Gran Tierra Energy has, through its wholly owned subsidiaries Gran Tierra Energy Colombia, LLC and Gran Tierra Colombia Inc., entered into a credit facility of up to US$150 million. The facility replaces Gran Tierra's previous credit facility that had a borrowing base of US$150 million. The new facility is with Trafigura, a market leader in the global commodities industry, and has a final maturity date of August 15, 2024, which may be extended to February 18, 2025 if certain conditions are met.

Highlights of the new facility include:

• An initial commitment of US$100 million with a potential option of up to an additional US$50 million;
• The loan is secured by the economic rights over certain contracts together with Gran Tierra’s Colombian commercial establishment; and
• Interest payable on the facility is based on a SOFR risk-free rate plus a margin of 6.00% per annum.

In connection with the new facility, certain of Gran Tierra’s wholly owned subsidiaries have also entered into commercial contracts for the purchase by Trafigura of crude oil from Gran Tierra’s producing fields located in Colombia. The repayment of the new facility will be made by way of deductions of the price payable by Trafigura for the crude oil delivered under such contracts.

Ryan Ellson, Chief Financial Officer of Gran Tierra, commented:
"We are very pleased to have successfully closed a new credit facility with Trafigura. In conjunction with our strong operating cash flows and $109 million of cash on hand at June 30, 2022, the new facility will provide the Company with additional liquidity and financial flexibility.”

KeyFacts Energy: Gran Tierra Colombia country profile