Gran Tierra Energy (GTE.TO) has satisfied all outstanding conditions precedent to the effectiveness of a contract with Ecopetrol that will earn GTE a 49% working interest in the Tisquirama block in Colombia, the company said on Wednesday.
The contract allows Gran Tierra to "apply its waterflood expertise and operational model to assets with significant original oil in place that have historically seen limited secondary recovery and relatively low recovery factors", it added.
The Tisquirama block contains the Tisquirama and San Roque fields, which are adjacent to Gran Tierra's operated Acordionero field and share similar geological characteristics.
Gran Tierra is expected to focus initial Phase 1 capital activity on waterflood expansion from the Acordionero field into the adjoining fields before accelerating development through wellbore optimization and low-risk infill drilling. Completion of Phase 1 is achieved with a minimum of US$15 million of gross capital expenditures and implementation of continuous water injection, which is currently anticipated to be achieved in the first quarter of 2027, subject to approval of the corresponding plans by the executive committee, GTE said.
Upon completion of Phase 1, Gran Tierra will receive 49% of existing base production in addition to 49% of incremental production. The Fields averaged approximately 2,500 boepd on a gross basis during 2025.
:Gran Tierra expects the Tisquirama Contract to create meaningful operational synergies with Acordionero, including integrated water management, the potential implementation of gas-to-power projects utilizing natural gas production in the area, and the opportunity to manage the Fields as a single operating hub to improve efficiency and maximize long-term value," the company added.
Shares in GTE were up $0.05 to $11.30 in Canada yesterday.