Reserve Additions Replace 205% of Production* on a 1P Company Interest Basis After Producing a Record 8.4 Million Barrels of Oil*
CALGARY, Alberta – February 4, 2013 – Gran Tierra Energy Inc. (NYSE MKT: GTE; TSX: GTE) (“Gran Tierra Energy”), a company focused on oil exploration and production in South America, today announced the results of a qualified independent reserve evaluation of the company’s reserves by GLJ Petroleum Consultants Ltd. (“GLJ”) effective December 31, 2012.
Year-end 2012 Highlights, calculated in accordance with United States Securities and Exchange Commission (“SEC”) rules (comparisons are to 2011 year-end amounts):
- Total Proved (“1P”) reserves net after royalty (“NAR”) increased 20% to approximately 40.6 million barrels of oil equivalent (“MMBOE”) (approximately 95% light and medium oil and liquids; an increase compared to 91% at year-end 2011);
- Total Proved plus Probable (“2P”) reserves NAR increased 15% to approximately 56.2 MMBOE (approximately 95% light and medium oil and liquids; an increase compared to 85% at year-end 2011);
- Total Proved plus Probable plus Possible (“3P”) reserves NAR increased 1% to approximately 86.3 MMBOE (approximately 87% light and medium oil and liquids; an increase compared to 69% at year-end 2011);
- Reservoir performance expectations were exceeded at the Costayaco field in Colombia. Costayaco 1P reserves increased to 19.7 million barrels of oil (“MMBO”) NAR at year-end 2012 from 16.4 MMBO NAR at year-end 2011 despite total production of 3.8 MMBO NAR before inventory adjustments in 2012;
- Appraisal drilling in the Moqueta field in Colombia resulted in 1P reserves increasing 45% to approximately 8.7 MMBO, 2P reserves increasing 54% to 14.9 MMBO and 3P reserves increasing 108% to 26.9 MMBO on a company interest basis, and 1P reserves increasing to approximately 6.8 MMBO, 2P reserves increasing to 11.2 MMBO and 3P reserves increasing to 19.4 MMBO on a NAR basis. The limits of the field have not yet been defined;
- Gran Tierra Energy produced approximately 8.4 MMBO of working interest oil before royalties and inventory adjustments or 6.4 MMBO NAR before inventory adjustments and 1.7 billion cubic feet (“Bcf”) of company interest gas before royalties or 1.5 Bcf NAR in 2012;
- Based on Gran Tierra Energy’s 2012 year-end SEC company interest reserves and Gran Tierra Energy’s 2012 total working interest production, Gran Tierra Energy’s 1P, 2P, and 3P reserves life indices are 6.4 years, 8.9 years, and 13.6 years respectively.
- Annual production for 2012 averaged a record of approximately 23,600 company interest barrels of oil equivalent per day (“BOEPD”) before royalties, or 18,000 BOEPD NAR, both before inventory adjustments. Production in the fourth quarter of 2012 increased to approximately 18,600 BOEPD NAR before inventory adjustments. Production for the month of January 2013, before inventory adjustments, increased further to average approximately 21,000 BOEPD NAR.
All reserves values contained in the 2012 Highlights provided above have been calculated using SEC rules. For reserves values calculated in compliance with Canadian National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook (“COGEH”), see “Reserves Reported in Accordance with Canadian Reporting Requirements” below in this press release.
* Before royalties and inventory adjustments
“Through continued strong reservoir management, appraisal drilling and exploration success, Gran Tierra Energy had another outstanding year in growing reserves and production to record levels from our projects in Colombia, Brazil and Argentina. The company has been successful at consistently growing land, reserves and production over the past 8 years and is focused on continuing to add value for our shareholders through successful exploration and development drilling in the future,” said Dana Coffield, President and CEO. “In 2012, we produced a record volume of oil, in spite of unexpected challenges posed by substantial transportation downtime due to pipeline disruptions on the OTA pipeline in Colombia. Our team has worked vigorously to put into place alternative transportation measures to mitigate possible future downtime impacts to crude transportation. These measures are now in place and operational. As a result, even with recent disruptions, the company achieved near record levels of production, before inventory adjustments, in January of this year.”
“In 2013, we are focused on continuing to grow reserves through continued appraisal drilling in the Moqueta and Ramiriqui oil discoveries, and additional exploration drilling in Colombia, testing new oil resource play concepts in Brazil and Argentina, and evaluating a very high-impact oil exploration target at the recently drilled Bretaña Norte well in Peru. Gran Tierra Energy’s 2013 capital budget is expected to be funded through available cash on hand, cash flow from operations and with potential periodic draws on our credit facility at current commodity prices and production levels,” concluded Coffield.
Reserves Reported in Accordance with United States Reporting Requirements
The following reserves are reported consistent with United States Securities and Exchange Commission rules.
Total Company
The following two tables summarize Gran Tierra Energy’s year-end 2012 company interest reserves and NAR reserves (calculated using average start-of-month 2012 oil prices). Also shown in the following table are Gran Tierra Energy’s NAR reserves for year-end 2011 (calculated using average start-of-month 2011 oil prices).
| Total Company Light and Medium Oil and Liquids (SEC Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MBO ** | MBO | MBO |
| Proved | |||
| Developed Producing | 35,644 | 26,817 | 21,317 |
| Developed Nonproducing | 778 | 666 | 1,554 |
| Undeveloped | 14,280 | 11,011 | 8,051 |
| Total Proved | 50,702 | 38,494 | 30,922 |
| Total Probable | 19,641 | 14,784 | 10,489 |
| Total Proved plus Probable | 70,343 | 53,278 | 41,411 |
| Total Possible | 28,418 | 21,456 | 17,626 |
| Total PPP | 98,761 | 74,734 | 59,037 |
**MBO (thousand barrels of oil).
| Total Company Gas (SEC Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MMSCF*** | MMSCF | MMSCF |
| Proved | |||
| Developed Producing | 11,572 | 10,515 | 16,968 |
| Developed Nonproducing | 1,014 | 813 | 310 |
| Undeveloped | 1,624 | 1,448 | 1,044 |
| Total Proved | 14,210 | 12,776 | 18,322 |
| Total Probable | 6,087 | 5,136 | 25,716 |
| Total Proved plus Probable | 20,297 | 17,912 | 44,038 |
| Total Possible | 59,375 | 51,667 | 116,509 |
| Total PPP | 79,672 | 69,579 | 160,547 |
***MMSCF (million standard cubic feet)
| Total Company BOE (SEC Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | BOE**** | BOE | BOE |
| Proved | |||
| Developed Producing | 37,572 | 28,569 | 24,145 |
| Developed Nonproducing | 947 | 802 | 1,606 |
| Undeveloped | 14,551 | 11,252 | 8,225 |
| Total Proved | 53,070 | 40,623 | 33,976 |
| Total Probable | 20,656 | 15,640 | 14,775 |
| Total Proved plus Probable | 73,726 | 56,263 | 48,751 |
| Total Possible | 38,314 | 30,068 | 37,044 |
| Total PPP | 112,040 | 86,331 | 85,795 |
****BOE (barrel of oil equivalent).
- 1P, 2P and 3P reserves NAR (on an oil equivalent basis) increased largely due to positive technical adjustment to Costayaco reserves based on reservoir performance and additional appraisal drilling at Moqueta in Colombia.
- Reserves were added through the Ramiriqui-1 exploration well in Colombia.
- Reserves were added through development drilling in the Tiê field in the Recôncavo Basin, Brazil.
- The Proa-2 development well on the Surubi Block, Argentina, successfully added reserves.
- Partially offsetting reserve additions was 2012 full year production of 8.4 MMBO of company interest oil before royalties and 1.7 Bcf of company interest gas before royalties.
Colombia
Gran Tierra Energy’s Colombia year-end 2012 company interest and NAR reserves are shown in the following two tables (calculated using average start-of-month 2012 oil prices). Also shown in the following two tables is Gran Tierra Energy’s Colombian NAR reserves for year-end 2011 (calculated using average start-of-month 2011 oil prices).
| Colombia Light and Medium Oil and Liquids (SEC Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 32,838 | 24,360 | 19,497 |
| Developed Nonproducing | 380 | 317 | 1,402 |
| Undeveloped | 8,989 | 6,432 | 4,526 |
| Total Proved | 42,207 | 31,109 | 25,425 |
| Total Probable | 15,178 | 10,915 | 5,913 |
| Total Proved plus Probable | 57,385 | 42,024 | 31,338 |
| Total Possible | 18,839 | 13,167 | 9,749 |
| Total PPP | 76,224 | 55,191 | 41,087 |
| Colombia Gas (SEC Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MMSCF | MMSCF | MMSCF |
| Proved | |||
| Developed Producing | 8,370 | 7,757 | 13,927 |
| Developed Nonproducing | 993 | 794 | 0 |
| Undeveloped | 1,012 | 921 | 713 |
| Total Proved | 10,375 | 9,472 | 14,640 |
| Total Probable | 3,929 | 3,300 | 21,155 |
| Total Proved plus Probable | 14,304 | 12,772 | 35,795 |
| Total Possible | 5,353 | 4,239 | 72,026 |
| Total PPP | 19,657 | 17,011 | 107,821 |
The increase in 1P, 2P and 3P NAR oil reserves is mainly associated with positive technical adjustments in Costayaco reserves due to reservoir performance, additional development drilling in Costayaco, the appraisal drilling program in Moqueta field in Colombia, and the Ramiriqui-1 exploration well.
The Costayaco and Moqueta fields 2012 year-end NAR reserves are shown in the following two tables (calculated using average start-of-month 2012 oil prices). Also shown in the following two tables is a comparison of the Costayaco and Moqueta fields 2012 year-end gross lease reserves (calculated using average start-of-month 2012 oil prices) to the gross lease reserves estimated in December 31, 2011 (calculated using average start-of-month 2011 oil prices).
| Costayaco Light and Medium Oil (SEC Compliant) | 2012 Year-End Costayaco NAR Reserves | 2012 Year-End Costayaco Gross Lease Reserves | 2011 Year-End Costayaco Gross Lease Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 17,240 | 24,803 | 20,281 |
| Total Proved | 19,716 | 28,424 | 23,517 |
| Total Probable | 3,740 | 5,420 | 2,503 |
| Total Proved plus Probable | 23,456 | 33,844 | 26,020 |
| Total Possible | 2,642 | 3,867 | 7,528 |
| Total PPP | 26,098 | 37,711 | 33,548 |
| Moqueta Light and Medium Oil (SEC Compliant) | 2012 Year-End Moqueta NAR Reserves | 2012 Year-End Moqueta Gross Lease Reserves | 2011 Year-End Moqueta Gross Lease Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 3,745 | 4,250 | 2,137 |
| Total Proved | 6,849 | 8,683 | 5,973 |
| Total Probable | 4,314 | 6,252 | 3,727 |
| Total Proved plus Probable | 11,163 | 14,935 | 9,700 |
| Total Possible | 8,262 | 11,922 | 3,243 |
| Total PPP | 19,425 | 26,857 | 12,943 |
Gran Tierra Energy successfully completed development drilling at Costayaco-15, Costayaco-16 and Costayaco-17 in 2012.
Approximately 3.8 MMBO NAR before inventory adjustments was produced from the Costayaco field in 2012. Through a successful field development and reservoir management program in 2012, Gran Tierra Energy was able to successfully mitigate reserve declines at the Costayaco field.
Gran Tierra Energy successfully drilled the Moqueta-7 and Moqueta-8 appraisal wells in 2012.
Argentina
Gran Tierra Energy’s Argentina company interest and NAR reserves are shown in the following two tables (calculated using average start-of-month 2012 oil prices). Also shown in the following two tables is Gran Tierra Energy’s Argentina NAR reserves for year-end 2011 (calculated using average start-of-month 2011 oil prices).
| Argentina Light and Medium Oil and Liquids (SEC Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 2,407 | 2,110 | 1,766 |
| Developed Nonproducing | 398 | 349 | 152 |
| Undeveloped | 3,868 | 3,335 | 3,226 |
| Total Proved | 6,673 | 5,794 | 5,144 |
| Total Probable | 2,929 | 2,530 | 3,389 |
| Total Proved plus Probable | 9,602 | 8,324 | 8,533 |
| Total Possible | 7,211 | 6,219 | 5,842 |
| Total PPP | 16,813 | 14,543 | 14,375 |
| Argentina Gas (SEC Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MMSCF | MMSCF | MMSCF |
| Proved | |||
| Developed Producing | 3,202 | 2,758 | 3,041 |
| Developed Nonproducing | 21 | 19 | 310 |
| Undeveloped | 612 | 527 | 331 |
| Total Proved | 3,835 | 3,304 | 3,682 |
| Total Probable | 2,158 | 1,836 | 4,561 |
| Total Proved plus Probable | 5,993 | 5,140 | 8,243 |
| Total Possible | 54,022 | 47,428 | 44,483 |
| Total PPP | 60,015 | 52,568 | 52,726 |
The 1P and 3P NAR liquid reserve additions are largely associated with positive adjustments at Puesto Morales and Surubi.
Brazil
Gran Tierra Energy’s Brazil company interest and NAR reserves are shown in the following table (calculated using average start-of-month 2012 oil prices). Also shown in the following table is Gran Tierra Energy’s Brazil NAR reserves for year-end 2011 (calculated using average start-of-month 2011 oil prices).
| Brazil Light and Medium Oil and Liquids (SEC Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 399 | 347 | 54 |
| Developed Nonproducing | 0 | 0 | (0 |
| Undeveloped | 1,423 | 1,244 | 299 |
| Total Proved | 1,822 | 1,591 | 353 |
| Total Probable | 1,534 | 1,339 | 1,187 |
| Total Proved plus Probable | 3,356 | 2,930 | 1,540 |
| Total Possible | 2,368 | 2,070 | 2,035 |
| Total PPP | 5,724 | 5,000 | 3,575 |
1P, 2P and 3P reserves were added through development drilling in Brazil and increasing working interest to 100% from 70% in Blocks REC-T-129, -142, -155 and -224 located in Brazil’s Recôncavo Basin.
Reserves Reported in Accordance with Canadian Reporting Requirements
The following reserves estimates are compliant with NI 51-101 and COGEH (with forecasted oil price and costs):
Total Company
| Total company Light and Medium Oil and Liquids (NI 51-101 compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 35,242 | 26,892 | 21,232 |
| Developed Nonproducing | 510 | 444 | 1,293 |
| Undeveloped | 13,996 | 10,920 | 8,448 |
| Total Proved | 49,748 | 38,256 | 30,973 |
| Total Probable | 19,528 | 15,006 | 10,601 |
| Total Proved plus Probable | 69,276 | 53,262 | 41,574 |
| Total Possible | 28,755 | 22,105 | 18,224 |
| Total PPP | 98,031 | 75,367 | 59,798 |
| Total Company Gas (NI-51-101 Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MMSCF | MMSCF | MMSCF |
| Proved | |||
| Developed Producing | 11,572 | 10,515 | 16,971 |
| Developed Nonproducing | 1,014 | 812 | 306 |
| Undeveloped | 1,483 | 1,327 | 1,045 |
| Total Proved | 14,069 | 12,654 | 18,322 |
| Total Probable | 6,480 | 5,550 | 25,721 |
| Total Proved plus Probable | 20,549 | 18,204 | 44,043 |
| Total Possible | 59,086 | 51,529 | 116,519 |
| Total PPP | 79,635 | 69,733 | 160,562 |
| Total Company BOE (NI-51-101 Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | BOE | BOE | BOE |
| Proved | |||
| Developed Producing | 37,171 | 28,645 | 24,061 |
| Developed Nonproducing | 679 | 579 | 1,344 |
| Undeveloped | 14,243 | 11,141 | 8,622 |
| Total Proved | 52,093 | 40,365 | 34,027 |
| Total Probable | 20,608 | 15,931 | 14,888 |
| Total Proved plus Probable | 72,701 | 56,296 | 48,915 |
| Total Possible | 38,603 | 30,693 | 37,644 |
| Total PPP | 111,304 | 86,989 | 86,558 |
Colombia
Gran Tierra Energy’s year-end 2012 Colombia company interest and NAR liquid reserves are shown in the following table (NI 51-101 compliant with forecast oil price and cost). Also shown in the following table are Gran Tierra Energy’s Colombian NAR reserves for year-end 2011 (NI 51-101 compliant with forecast oil price and cost).
| Colombia Light and Medium Oil and liquids (NI 51-101 compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 32,437 | 24,436 | 19,373 |
| Developed Nonproducing | 112 | 96 | 1,141 |
| Undeveloped | 8,805 | 6,427 | 4,934 |
| Total Proved | 41,354 | 30,959 | 25,448 |
| Total Probable | 14,966 | 11,055 | 6,029 |
| Total Proved plus Probable | 56,320 | 42,014 | 31,477 |
| Total Possible | 19,175 | 13,820 | 10,196 |
| Total PPP | 75,495 | 55,834 | 41,673 |
Gran Tierra Energy’s year-end 2012 Colombia company interest and NAR gas reserves are shown in the following table (NI 51-101 compliant with forecast gas price and cost). Also shown in the following table are Gran Tierra Energy’s Colombian NAR reserves for year-end 2011 (NI 51-101 compliant with forecast gas price and cost).
| Colombia Gas (NI-51-101 Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MMSCF | MMSCF | MMSCF |
| Proved | |||
| Developed Producing | 8,371 | 7,757 | 13,926 |
| Developed Nonproducing | 993 | 794 | 0 |
| Undeveloped | 980 | 892 | 714 |
| Total Proved | 10,344 | 9,443 | 14,640 |
| Total Probable | 4,213 | 3,621 | 21,156 |
| Total Proved plus Probable | 14,557 | 13,064 | 35,796 |
| Total Possible | 5,063 | 4,102 | 72,026 |
| Total PPP | 19,620 | 17,166 | 107,822 |
The Costayaco and Moqueta fields 2012 year-end NAR reserves are shown in the following two tables (with forecast oil price and cost). Also shown in the following two tables is a comparison of the Costayaco and Moqueta fields 2012 year-end gross lease reserves (with forecast oil price and cost) to the gross lease reserves estimated at December 31, 2011 (with forecast oil price and cost).
| Costayaco Light and Medium Oil (NI 51-101 compliant) | 2012 Year-End Costayaco Gran Tierra Energy NAR Reserves | 2012 Year-End Costayaco Gross Lease Reserves | 2011 Year-End Costayaco Gross Lease Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 17,415 | 24,535 | 19,855 |
| Total Proved | 19,929 | 28,139 | 23,216 |
| Total Probable | 3,572 | 5,067 | 2,496 |
| Total Proved plus Probable | 23,501 | 33,206 | 25,712 |
| Total Possible | 2,655 | 3,799 | 7,836 |
| Total PPP | 26,156 | 37,005 | 33,548 |
| Moqueta Light and Medium Oil (NI 51-101 compliant) | 2012 Year-End Moqueta NAR Reserves | 2012 Year-End Moqueta Gross Lease Reserves | 2011 Year-End Moqueta Gross Lease Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 3,709 | 4,190 | 2,137 |
| Total Proved | 6,794 | 8,478 | 5,973 |
| Total Probable | 4,586 | 6,457 | 3,727 |
| Total Proved plus Probable | 11,380 | 14,935 | 9,700 |
| Total Possible | 8,501 | 11,922 | 3,243 |
| Total PPP | 19,881 | 26,857 | 12,943 |
Argentina
Gran Tierra Energy’s Argentina year-end 2012 company interest and NAR liquid reserves are shown in the following table (NI 51-101 compliant with forecast oil price and cost). Also shown in the following table is Gran Tierra Energy’s Argentina NAR reserves for year-end 2011 (NI 51-101 compliant with forecast oil price and cost).
| Argentina Light and Medium Oil and Liquids (NI 51-101 compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 2,406 | 2,109 | 1,803 |
| Developed Nonproducing | 398 | 348 | 152 |
| Undeveloped | 3,768 | 3,251 | 3,226 |
| Total Proved | 6,572 | 5,708 | 5,181 |
| Total Probable | 3,028 | 2,615 | 3,420 |
| Total Proved plus Probable | 9,600 | 8,323 | 8,601 |
| Total Possible | 7,212 | 6,220 | 5,977 |
| Total PPP | 16,812 | 14,543 | 14,578 |
Gran Tierra Energy’s Argentina year-end 2012 company interest and NAR gas reserves are shown in the following table (NI 51-101 compliant with forecast oil price and cost). Also shown in the following table is Gran Tierra Energy’s Argentina NAR reserves for year-end 2011 (NI 51-101 compliant with forecast oil price and cost).
| Argentina Gas (NI-51-101 Compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MMSCF | MMSCF | MMSCF |
| Proved | |||
| Developed Producing | 3,201 | 2,758 | 3,045 |
| Developed Nonproducing | 21 | 18 | 306 |
| Undeveloped | 503 | 435 | 331 |
| Total Proved | 3,725 | 3,211 | 3,682 |
| Total Probable | 2,267 | 1,929 | 4,565 |
| Total Proved plus Probable | 5,992 | 5,140 | 8,247 |
| Total Possible | 54,023 | 47,427 | 44,493 |
| Total PPP | 60,015 | 52,567 | 52,740 |
Brazil
Gran Tierra Energy’s Brazil year-end 2012 company interest and NAR liquid reserves are shown in the following table (NI 51-101 compliant with forecast oil price and cost).
| Brazil Light and Medium Oil and Liquids (NI 51-101 compliant) | 2012 Year-End Gran Tierra Energy Company Interest Reserves | 2012 Year-End Gran Tierra Energy NAR Reserves | 2011 Year-End Gran Tierra Energy NAR Reserves |
|---|---|---|---|
| Reserves Category | MBO | MBO | MBO |
| Proved | |||
| Developed Producing | 399 | 347 | 56 |
| Developed Nonproducing | 0 | 0 | 0 |
| Undeveloped | 1,423 | 1,242 | 288 |
| Total Proved | 1,822 | 1,589 | 344 |
| Total Probable | 1,534 | 1,336 | 1,152 |
| Total Proved plus Probable | 3,356 | 2,925 | 1,496 |
| Total Possible | 2,368 | 2,065 | 2,051 |
| Total PPP | 5,724 | 4,990 | 3,547 |
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated in the United States, trading on the NYSE MKT Exchange (GTE) and the Toronto Stock Exchange (GTE), and operating in South America. Gran Tierra Energy holds interests in producing and prospective properties in Argentina, Colombia, Peru and Brazil. Gran Tierra Energy has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a base for future growth.
Additional information concerning Gran Tierra Energy is available at www.grantierra.com, on SEDAR (www.sedar.com) and with the SEC (www.sec.gov).
Cautionary Statements:
Possible reserves are those additional reserves that are less certain to be recovered than Probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of Proved plus Probable plus Possible reserves. The estimate of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation. A BOE is calculated using the conversion factor of six thousand cubic feet (“Mcf”) of natural gas being equivalent to one barrel of oil. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Forward-Looking Statements
The statements in this press release regarding Gran Tierra Energy’s expectations, plans, projections and actions including, reserve life index, Gran Tierra Energy’s expectations regarding its 2013 exploration and development drilling campaign, reservoir management and production, and expected funding of Gran Tierra Energy’s 2013 capital program are "forward-looking statements" within the meaning of the U.S. federal and Canadian securities laws, including Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations and the U.S. Private Securities Litigation Reform Act of 1995. Statements containing the words “estimates”, “expects”, “continue”, “will”, “may”, “grow”, “anticipated” and variations of these words are forward-looking statements.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Gran Tierra Energy including, without limitation, assumptions relating to the accuracy of its reserves estimates, the continuity of certain industry conditions, the ability of Gran Tierra Energy to execute its current business and operational plans in the manner currently planned. Although Gran Tierra Energy believes that the assumptions underlying, and expectations reflected in, these forward-looking statements are reasonable, it can give no assurance that these assumptions and expectations will prove to be correct.
The forward-looking statements contained in this press release are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. Factors that could cause results to differ materially from those described in the forward-looking statements include: Gran Tierra Energy’s operations are located in South America, and unexpected problems can arise due to guerilla activity, technical difficulties and operational difficulties which impact the production, transportation or sale of oil and gas; changing prices for crude oil may cause some scheduled projects or actions to become uneconomical, or may change Gran Tierra Energy’s focus to other projects or actions which could be of more benefit to Gran Tierra Energy, which could cause projects or actions currently contemplated to be postponed or cancelled; unexpected problems due to technical difficulties, operational difficulties, and weather conditions; risks associated with not being able to fund the 2013 capital program through cash flow and cash on hand; and those other risks found in the periodic reports filed by Gran Tierra Energy with the SEC, including in the section entitled “Risk Factors” in its Quarterly Report on Form 10-Q filed with the SEC on November 7, 2012, and available at the SEC’s internet site www.sec.gov and on SEDAR at www.sedar.com.
All forward-looking statements in this press release are expressly qualified by information contained in Gran Tierra Energy’s filings with regulatory authorities and, subject to its obligations under applicable securities laws, Gran Tierra Energy does not undertake to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Information
For investor and media inquiries please contact:
Jason Crumley
Director, Investor Relations
403-265-3221
[email protected].