UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of Report (Date of earliest
event reported): December 30, 2010
GRAN TIERRA ENERGY
INC.
(Exact
name of Registrant as specified in its charter)
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Nevada
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98-0479924
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(State
or other jurisdiction of incorporation)
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(I.R.S.
Employer Identification No.)
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Commission file
number: 000-52594
300, 625
- 11th Avenue S.W.
Calgary,
Alberta, Canada T2R 0E1
(Address
of principal executive offices and zip code)
Registrant's telephone number,
including area code: (403) 265-3221
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
On
December 30, 2010, subsidiaries of Gran Tierra Energy Inc. (“Gran
Tierra”) entered into addendums to agreements previously entered into on
December 18, 2009, with regard to the sale to Ecopetrol S.A. (“Ecopetrol”)
of crude oil produced by the subsidiaries in the Chaza Block,
Colombia. These addendums, among other things, extend the terms of
the agreements from December 31, 2010 to June 30, 2011, and include a clause
that allows these subsidiaries to sell to third parties crude oil not accepted
by Ecopetrol, all as more fully described below.
On December 18, 2009, Solana Petroleum
Exploration Colombia Ltd. (“Solana
Colombia”), a wholly owned
subsidiary of Gran Tierra, entered into an agreement (the “Solana
Agreement”) with Ecopetrol
pursuant to which Solana Colombia agreed to sell to Ecopetrol, and Ecopetrol
agreed to purchase from Solana Colombia, all of the volume of crude oil
production produced in the Chaza Block owned by Solana Colombia. This
volume of crude oil does not include the volume of oil owned by the National
Hydrocarbons Agency (ANH) corresponding to royalties. The price at
which the crude oil is to be sold is established by a formula, which varies
depending on the delivery point and export point, and is generally based off of
WTI (West Texas Intermediate crude price), adjusted for the quality of the crude
oil, and decreased by a “marker” discount, fees for transportation and loading,
transportation tax, and a handling and commercialization fees. The Solana
Agreement was to expire on December 31, 2010. On December 30, 2010, Solana
Colombia and Ecopetrol entered into an addendum to the Solana Agreement to extend the
term of the Solana Agreement for six months to June 30, 2011, and to include a
clause that allows Solana Colombia to sell to third parties crude oil not
accepted by Ecopetrol.
On
December 18, 2009, Gran Tierra Energy Colombia Ltd. (“Gran Tierra
Colombia”), a wholly owned subsidiary of Gran Tierra, entered into an
agreement with Ecopetrol pursuant to which Gran Tierra Colombia agreed to sell
to Ecopetrol, and Ecopetrol agreed to purchase from Gran Tierra Colombia, all of
the volume of crude oil production produced in the Chaza Block owned by Gran
Tierra Colombia, on the same terms as the Solana Agreement, and this agreement
was amended on November 8, 2010 to revise the amount of crude oil Gran Tierra
Colombia is required to sell to Ecopetrol, and Ecopetrol is required to purchase
from Gran Tierra Colombia, from 100% to 90% of the volume of crude oil
production produced in the Chaza Block owned by Gran Tierra Colombia (exclusive
of the volume of oil owned by ANH corresponding to royalties). The
parties entered into this amendment to enable Gran Tierra Colombia to sell to
third parties 10% of the volume of crude oil production produced in the Chaza
Block owned by Gran Tierra Colombia. This agreement, as amended (as
amended, the “Gran Tierra
Agreement”), was to expire on December 31, 2010. On December 30, 2010,
Gran Tierra Colombia and Ecopetrol entered into an addendum to the Gran Tierra
Agreement to extend the term of the Gran Tierra Agreement for six months to June
30, 2011, to restore the obligation of selling and purchasing 100% of the crude
oil produced in the Chaza Block owned by Gran Tierra Colombia to Ecopetrol, and
to include a clause that allows Solana Colombia to sell to third parties crude
oil not accepted by Ecopetrol.
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
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Dated: January
6, 2011
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GRAN
TIERRA ENERGY INC.
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By:
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/s/
Martin Eden
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Martin
Eden
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Chief
Financial Officer
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