5th Aug 2025 15:43
(Alliance News) - Gran Tierra Energy Inc said its subsidiaries have agreed to buy all of GeoPark Ecuador SA's and Frontera Energy Colombia Corp Sucursal Ecuador's interests in the Perico and Espejo blocks and their consortiums in Ecuador's Oriente basin.
The Calgary, Canada-based exploration and production company said the aggregate purchase price for the blocks and consortiums is USD15.6 million.
The agreement includes an additional contingent cost of USD1.5 million, which would be payable when the Perico block achieves cumulative gross production of two million barrels measured from the start of 2025.
Gran Tierra said the acquisitions are expected to close no earlier than the fourth quarter of 2025, upon the satisfaction of closing conditions, including approval from the Ecuadorian Ministry of Energy.
The Perico block is directly adjacent to the Gran Tierra operated Iguana block, where the company made two oil discoveries in the first half of 2025.
Gran Tierra said the Espejo site provides "an opportunity for Gran Tierra to enhance the value of existing reserves by leveraging our regional economies of scale".
"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. Once we drill our two high-impact Conejo wells in the Charapa Block—scheduled to commence in September—we expect to accelerate the potential for regional development infrastructure and synergies that support low-cost development and operation of the discovered resources," said Chief Executive Officer Gary Guidry.
The blocks include existing production of around 2,000 barrels of oil per day based on production in July, representing a purchase price of around USD7,750 per flowing barrel.
"Upon closing, the acquisitions will expand Gran Tierra’s footprint in Ecuador and complement the company’s ongoing exploration and development activities in the country," it added.
Shares in Gran Tierra were down 4.4% at 301.00 pence in London on Tuesday afternoon.
By Michael Hennessey, Alliance News reporter
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