Gran Tierra Energy Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2025, with a net loss of $193.1 million, or $5.45 per share, compared to a net income of $3.2 million, or $0.10 per share, in 2024. The loss was primarily attributed to a non-cash ceiling test impairment of $136.3 million related to its oil and gas properties in Colombia and Canada. Total revenue for the year decreased by 4% to $596.7 million, driven by a 15% drop in Brent oil prices and lower sales volumes in Colombia, despite increased production from Canadian operations and higher sales volumes in Ecuador.
Operationally, Gran Tierra's average production increased by 38% to 38,443 barrels of oil equivalent per day (BOEPD) from 27,890 BOEPD in 2024. This increase was largely due to successful exploration drilling in Ecuador and a full year of production from Canadian operations. However, production in key Colombian fields, such as Acordionero and Costayaco, was negatively impacted by export pipeline disruptions and maintenance activities at the Moqueta field. The company drilled a total of 22 wells across its operations, with 16 wells currently producing.
In terms of strategic developments, Gran Tierra completed the acquisition of 100% working interest in the Perico and Espejo Blocks in Ecuador for a total cash consideration of $8.3 million, along with deferred and contingent payments. The company also divested its entire interest in the Simonette area in Canada for C$62.5 million (approximately US$45.6 million). These transactions reflect Gran Tierra's ongoing strategy to optimize its asset portfolio and focus on high-value resource opportunities.
Looking ahead, Gran Tierra has outlined a capital program for 2026 with a budget of $120 million to $160 million, primarily focused on development activities in Colombia, Canada, and Ecuador. The company expects to fund this program through cash flows from operations, assuming average Brent oil prices of $65 per barrel and production levels of 42,000 to 47,000 BOEPD. Gran Tierra's management remains committed to enhancing operational efficiency and stakeholder returns while navigating the challenges posed by fluctuating commodity prices and geopolitical factors in its operating regions.
About GRAN TIERRA ENERGY INC.
Gran Tierra Energy Inc. is an oil and gas exploration and production company with operations primarily in Colombia, Canada, and Ecuador. Focused on developing high-value hydrocarbon resources, it generated 93% of its revenue from Colombia in 2024. The company plans to invest $240-$280 million in 2025, emphasizing operational excellence and community impact. Gran Tierra aims to enhance recovery and expand its portfolio through strategic drilling and acquisitions.
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