Gran Tierra Energy Profile
Gran Tierra Energy Inc., together with its subsidiaries, focuses on international oil and gas exploration and production with assets in Colombia and Ecuador.
Substantially all of the company’s revenues are derived from the sale of oil. All of its proved reserves and production are located in Colombia and Ecuador. The vast majority of the company’s production comes from four fields located in Colombia. For the year ended December 31, 2022, the Acordionero, Costayaco, Moqueta and Cohembi fields collectively generated 89% of the company’s production. All of the company’s revenue is generated outside of Canada and the United States.
Business Strategy
The company is an international exploration and production company focused on hydrocarbon development in proven, under-explored conventional basins, which have access to established infrastructure and competitive fiscal regimes. The company’s mandate is to develop high-value resource opportunities to deliver top-quartile returns.
Oil and Gas Properties - Colombia and Ecuador
As of December 31, 2022, excluding blocks subject to relinquishment, the company had interests in 22 blocks in Colombia, three blocks in Ecuador, and are the operator of 24 of these blocks.
The company holds Participation Sharing Contracts (‘PSC’) for the three Blocks (Charapa, Chanangue and Iguana) in the Oriente Basin in Ecuador.
Developed and Undeveloped Acreage
As of December 31, 2022, the company’s acreage was located 91% in Colombia and 9% in Ecuador.
Marketing and Major Customers
Colombia represents approximately 99% of the company’s production with oil reserves and production mainly located in the Middle Magdalena Valley (‘MMV’) and Putumayo Basin. In MMV, the company’s largest field is the Acordionero field.
The company has entered into numerous sales agreements for its production from MMV and the Putumayo Basin with domestic and international customers.
All of the company’s Putumayo production is sold at the wellhead. The oil is picked up by customer at the company-operated truck loading stations located at the company’s Costayaco battery or Santana station facilities in Putumayo North and at the company’s Cohembi and Cumplidor fields in Putumayo South. Production from the Acordionero field in MMV is trucked and sold at various terminals or pipeline inlets and various distances from the Acordionero field, depending on the marketing strategy to optimize the value. Production from MMV minor fields is sold at wellhead.
In 2022, all of the company’s MMV production was sold to one international marketer and all of the company’s Putumayo production was sold to two international marketers. The sales agreements for Putumayo and MMV production expire on March 31, 2025.
Regulation
The company operates in Colombia through Colombian branches of the following entities: Gran Tierra Energy Colombia LLC, Gran Tierra Colombia Inc., and Gran Tierra Energy Resources Inc. These entities are qualified as operators of oil and gas properties by the ANH.
The company operates in Ecuador through the Ecuadorian branch of Gran Tierra Energy Colombia, LLC.
The company holds three Participation Contracts which provide for full risk for the contractor and production sharing with the Ministry of Energy and Mines and contain an exploration and an exploitation periods.
Environmental Compliance
The company has an Environmental Management System, which is ISO14001:2015 certified representing compliance with internationally recognized industry best practice, as well as the environmental risk management program and robust waste management procedures.
History
Gran Tierra Energy Inc. was founded in 2003.
