Gran Tierra Announces Chaza Arbitration Resolution

Instant Max AI

(Gran Tierra Energy Inc., 8.Jun.2016) – Gran Tierra Energy Inc. announced the receipt of a positive decision from the Chamber of Commerce of Bogotá Center for Arbitration and Conciliation tribunal relating to its dispute with the Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) of Colombia (ANH) with respect to whether all production from the Moqueta Exploitation Area of the Chaza Block exploration and production contract (Chaza Contract) was subject to an additional royalty (the HPR Royalty).

In its decision, the Tribunal found that the HPR Royalty under the Chaza Contract was only payable when the accumulated oil production from the Moqueta Exploitation Area exceeded five million barrels. That production threshold was reached on April 30, 2015, and since that time the Company has been paying the HPR Royalty on production from the Moqueta Exploitation Area.

“Gran Tierra values the cooperative relationship that it has with the ANH and we are pleased that this issue has been resolved,” said Gran Tierra President and Chief Executive Officer Gary Guidry.

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