Gran Tierra allocates approximately 55% of its 2025 capital program to Colombia, 30% to Ecuador, and 15% to Canada. In Colombia’s Suroriente block, the operator plans to drill between five and seven development wells at the Cohembi field, invest $60 million to $80 million in infrastructure upgrades including water injection facilities and a gas-to-power project, fulfilling part of its $123 million commitment tied to the 20-year contract extension signed with Ecopetrol. Additionally, two to four exploratory wells are scheduled in Colombia, contributing to an active exploration component amounting to about 20-30% of the capital program.
In Ecuador, Gran Tierra is advancing from exploration to appraisal and development, having recently signed agreements to acquire the Perico and Espejo blocks for $15.55 million, expanding adjacent holdings near its Iguana discovery. The acquisition complements an extensive 238 kilometers of 3D seismic data and a track record of nine discoveries from ten exploration wells drilled since 2021. The company expects Ecuador production to reach 8,500 to 9,500 barrels per day by the end of 2025.
The Canadian portfolio focuses on producing long-life, low-decline assets in the Western Canadian Sedimentary Basin, with around 20% of total production now gas-weighted. Gran Tierra intends to allocate up to 50% of free cash flow after exploration to share buybacks, supporting shareholder returns. The company reported a record safety performance in 2024 and continues to emphasize investments in facilities and infrastructure to maximize recovery and operational efficiency through enhanced oil recovery techniques such as water injection in Colombia.
Overall, Gran Tierra’s 2025 strategy demonstrates a disciplined capital allocation balancing exploration and development with cash flow funding, reinforcing production growth and reserve additions across a diversified asset base spanning three countries.
This article was curated and published as part of our South American energy market coverage.
