Gran Tierra Energy Inc., a prominent energy company, has officially announced a significant strategic partnership with Ecopetrol, Colombia's national oil company. This collaboration focuses on the development of oil fields located in the Middle Magdalena Valley Basin of Colombia, specifically targeting the Tisquirama and San Roque fields. These fields are strategically positioned adjacent to Gran Tierra's largest producing field, Acordionero, creating a cohesive operational hub.
Strategic Opportunity for Enhanced Recovery
Under the terms of the newly signed contract, Gran Tierra is expected to earn a 49 percent working interest in the Tisquirama block, pending regulatory approvals and other conditions precedent. This partnership represents a strategic opportunity for Gran Tierra to assume operatorship of assets with significant original oil in place that have historically seen limited development. The fields currently exhibit a relatively low recovery factor, presenting a compelling opportunity to apply Gran Tierra's proven operating model and waterflood expertise.
Gary Guidry, President and Chief Executive Officer of Gran Tierra, emphasized the potential of this venture. "We believe this creates a compelling opportunity to apply Gran Tierra's proven operating model and waterflood expertise to enhance recovery and extend field life," Guidry stated. "The Fields are adjacent to our Acordionero field and share similar geological characteristics, in which we have successfully implemented waterflood development to maximize recovery."
Synergies and Technological Applications
The proximity of these assets to Gran Tierra's existing operations is expected to generate meaningful synergies. These include integrated water management across the fields and the potential implementation of a gas-to-power project utilizing natural gas, which could lower operating costs across the area. Operating the Tisquirama and San Roque fields alongside Acordionero would allow Gran Tierra to manage the region as a single operating hub, improving efficiency and maximizing long-term value for all stakeholders.
Furthermore, Gran Tierra plans to leverage modern technologies to optimize recovery. This includes the potential application of horizontal and multi-lateral drilling techniques utilized in the company's Canadian operations. These methods aim to increase reservoir contact and improve the overall recovery factor, building on the technical expertise demonstrated at Acordionero.
Key Terms and Development Phases
The contract outlines a structured development approach with clear phases and financial commitments. Phase 1 capital activity will focus initially on waterflood expansion from Gran Tierra's operated Acordionero field into the adjoining Tisquirama and San Roque fields. This phase will involve wellbore optimization and low-risk infill drilling of the identified original oil in place across the block.
Completion of Phase 1 requires a minimum of $15 million in gross capital expenditures and the implementation of continuous water injection, which is currently anticipated to be achieved in the first quarter of 2027. Upon completion of Phase 1, Gran Tierra will receive 49 percent of existing base production in addition to 49 percent of incremental production. The fields averaged 2,500 barrels of oil equivalent per day on a gross basis in 2025.
Financial Commitments and Long-Term Vision
Gran Tierra has committed to a $92.4 million carry capital, with approximately $47.1 million allocated to a gross capital program over 40 months. Upon completion of the carry commitment, ongoing capital expenditures will be shared between Gran Tierra and Ecopetrol, with Gran Tierra continuing as operator. The partnership anticipates potential production levels in excess of 13,000 barrels of oil equivalent per day (gross) if development proceeds as expected.
In addition to development opportunities, the block contains near-field exploration prospects in proven plays, offering further potential for resource expansion. The contract term extends until the economic limit of the fields, providing long-term development visibility and allowing both companies to fully develop the block's resource potential.
Regulatory Approvals and Future Steps
The contract is subject to the satisfaction of certain conditions precedent, including regulatory approval by the Superintendence of Industry and Commerce of Colombia. The effective date of the contract will be determined once these conditions are met. This partnership strengthens the longstanding relationship between Ecopetrol and Gran Tierra, marking a significant step in the development of Colombia's energy sector.
This strategic alliance not only aims to enhance oil recovery through advanced techniques but also positions both companies to leverage operational efficiencies and technological innovations. The collaboration underscores a shared commitment to sustainable development and value creation in the Middle Magdalena Valley region.
