Company Delivers 49% Increase in Revenues Over Prior Year Quarter and Achieves Profitability
CALGARY, Alberta, November 8, 2007, Gran Tierra Energy Inc. (OTCBB: GTRE.OB) a company focused on oil exploration and production in South America, today announced the financial results of operations for the third quarter ended September 30, 2007.
Total revenue for the quarter was $8.0 million as compared to $5.4 million for same quarter of 2006. Net income for the quarter amounted to $1.1 million or $0.01 per share as compared to a net loss of $0.07 million or $(0.00) per share for the comparable quarter of 2006.
For the nine month period ended September 30, 2007 the company reported total revenue of $16.3 million as compared to $8.6 million for same period in 2006. Net loss for the period amounted to $10.6 million or $(0.11) per share as compared to a net loss of $1.9 million or $(0.03) per share for the comparable period of 2006.
The company reported cash and cash equivalents of $8.0 million at the end of the third quarter of 2007 as compared to $24.1 million at December 31, 2006. Total working capital reported at the end of the quarter increased 30% over the previous quarter to $9.3 million and compares to $14.3 million at December 31, 2006. Shareholders' equity was reported at $74 million as compared to $76.2 million at December 31, 2006. The company reported no outstanding long-term debt.
Commenting on the results of the quarter, Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy Inc., stated, "We are extremely delighted with the results of this quarter. Gran Tierra Energy is beginning to see the impact of our exploration successes in the first half of 2007. Production from our recent oil discovery at Costayaco-1 in Colombia has been initiated and is now being reflected in our earnings. Plans for 2008 are now being made to increase our production capacity for both the Costayaco and Juanambu oil discoveries in Colombia. We expect the contribution from these discoveries to positively impact our results going forward."
For the third quarter of 2007, the company reported oil and condensate production of 1,526 barrels per day, net after royalty, as compared to 1,043 for the same quarter of 2006. For the nine month period ended September 30, 2007 the company reported oil and condensate production of 1,270 barrels per day, net after royalty, as compared to 570 barrels per day for the comparable period of 2006.
The company has working interests in 19 exploration and production contracts in Argentina, Colombia, and Peru, encompassing approximately 6.5 million acres of land. Gran Tierra Energy operates 18 of these blocks, bringing its net acreage position to approximately 5.8 million acres.
Conference Call Information:
Gran Tierra Energy Inc. will hold a conference call to review its third quarter results on Thursday, November 8, 2007 at 11:00 a.m. Eastern Time. The call will be hosted by Dana Coffield, President and Chief Executive Officer. Interested parties may access the conference call by dialing (800) 561-2813 (domestic) or (617) 614-3529 (international), pass code # 48159097.
The call will also be available via web cast at www.grantierra.com, www.streetevents.com, www.fulldisclosure.com and will be available on the Gran Tierra website until the next earnings conference call.
If you are unable to participate, an audio replay of the call will be available beginning two hours after the call and will be available until 11:59 p.m. on November 15, 2007, by dialing (888) 286-8010 (domestic) or (617) 801-6888 (international) using confirmation pass code 88448496. An audio replay of the call will also be available on Gran Tierra Energy's web site, until the next earnings call.
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'Financial Tables to Follow'
| 'Gran Tierra Energy Inc.' |
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| 'Condensed Consolidated Statement of Operations and Accumulated Deficit (unaudited)' | |||||||
| Stated in US dollars |
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| 'Three Months Ended September 30,' | 'Nine Months ended September 30,' | |||||
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| '2007' | '2006' | '2007' | '2006' | |||
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| REVENUE AND OTHER INCOME |
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| ''Oil sales'' | ''$ 7,992,648 '' | ''$ 5,221,226 '' | ''$ 15,892,368'' | ''$ 8,293,620 '' | |||
| ''Natural gas sales'' | ''- '' | ''(1,918) '' | ''35,494 '' | ''65,301 '' | |||
| ''Interest and other'' | ''46,082'' | ''175,641 '' | ''377,432 '' | ''195,816 '' | |||
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| ''8,038,730 '' | ''5,394,949 '' | ''16,305,294 '' | ''8,554,737 '' | |||
| 'EXPENSES' |
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| ''Operating '' | ''2,613,474 '' | ''1,259,888 '' | ''6,719,453 '' | ''2,702,507 '' | |||
| ''Depletion, depreciation and accretion'' | ''1,848,954 '' | ''1,449,694 '' | ''6,549,852 '' | ''2,324,158 '' | |||
| ''General and administrative'' | ''2,964,865 '' | ''1,506,439 '' | ''7,583,721 '' | ''3,998,196 '' | |||
| ''Liquidated damages '' | ''- '' | ''261,182 '' | ''7,366,949 '' | ''261,182 '' | |||
| ''Derivative financial instruments '' | ''116,596 '' | ''- '' | ''793,580 '' | ''- '' | |||
| ''Foreign exchange (gain) loss'' | ''(85,637)'' | ''273,684 '' | ''(91,772)'' | ''277,526 '' | |||
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| ''7,458,252 '' | ''4,750,887 '' | ''28,921,783 '' | ''9,563,569 '' | |||
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| 'INCOME(LOSS) BEFORE INCOME TAX ' | ''580,478'' | ''644,062'' | ''(12,616,489)'' | ''(1,008,832)'' | |||
| ''Income tax expense (recovery)'' | ''(511,219) '' | ''710,417'' | ''(1,985,918) '' | ''848,200'' | |||
| 'NET INCOME (LOSS)' | ''$1,091,697'' | ''$ (66,355)'' | '$(10,630,571)' | ''$(1,857,032)'' | |||
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| ''ACCUMULATED DEFICIT, beginning of period'' | ''(19,765,652)'' | ''(4,010,357)'' | ''(8,043,384)'' | ''(2,219,680)'' | |||
| 'ACCUMULATED DEFICIT, end of period' | '$(18,673,955)' | ''$(4,076,712)'' | '$ (18,673,955)' | ''$(4,076,712)'' | |||
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| ''NET INCOME (LOSS) PER COMMON SHARE - BASIC AND DILUTED'' | ''$ 0.01'' | ''$ (0.00)'' | ''$ (0.11)'' | ''$ (0.03)'' | |||
| 'Weighted average common shares outstanding - basic ' | '94,683,878 ' | '95,455,759 ' | '95,112,226 ' | '63,043,998 ' | |||
| 'Weighted average common shares outstanding - diluted' | '107,597,185 ' | '95,455,759 ' | '95,112,226 ' | '63,043,998 ' | |||
| Gran Tierra Energy Inc. | ||
| Condensed Consolidated Balance Sheet (Unaudited) | ||
| Stated in US dollars | ||
| 'September 30, 2007 ' | 'December 31, 2006 ' | |
| 'ASSETS' | ||
| ''Current assets'' |
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| ''Cash and cash equivalents'' | ''$ 8,048,401 '' | ''$ 24,100,780 '' |
| ''Restricted cash '' | ''- '' | ''2,291,360 '' |
| ''Accounts receivable '' | ''11,562,103'' | ''5,089,561 '' |
| ''Taxes receivable'' | ''3,048,850 '' | ''404,120 '' |
| ''Inventory'' | ''605,092 '' | ''811,991 '' |
| ''Prepaids'' | ''204,703 '' | ''676,524 '' |
| ''Total Current Assets'' | ''23,469,149 '' | ''33,374,336 '' |
| ''Oil and gas properties, using the full cost method of accounting'' |
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| ''Proved'' | ''41,510,680 '' | ''37,760,230 '' |
| ''Unproved '' | ''18,130,875 '' | ''18,333,054 '' |
| ''Total Oil and Gas Properties'' | ''59,641,555 '' | ''56,093,284 '' |
| ''Other assets'' | ''649,450 '' | ''614,104 '' |
| ''Total Property, Plant and Equipment '' | ''60,291,005 '' | ''56,707,388 '' |
| ''Long term assets'' | ||
| ''Deferred tax asset '' | ''1,557,138 '' | ''444,324 '' |
| ''Long term investment and other'' | ''1,554,053 '' | ''379,678 '' |
| ''Goodwill'' | ''15,005,083 '' | ''15,005,083 '' |
| ''Total Long Term Assets'' | ''18,116,274 '' | ''15,829,085 '' |
| 'Total Assets' | ''$ 101,876,428 '' | ''$ 105,910,809 '' |
| 'LIABILITIES AND SHAREHOLDERS' EQUITY' | ||
| ''Current liabilities'' |
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| ''Accounts payable'' | ''$ 8,852,043 '' | ''$ 6,729,839 '' |
| ''Accrued liabilities'' | ''3,856,998 '' | ''9,199,820 '' |
| ''Liquidated damages'' | ''- '' | ''1,527,988 '' |
| ''Current taxes payable'' | ''1,446,928 '' | ''1,642,045 '' |
| ''Total Current Liabilities'' | ''14,155,969 '' | ''19,099,692 '' |
| ''Long term liabilities'' | ''2,066,081 '' | ''412,929 '' |
| ''Deferred tax liability '' | ''10,500,817 '' | ''9,875,657 '' |
| ''Derivative financial instruments'' | ''793,580 '' | ''- '' |
| ''Asset retirement obligation '' | ''388,108 '' | ''327,752 '' |
| ''Total Long Term Liabilities'' | ''13,748,586 '' | ''10,616,338 '' |
| ''Shareholders' equity'' |
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| ''Common shares'' | ''94,898 '' | ''95,455 '' |
| ''(80,111,276 common shares and 14,787,303 exchangeable shares, par value $0.001 per share, issued and outstanding)'' | ||
| ''(2006 common and exchangeable shares respectively 78,789,104 and 16,666,661)'' |
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| ''Additional paid in capital'' | ''71,805,151 '' | ''71,311,155 '' |
| ''Warrants'' | ''20,745,779 '' | ''12,831,553 '' |
| ''Accumulated deficit'' | ''(18,673,955)'' | ''(8,043,384)'' |
| ''Total Shareholders' Equity'' | ''73,971,873 '' | ''76,194,779 '' |
| 'Total Liabilities and Shareholders' Equity' | ''$ 101,876,428'' | ''$ 105,910,809 '' |