Business Context and Reporting Period
Company: Gran Tierra Energy Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 10, 2014
Reporting Period: The filing reports on events occurring on December 10, 2014, regarding new agreements effective December 1, 2014.
Key Financial Metrics
This filing is a Current Report (Form 8-K) and does not contain audited financial statements, revenue, profit, cash flow, or balance sheet data. The document focuses on the terms of a material definitive agreement.
- Agreement Pricing Mechanism: Sales price based on a "marker" price (average export price of a specified crude blend) less fees.
- Deductions: Fees (handling, commercialization, transportation, taxes) range from $5.10 to $10.24 per barrel depending on delivery point and transport method.
- Volume Scope: Up to 100% of crude oil produced in specific blocks (excluding third-party royalties).
Material Changes
On December 10, 2014, Gran Tierra Energy Colombia Ltd. and Petrolifera Petroleum (Colombia) Limited entered into new Purchase Agreements with Ecopetrol S.A. These agreements replace prior purchase agreements that had expired.
- Assets Covered:
- Gran Tierra Colombia: Chaza Block, Santana Block, and Guayuyaco Block.
- Petrolifera Colombia: Chaza Block and Guayuyaco Block.
- Term: December 1, 2014, to November 30, 2015.
- Termination: Either party may terminate with 30 days' prior written notice.
Guidance, Outlook, and Risks
The filing does not provide forward-looking financial guidance, management commentary on future performance, or a discussion of general risks beyond the terms of the agreement.
- Contingencies: The agreements are subject to termination by either party with 30 days' notice.
- Unusual Items: None reported in this filing.
Investor Verification Checklist
- Verify the specific "marker" price definitions and applicable ports for the Chaza, Santana, and Guayuyaco blocks.
- Confirm the exact fee structure ($5.10 to $10.24 range) applicable to the specific delivery points used by the company.
- Review the production volumes for the covered blocks to assess the revenue impact of the new pricing terms.
- Monitor for any termination notices given the 30-day termination clause.