Gran Tierra Energy Acquires Strategic Assets in Ecuador’s Oriente Basin

Core Viewpoint - Gran Tierra Energy Inc. has announced the acquisition of GeoPark Ecuador S.A. and Frontera Energy Colombia Corp's interests in the Perico and Espejo Blocks in Ecuador for a total purchase price of US$15.55 million, with additional contingent consideration based on production milestones [1][2][3]. Group 1: Acquisition Details - The total purchase price for the Blocks and Consortiums is US$15.55 million, subject to customary working capital adjustments as of January 1, 2025 [2] - An additional contingent consideration of $1.5 million is payable upon the Perico Block achieving cumulative gross production of two million barrels from January 1, 2025 [2] - The acquisitions are expected to close upon satisfaction of customary closing conditions, including regulatory approvals, anticipated no earlier than Q4 2025 [2][6] Group 2: Strategic Importance - The acquisitions represent a strategic expansion in Ecuador's Oriente Basin, enhancing Gran Tierra's existing operations and exploration potential [3][5] - The Perico Block is adjacent to Gran Tierra's operated Iguana Block, where recent oil discoveries were made, providing a natural extension for exploration success [4][5] - The Espejo Block, while further south, offers opportunities to enhance existing reserves and leverage regional economies of scale [4][5] Group 3: Operational Insights - The Blocks to be acquired include existing production of approximately 2,000 barrels of oil per day, translating to a purchase price of about $7,750 per flowing barrel [5] - Gran Tierra's established presence and technical expertise in the region position the company to unlock further value from these assets through efficient enhanced oil recovery techniques [5] - The acquisitions will complement Gran Tierra's ongoing exploration and development activities in Ecuador [6]