Gran Tierra Energy Targets $60M-$80M Free Cash Flow In 2026; Ecuador Program Transition From Exploration To Appraisal & Development; Colombia Program Focused On Maximizing Free Cash Flow; Development Program Focused On Quick Payouts And Capital Efficient Projects

• Targeting Free Cash Flow of $60 to $80 Million in the 2026 Base Case
• Ecuador Program Transition From Exploration to Appraisal & Development
• Colombia Program Focused on Maximizing Free Cash Flow
• Development Program Focused on Quick Payouts and Capital Efficient Projects
• 2026 Capital Program Fulfills Commitments Over the Suroriente Block
• Reported Current Company Production of 48,000 to 49,000 BOEPD

CALGARY, Alberta, Dec. 10, 2025 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE:GTE) (TSX:GTE) (LSE:GTE) today announced its 2026 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: "With our exploration commitments in Ecuador now completely fulfilled during 2025 and the Suroriente carried work program forecast to be completed by early Q2 2026, Gran Tierra is entering a new phase focused on generating free cash flow and maximizing the value of our diversified portfolio. Our 2026 capital program is focused on high-return, quick-payout development projects across both South America and Canada, including the upcoming production well drilling program in Cohembi and the Montney program at Simonette.

Based on our 2026 budget, we see a clear path to fully addressing the $180 million amortization of our 2029 notes due in October 2026 while continuing to optimize long-term value of our asset portfolio. Beyond 2026, Gran Tierra maintains a clear path to meeting all debt maturities, supported by strong liquidity, a resilient cash-generating asset base and commitment to generating free cash flow.

The successful closing of the Perico and Espejo acquisition further enhances and strengthens our portfolio in Ecuador, especially as we integrate development plans with our Iguana discovery to unlock meaningful operational and cost synergies. Gran Tierra expects production in Ecuador to exit 2025 at approximately 8,500 to 9,500 bopd with corporate production of approximately 48,000 to 49,000 boepd. Gran Tierra is well-positioned for a period of sustained free cash flow generation and disciplined, return-focused execution."

Key Highlights:

2026 Guidance

2026 Budget	Low Case	Base Case	High Case
Brent Oil Price ($/bbl)	55	65	75
WTI Oil Price ($/bbl)	51	61	71
AECO Natural Gas Price ($CAD/thousand cubic feet)	3	3	4
Production (boepd)	42,000 - 47,000	42,000 - 47,000	42,000 - 47,000
Operating Netback3 ($ million)	245 - 295	325 - 375	415 - 465
EBITDA4 ($ million)	220 - 270	280 - 330	365 - 415
Cash Flow1 ($ million)	130 - 170	185 - 225	250 - 290
Capital Expenditures ($ million)	110 - 150	120 - 160	120 - 160
Free Cash Flow2 ($ million)	10 - 30	60 - 80	120 - 140
Number of Development Wells (gross)	8 - 10	8 - 10	8 - 10
Number of Exploration Wells (gross)	-	-	-

 

Base Case Budgeted Costs	Costs per boe ($/boe)
Lifting	13.00 - 14.00
Transportation	1.00 - 1.50
General and Administration	2.50 - 3.00
Interest	5.00 - 5.50
Current Tax	0.50 - 1.00

 

2026 Budget by Country - Base Case	Canada	Colombia	Ecuador
Production (boepd)	15,000 - 16,000	21,000 - 24,000	6,000 - 7,000
Per Barrel ($/boe)
Realized Price	19.00 - 20.00	45.00 - 47.00	40.00 - 42.00
Operating and Transportation Expense	9.50 - 10.50	17.00 - 18.00	13.00 - 14.00
Operating Netback	9.00 - 10.00	27.00 - 30.00	26.00 - 29.00

*Canada's production is comprised of approximately 47% natural gas, 21% oil and 32% natural gas liquids ("NGL")

• Free Cash Flow2 Generation a Key Focus: With all 2025 Ecuador exploration commitments fulfilled and most Suroriente Continuation obligations complete, Gran Tierra is shifting its focus to generating free cash flow2 while maximizing portfolio value. Recent exploration success and the strong performance of its core assets provide a substantial reserve base to support ongoing free cash flow2 generation. The Company's Ecuador portfolio has reached an inflection point, moving from exploration to development as we integrate recent discoveries and advance multi-year growth opportunities. Based on existing assets, Gran Tierra is targeting over $75-$150 million of free cash flow per year from 2027 onwards at a long-term real Brent price of $70 per bbl.
• 2026 Base Capital Program: The program will focus on quick payback development projects with a focus on free cash flow2 generation.
  • Development: Gran Tierra expects to drill a total of 8 to 10 gross development wells in its 2026 capital program, including:
    • Suroriente: The Company plans to drill 4 gross development wells in the Cohembi oil field located in the Southern Putumayo Basin of Colombia. With the completion of this drilling program Gran Tierra expects to completely fulfill its commitments associated with the Suroriente Continuation. Upon completion of the commitments, the economics of the Suroriente block strengthen for Gran Tierra and its Partner paying its working interest share of operating and capital costs.
    • Simonette: Gran Tierra plans to drill 5 gross (2.5 net) wells in South Simonette targeting oil weighted-Montney production.
• Structural Cost Saving Initiatives: Structural cost initiatives are underway across the portfolio, focused on rationalizing workover activity, improving procurement terms and reducing costs through operational optimization and planning. Gran Tierra maintains a disciplined and constant focus on process improvement, ensuring that small operational changes accumulate into meaningful structural cost savings. Collectively, these actions support a stronger, more efficient cost profile across the organization.
• Repayment of $180 Million of Debt in October 2026:
  • As part of the Company's ongoing strategy to reduce debt, Gran Tierra has repurchased $20 million of its 2029 Notes during the year, reducing the October 2026 amortization to $180 million while lowering the outstanding balance to $718 million.
  • Gran Tierra intends to fully address the $180 million scheduled amortization related to the 2029 notes coming due in October 2026. Based on the Company's 2026 expected free cash flow2 generation, disciplined capital program, and continued focus on operational efficiency provide a clear path to meeting this obligation under any of the provided cases – Low, Base and High. Gran Tierra's planning assumptions incorporate this repayment as a core use of free cash flow in addition to its available credit facilities of approximately $67 million stated as of September 30, 2025,  and previously announced $150 million prepayment facility.
  • Gran Tierra is targeting to reach Net Debt to EBITDA to be below 1.5x in 2028 and below 1.0 by the end of 2029. The Company's long-term plan, coupled with disciplined capital spending and growing free cash flow, underpins our confidence in fully repaying our debt as scheduled while growing EBITDA.
• Hedging: Gran Tierra also employs a disciplined, risk-managed hedging strategy designed to protect cash flow, support capital planning, and enhance financial stability across commodity cycles. Gran Tierra maintains a rolling 12-month hedging program and typically hedges 30–50% of forecast production over the next six months, and 20–30% over the subsequent six-month period.
  
  
  
   

Close of Acquisition of Perico and Espejo Blocks in Ecuador

• Gran Tierra has closed the previously announced strategic acquisition of the Perico and Espejo Blocks in Ecuador, following approval from the Ecuador Ministry of Environment and Energy. The transaction shall follow with customary post-closing regulatory requirements including the authorization of the amendment of the underlying Perico and Espejo block contracts after the approval of the Comité de Licitaciones Hidrocarburíferas.
• Following Gran Tierra's 2025 discoveries on the adjacent Iguana Block, the Company believes that developing the Perico and Iguana Blocks together will capture meaningful operational and cost synergies.
  
  
  
   

Operations Update

• Current Production: The Company's current production5 is approximately 48,000 to 49,000 boepd.
• Ecuador
  • Conejo A-2: The Hollin oil zone was perforated over 41 feet ("ft") of reservoir. Using an electric submersible pump, the well has produced at stabilized rates of 1,524 bbls of oil per day ("bopd") over 63 hours with 29.6-degree API gravity oil, a 5.6 % water cut, and a gas-oil ratio of 166 standard cubic feet per stock tank barrel. This is the second well in the Conejo discovery area.
  • Conejo A-1: The Conejo A-1 well continues to produce at a rate of 1,532 bopd over 192 hours with 26.8-degree API gravity oil, an 18 % water cut, and a gas-oil ratio of 277 standard cubic feet per stock tank barrel from the Basal Tena formation.
• Colombia
  • Suroriente Block: The Raju well was spud on November 5, 2025, targeting the N Sand oil zone. The well discovered 21 ft of net reservoir with an average porosity of 17% in the N Sand formation. Currently the well is in early stages of testing and has confirmed the significant resource potential of the Cohembi field to the north extending the current development area by more than ~2 kilometers.

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.

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.

5Gran Tierra's current production is estimated as of December 9, 2025.