company’s Canadian securities registrations are available on SEDAR+ at http://www.sedarplus.ca and its UK securities registrations are available on the National Storage Mechanism website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
Information on the company’s website is not part of this press release.
For questions from investors and media, please contact:
Gary Guidry
President and CEO
Ryan Ellson
Executive Vice President and Chief Financial Officer
+1-403-265-3221
info@grantierra.com
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