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Gran Tierra Energy (GTE) Risk Analysis
Risk Overview Q1, 2026
Source: the company's latest filing for the period ended Mar 31, 2026, filed May 07, 2026
Risk Change Over Time
- Environmental / Social - Risk 1Anti-greenwashing rules introduce risk into making certain environmental-related disclosures
On June 20, 2024, Bill C-59 received royal assent from the federal government of Canada ("Royal Assent"), thereby enacting certain changes to the Competition Act (Canada) (the "Competition Act") to address "greenwashing", meaning false, misleading, or deceptive environmental claims made for the purpose of promoting a product or a business or business activity. Under these rules, certain environmental claims that companies commonly make, including those related to sustainability and forward-looking environmental-related goals, may be problematic. How the new rules will be interpreted and applied is currently unclear. In June 2025, new private rights of action came into effect, meaning that any person is able to bring a complaint directly to the Competition Tribunal under the Competition Act for an alleged violation of the greenwashing provisions. In November 2025, the federal government of Canada introduced further amendments to the Competition Act as part of Bill C-15 which will remove the private right of action related to greenwashing claims about a business or business activity. The Competition Bureau will still be able to bring such claims. Bill C-15 has not yet received Royal Assent. The Competition Bureau published guidance regarding how it will apply the new greenwashing provisions in June 2025, however the guidance is not binding on private parties nor the Competition Tribunal. Companies found to have made representations that violate the rules, intentionally or inadvertently, could be subject to an administrative penalty for the greater of $10 million for the first order and $15 million dollars for any subsequent order, and 3% of the corporation's annual worldwide gross revenues.
Risk Highlights Q1, 2026
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 32
- Regulation - Risk 1Restrictions on development activities to protect wildlife
Crude oil and natural gas operations in our operating areas in Canada can be adversely affected by seasonal or permanent restrictions on development activities designed to protect identified wildlife. There is a risk that our activities will be seen to adversely affect protected species, leading to an inability to access planned facility sites or, if already built, some kind of restriction on operations. Seasonal restrictions may limit our ability to operate in protected areas and can intensify competition for drilling rigs, oilfield equipment, services, supplies and qualified personnel, which may lead to periodic shortages when drilling is allowed. These constraints and the resulting shortages or high costs could delay our operations and materially increase operating and capital costs. Permanent restrictions imposed to protect endangered species could prohibit drilling in certain areas or require the implementation of expensive mitigation measures. The designation of previously unprotected species in areas where we operate as threatened or endangered could cause us to incur increased costs arising from species protection measures or could result in limitations on our exploration and production activities that could have an adverse impact on our ability to develop and produce our reserves. Additionally, some of our producing areas in Canada are or will be located in areas that may become inaccessible due to environmental protection requirements. This includes, but is not limited to, protected caribou habitat on a seasonal basis.
- Regulation - Risk 2Legal and Regulatory Risks We are dependent on obtaining and maintaining permits and licenses from various governmental authorities
Our oil and natural gas exploration and production operations are subject to complex and stringent laws and regulations. In order to conduct our operations in compliance with these laws and regulations, we must obtain and maintain numerous licenses, permits, approvals and certificates, including environmental and other operating permits. We may not be able to obtain, sustain or renew such licenses and permits on a timely basis or at all. We may also have licenses and permits rescinded or may not be able to renew expiring licenses and permits. Failure or delay in obtaining or maintaining regulatory approvals or permits could have a material adverse effect on our ability to develop and explore on our properties, and receipt of drilling permits with onerous conditions could increase our compliance costs. Loss of permits for existing drilling, water injection or other activities necessary for production may result in a decline of our production levels and revenues or damage to the well structure. Regulations and policies relating to these licenses and permits may change, be implemented in a way that we do not currently anticipate or take significantly greater time to obtain. As we are not the operator of all the joint ventures we are currently involved in, we may rely on the operator to obtain all necessary permits and licenses. If we fail to comply with the relevant requirements, we could be prevented from drilling for oil and natural gas, and we could be subject to civil or criminal liability or fines. Revocation or suspension of our environmental and operating permits could have a material adverse effect on our business, financial condition and results of operations. There can be no assurance that future political conditions in Colombia, Ecuador, Canada and Azerbaijan will not result in changes to policies with respect to foreign development and ownership of oil, environmental protection, health and safety or labor relations, which may negatively affect our ability to undertake exploration and development activities in respect of present and future properties, as well as our ability to raise funds to further such activities. In Colombia, the ANH is delegated by the Ministry of Mining and Energy to offer and award new blocks through exploration and production ("E&P") and technical evaluation agreement contract terms. The new administration has stated that no new bid rounds for exploration blocks will be done until it is decided differently by the government. In addition, in 2023 the government issued a new decree eliminating the obligation of ANH to offer bid rounds for new blocks to Companies. Under the new Colombia regulation, we may not be able to obtain new exploration licenses which can have adverse impact on our future exploration activities, production and operations.
- Regulation - Risk 3We may be exposed to liabilities under anti-bribery laws and a finding that we violated these laws could have a material adverse effect on our business
We are subject to anti-bribery laws in the United States, Canada, Ecuador and Colombia and will be subject to similar laws in other jurisdictions where we may operate in the future, such as Azerbaijan. We may face, directly or indirectly, corrupt demands by officials, tribal or insurgent organizations, international organizations, or private entities. As a result, we face the risk of unauthorized payments or offers of payments by employees, contractors, agents, and partners of ours or our subsidiaries or affiliates, given that these parties are not always subject to our control or direction. It is our policy to prohibit these practices. However, our existing safeguards and any future improvements to those measures may prove to be less than effective or may not be followed, and our employees, contractors, agents, and partners may engage in illegal conduct for which we might be held responsible. A violation of any of these laws, even if prohibited by our policies, may result in criminal or civil sanctions or other penalties (including profit disgorgement) as well as reputational damage and could have a material adverse effect on our business and financial condition.
- Regulation - Risk 4If the United States imposes sanctions on Colombia, Ecuador or Canada in the future, our business may be adversely affected
Colombia is among several nations whose eligibility to receive foreign aid from the United States is dependent on its progress in stemming the production and transit of illegal drugs, which is subject to an annual review by the President of the United States. Although Colombia is currently eligible for such aid, it may not remain eligible in the future. A finding by the President that Colombia has failed demonstrably to meet its obligations under international counter-narcotic agreements may result in the imposition of economic and trade sanctions on Colombia which could result in adverse economic consequences in Colombia including potentially threatening our ability to obtain necessary financing to develop our Colombian properties, and could further heighten the political and economic risks associated with our operations there. The United States may in the future impose similar eligibility restrictions on foreign aid provided to Ecuador. The President of the United States declared that Canada, among other countries, is responsible for illegal immigration and drug transit to the United States and has implemented 10% tariffs on energy resources from Canada that do not comply with the Canada-United States-Mexico Agreement. Tariffs could have an adverse impact on our profitability from Canadian operations.
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