Gran Tierra Sells Simonette Asset for C$62.5M and Signs Azerbaijan Agreement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GTE?
Source: seekingalpha
- Asset Sale Completion: Gran Tierra Energy (GTE) has sold its remaining stake in the Simonette asset for C$62.5 million, marking the company's complete exit from the project, which is expected to help alleviate debt pressure and improve its financial position.
- Buyer Information Disclosure: While Gran Tierra did not disclose the buyer's name, Calgary-based Logan Energy (LOECF) confirmed it entered into a definitive purchase agreement with a subsidiary of a publicly-traded oil and gas company, indicating ongoing market interest in Simonette assets.
- New Agreement Signed: Gran Tierra has signed an exploration, development, and production sharing agreement with SOCAR, Azerbaijan's state oil company, securing a 65% working interest and operatorship over approximately 400,000 acres, demonstrating the company's strategic positioning in the region.
- Future Plans: Gran Tierra plans to commence an airborne gravity study in 2026, with seismic acquisition and drilling activities scheduled to begin in 2027, which will further drive the company's business development in Azerbaijan.
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Analyst Views on GTE
Wall Street analysts forecast GTE stock price to fall
4 Analyst Rating
0 Buy
4 Hold
0 Sell
Hold
Current: 6.090
Low
4.80
Averages
5.54
High
5.91
Current: 6.090
Low
4.80
Averages
5.54
High
5.91
About GTE
Gran Tierra Energy Inc., together with its subsidiaries, is an independent international energy company focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador. The Company operates a total of 25 blocks in Colombia and Ecuador, spanning three basins and over 1.5 million gross acres. It also holds large contiguous areas in Alberta, Canada, spanning 1.2 million gross acres across the Western Canadian Sedimentary Basin. Colombia represents approximately 85% of its production with oil reserves and production located in the Middle Magdalena Valley (MMV) and Putumayo Basin. In MMV, the Company’s field is the Acordionero field, where it produces approximately 17-degree American Petroleum Institute (API) oil, which represents 44% of the total Company’s production. The Putumayo production is approximately 27-degree API for Chaza Block and 18-degree API for Suoriente Block, representing 27% and 9% respectively, of the total Company’s production.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gran Tierra Signs Key Agreement in Azerbaijan
- Strategic Partnership: Gran Tierra has signed an exploration, development, and production sharing agreement (EDPSA) with the State Oil Company of Azerbaijan, marking the company's entry into Azerbaijan and expected to enhance its market position in the region.
- Significant Resource Potential: The contract area encompasses a 65-kilometer oil and gas structure that has produced over 100 million barrels of oil and 200 billion cubic feet of natural gas, highlighting Azerbaijan's potential as a world-class petroleum province, which Gran Tierra aims to leverage for capital-efficient growth.
- Flexible Operating Model: Gran Tierra has secured a 65% working interest and operatorship over approximately 0.4 million acres, more than double its current acreage in Ecuador, and plans to drive exploration and development activities through its nimble operating model.
- Long-Term Development Plan: The EDPSA outlines a 5-year exploration period and a 25-year development phase, with Gran Tierra set to commence an airborne gravity study in 2026 and initiate seismic acquisition and drilling activities in 2027, further solidifying its business presence in Azerbaijan.
See More
Gran Tierra Sells Simonette Asset for C$62.5M and Signs Azerbaijan Agreement
- Asset Sale Completion: Gran Tierra Energy (GTE) has sold its remaining stake in the Simonette asset for C$62.5 million, marking the company's complete exit from the project, which is expected to help alleviate debt pressure and improve its financial position.
- Buyer Information Disclosure: While Gran Tierra did not disclose the buyer's name, Calgary-based Logan Energy (LOECF) confirmed it entered into a definitive purchase agreement with a subsidiary of a publicly-traded oil and gas company, indicating ongoing market interest in Simonette assets.
- New Agreement Signed: Gran Tierra has signed an exploration, development, and production sharing agreement with SOCAR, Azerbaijan's state oil company, securing a 65% working interest and operatorship over approximately 400,000 acres, demonstrating the company's strategic positioning in the region.
- Future Plans: Gran Tierra plans to commence an airborne gravity study in 2026, with seismic acquisition and drilling activities scheduled to begin in 2027, which will further drive the company's business development in Azerbaijan.
See More
Gran Tierra Energy Announces Early Participation in Bond Exchange Offer
- Exchange Participation Results: As of the Early Participation Deadline on February 11, 2026, Gran Tierra Energy received valid tenders of $636,740,000 in Existing Notes, representing approximately 88.89% of the total, indicating strong investor interest in the newly issued 9.750% notes, which is expected to enhance the company's capital structure.
- Approval of Amendments: The company secured consents from holders representing at least 66-2/3% of Existing Notes, successfully amending the existing indenture dated October 20, 2023, which eliminates most restrictive covenants and releases collateral, thereby providing greater flexibility for future financing.
- Cash and New Notes Distribution: Eligible holders participating in the exchange will receive approximately $196.31 in cash and $803.69 in New Notes for each $1,000 of Existing Notes validly tendered by February 18, 2026, which is expected to enhance investor satisfaction and bolster market confidence.
- Expiration of Exchange Offer: The exchange offer will expire on February 27, 2026, and if the minimum exchange condition is not met, the company reserves the right to reject certain tenders, which may impact holders' investment decisions.
See More
Gran Tierra Energy Amends Bond Exchange Offer for Senior Notes
- Exchange Offer Amendment: Gran Tierra Energy has amended its bond exchange offer, increasing the coupon rate of existing 9.500% Senior Notes to 9.750% and introducing an amortization schedule, thereby enhancing the flexibility and attractiveness of its debt management strategy.
- Cash Consideration Adjustment: The revised total cash consideration amounts to $125 million, aimed at attracting 66.67% of existing noteholders to participate, ensuring the company can successfully execute its debt restructuring and mitigate financial risks.
- Compliance and Conditions: The success of this exchange offer hinges on meeting specific conditions, including the valid tender of 80% of existing notes, ensuring the company maintains compliance during the debt restructuring process and reduces default risks.
- Market Reaction Expectations: Through this amendment, Gran Tierra aims to bolster market confidence and improve investor relations, with expectations of a positive impact on the company's stock price, further solidifying its position in the energy market.
See More
Gran Tierra Energy Hits 52-Week High After Record Production
- Record Production: Gran Tierra Energy reported an average production of 48,235 boe/day for December 2025, marking the highest monthly production in the company's history, indicating strong growth potential in oil and gas production.
- Ecuador Production Breakthrough: In Ecuador, Gran Tierra achieved a daily oil production rate of 10,000 bbl/day in Q4, with current production at approximately 8,800 bbl/day, demonstrating enhanced production capacity in the region and fulfilling all exploration commitments.
- Significant Initial Production Rates: Discoveries at Conejo in the Hollín and Basal Tena sands delivered combined initial production rates of 3,238 bbl/day, further solidifying the company's market position in Ecuador and driving future growth.
- Inventory Impact on Performance: Despite an average production of 46,500 boe/day in Q4, the performance was affected by an inventory build of approximately 291,000 barrels of oil in Ecuador, which was sold in early January for about $15 million, reflecting market volatility risks.
See More
Gran Tierra Energy Reports Over 100% Reserve Replacement for 2025
- Reserve Replacement Achievement: Gran Tierra achieved over 100% reserve replacement in South America for 2025, with PDP and 2P reserves at 258 MMBOE, demonstrating the strength and optionality of its asset base, enhancing future growth potential.
- Significant Net Present Value: As of 2025, the net present values for 1P, 2P, and 3P reserves are $1.5 billion, $2.5 billion, and $3.3 billion respectively, indicating a robust economic foundation for the company's oil and gas resource development, supporting debt reduction and strengthening the balance sheet.
- Resource Diversification: Gran Tierra's South American portfolio includes 118 MMBBL of unrisked prospective resources and 74 MMBOE of unrisked best estimate resources, showcasing the long-term potential and strategic flexibility for future development.
- Canadian Development Reclassification: The reclassification of certain reserves in Canada resulted in a reduction of 19 MMBOE in 1P and 32 MMBOE in 2P, yet this did not significantly impact the company's net asset value, preserving capital allocation flexibility for future high-return opportunities.
See More
Gran Tierra Signs Key Agreement in Azerbaijan
- Strategic Partnership: Gran Tierra has signed an exploration, development, and production sharing agreement (EDPSA) with the State Oil Company of Azerbaijan, marking the company's entry into Azerbaijan and expected to enhance its market position in the region.
- Significant Resource Potential: The contract area encompasses a 65-kilometer oil and gas structure that has produced over 100 million barrels of oil and 200 billion cubic feet of natural gas, highlighting Azerbaijan's potential as a world-class petroleum province, which Gran Tierra aims to leverage for capital-efficient growth.
- Flexible Operating Model: Gran Tierra has secured a 65% working interest and operatorship over approximately 0.4 million acres, more than double its current acreage in Ecuador, and plans to drive exploration and development activities through its nimble operating model.
- Long-Term Development Plan: The EDPSA outlines a 5-year exploration period and a 25-year development phase, with Gran Tierra set to commence an airborne gravity study in 2026 and initiate seismic acquisition and drilling activities in 2027, further solidifying its business presence in Azerbaijan.
See More
Gran Tierra Sells Simonette Asset for C$62.5M and Signs Azerbaijan Agreement
- Asset Sale Completion: Gran Tierra Energy (GTE) has sold its remaining stake in the Simonette asset for C$62.5 million, marking the company's complete exit from the project, which is expected to help alleviate debt pressure and improve its financial position.
- Buyer Information Disclosure: While Gran Tierra did not disclose the buyer's name, Calgary-based Logan Energy (LOECF) confirmed it entered into a definitive purchase agreement with a subsidiary of a publicly-traded oil and gas company, indicating ongoing market interest in Simonette assets.
- New Agreement Signed: Gran Tierra has signed an exploration, development, and production sharing agreement with SOCAR, Azerbaijan's state oil company, securing a 65% working interest and operatorship over approximately 400,000 acres, demonstrating the company's strategic positioning in the region.
- Future Plans: Gran Tierra plans to commence an airborne gravity study in 2026, with seismic acquisition and drilling activities scheduled to begin in 2027, which will further drive the company's business development in Azerbaijan.
See More
Gran Tierra Energy Announces Early Participation in Bond Exchange Offer
- Exchange Participation Results: As of the Early Participation Deadline on February 11, 2026, Gran Tierra Energy received valid tenders of $636,740,000 in Existing Notes, representing approximately 88.89% of the total, indicating strong investor interest in the newly issued 9.750% notes, which is expected to enhance the company's capital structure.
- Approval of Amendments: The company secured consents from holders representing at least 66-2/3% of Existing Notes, successfully amending the existing indenture dated October 20, 2023, which eliminates most restrictive covenants and releases collateral, thereby providing greater flexibility for future financing.
- Cash and New Notes Distribution: Eligible holders participating in the exchange will receive approximately $196.31 in cash and $803.69 in New Notes for each $1,000 of Existing Notes validly tendered by February 18, 2026, which is expected to enhance investor satisfaction and bolster market confidence.
- Expiration of Exchange Offer: The exchange offer will expire on February 27, 2026, and if the minimum exchange condition is not met, the company reserves the right to reject certain tenders, which may impact holders' investment decisions.
See More
Gran Tierra Energy Amends Bond Exchange Offer for Senior Notes
- Exchange Offer Amendment: Gran Tierra Energy has amended its bond exchange offer, increasing the coupon rate of existing 9.500% Senior Notes to 9.750% and introducing an amortization schedule, thereby enhancing the flexibility and attractiveness of its debt management strategy.
- Cash Consideration Adjustment: The revised total cash consideration amounts to $125 million, aimed at attracting 66.67% of existing noteholders to participate, ensuring the company can successfully execute its debt restructuring and mitigate financial risks.
- Compliance and Conditions: The success of this exchange offer hinges on meeting specific conditions, including the valid tender of 80% of existing notes, ensuring the company maintains compliance during the debt restructuring process and reduces default risks.
- Market Reaction Expectations: Through this amendment, Gran Tierra aims to bolster market confidence and improve investor relations, with expectations of a positive impact on the company's stock price, further solidifying its position in the energy market.
See More
Gran Tierra Energy Hits 52-Week High After Record Production
- Record Production: Gran Tierra Energy reported an average production of 48,235 boe/day for December 2025, marking the highest monthly production in the company's history, indicating strong growth potential in oil and gas production.
- Ecuador Production Breakthrough: In Ecuador, Gran Tierra achieved a daily oil production rate of 10,000 bbl/day in Q4, with current production at approximately 8,800 bbl/day, demonstrating enhanced production capacity in the region and fulfilling all exploration commitments.
- Significant Initial Production Rates: Discoveries at Conejo in the Hollín and Basal Tena sands delivered combined initial production rates of 3,238 bbl/day, further solidifying the company's market position in Ecuador and driving future growth.
- Inventory Impact on Performance: Despite an average production of 46,500 boe/day in Q4, the performance was affected by an inventory build of approximately 291,000 barrels of oil in Ecuador, which was sold in early January for about $15 million, reflecting market volatility risks.
See More
Gran Tierra Energy Reports Over 100% Reserve Replacement for 2025
- Reserve Replacement Achievement: Gran Tierra achieved over 100% reserve replacement in South America for 2025, with PDP and 2P reserves at 258 MMBOE, demonstrating the strength and optionality of its asset base, enhancing future growth potential.
- Significant Net Present Value: As of 2025, the net present values for 1P, 2P, and 3P reserves are $1.5 billion, $2.5 billion, and $3.3 billion respectively, indicating a robust economic foundation for the company's oil and gas resource development, supporting debt reduction and strengthening the balance sheet.
- Resource Diversification: Gran Tierra's South American portfolio includes 118 MMBBL of unrisked prospective resources and 74 MMBOE of unrisked best estimate resources, showcasing the long-term potential and strategic flexibility for future development.
- Canadian Development Reclassification: The reclassification of certain reserves in Canada resulted in a reduction of 19 MMBOE in 1P and 32 MMBOE in 2P, yet this did not significantly impact the company's net asset value, preserving capital allocation flexibility for future high-return opportunities.
See More
