• 2025 Capital Expenditure Budget of $240-280 Million and Expected 2025 Cash Flow1 of $260-300 Million
• 2025 Capital Program Includes 10-14 Development Wells and 6-8 High Impact Exploration Wells
• Forecast 2025 Production of 47,000-53,000 BOEPD, Representing at the Midpoint, an Increase of 44% from 2024
• Forecast 2025 Free Cash Flow2 of $90 Million Before Exploration, $20 Million After Exploration in Base Case
• Plan to Allocate Up To 50% of After Exploration Free Cash Flow to Share Buybacks
• Achieved Total Company Production for 2024 of 34,710 BOEPD, an Increase of 6% from 2023
Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) announced its 2025 capital budget, production guidance and operational
update. All dollar amounts are in United States dollars and all production volumes are on a working interest before royalties basis
and are expressed in barrels of oil equivalent (“boe”) per day (“BOEPD”), unless otherwise stated.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “Following up on a strong 2024, which included
a very successful exploration campaign and a new country entry into Canada, we are looking forward to our 2025 development
and exploration program. Our 2025 budget, which is expected to be fully funded by Cash Flow1
, takes a balanced, returns-focused
approach to capital allocation while focusing on portfolio longevity. At the midpoint of the Base Case, our production guidance
of 50,000 BOEPD represents an increase of 44% from the 34,710 BOEPD 2024 total company production achieved in 2024.
We plan to focus on profitably growing reserves and production across our Colombian, Ecuadorian and Canadian assets, pursue
high impact exploration throughout our portfolio, and invest in facility and infrastructure projects to maximize the long-term
value of our assets. This year’s budget would fulfil our exploration commitments in Ecuador which were a result of obtaining the
lands back in 2019. Since 2021 we have drilled 10 exploration wells, had 9 discoveries and shot 238 kilometers of 3D seismic in
Ecuador. This year, we expect to drill four exploration wells in Ecuador and two to three wells to further appraise our exciting
discoveries. We have also planned a very active capital program in the Suroriente block including drilling 5-7 wells, investing in
a gas-to-power project, and significant facility investment to increase fluid handling due to increased production and water
injection. We forecast spending approximately $60-$80 million in Suroriente, which would fulfil a material component of our
$123 million commitment associated with obtaining the 20-year extension. In addition, we plan on drilling a further two to four
high impact exploration wells in Colombia. The exploration program and Suroriente capital program represent approximately
$135 million of this year’s capital program. After the fulfilment of commitments in 2025, we expect 2026 and beyond to be
focused on exploiting our extensive asset base, including anticipated development of our recent discoveries, drilling on our
extensive Canadian landholdings and optimizing our assets under waterflood.
We believe Gran Tierra is strongly positioned with a low base decline, a robust portfolio of conventional and unconventional oil
and gas assets, and a high-impact exploration program. As we continue to profitably advance our operational and financial goals,
we remain deeply committed to the well-being of our employees and the communities where we operate, recognizing their
essential role in our success.”
Key Highlights:
2025 Guidance:
? Gran Tierra is forecasting the following ranges for the Company’s 2025 budget:
* Budgeted royalties as a percentage of total revenue were approximately 19% in the base case
? 2025 Base Capital Program: Building on a successful capital campaign in 2024, Gran Tierra plans to continue to
execute on its strategy of delivering value by seeking to add new reserves, investing in facility and infrastructure projects
to maximize recovery and minimize cost, and providing future growth through exploration. Gran Tierra forecasts
spending approximately 55% of its capital program in Colombia, 30% in Ecuador, and 15% in Canada, respectively.
? Development: Gran Tierra expects to drill a total of 10 to 14 net development wells in its 2025 capital program,
including:
• Suroriente: The Company plans to drill 5-7 gross development wells in the Cohembi oil field located in the
Southern Putumayo Basin of Colombia. In addition to development drilling, Gran Tierra is also planning facility
expansion, gas-to-power generation upgrades, and continued social investment in the area. With the planned
investments in 2025, production and reserves are expected to significantly increase in 2026 and beyond.
• Acordionero: The Company plans to focus on the optimization of the field through continued waterflood
expansion activities, including facility expansions, workovers (ESP upsizes and injector conversions) and gas-topower generation upgrades. These expenditures are expected to reduce unit costs while maintaining production
by offsetting natural declines and increasing overall recovery. The Company is planning an active development
drilling program in 2026.
• Chanangue: The Company plans to continue its appraisal program on the highly prospective Arawana/Zabaleta
productive trend in Ecuador by drilling 2-3 appraisal wells.
• Simonette: Gran Tierra plans to drill 2.5 net wells at Simonette targeting two-layer co-development of the Lower
and Middle Montney offering improved capital efficiency and lower proportionate infrastructure spending.
? Exploration: Approximately 20-30% of the Company’s 2025 capital program is expected to be allocated to high
impact exploration activities and the drilling of 6 to 8 exploration wells in Colombia and Ecuador in the Base and
High Case. Gran Tierra’s 2025 exploration drilling is planned to follow up on the encouraging results from the
Company’s 2024 exploration program while meeting all its Ecuador exploration commitments. The Company
continues to focus its exploration program on short-cycle time, near-field prospects in proven basins with access to
transportation infrastructure.
? Fully Funded Capital Program Generating Free Cash Flow2
: Gran Tierra’s mid-point Base Case 2025 capital budget
of $260 million is expected to be fully funded from the Base Case 2025 mid-point Cash Flow1
forecast of $280 million,
based on an assumed average $75.00/bbl Brent oil price, $71.00/bbl WTI oil price, and CAD$2.50/thousand cubic feet
AECO natural gas price. Gran Tierra remains focused on generating Free Cash Flow2
, ongoing net debt5
reduction and
shareholder returns via share buybacks.
? Share Buybacks: During 2025, Gran Tierra plans to allocate up to approximately 50% of its Free Cash Flow after
exploration to share buybacks in the Base Case. During 2024, the Company repurchased approximately 6.7% of its
outstanding shares.
Gran Tierra’s Commitment to Go “Beyond Compliance” with Safe and Sustainable Operations
• 2024 was the Company’s safest year in company history, with a total of 27.8 million person-hours without a Lost Time Injury
(LTI), and a Total Recordable Case Frequency (TRCF) of 0.03, which places Gran Tierra within the top quartile in safety
performance in the Americas.
Operations Update
• 2024 Production
o Gran Tierra achieved total company average production in 2024 of approximately 34,710 BOPD, an increase of 6%
from 2023 and 13% from 2022.
• Ecuador
o Chanangue Block: Gran Tierra has completed its first horizontal well drilled in Ecuador, the Zabaleta Oeste well. The
well drilled through 700 feet of pay in the Basal Tena formation and has yielded promising results, confirming the area’s
potential for horizontal development. The well continues to clean-up and we anticipate the clean-up will take longer than
what is expected for a vertical well. Encouragingly, the well encountered good porosity sands, validating our geologic
and reservoir models and confirming the extent of the Basal Tena sands within the Chanangue Block.
o Iguana Block: Following the drilling of the Zabaleta Oeste well, the rig is currently being mobilized over to the Iguana
Block to drill the first exploration well of 2025.
• Canada
o Simonette: The development plan with our new Joint Venture partner, Logan Energy, has commenced with the first two
wells being drilled. Both wells are planned to be stimulated by the end of the first quarter or the beginning of the second
quarter of 2025.
o Central: Gran Tierra has drilled a well in the Nisku play with a horizontal lateral length of over 3,000 meters; testing is
planned to commence in February 2025.
o Clearwater: Gran Tierra has drilled 5 new wells in the Clearwater at East Dawson and Walrus. The Clearwater program
has confirmed the quality of our acreage in the Clearwater play. These wells are expected to come onstream in late
January 2025.
• Colombia
o Suroriente Block: A rig is currently being mobilized to the Cohembi North pad, with first production expected by the
end of the first quarter of 2025.