Gran Tierra secures USD200 million crude oil prepayment deal

(Alliance News) - Gran Tierra Energy Inc on Friday said it has inked a crude oil prepayment and marketing deal for USD200 million.

The Calgary, Canada-based mining company has entered the agreements through its wholly-owned, Switzerland-registered subsidiary, Gran Tierra Energy Colombia GmbH.

The subsidiary will be paid an initial of USD150 million to produce Ecuadorian Oriente crude oil, with a further USD50 million "subject to certain conditions."

Gran Tierra said it has "further optimised its capital structure by amending its Colombian credit facility" to execute the oil deal.

Changes include lowering the borrowing base of the existing credit facility to USD60 million from its earlier current amount of USD75 million, alongside adjusting financial covenants to allow for the deal's prepayment structure.

"Securing this agreement in this current market environment demonstrates the strong confidence our partners have in Gran Tierra’s operations and underscores our position as a premier operator in Ecuador and a reputable international producer," said Chief Financial Officer Ryan Ellson.

"We remain fully committed to maintaining financial discipline and generating sustainable free cash flow through low decline and high netback production along with prudent capital allocation.”

Gran Tierra shares were trading flat at 305.00 pence on Friday afternoon in London.

By Holly Munks, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2025 Alliance News Ltd. All Rights Reserved.

Gran Tierra