SOCAR completes geotechnical study commissioned by Gran Tierra Energy in Azerbaijan

BAKU. Oct 20 (Interfax) - The Geophysics and Geology Department of Azerbaijan's SOCAR has completed a geotechnical study of two onshore areas under the exploration, development, and production sharing agreement (EDPSA) for Azerbaijan's Guba-Khazaryani oil and gas area, the department said on social media.

"Geotechnical investigation works at the Telebi and Beyimdag-Tekcay fields, commissioned by Gran Tierra Energy and carried out by the SOCAR Geophysics and Geology Department, have been successfully completed," it said.

As part of the project, drilling operations were carried out, and core samples were collected. Standard Penetration Tests (SPT) were performed at specified intervals and geotechnical laboratory tests were conducted.

"The integrated analysis of field and laboratory data provides a reliable geotechnical basis for the design phase," the department said.

SOCAR and Gran Tierra Energy signed a Production Sharing Agreement for the Area Encompassing Portions of the Guba, Gusar, Shabran, Siyazan and Khizi Districts of the Republic of Azerbaijan (Guba Khazaryani) on February 18, 2026.

Gran Tierra is project operator with a 65% stake. The contract area surrounds an approximately 65-kilometer-long structure. Under the EDPSA, five years are allotted for exploration and appraisal of deposits as well as 25 years for the development of any commercially viable deposits, with the possibility of extending development for another five years.

The exploration period consists of an initial three-year phase followed by a second two-year phase. The initial phase includes the acquisition of a gravity study, together with a commitment to drill two wells and acquire 250 square kilometers of 3D seismic. After completing the initial phase, the company has the right to proceed to the second phase, which provides for the additional drilling of two wells and the acquisition of 3D seismic data over another 250 square kilometers.

Gran Tierra Energy said at the beginning of October that it had completed an airborne gravity study of Azerbaijan's onshore Guba-Khazaryani oil and gas region. Gran Tierra said earlier that it expected to commence an airborne gravity study in 2026, with seismic acquisition and drilling activities to begin in 2027.

Gran Tierra Energy Inc. is an independent international energy company. The company's shares trade on the New York Stock Exchange (NYSE American), the Toronto Stock Exchange, and the London Stock Exchange under the ticker symbol GTE.

Gran Tierra Energy has said its shareholders approved the sale of its oil and gas business in Colombia and Ecuador to France's Maurel & Prom on October 9 for a total of about $1.33 billion, taking into account the debt obligations assumed by the buyer. Completion of the deal is expected around December 31, 2026. The company expects to receive approximately $315 million in net cash proceeds from the deal. According to statements by GranTierra Energy's management, the company expects to fully repay its debt after the deal is closed, which will allow it to finance projects in Canada and Azerbaijan. The company reiterated that after the completion of the deal, Gran TierraEnergy intends to focus its activities in Canada and Azerbaijan.