Impairment

9 Months Ended

Sep. 30, 2021

Impairment Disclosure [Abstract]

Impairment

Impairment

Asset impairment

(i) Oil and gas property impairment

For the three and nine months ended September 30, 2021, the Company had no ceiling test impairment losses. For each of the three and nine months ended September 30, 2020, Gran Tierra had $104.7 million and $502.9 million of ceiling test impairment losses. The Company used an average Brent price of $60.12 and $47.95 per bbl for the September 30, 2021 and 2020, ceiling test calculations, respectively.

(ii) Inventory impairment

For the three and nine months ended September 30, 2021, the Company had no inventory impairment. For the three and nine months ended September 30, 2020, the Company recorded $0.1 million and $4.2 million, respectively, of inventory impairment.

Goodwill impairment

The entire goodwill balance of $102.6 million was impaired during the nine months ended September 30, 2020, due to the reporting unit's carrying value exceeding its fair value due to the impact of lower forecasted commodity prices.