Gran Tierra to acquire Perico, Espejo blocks in Ecuador

Executive Summary

• Gran Tierra Energy Inc. has entered into definitive agreements to acquire the Perico and Espejo blocks and associated consortiums in Ecuador's Oriente Basin from GeoPark Ecuador SA and Frontera Energy Colombia Corp. Sucursal Ecuador.
• The transaction involves an aggregate purchase price of $15.55 million (U.S.), plus $1.5 million in contingent consideration based on production milestones, with closing anticipated no earlier than Q4 2025.
• The acquisition expands Gran Tierra's footprint in Ecuador, adding approximately 2,000 barrels of oil per day in production and providing strategic adjacency to the company's operated Iguana block.

Key Details

• Transaction Structure: Gran Tierra’s indirect wholly owned subsidiaries, Gran Tierra Energy Ecuador 1 GmbH and Gran Tierra Energy Ecuador 2 GmbH, are acquiring all interests in the Perico and Espejo blocks and their associated consortiums.
• Purchase Price: Aggregate cash consideration of $15.55 million (U.S.), subject to customary working capital adjustments as of January 1, 2025.
• Contingent Consideration: An additional $1.5 million (U.S.) payable upon the Perico block achieving cumulative gross production of two million barrels from January 1, 2025.
• Closing Conditions: Subject to customary closing conditions, including regulatory approvals and operations takeover from the Ministry of Energy of Ecuador.
• Closing Timeline: Anticipated no earlier than the fourth quarter of 2025.
• Production Assets: The blocks include existing production of approximately 2,000 barrels of oil per day (based on July 2025 production), representing a purchase price of approximately $7,750 per flowing barrel.
• Strategic Rationale:
  • Perico Block: Directly adjacent to Gran Tierra’s operated Iguana block, where two oil discoveries were made in the U sandstone in the first half of 2025. Offers geographic continuity to extend the proven productive trend and leverage shared infrastructure.
  • Espejo Block: Located further south with a smaller discovered field to date; offers opportunity to enhance value of existing reserves through regional economies of scale.
• Future Operations: CEO Gary Guidry noted that the company plans to drill two high-impact Conejo wells in the Charapa block, scheduled to commence in September, to accelerate regional development infrastructure and synergies.
• Technical Approach: The company intends to implement efficient enhanced oil recovery techniques, such as waterflooding, to unlock further value.

Notable Quotes

• "These acquisitions represent a logical and strategic expansion of our footprint in Ecuador's Oriente basin. The company has successfully discovered a critical threshold of reserves in northern Ecuador that support future development." — Gary Guidry, President and CEO
• "The Perico block is directly adjacent to our operated Iguana block, where we recently made two oil discoveries in the first half of 2025, and provides a natural extension of our exploration success in the area." — Gary Guidry, President and CEO