Earnings call transcript: Gran Tierra Energy Q2 2025 sees record production

Gran Tierra Energy Inc. (GTE) reported its Q2 2025 earnings, showcasing a record production level of 47,200 barrels of oil equivalent per day (BOE/d), a 1% increase from the previous quarter and a 44% rise year-over-year. Despite this production growth, the company faced a net loss of $13 million, an improvement from the $19 million loss in the prior quarter. Sales declined to $152 million, down 8% from the same period last year. The stock remained flat at $4.41, reflecting a cautious market reaction. According to InvestingPro analysis, GTE is currently undervalued, with a Financial Health Score of 2.16 (FAIR), though the stock has declined over 52% in the past year.

Key Takeaways

• Record production of 47,200 BOE/d, up 1% QoQ and 44% YoY.
• Sales decreased by 8% compared to 2024, with a net loss of $13 million.
• Operating costs reduced by 17% from the previous year.
• Successful drilling campaigns in Colombia, Ecuador, and Canada.
• Proactive hedging strategy securing 50% of South American and 60% of Canadian oil production for 2025.

Company Performance

Gran Tierra Energy’s performance in Q2 2025 was marked by record production levels, driven by successful drilling campaigns across its operational regions. However, the company faced challenges with a decline in sales and a net loss, reflecting broader market conditions, including a 22% decrease in Brent pricing and pipeline disruptions in Ecuador. Despite these hurdles, the company managed to improve its net loss from the previous quarter and reduce operating expenses significantly.

Financial Highlights

• Revenue: $152 million, down 8% from the previous year.
• Net loss: $13 million, improved from a $19 million loss in the prior quarter.
• Adjusted EBITDA: $77 million.
• Operating expenses reduced by 17% compared to 2024.
• Capital expenditures: $51 million, a decrease from $95 million in the prior quarter.

Outlook & Guidance

Gran Tierra Energy maintains a positive outlook with a production guidance of 47,000-53,000 BOE/d for the remainder of 2025. The company aims to generate $20 million in free cash flow and has secured a $200 million prepayment facility backed by crude oil deliveries. Additionally, the company is exploring the potential entry into the Azerbaijan market, which could provide significant growth opportunities.

Executive Commentary

CEO Gary Guidry expressed confidence in the company’s capacity to sustain production growth, stating, "We have the capacity. We have the production capacity." He also highlighted the potential in Azerbaijan, noting, "We’re very excited about Azerbaijan... where you can find multi TCF type fields." CFO Ryan Nelson praised the team’s execution, saying, "The team’s done a great job of executing the program."

Risks and Challenges

• Continued volatility in global oil prices could impact revenue.
• Pipeline disruptions in Ecuador may affect future sales.
• The company’s net debt to adjusted EBITDA ratio of 2.3x, while improved, still poses a financial risk.
• Market entry into Azerbaijan carries geopolitical and operational uncertainties.
• The ongoing hedging strategy must be managed carefully to mitigate potential losses.

Gran Tierra Energy’s Q2 2025 earnings reflect a mix of achievements and challenges, as the company navigates a complex market environment while positioning itself for future growth.

Full transcript - Gran Tierra Energy Inc (GTE) Q2 2025:

Michelle, Conference Call Coordinator: Good morning, ladies and gentlemen, and welcome to Gran Tierra Energy’s Results Conference Call for the Second Quarter twenty twenty five. My name is Michelle, I will be your coordinator for today. At this time, all participants are in a listen only mode. Following the initial remarks, we will conduct a question and answer session for securities analysts and institutions. Instructions will be provided at that time for you to queue up for questions.

I would like to remind everyone that this conference is being webcast and recorded today, Thursday, 07/31/2025 at eleven a. M. Eastern Time. Today’s discussion may include certain forward looking information, oil and gas information and non GAAP financial measures. Please refer to the earnings and operational update press release we issued yesterday for important advisories and disclaimers with regard to this information and reconciliations of any non GAAP measures discussed on today’s call.

Finally, this earnings call is the property of Gran Tierra Energy Inc. Any copying or rebroadcasting of this call is expressly forbidden without the written consent of Gran Tierra Energy. I will now turn the conference over to Gary Guidry, President and Chief Executive Officer of Gran Tierra. Mr. Guidry, please go ahead.

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: Thank you, operator. Good morning, and welcome to Gran Tierra’s second quarter twenty twenty five results conference call. My name is Gary Goodreaf, Gran Tierra’s President and Chief Executive Officer. And with me today are Ryan Nelson, our Executive Vice President and Chief Financial Officer and Sebastian Moran, our chief operating officer. On Wednesday, 07/30/2025, we issued a press release that included detailed information about our second quarter two thousand twenty five results, which is available on our website.

Ryan and Sebastian will make a few brief comments, and then we will open up the line for questions. I’ll now turn the call over to Ryan to discuss some of our financial results.

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Thanks, Gary. Good morning, everyone. Gran Tier delivered another quarter of strong operational and financial performance highlighted by record company production, the lowest per barrel operating cost since early twenty twenty two, and enhanced liquidity through a number of initiatives and credit capacity. During the quarter we achieved record production of approximately 47,200 BOE per day, an increase of 1% from the prior quarter and 44% higher than Q2 twenty twenty four. This continued growth reflects strong performance across Colombia, Ecuador and Canada supported by successful drilling campaigns and waterflood execution.

Gran Tierra generated sales of $152,000,000 down 8% from the 2024 primarily as a result of a 22% decrease in Brent pricing, which was partially offset by 43% higher sales volume due to higher production and lower South American oil differentials. Oil sales decreased 11% from the prior quarter primarily due to an 11% decrease in Brent price, again partially offset by lower South American oil differentials. On a per BOE basis, operating expenses decreased by 17% when compared to the 2024 and sixteen percent when compared to the prior quarter, primarily as a result of lower workover activities and lower lifting costs associated with inventory build in Ecuador, power generation and equipment rentals. This was the lowest operating cost per BOE achieved since the 2022. During the 2025, Gran Tier incurred a net loss of $13,000,000 compared to a net loss of $19,000,000 in the prior quarter compared to net income of $36,000,000 in the same quarter last year.

Funds flow from operations were $54,000,000 or $1.53 per share up 17% from the 2024 and down 3% from the prior quarter. Brent price decreased by 11% per barrel compared to the prior quarter and our cash netback only decreased by 1% illustrating the resiliency of our portfolio. The company generated adjusted EBITDA of $77,000,000 versus $85,000,000 in the prior quarter and a 103,000,000 in the 2024. Twelve month trailing net debt to adjusted EBITDA was 2.3 times. However, this only accounts for eight months of Canadian adjusted EBITDA, and we continue to have a long term target of one times.

In terms of share buybacks, Gran Tierra purchased approximately 240,000 shares during the quarter. From 01/01/2023 to 07/28/2025, the company repurchased approximately 5,200,000.0 shares or 15% of our shares issued outstanding on 01/01/2023. GranTier’s capital expenditures were $51,000,000 during the quarter, which were lower than the $95,000,000 in the prior quarter and lower than $61,000,000 in the 2024. During the quarter, the majority of capital expenditures were incurred in Colombia on Colombia drilling and infrastructure. In addition to the $61,000,000 cash on hand as of 06/30/2025, The company currently has approximately 112,000,000 in credit lending facilities with 47,000,000 drawn on 06/30/2025.

From a liquidity perspective, GranTier continues to advance multiple strategic initiatives to strike liquidity, including potential non core asset sales, monetization of royalty interest, optimization of free cash flow, and evaluation of prepayment structures. All initiatives are progressing in line with our expectations. As part of these strategic initiatives, we have announced that we have signed a mandate letter with the syndicate of banks for a $200,000,000 prepayment facility backed by crude oil deliveries. We are progressing towards full documentation with closing expected in the 2025 and funding anticipated shortly thereafter. Also of note, as part of our as a and as part of the completed semiannual redetermination process, the company received confirmation from its lenders that the borrowing base under its Canadian credit facility remains unchanged at a $100,000,000 Canadian.

This out outcome reflects ongoing strength and stability of the company’s Canadian asset base. The revolve revolving credit facility continues to provide 50,000,000 available commitments with maturity date of 10/31/2026. The next redetermination will be on or before 11/30/2025. GranTier also employs a disciplined and risk managed hedging strategy designed to protect cash flows, support capital planning, and enhance financial stability across commodity cycles. The company utilizes a diverse mix of oil and gas hedges with structures that provide downside protection while preserving upside exposure.

This proactive approach contributed to a $14,000,000 derivative hedging gain during the quarter. The company also maintains a rolling twelve month foreign exchange hedging program to further mitigate currency volatility. Gran Tierra implemented robust hedging program to manage price volatility across its operations. For the 2025, the company’s hedged approximately 50% of its South American oil production and 60% of its Canadian oil production. For the 2026, hedge coverage stands at roughly 33% for South America and 50% for Canada.

The pricing levels of these hedges are in line with the company’s plan planning assumptions and provide downside protection while preserving upside exposure. Gran Tierra has also hedged approximately 40% of Canadian natural gas production for the 2025. In addition to help manage foreign exchange risk, the company began a twelve month COP to USD hedging program in April 2025 covering approximately US10 million dollars per month. We also continue to optimize our portfolio with the signed disposition of The UK North Sea assets for approximately $7,500,000 which is expected to close in the 2025. Overall, Gran Tierra’s second quarter performance continues to demonstrate our commitment to capital discipline and operational excellence by delivering record production and reporting lower operating expenses per barrel, while also enhancing our liquidity position through a number of initiatives that financial flexibility heading into the 2026.

I’ll now turn the call over to Sebastien to discuss some of the highlights of our current operations.

Sebastian Moran, Chief Operating Officer, Gran Tierra Energy: Good morning, everyone, and thank you, Ryan. Operationally, Gran Tierra delivered another strong quarter, building on the momentum from Q1 and continuing to advance key initiatives across our core areas in Colombia, Ecuador and Canada. Starting in Colombia, total working interest production averaged approximately 25,100 barrels of oil per day during the quarter, driven by successful development drilling at Cohembi and Khoziako and continued improvements in waterflood execution in Khoziako, Khoziako and Acordionero. At Cohembi, the remaining two wells from our five well North Pad program were brought onto production. Average drilling cost was approximately $3,000,000 per well, representing a 47% reduction from the previous operator’s historical costs.

Injection of 8,000 barrels of water injected per day in the newly delivered North Pad began in June. Already we are seeing a strong waterflood response, with gross production increasing by 2,600 barrels of oil per day in the northern area of the field. At Costayaco, we completed and brought on stream the Costayaco 63 and Costayaco 64 development wells. Both wells were stimulated and placed on production with initial results exceeding expectations. Costiaco 63 is currently producing 800 barrels of oil per day with a 48% water cut and Costiaco 64 is producing 1,300 barrels of oil per day with only a 13% water cut.

The final well in the program, Costiaqua 65, was spud in July and is expected to be on production in August. At Acordionero, we achieved record total fluid production of 89,400 barrels per day and water injection of 85,000 barrels per day during the quarter. Field production averaged 14,200 barrels of oil per day, up from 13,800 in Q1. This improvement reflects continued gains in pump upsizing, enhanced surface capacity and real time waterflood surveillance. Moving to Ecuador, we continue to execute our strategy and fulfill our commitments.

Civil works are underway in preparation for drilling two high impact exploration wells at the Conejo prospect on the Tirapa block, with spud expected in late Q3. These will be the final wells under our exploration commitments in the country. The results will help guide further development plans and infrastructure alignment in the region. In Canada, the Simonette Montney program continues to outperform. The first two Lower Montney wells were completed and brought on stream in early April and are currently exceeding management’s type curves expectations.

The third well in the program was drilled and cased successfully in July. The rig was moved to the next location on the pad and is now drilling the fourth well in the program. The well is expected to reach total depth in August. Both of these new wells are expected to be stimulated and put on stream in Q4. Across the portfolio, we remain focused on capital efficiency, reservoir optimization and unlocking further value from our diverse asset base.

The success of our drilling programs, enhanced field performance and reduced operating costs position us well to deliver free cash flow and strengthen our financial position through the 2025. Looking ahead, we remain focused on continuing to ramp base production at Cohembi North and Costayaco from our Q1, Q2 development programs, which are delivering very positive results optimizing Acordionero production with continued waterflood enhancements and facility optimizations initiating the high impact Conejo exploration wells in Ecuador to unlock additional value from the Oriente Basin completing and bringing online the third and fourth Simonette Montney wells while optimizing existing field production maintaining capital and operational cost discipline while targeting free cash flow generation in the second half of the year. I will now turn the call back to the operator and Gary, Ryan and I will be happy to take questions. Operator, please go ahead.

Michelle, Conference Call Coordinator: Thank you, ladies and gentlemen. We will now conduct the question and answer session for securities analysts. If you have a question, please press the star key followed by one one on your touch tone phone. You will then hear an automated message advising that your hand is raised. Your question will be pulled in the order they are received.

Please ensure you lift your handset if you’re using a speakerphone before pressing any key. The first question will come from David Round with Stifel. Your line is now open.

David Round, Analyst, Stifel: Great, thank you. Thanks for making the time guys. Can I start with a broad question on production please? I know we just touched on a few of the key highlights, I just want to dig into it a bit more if possible. So firstly, I guess I’m interested in how production has gone so far this year versus where you thought you’d be at the start of the year, whether there were any positive, negative surprises there, and any highlights just to bring out?

And I know we just briefly mentioned sort of, you know, Casiaco, Acordionero. I suppose, are we able to just kind of elaborate on current contributions and expectations, I guess, for H2 and beyond for, I suppose, the key moving parts, so Suriente, Ecuador and Simonette. I don’t know if you’re able to just elaborate on some of the specifics there.

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: I think at a very high level, all of our fields have been performing as expected or beyond expectations. We have the normal interruptions both in Colombia and Ecuador with blockades, but we have a very good team that manage those the impact. We’ve seen also some some infrastructure issues. There’s one that’s just finishing up in Ecuador at the moment with a with a very heavy rains pipeline interruption. But in general, the answer to your question is, from a field and asset performance, everything has performed as expected or outperformed and that’s both in Canada, Colombia and Ecuador.

On the specifics, maybe Sebastian, you could say a few words about rates.

Sebastian Moran, Chief Operating Officer, Gran Tierra Energy: Yeah. So on rates, think we continue to be very excited. We did a ESP conversion over on Tirapa V7, which is again, highlighted the the quality of the basal tena in in Ecuador. And so that well is currently doing 1,800 barrels of oil per day, and decline is extremely flat. So we’ve had some significant wins as well within within the portfolio, especially as we continue to develop in Ecuador.

And then at Cohembi, the pressure response that we’re seeing really encouraging. And so, we see that ramping up through Q3 and Q4.

David Round, Analyst, Stifel: Okay. So just then a very quick follow-up on that point. So actually, if I think about all three of those areas, mentioned Simonette, Cohembi and Ecuador, I mean, should we be assuming ramp up on all those assets over the second half of this year?

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: Yes.

David Round, Analyst, Stifel: Okay, fine. Just a second question then, and I appreciate it’s not final, but just on the prepay, can you say anything even in broad terms about how that might work or just sort of indicatively what that might cost or are we too early on that one?

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Yeah, no, at a high level, we will be committing to essentially selling oil for future prepayments. It’s gonna be over about a four year term, so it’s quite long term in nature, not a huge grind on our cash flows. So just think of it as a loan that really advertises over four years settled with oil payments. And so the terms will be very, very competitive and we’re quite excited about it. And so it’s similar to what we’ve done in the past.

It’ll just be a longer tenor.

David Round, Analyst, Stifel: Okay, great. Thank you. I’ll hand it back.

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Thanks.

Michelle, Conference Call Coordinator: And the next question will come from Ann Mune with Bank of America. Your line is open.

Ann Mune, Analyst, Bank of America: Thank you. Good morning. Congratulations on your results. I have a few questions relatively short hopefully. The first is could you provide us with any additional updates or your thoughts on other asset sales for this year?

I believe you mentioned The UK North Sea, 7,500,000.0. I think there were a couple others on the list there. That would be the first question.

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: Yeah, the answer to that question is we have several things that are ongoing and we have non disclosure agreements in place. So we’re really not talking about those, but we are very actively looking at our portfolio to divest of non core assets and in some other areas to dilute our interest. And so you’ll see more of that here over the third quarter.

Ann Mune, Analyst, Bank of America: Okay, very good. Thank you. And then in terms of your guidance that you had previously given, I look quickly at your presentation here versus what you had last quarter. I do see there is a comment that you’re looking to generate $20,000,000 of free cash flow this year, but yet for your $65 a barrel assumption in terms of the guidance, there was zero free cash flow. Could you just tell us what you’re thinking?

And then since you’ve sort of front loaded your CapEx for 2025, will some of this come from lower CapEx and this additional new production that’s coming online from a number of your fields?

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Yeah, great question. The biggest driver on that, Anna, is just lower CapEx. The team’s done a great job of executing the program and we continue to look at how do we optimize that in the second half of the year. So the number one driver is obviously oil prices somewhat supportive right now at $70 and very, very tight differentials in Colombia and Ecuador. But the main driver will be on the CapEx side.

Ann Mune, Analyst, Bank of America: Okay, and then just tell me if I’m missing something, do you break down EBITDA by country in the presentation here? I don’t think I saw it, but I’m not sure.

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: We don’t. In our press release, we have more details by country as far as netbacks and whatnot, but not EBITDA.

Ann Mune, Analyst, Bank of America: Okay. And then I guess final question would be Colombia. There have been a lot of, I guess you could say pipeline disruption and other types of disruptions and I think there were some export taxes that I know they affected Ecopetrol. Do they affect Gran Tierra? Could you tell us what the operating environment in Colombia, what impact it might have had on your, either the operations or, and I know you sort of hinted at that in some of your comments or on any sort of financial metrics you have?

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Yeah, the export tax, we’ve been unaffected. The main thing that’s impacted us is pipeline disruptions in Ecuador. As Sebastian mentioned, there were some significant landslides and obviously it’s not our pipelines, but there was some disruptions in Ecuador on the pipelines. And so that more impacted our Ecuador production in the July, but all the pipelines are back in operation and we’re in its normal operations.

Ann Mune, Analyst, Bank of America: Okay, great. Thanks very much. Thanks for answering these questions.

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Thanks, Ann.

Michelle, Conference Call Coordinator: And the next question will come from Joseph Schachter with Schachter Energy. Your line is open.

Joseph Schachter, Analyst, Schachter Energy: Good morning, Gary, Ryan and Sebastian. First question for me, you’ve got a range of 47,000 to 53,000 for production this year, your average for the first half 47,000. What needs to happen to get to 50,000? What needs to happen to get to 53 in terms of your forecast?

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: Yeah. Thank you, Joseph. I think the answer to that is we have the capacity. We have the production capacity. It’s it’s it’s no disruptions.

And we were working we’re working through that. We’re yes, the answer is we’re at the lower end of our guidance, but we’re still easily within our guidance. And our target is to be at the upper end, we’re going to do our best to ramp. I think I asked the question, David around us the question. Yeah, we have most of our capital deployed.

We’ve had some excellent results and Cohimbe excellent results and Costa Yaco, The waterflood is going in the right direction and and according narrow. So all of that’s there. The exciting one as well as Ecuador, we’re just going through our field development plan approvals with the government. And these are some fantastic reservoirs as Sebastian alluded to the performance is very clear that we’re going to be doing some water flooding, quick response. So then not only the second half of the year, but the next few years, we’re quite excited about about where we’re going with our capital and capital allocation with with some fantastic reservoirs.

Joseph Schachter, Analyst, Schachter Energy: Okay. Second question for me. In your Canadian side where you have the Central 12500 beweeze a day, 49% working interest. How much of that do you operate, and where do you see any potential growth for you in that central area? Does that include things like the Belly River?

How do you see upside from that part of the portfolio?

Sebastian Moran, Chief Operating Officer, Gran Tierra Energy: Yes, I think to go back on sort of the transaction questions that we were talking about, there’s a ton of opportunity in Central. And the nice part is we do have a lot of linking infrastructure, and so the team is actively working the Central portfolio. And I won’t talk to a specific formation because there’s a there’s many of them. And, you know, starting from the NISQ to the Glock and the team’s been working on on how do we optimize that portfolio. And so I think I think that’s kind of the approach that we’re taking is where it makes sense to have some synergies, especially on on third party processing fees and so on and so forth to optimize again on cost, but also in terms of profit.

Joseph Schachter, Analyst, Schachter Energy: Okay, super. Thanks for that input and, sure looking forward to seeing Q3 and Q4, with, the results. Thanks very much.

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Thanks.

Michelle, Conference Call Coordinator: And our next question will come from Peter Bolley with Jefferies. Your line is open.

Peter Bolley, Analyst, Jefferies: Hi, thank you for the call and the opportunity for two questions. First question is after recently increasing your hedges for 2026, is the strategy to continue increasing hedges even further? Or are you comfortable at this level? And the second question is just regarding, some report or media that there was an MOU signed for potential entry into the Azerbaijani market. Could you share any updates there or any expected timing if you are contemplating a market entry there?

Thank you.

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Great, thanks. Yeah, on the hedging front, yeah, what we’ve been communicating is that we’re putting more of a structured plan is, and so our objective is to hedge 30 to fifty percent six months out and then 20 to 30% the following six months on a continuous basis. So we will as a month rolls off, we will add hedges for the following month that rolled off. And so we do have a continue continue more systematic hedging program.

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: Yeah, your question on Azerbaijan. Yes. In in fact, we did sign an MOU, and and we’re we’re working with the governments of of Azerbaijan with with SOCAR, the the the national company on on progressing that to a production sharing agreement. And what I’ll say, what I will say about about what we’re doing in Azerbaijan, this is this is the one thing in our portfolio that we’ve been trying to add for the last five or six years looking in specific basins around the world, where you have an order of magnitude opportunity greater than than we have currently in terms of Colombia, Ecuador, Canada, where you can find multi TCF type fields, can find a couple of 100,000,000 barrel oil fields. And so it’s a very large block of land and a very prospective part of the country onshore.

And we’re very excited about it. You’ll hear more about it when we go to a definitive agreement with a production sharing agreement, hopefully, in the third, third, fourth quarter here. And so, yeah, we’re we’re very excited about Azerbaijan.

Peter Bolley, Analyst, Jefferies: Thank you.

Michelle, Conference Call Coordinator: And our next question will come from Garrett Fellows with JH Lean Partners. Your line is open.

Garrett Fellows, Analyst, JH Lean Partners: Hey, guys. Thanks for taking the question. So, I mean, you listed a few other ways of raising capital here in the royalty non core asset sales. I guess I’m curious why why we felt the need to do the the forward sale sort of loan agreement now if, you know, if the assumption is that this was to derisk the $184,000,000 amort payment next year, why, you know, why do we need to pay a full year of interest on it? Or or maybe there’s something else going on that that I don’t know.

Thanks.

Ryan Nelson, Executive Vice President and Chief Financial Officer, Gran Tierra Energy: Yeah, no, it is a good question. And I think part of it is the number one concern I think people had with the company was addressing next year’s maturity. And so we think we’re proactively addressing the maturity. In respect to the interest, the way we’ve structured things, there’s actually going be a very low negative carry on the transaction, again de minimis negative carry just with investments that we can do and some tax efficiency that we have. And so we thought now would be the time to proactively address that and with very minimal cost.

Sebastian Moran, Chief Operating Officer, Gran Tierra Energy: Okay.

Garrett Fellows, Analyst, JH Lean Partners: Okay, great. And then I guess just quickly on Azerbaijan, you know, could you could you walk us through the kind of cadence of of how this project progresses? I mean, let’s say you have a signed MOU or a signed production sharing agreement in in the back half of the year. How does this project progress from there?

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: Yeah, it’s a it’s a five year first phase, very low cost in terms of the the reward that that’s that that’s in front of us. And so there’s no pressure in terms of timing, we have a full five years from the time the Congress ratifies a PSA. And so timing that we see there there are discoveries on the block. It is very close to infrastructure, gas. There’s a very, very, prolific price for both domestic and European exports.

There’s room and pipelines. And so, yeah, that explains our excitement about having big structures in a very prolific oil and gas basin. And it really is just applying modern technology that will apply over the next next years to come. And so that is the timing, it’s a five year program. And we’ll disclose more about it, but a low cost of entry that we see with in terms of the reward that’s potentially there.

Garrett Fellows, Analyst, JH Lean Partners: Got it. But just in terms of when you could actually start producing after the PSA is signed?

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: Depending on on on a proven discovery within that same year.

Garrett Fellows, Analyst, JH Lean Partners: Okay, great. Thank you guys very much.

Michelle, Conference Call Coordinator: Gentlemen, there are no further questions at this time. Please continue.

Gary Guidry, President and Chief Executive Officer, Gran Tierra Energy: I would once again like to thank everyone for joining us today. We look forward to speaking with you over the next quarter and update you on our ongoing progress. Thank you.

Michelle, Conference Call Coordinator: This concludes today’s conference call. Thank you for participating and you may now disconnect.

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