The Conversation (0)
Gran Tierra Energy Inc. (" Gran Tierra " or the " Company ") (NYSE American:GTE)(TSX:GTE)(LSE:GTE) today announced that it has, through its wholly owned subsidiary Gran Tierra Energy Colombia GmbH, a Swiss limited liability company (the " Seller "), entered into a crude oil sale and purchase agreement and a related prepayment addendum (together, the " Oriente Crude Oil Agreements" ).
Under the Oriente Crude Oil Agreements, the Seller will receive an initial advance in an aggregate amount not to exceed $150 million and may receive an additional advance of up to $50 million, subject to certain conditions. These advances will be satisfied by scheduled deliveries of the Seller's Ecuadorian Oriente crude oil production. Proceeds from these prepayments are to strengthen the Company's balance sheet and enhance financial flexibility.
In connection with the execution of the Oriente Crude Oil Agreements, Gran Tierra has further optimized its capital structure by amending its Colombian credit facility (the " Amendment "). The Amendment, among other things, consents to and permits the Seller and the Company to execute and perform the Oriente Crude Oil Agreements, reduces the borrowing base under the Credit Agreement from its then-current amount of $75 million to $60 million and adjusts certain financial covenants to account for the prepayment structure.
Ryan Ellson, Chief Financial Officer of Gran Tierra, commented today:
"The prepayment agreement we signed today enhances 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 underscores our position as a premier operator in Ecuador and a reputable international producer. We remain fully committed to maintaining financial discipline and generating sustainable free cash flow through low decline and high netback production along with prudent capital allocation."
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements about 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 outlook and forward looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). All statements other than statements of historical facts included in this press release, including those statements preceded by, followed by or that otherwise include the words "expect," "anticipate," "plan," "can," "will," "should," and "believes," derivations thereof and similar terms identify forward-looking statements. The forward-looking statements contained in this press release reflect several material factors and expectations and assumptions of Gran Tierra including, without limitation, that Gran Tierra will continue to conduct its operations in a manner consistent with its current expectations, pricing and cost estimates (including with respect to commodity pricing and exchange rates), the general continuance of assumed operational, regulatory and industry conditions in Ecuador, and the ability of Gran Tierra to execute its business and operational plans in the manner currently planned.
Among the important factors that could cause our actual results to differ materially from the forward-looking statements in this press release include, but are not limited to the impact and benefits of the Amendment and the Oriente Crude Oil Agreements; the Company's cash flows and liquidity; and those factors detailed from time to time in Gran Tierra's periodic reports filed with the Securities and Exchange Commission, including, without limitation, under the caption "Risk Factors" in Gran Tierra's Annual Report on Form 10-K for the year ended December 31, 2024 filed February 24, 2025 and its other filings with the SEC. These filings 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 continue to be 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.
ABOUTÂ Gran Tierra Energy Inc.
Gran Tierra Energy Inc., together with its subsidiaries, is an independent international energy company currently focused on oil and natural gas exploration and production 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 concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company's website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may 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 website at http://www.sec.gov. The Company's Canadian securities regulatory filings are available on SEDAR+ at http://www.sedarplus.ca and UK regulatory filings are available on the National Storage Mechanism website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism .
Information on the Company's website does not constitute a part of this press release.
For investor and media inquiries please contact:
Gary Guidry
President & Chief Executive Officer
Ryan Ellson
Executive Vice President & Chief Financial Officer
+1-403-265-3221
info@grantierra.com
