Gran Tierra Energy Inc. said its subsidiary has signed an agreement to sell its wholly owned subsidiary Gran Tierra North Sea Limited (GTNSL) to private upstream company NEO Energy for $7.5 million.
GTNSL holds a 100 percent equity interest in United Kingdom Continental Shelf (UKCS) license P2358, which includes the Serenity Discovery, the company said in a news release.
The completion of the transaction, expected in the third quarter, is subject to certain customary conditions precedent, including consent from the North Sea Transition Authority with respect to the change of control of GTNSL, according to the release.
First-Quarter Results
Gran Tierra reported first-quarter total average working interest before royalties (WI) production of 46,647 barrels of oil equivalent per day (boepd), 14 percent higher than the previous quarter and 45 percent higher year over year.
The higher production was due to the recognition of three full months of production from Canada and positive exploration well results in Ecuador, the company said in its most recent earnings release.
Gran Tierra incurred a net loss of $19 million for the quarter, compared to a net loss of $34 million in the prior quarter.
Gran Tierra President and CEO Gary Guidry said, “Our first-quarter performance reflects strong operational execution and disciplined financial management. Our front-loaded 2025 capital program, which had up to five rigs active during the quarter, delivered record drilling times and cost efficiencies across our key assets. We continue to generate returns through our share buyback program and ongoing debt reduction. Lowering leverage remains a key priority as we focus on projects which deliver quick cycle returns and maintain flexibility to invest in high-return opportunities across our portfolio”.
“Our focused exploration efforts also continue to deliver successful results, reinforcing the quality of our assets and long-term strategy to create value. With current production of approximately 48,400 boepd and a strong hedge position for the remainder of the year we are well positioned to generate value while remaining resilient amid commodity price volatility,” Guidry added.
In Ecuador, Gran Tierra said it successfully drilled two additional oil discoveries, the Iguana B1 and Iguana B2 wells on the Iguana Block. The combined wells have an average oil production rate over 30 days of around 1,684 barrels of oil per day from the U-Sand formation.
The Iguana B1 well was drilled and completed in record time and under budget, “establishing a new pace-setting well in Gran Tierra’s Ecuador exploration campaign,” the company said.
The company reported first-quarter capital expenditures of $95 million, higher than the $79 million in the prior quarter and higher than $55 million year over year, resulting from the addition of the Canadian development program, an active Ecuador exploration program, and development activities in the Cohembi field in Colombia.
For the quarter, Gran Tierra said it had three rigs active in Canada, one in Ecuador, and one in Colombia.
Gran Tierra Energy describes itself as an independent international energy company focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador.
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