Gran Tierra Energy Inc. Announces New $200 Million Prepayment and Marketing Agreement and Amendment to Reserve-Based Credit Facility

Executive Summary

• Gran Tierra Energy entered into the Oriente Crude Oil Agreements, securing up to a $200 million prepayment facility tied to Ecuadorian crude deliveries.
• The company amended its Colombian credit facility, reducing the borrowing base from $75 M to $60 M and adjusting covenants to accommodate the new prepayments.
• Proceeds are intended to strengthen the balance sheet and increase financial flexibility for ongoing operations in Ecuador.

Key Details

• Oriente Crude Oil Agreements:
• Initial advance up to $150 million; optional additional advance of up to $50 million.
• Advances are prepaid against scheduled deliveries of Oriente crude oil from Ecuador.
• Credit Facility Amendment (Colombia):
• Borrowing base reduced from $75 M to $60 M.
• Financial covenants modified to reflect the prepayment structure.
• Purpose of Funds:
• Enhance balance‑sheet strength and financial flexibility.
• Support continued low‑decline, high‑netback production and prudent capital allocation in Ecuador.
• Commentary (CFO Ryan Ellson): Emphasized that the agreement demonstrates partner confidence, improves capital structure, and aligns with the company’s disciplined cash‑flow generation strategy.

Notable Quotes

“The prepayment agreement we signed today enhances Gran Tierra’s financial flexibility and further strengthens our capital structure… 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.” – Ryan Ellson, CFO