2025 Guidance and Operations Update

Forecast 2025 Production of 47,000-53,000 BOEPD, Representing at the Midpoint, an Increase of 44% from 2024

Forecast 2025 Free Cash Flow2 of $90 Million Before Exploration, $20 Million After Exploration in Base Case

Plan to Allocate Up To 50% of After Exploration Free Cash Flow to Share Buybacks

Achieved Total Company Production for 2024 of 34,710 BOEPD, an Increase of 6% from 2023

CALGARY, Alberta, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) today announced its 2025 capital budget, production guidance and operational update. All dollar amounts are in United States dollars and all production volumes are on a working interest before royalties basis and are expressed in barrels of oil equivalent (“boe”) per day (“BOEPD”), unless otherwise stated.

Message to Shareholders

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “Following up on a strong 2024, which included a very successful exploration campaign and a new country entry into Canada, we are looking forward to our 2025 development and exploration program. Our 2025 budget, which is expected to be fully funded by Cash Flow1, takes a balanced, returns-focused approach to capital allocation while focusing on portfolio longevity. At the midpoint of the Base Case, our production guidance of 50,000 BOEPD represents an increase of 44% from the 34,710 BOEPD 2024 total company production achieved in 2024.

We plan to focus on profitably growing reserves and production across our Colombian, Ecuadorian and Canadian assets, pursue high impact exploration throughout our portfolio, and invest in facility and infrastructure projects to maximize the long-term value of our assets. This year’s budget would fulfil our exploration commitments in Ecuador which were a result of obtaining the lands back in 2019. Since 2021 we have drilled 10 exploration wells, had 9 discoveries and shot 238 kilometers of 3D seismic in Ecuador. This year, we expect to drill four exploration wells in Ecuador and two to three wells to further appraise our exciting discoveries. We have also planned a very active capital program in the Suroriente block including drilling 5-7 wells, investing in a gas-to-power project, and significant facility investment to increase fluid handling due to increased production and water injection. We forecast spending approximately $60-$80 million in Suroriente, which would fulfil a material component of our $123 million commitment associated with obtaining the 20-year extension. In addition, we plan on drilling a further two to four high impact exploration wells in Colombia. The exploration program and Suroriente capital program represent approximately $135 million of this year’s capital program. After the fulfilment of commitments in 2025, we expect 2026 and beyond to be focused on exploiting our extensive asset base, including anticipated development of our recent discoveries, drilling on our extensive Canadian landholdings and optimizing our assets under waterflood.

We believe Gran Tierra is strongly positioned with a low base decline, a robust portfolio of conventional and unconventional oil and gas assets, and a high-impact exploration program. As we continue to profitably advance our operational and financial goals, we remain deeply committed to the well-being of our employees and the communities where we operate, recognizing their essential role in our success.”

Key Highlights:

2025 Guidance:

Gran Tierra is forecasting the following ranges for the Company’s 2025 budget:

* Budgeted royalties as a percentage of total revenue were approximately 19% in the base case

2025 Base Capital Program: Building on a successful capital campaign in 2024, Gran Tierra plans to continue to execute on its strategy of delivering value by seeking to add new reserves, investing in facility and infrastructure projects to maximize recovery and minimize cost, and providing future growth through exploration. Gran Tierra forecasts spending approximately 55% of its capital program in Colombia, 30% in Ecuador, and 15% in Canada, respectively.

Development: Gran Tierra expects to drill a total of 10 to 14 net development wells in its 2025 capital program, including:

Suroriente: The Company plans to drill 5-7 gross development wells in the Cohembi oil field located in the Southern Putumayo Basin of Colombia. In addition to development drilling, Gran Tierra is also planning facility expansion, gas-to-power generation upgrades, and continued social investment in the area. With the planned investments in 2025, production and reserves are expected to significantly increase in 2026 and beyond.

Acordionero: The Company plans to focus on the optimization of the field through continued waterflood expansion activities, including facility expansions, workovers (ESP upsizes and injector conversions) and gas-to-power generation upgrades. These expenditures are expected to reduce unit costs while maintaining production by offsetting natural declines and increasing overall recovery. The Company is planning an active development drilling program in 2026.

Chanangue: The Company plans to continue its appraisal program on the highly prospective Arawana/Zabaleta productive trend in Ecuador by drilling 2-3 appraisal wells.

Simonette: Gran Tierra plans to drill 2.5 net wells at Simonette targeting two-layer co-development of the Lower and Middle Montney offering improved capital efficiency and lower proportionate infrastructure spending.

Exploration: Approximately 20-30% of the Company’s 2025 capital program is expected to be allocated to high impact exploration activities and the drilling of 6 to 8 exploration wells in Colombia and Ecuador in the Base and High Case. Gran Tierra’s 2025 exploration drilling is planned to follow up on the encouraging results from the Company’s 2024 exploration program while meeting all its Ecuador exploration commitments. The Company continues to focus its exploration program on short-cycle time, near-field prospects in proven basins with access to transportation infrastructure.

Fully Funded Capital Program Generating Free Cash Flow2: Gran Tierra’s mid-point Base Case 2025 capital budget of $260 million is expected to be fully funded from the Base Case 2025 mid-point Cash Flow1 forecast of $280 million, based on an assumed average $75.00/bbl Brent oil price, $71.00/bbl WTI oil price, and CAD$2.50/thousand cubic feet AECO natural gas price. Gran Tierra remains focused on generating Free Cash Flow2, ongoing net debt5 reduction and shareholder returns via share buybacks.

Share Buybacks: During 2025, Gran Tierra plans to allocate up to approximately 50% of its Free Cash Flow after exploration to share buybacks in the Base Case. During 2024, the Company repurchased approximately 6.7% of its outstanding shares.

Gran Tierra’s Commitment to Go “Beyond Compliance” with Safe and Sustainable Operations

2024 was the Company’s safest year in company history, with a total of 27.8 million person-hours without a Lost Time Injury (LTI), and a Total Recordable Case Frequency (TRCF) of 0.03, which places Gran Tierra within the top quartile in safety performance in the Americas.

Operations Update

2024 Production

Gran Tierra achieved total company average production in 2024 of approximately 34,710 BOEPD, an increase of 6% from 2023 and 13% from 2022.

Ecuador

Chanangue Block: Gran Tierra has completed its first horizontal well drilled in Ecuador, the Zabaleta Oeste well. The well drilled through 700 feet of pay in the Basal Tena formation and has yielded promising results, confirming the area’s potential for horizontal development. The well continues to clean-up and we anticipate the clean-up will take longer than what is expected for a vertical well. Encouragingly, the well encountered good porosity sands, validating our geologic and reservoir models and confirming the extent of the Basal Tena sands within the Chanangue Block.

Iguana Block: Following the drilling of the Zabaleta Oeste well, the rig is currently being mobilized over to the Iguana Block to drill the first exploration well of 2025.

Canada

Simonette: The development plan with our new Joint Venture partner, Logan Energy, has commenced with the first two wells being drilled. Both wells are planned to be stimulated by the end of the first quarter or the beginning of the second quarter of 2025.

Central: Gran Tierra has drilled a well in the Nisku play with a horizontal lateral length of over 3,000 meters; testing is planned to commence in February 2025.

Clearwater: Gran Tierra has drilled 5 new wells in the Clearwater at East Dawson and Walrus. The Clearwater program has confirmed the quality of our acreage in the Clearwater play. These wells are expected to come onstream in late January 2025.

Colombia

Suroriente Block: A rig is currently being mobilized to the Cohembi North pad, with first production expected by the end of the first quarter of 2025.

1 “Cash Flow” refers to line item “net cash provided by operating activities” under generally accepted accounting principles in the United States of America (“GAAP”).

2 “Free Cash Flow” is a non-GAAP measure and does not have a standardized meaning under GAAP. Free Cash Flow is defined as “net cash provided by operating activities” less capital expenditures. Refer to "Non-GAAP Measures" in this press release. Forecast 2025 free cash flow of $80 million “before exploration” is equal to the Base Case midpoint cash flow of $280 million less the Base Case midpoint total capital of $260 million, with Base Case midpoint exploration-only capital of approximately $70 million added back. Forecast 2025 Free Cash Flow of $20 million “after exploration” is equal to the Base Case midpoint cash flow of $280 million less the Base Case midpoint total capital of $260 million. Free Cash Flows in the table above are the midpoints of the ranges of cash flows less the midpoints of the ranges of total capital expenditures for each oil price scenario.

3 “Operating netback” is a non-GAAP measures and does not have standardized meaning under GAAP. Refer to “Non-GAAP Measures” in this press release.

4 Earnings before interest, taxes and depletion, depreciation and accretion (“EBITDA”) is a non-GAAP measure and does not have a standardized meaning under GAAP. Refer to "Non-GAAP Measures" in this press release.

5 Net debt is defined as GAAP total debt before deferred financing fees less cash.

About Gran Tierra Energy Inc.

Presentation of Oil and Gas Information

Non-GAAP Measures

Gran Tierra is unable to provide forward-looking net income, net cash provided by operating activities, and oil and gas sales, the GAAP measures most directly comparable to the non-GAAP measures EBITDA, free cash flow and operating netback, respectively, due to the impracticality of quantifying certain components required by GAAP as a result of the inherent volatility in the value of certain financial instruments held by the Company and the inability to quantify the effectiveness of commodity price derivatives used to manage the variability in cash flows associated with the forecasted sale of its oil and natural gas production and changes in commodity prices.

Operating netback as presented is defined as projected 2025 oil and gas sales less projected 2025 operating and transportation expenses. The most directly comparable GAAP measures are oil and gas sales and oil and gas sales price, respectively. Management believes that operating netback is useful supplemental measures for management and investors to analyze financial performance and provides an indication of the results generated by our principal business activities prior to the consideration of other income and expenses. Gran Tierra is unable to provide a quantitative reconciliation of either forward-looking operating netback to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measures.

EBITDA as presented is defined as projected 2025 net income adjusted for DD&A expenses, interest expense and income tax expense or recovery. The most directly comparable GAAP measure is net income. Management uses this financial measure to analyze performance and income or loss generated by our principal business activities prior to the consideration of how non-cash items affect that income, and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. Gran Tierra is unable to provide a quantitative reconciliation of forward-looking EBITDA to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measure.

Free cash flow as presented is defined as GAAP projected “net cash provided by operating activities” less projected 2025 capital spending. The most directly comparable GAAP measure is net cash provided by operating activities. Management believes that free cash flow is a useful supplemental measure for management and investors to in order to evaluate the financial sustainability of the Company’s business. Gran Tierra is unable to provide a quantitative reconciliation of forward-looking free cash flow to its most directly comparable forward-looking GAAP measure because management cannot reliably predict certain of the necessary components of such forward-looking GAAP measure.