Gran Tierra Energy Inc. Announces Strategic Partnership with Ecopetrol for The Development of Fields in the Middle Magdalena Valley Adjacent to Gran Tierra's Largest Producing Field
Executive Summary
- Gran Tierra Energy signed a definitive contract to acquire a 49 % working interest in the Tisquirama block (Tisquirama and San Roque fields) adjacent to its Acordiano field.
- The agreement includes an initial $15 M Phase‑1 capital program (waterflood expansion) with a total $92.4 M carry commitment, of which Gran Tierra will fund approximately $47.1 M over 40 months.
- Upon completion of Phase 1, Gran Tierra will receive 49 % of existing base production (~2,500 boepd gross in 2025) and 49 % of incremental production, with potential combined gross output exceeding 13,000 boepd if development proceeds as planned.
Key Details
- Contract Scope
- 49 % working interest in the Tisquirama block (Middle Magdalena Valley Basin, Colombia).
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Subject to regulatory approval by Colombia’s Superintendence of Industry and Commerce (SIC) and other conditions precedent.
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Phase‑1 Capital Program
- Minimum spend: $15 M to expand waterflood from Acordiano into the new fields; targeted for Q1 2027 completion.
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Total carry capital commitment: $92.4 M, with Gran Tierra’s share ≈ $47.1 M over a 40‑month period.
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Production & Revenue Outlook
- Existing base production (gross) in 2025: 2,500 boepd.
- Post‑carry, Gran Tierra to receive 49 % of that base plus 49 % of incremental output.
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Projected gross production potential >13,000 boepd if full development proceeds.
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Operational Synergies
- Fields share geology with Acordiano; waterflood techniques proven at Acordiano will be applied to improve recovery.
- Potential for horizontal and multi‑lateral drilling, leveraging Canadian expertise.
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Integrated water‑management and possible gas‑to‑power generation to lower operating costs.
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Exploration Upside
- Near‑field exploration prospects identified on the block; >60 unbooked drilling locations noted.
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Development wells expected to cost < $2.0 M each (based on Acordiano well economics).
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Contract Term
- Extends until economic limit of the fields, providing long‑term development visibility.
Notable Quotes
“Gran Tierra views the Contract as a strategic opportunity to obtain operatorship of assets… we believe there is a clear opportunity to waterflood the assets and significantly improve the recovery factor.” – Gary Guidry, President & CEO
Materiality Assessment: Material – Positive (the agreement materially expands Gran Tierra’s asset base, production potential, and long‑term cash flow.)