Company Reports Record Levels of Proved Reserves, Production
Volumes, and Revenues - Cash Balance Grows to $271 Million CALGARY,
Feb. 25 /PRNewswire-FirstCall/ -- Gran Tierra Energy Inc. (NYSE
Amex: GTE, TSX: GTE), a company focused on oil exploration and
production in South America, today announced financial and
operating results for the quarter and year ended December 31, 2009.
All dollar amounts are in United States dollars unless otherwise
indicated. Highlights for the year include: - Record average annual
production of 12,684 barrels of oil per day (BOPD), a 248% increase
in average daily oil production from 2008, and record fourth
quarter average production of 14,714 BOPD, both net after royalty
(NAR); - Growth in proved reserves to a record 22.1 million barrels
of oil (MMBO), NAR, after producing 4.6 million barrels of oil
during 2009, equivalent to 163% reserve replacement; - Record
revenue and other income for the year of $263.7 million, an
increase of 131% from $114.0 million for 2008; - Funds flow from
operations of $159.5 million compared with $49.4 million for 2008;
- Net income of $13.9 million or $0.06 per share basic and $0.05
per share diluted, compared to a net income of $23.5 million or
$0.19 per share basic and $0.16 diluted in 2008; - Cash and cash
equivalents of $270.8 million compared to $176.8 million at
December 31, 2008. Gran Tierra Energy remains debt free; - Attained
plateau production at the Costayaco Field of approximately 19,000
BOPD gross, or approximately 13,000 BOPD net after royalty; -
Acquired three new exploration contract areas in Colombia, and
undertook a combination of new seismic acquisition and
environmental permitting to position the company to undertake an
eleven well oil exploration program in Colombia and Peru, and a
significant gas delineation well program in Argentina, in 2010; -
Opened a business development office in Rio de Janeiro to pursue
both exploration and development opportunities in Brazil. "2009 was
a successful consolidation year for Gran Tierra Energy, positioning
the company for an aggressive exploration program in 2010. The
Costayaco Field, the company's largest asset, was delineated and
developed, attaining plateau production in the third quarter of
2009. We believe this field, along with our other producing assets
in Colombia and Argentina, will provide the cash flow to fund our
exploration programs in 2010 at current oil prices," said Dana
Coffield, President and Chief Executive Officer of Gran Tierra
Energy Inc. "In addition, last year we acquired new acreage,
divested less material acreage, and acquired new seismic data, all
in preparation for focusing our resources on our top exploration
prospects in 2010, and to prepare for continued exploration
drilling in 2011. In addition, we expanded the depth of our
management, business development and exploration teams, all with
experience from around the world, to further enable the execution
of our growth strategy." "The successful execution of our strategy
to date has positioned Gran Tierra Energy with a very strong
debt-free balance sheet, a vast land position in three countries, a
significant exploration drilling campaign budgeted in 2010, and a
diverse portfolio of drilling opportunities and new venture
initiatives to mature in the years to come," said Dana Coffield.
Production Review Three Months Ended Three Months Ended December
31, 2009 December 31, 2008 --------------------------------
-------------------------------- (Barrels of Oil) Colombia
Argentina Total Colombia Argentina Total
-------------------------------- --------------------------------
Gross Produ- ction 1,801,357 94,690 1,896,047 333,290 114,332
447,622 Royal- ties (604,889) (11,007) (615,896) (49,907) (14,628)
(64,535) Inventory Adjust- ment 76,404 (2,886) 73,518 (2,142)
(4,332) (6,474) --------------------------------
-------------------------------- Production (NAR) 1,272,872 80,797
1,353,669 281,241 95,372 376,613 --------------------------------
-------------------------------- --------------------------------
-------------------------------- BOPD (NAR) 13,836 878 14,714 3,057
1,037 4,094 --------------------------------
-------------------------------- --------------------------------
-------------------------------- Year Ended Year Ended December 31,
2009 December 31, 2008 --------------------------------
-------------------------------- (Barrels of Oil) Colombia
Argentina Total Colombia Argentina Total
-------------------------------- --------------------------------
Gross Produ- ction 5,356,934 397,532 5,754,466 1,332,258 297,933
1,630,191 Royal- ties (1,013,578) (47,112) (1,060,690) (218,129)
(36,283) (254,412) Inventory Adjust- ment (50,955) (13,104)
(64,059) (26,504) (18,703) (45,207)
-------------------------------- --------------------------------
Production (NAR) 4,292,401 337,316 4,629,717 1,087,625 242,947
1,330,572 --------------------------------
-------------------------------- --------------------------------
-------------------------------- BOPD (NAR) 11,760 924 12,684 2,972
664 3,635 --------------------------------
-------------------------------- --------------------------------
-------------------------------- Financial Review Three Months
Ended Year Ended December 31, December 31,
-------------------------------- --------------------------------
2009 2008 % Change 2009 2008 % Change
-------------------------------- --------------------------------
(Thousands of U.S. Dollars) Revenue and Inter- est $ 96,286 $
19,727 388 $ 263,716 $114,029 131 --------------------------------
-------------------------------- --------------------------------
-------------------------------- Net income (loss) $ 30,825
$(12,694) (343) $ 13,941 $ 23,495 (41)
-------------------------------- --------------------------------
-------------------------------- --------------------------------
(US Dollars per Share) Net Income (Loss) Per Share - Basic $ 0.13 $
(0.07) (286) $ 0.06 $ 0.19 (68) --------------------------------
-------------------------------- --------------------------------
-------------------------------- Net Income (Loss) Per Share -
Dilu- ted $ 0.12 $ (0.07) (271) $ 0.05 $ 0.16 (69)
-------------------------------- --------------------------------
-------------------------------- --------------------------------
Funds flow from operations (1) reconciled to net income (loss) is
as follows: Funds flow From Operations - Non-GAAP Three Months
Ended Year Ended Measure December 31, December 31,
--------------------------- --------------------------- 2009 2008
2009 2008 --------------------------- ---------------------------
(Thousands of U.S. Dollars) Net income (loss) $ 30,825 $ (12,694) $
13,941 $ 23,495 Adjustments to reconcile net income (loss) to funds
flow from operations Depletion, depreciation and accretion 40,397
10,516 135,863 25,737 Deferred taxes (9,705) 1,311 (15,355) (6,418)
Stock-based compensation 1,826 1,255 5,309 2,520 Unrealized loss
(gain) on financial instruments (17) (3,124) 277 (2,882) Unrealized
foreign exchange loss (gain) (13,486) 6,985 19,496 6,985
--------------------------- --------------------------- Funds flows
from operations $ 49,840 $ 4,249 $ 159,531 $ 49,437
--------------------------- ---------------------------
--------------------------- --------------------------- (1) Gran
Tierra Energy has disclosed a non-GAAP measure "funds flow from
operations" in this press release which does not have any
standardized meaning prescribed under GAAP. Management uses this
financial measure to analyze operating performance and the income
(loss) generated by Gran Tierra Energy's principal business
activities prior to the consideration of how non-cash items affect
that income, and believes that this financial measure is also
useful supplemental information for investors to analyze operating
performance and Gran Tierra Energy's financial results. Investors
should be cautioned that this measure should not be construed as an
alternative to net income (loss) or other measures of financial
performance as determined in accordance with GAAP. Gran Tierra
Energy's method of calculating this measure may differ from other
companies and, accordingly, it may not be comparable to similar
measures used by other companies. Funds flow from operations, as
presented, is based on net income (loss) adjusted for depletion,
depreciation and accretion, deferred taxes, stock based
compensation, unrealized loss (gain) on financial instruments and
unrealized foreign exchange losses. Fourth Quarter and Fiscal 2009
Financial Highlights: Revenue and interest increased by 388% to
$96.3 million for the three months ended December 31, 2009 compared
with $19.7 million for the same period in 2008. For the year ended
December 31, 2009 revenue and interest increased by 131% to $263.7
million compared with $114.0 million for the same period of the
previous year. Increased revenue for the fourth quarter and year
ended 2009 reflect a 259% and 248% increase in production
respectively, primarily due to increased production from the
continued development of the Costayaco field in the Chaza Block in
Colombia, and the addition of production from Solana Resources'
interests in Colombia following the acquisition on November 14,
2008. The impact of higher production for the full year was
partially offset by the effect of lower oil prices. The average
price received per barrel of oil in the fourth quarter of 2009
increased 41% to $70.93 per barrel from $50.27 per barrel in the
fourth quarter of 2008, and decreased by 33% to $56.73 per barrel
for the year ended December 31, 2009 from $84.78 per barrel from
the same period in 2008. Operating expenses increased by 86% to
$15.7 million for the quarter ended December 31, 2009 compared with
$8.5 million for the same quarter in 2008. On a per barrel basis,
operating expenses for the fourth quarter of 2009 declined by 48%
to $11.61 per barrel compared with $22.44 per barrel for the same
period in 2008. For the year ended December 31, 2009, operating
expenses increased by 112% to $40.8 million compared with $19.2
million for the same period in 2008. On a per barrel basis,
operating expenses for the year ended December 31, 2009 declined by
39% to $8.81 per barrel compared with $14.44 per barrel for the
same period in 2008. Per barrel operating expenses in 2009 were
lower due to higher production resulting in a reduction of fixed
operating costs per barrel and increased operational efficiency.
Depletion, depreciation and accretion expense (DD&A) for the
quarter ended December 31, 2009 increased to $40.4 million or
$29.84 per barrel, from $10.5 million or $27.92 per barrel for the
same quarter in 2008 due to higher production levels and
amortization of $30.1 million in the quarter related to the fair
value of property, plant and equipment recorded on the acquisition
of Solana Resources. DD&A for the year ended December 31, 2009
was $135.9 million, or $29.35 per barrel, compared with $25.7
million, or $19.34 per barrel, for the same period in 2008 due to
higher production levels and amortization of $102.5 million for the
year related to the fair value of property, plant and equipment
recorded on the acquisition of Solana Resources. General and
administrative expenses (G&A) increased by 65% to $9.6 million
for the quarter ended December 31, 2009 compared with $5.8 million
for the same period in 2008. However, on a per barrel basis,
general and administrative expenses in the fourth quarter of 2009
decreased by 54% to $7.06 per barrel compared with $15.36 per
barrel in the fourth quarter of 2008. G&A expenses for the year
ended December 31, 2009 were $28.8 million, or $6.22 per barrel,
compared with $18.6 million, or $13.97 per barrel, for the same
period in 2008. The decrease in G&A expenses on a per barrel
basis for the periods ending December 31, 2009 is the result of
higher production offsetting the increase in employee related costs
from expanded operations. Included in the fourth quarter 2009
results is a $12.6 million foreign exchange gain due to a $13.5
million non-cash unrealized foreign exchange gain, primarily
related to translation of the deferred tax liability recorded on
the acquisition of Solana Resources, and a realized foreign
exchange loss. For the year ended December 31, 2009, the company
recorded a $19.8 million foreign exchange loss due primarily to a
$19.5 million non-cash unrealized foreign exchange loss related to
the translation of the same deferred tax liability. A strengthening
Colombian peso against the U.S. dollar resulted in foreign exchange
losses, estimated at $99,000 for each one peso decrease in the
exchange rate of the Colombian peso to one U.S. dollar. The net
income for the fourth quarter of 2009 was $30.8 million compared
with a net loss of $12.7 million for the same period in 2008. On a
per share basis, the net income was $0.13 per share basic and $0.12
diluted, compared with a net loss of $0.07 per share basic and
diluted in the fourth quarter of 2008. For the year ended December
31, 2009, the net income was $13.9 million compared with net income
of $23.5 million for the same period in 2008. The net income per
share for the year ended December 31, 2009 was $0.06 basic and
$0.05 diluted, compared to net income per share of $0.19 basic and
$0.16 diluted for the same period in 2008. Balance Sheet
Highlights: The company reported cash and cash equivalents of
$270.8 million at December 31, 2009 as compared with $176.8 million
at December 31, 2008. Working capital increased to $215.2 million
at December 31, 2009, as compared with $132.8 million at December
31, 2008. Shareholders' equity increased to $816.4 million at
December 31, 2009 from $791.9 million at December 31, 2008, and the
company had no outstanding long-term debt as of December 31, 2009.
Production Highlights: Average daily consolidated light and medium
crude oil production for the three months ended December 31, 2009
increased 259% to a record 14,714 BOPD NAR compared with 4,094 BOPD
NAR for the same period of 2008. Average daily consolidated light
and medium crude oil production for the year ended December 31,
2009 increased 248% to 12,684 BOPD NAR compared with 3,635 BOPD NAR
for the year ended December 31, 2008. The increase in production is
due primarily to increased production from the continued
development of the Costayaco field in the Chaza Block in Colombia
where Gran Tierra has a 100% working interest subsequent to the
acquisition of Solana. Average daily Colombian production of light
and medium crude oil for the three months ended December 31, 2009
increased 353% to a record 13,836 BOPD NAR compared with 3,057 BOPD
NAR for the same period in 2008. Average daily Colombian production
of light and medium crude oil for the year ended December 31, 2009
increased 296% to a record 11,760 BOPD NAR compared with 2,972 BOPD
NAR in 2008. The increase in production is due primarily to
increased production from the continued development of the
Costayaco field in the Chaza Block in Colombia where Gran Tierra
has a 100% working interest subsequent to the acquisition of
Solana. Average daily Argentine production of light and medium
crude oil for the quarter ended December 31, 2009 decreased 15% to
878 BOPD NAR compared with 1,037 BOPD NAR for the same period in
2008. Average daily Argentine production of light and medium crude
oil for the year ended December 31, 2009 increased 39% to 924 BOPD
NAR compared with 664 BOPD NAR in 2008. Current production is
approximately 14,800 BOPD NAR. Approximately 14,000 BOPD NAR
production is from Colombia and approximately 800 BOPD NAR
production is from Argentina, The company anticipates that
production will be maintained at between 14,000 to 16,000 BOPD NAR
for the balance of 2010, excluding exploration success. Reserve
Highlights As previously announced, externally audited proved oil
reserves (as per SEC Reserves Definitions) net after royalty to
Gran Tierra Energy as of December 31, 2009 increased to
approximately 22.1 million barrels of oil (MMBO), a 14.6% increase
compared to 19.2 MMBO proved reserves as of December 31, 2008.
Probable reserves are approximately 5.8 MMBO and Possible reserves
are approximately 11.5 MMBO. Total Proved, Probable and Possible
(3P) reserves are approximately 39.4 MMBO. There were no equivalent
Probable or Possible SEC reserves reported in 2008. As per Canadian
NI 51-101 and the Reserves definitions in the COGE Handbook, oil
reserves net after royalty to Gran Tierra Energy as of December 31,
2009 are approximately 21.4 MMBO proved, 5.4 MMBO probable, and
11.1 MMBO possible. Total Proved, Probable and Possible (3P)
reserves are approximately 37.9 MMBO. This compares to reserves as
of December 31, 2008 of 18.8 MMBO Proved, 8.7 MMBO Probable and
18.6 MMBO Possible, and Total Proved, Probable and Possible (3P)
reserves of approximately 46.1 MMBO. Operations Update - Juanambu-2
and Moqueta-1: The drilling of Juanambu-2, a development well in
the Juanambu field discovered in 2007 in the Guayuyaco Block has
been completed. Logging indicates pay in the Caballos, Villeta T
sands, and Kg sand in addition to the unexpected pay potential in
the U sands. The well is currently being completed and is expected
to be tested in March. Location construction for the Moqueta-1
exploration well in the Chaza block, approximately 5 kilometers
north of the Costayaco field, has been initiated and is now
approximately 52% complete. Drilling is expected to commence in
April. 2010 Work Program and Capital Expenditure Program Gran
Tierra Energy's 2010 work program is intended to create both growth
and value in its existing assets through increasing its reserves
and production from exploration financed by cash flow, while
retaining financial flexibility with a strong cash position and no
debt, so that it can be positioned to undertake further development
opportunities and to pursue acquisition opportunities. However,
actual capital expenditures may vary significantly from Gran Tierra
Energy's 2010 work program if unexpected events or circumstances
occur, such as new opportunities present themselves, or anticipated
opportunities do not come to fruition, which may therefore either
increase or decrease the amount of capital expenditures the company
incurs in 2010. Gran Tierra Energy has planned a 2010 capital
spending program of $195 million for exploration and development
activities in Colombia, Peru, Argentina and business development
activities in Brazil. Planned capital expenditures in Colombia are
$129 million, $41 million in Peru, and $23 million in Argentina.
Gran Tierra Energy expects that its committed and discretionary
2010 capital program can be funded from cash flow from operations
at current production levels and oil prices. Outlook - Colombia The
2010 capital program in Colombia is $129 million. The majority
(66%) of the 2010 capital spending in Colombia is associated with
exploration, which includes the drilling of 7 exploration wells
plus seismic acquisition programs in 6 blocks to prepare drilling
opportunities for 2011. The 2010 exploration drilling program in
Colombia includes the following wells: - Chaza block: 1 exploration
well; - Guayuyaco block: 1 exploration well; - Azar block: 2
exploration wells; - Rumiyaco block: 1 exploration well; -
Piedemonte Sur: 1 exploration well; - Piedemonte Norte: 1
exploration well. The 2010 seismic acquisition in Colombia include
the following programs: - Chaza block: 70 km(2) 3D; - Guayayaco
block: 40 km(2) 3D; - Azar block: 75 km(2) 3D; - Rumiyaco block: 95
km(2) 3D + 12 km 2D; - Piedemonte Norte block: 70 km 2D; -
Piedemonte Sur block: 10 km 2D. In addition to the above
exploration activity Gran Tierra Energy plans to spend
approximately $47 million on development related activities which
includes drilling one water injector well in the Costayaco field
and infrastructure improvements. New infrastructure construction
planned for the Costayaco field includes crude gathering lines,
water lines, pumping stations, storage batteries, crude unloading
facilities, water injection and disposal, and Costayaco
electrification and field support facilities. During 2010 upgrades
to the Santana pumping station are scheduled to continue, with the
objective to improve storage and pumping capacity. Outlook -
Argentina The 2010 capital program in Argentina is $23 million.
Gran Tierra Energy's planned work program for 2010 consists of a
re-entry and sidetrack of one well in the Valle Morado block,
seismic acquisition in the Santa Victoria block, facilities
upgrades, and well workovers. In the Valle Morado block, a re-entry
and sidetrack of the VM.x-1001 well is scheduled for Q3 2010, for
an estimated cost of $15 million. The sidetrack well is being
drilled to test the resource potential discovered by the VM.x-1001
well. Existing pipeline and gas processing plant capacity is
capable of handling 30 MMSCF/day. In the Santa Victoria block a 150
km(2) 3D and 200 km 2D seismic acquisition program is planned for
Q3 2010 to define structural and stratigraphic traps in a
gas-condensate trend identified from existing seismic data. The
2010 budget also includes approximately $4 million for workovers
and facilities upgrades on other Gran Tierra Energy properties in
the Noroeste Basin. Outlook - Peru The 2010 capital program in Peru
is $41 million. Gran Tierra Energy has entered the second
exploration period of both blocks 122 and 128 on the eastern flank
of the Maranon Basin of northern Peru. It has identified more than
20 leads based on interpretation of a 20,000 linear kilometer
airborne gravity and magnetic survey completed over the blocks in
2008. An environmental and social impact assessment has been
completed in preparation for initiating a 554 kilometer 2D seismic
acquisition survey beginning in the second quarter of 2010 over the
principal leads identified on the two blocks. Gran Tierra Energy is
planning on drilling up to four exploration wells beginning late in
the second quarter of 2010 and continuing into the second half of
2010. Outlook - Brazil Gran Tierra Energy established a business
development office in Brazil during August, 2009. The company is
currently undertaking the evaluation of a variety of exploration
and development new venture opportunities. An operating budget of
$2.4 million to continue this initiative in Brazil has been
approved for 2010. Conference Call Information: Gran Tierra Energy
Inc. will host its fourth quarter and year-end 2009 results
conference call on Friday, February 26th at 10:00 a.m. Eastern
Standard Time (EST). President and Chief Executive Officer Dana
Coffield and Chief Financial Officer Martin Eden will discuss Gran
Tierra Energy's financial and operating results for the quarter and
then take questions from securities analysts and institutional
shareholders. To pre-register for this conference call, please
visit:
https://www.theconferencingservice.com/prereg/key.process?key=PHKD7VXTD
Interested parties may access the conference call by dialing
1-888-679-8040 (domestic) or 617-213-4851 (international), pass
code 53552954. The call will also be available via web cast at
http://www.grantierra.com/, http://www.streetevents.com/, or
http://www.fulldisclosure.com/. The web cast will be available on
Gran Tierra Energy's website until the next earnings call. If you
are unable to participate, an audio replay of the call will be
available beginning two hours after the call until 11:59 p.m. on
March 5, 2010. To access the replay dial 888-286-8010 (domestic) or
617-801-6888 (international) pass code 77108879. Please connect at
least 15 minutes prior to the conference call to ensure adequate
time for any software download that may be required to join the
webcast. 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 Amex 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 and Peru, and has opened a business development
office in Rio de Janeiro, 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 http://www.grantierra.com/.
Investor inquiries may be directed to or (866) 973-4873. Gran
Tierra Energy's Securities and Exchange Commission filings are
available on a web site maintained by the Securities and Exchange
Commission at http://www.sec.gov/ and on SEDAR at
http://www.sedar.com/. Forward Looking Statements: The statements
in this news release regarding Gran Tierra Energy's belief that the
company is positioned to support future growth and to fund its
ongoing development and exploration program, from cash flow from
operations, its new venture initiatives, its planned operations
described under the operation and outlook updates for each of the
countries in which the company operates, together with all other
statements regarding expected or planned development, testing,
drilling, production, expenditures or exploration, or that
otherwise reflect expected future results or events, are forward
looking statements or financial outlook (collectively,
"forward-looking statements") under the meaning of applicable
securities laws, including Canadian Securities Administrators'
National Instrument 51-102 Continuous Disclosure Obligations and
the United States Private Securities Litigation Reform Act of 1995.
These statements 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, including, among others: 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 its testing and drilling
operations and the production, transport or sale of its products;
geographic, political and weather conditions can impact testing and
drilling operations and the production, transport or sale of its
products; and the risk that the current global economic and credit
crisis may impact oil prices and oil consumption more than Gran
Tierra Energy currently predicts, which could cause Gran Tierra
Energy to modify its exploration activities. Further information on
potential factors that could affect Gran Tierra Energy are included
in risks detailed from time to time in Gran Tierra Energy's
Securities and Exchange Commission filings, including, without
limitation, under the caption "Risk Factors" in Gran Tierra
Energy's Quarterly Report on Form 10-Q filed November 6, 2009.
These filings are available on a Web site maintained by the
Securities and Exchange Commission at http://www.sec.gov/ and on
SEDAR at http://www.sedar.com/. The forward-looking statements
contained herein are expressly qualified in their entirety by this
cautionary statement. The forward-looking statements included in
this press release are made as of the date of this press release
and Gran Tierra Energy disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
expressly required by applicable securities legislation. Basis of
Presentation of Financial Results: Gran Tierra Energy's financial
results are reported in United States dollars and prepared in
accordance with generally accepted accounting principles in the
United States. Gran Tierra Energy Inc. Condensed Consolidated
Statements of Operations and Retained Earnings (Accumulated
Deficit) (Thousands of U.S. Dollars, Except Share and Per Share
Amounts) Three Months Ended Year Ended December 31, December 31,
------------------------------------------------------- 2009 2008
2009 2008 -------------------------------------------------------
REVENUE AND OTHER INCOME Oil and natural gas sales $ 96,023 $
18,932 $ 262,629 $ 112,805 Interest 263 795 1,087 1,224
------------------------------------------------------- 96,286
19,727 263,716 114,029
------------------------------------------------------- EXPENSES
Operating 15,721 8,452 40,784 19,218 Depletion, depreciation and
accretion 40,397 10,516 135,863 25,737 General and administrative
9,562 5,783 28,787 18,593 Derivative financial instruments (gain)
loss (17) (3,180) 190 (193) Foreign exchange (gain) loss (12,556)
7,969 19,797 6,235
------------------------------------------------------- 53,106
29,540 225,421 69,590
------------------------------------------------------- INCOME
(LOSS) BEFORE INCOME TAXES 43,180 (9,813) 38,295 44,439 Income tax
expense (12,355) (2,881) (24,354) (20,944)
------------------------------------------------------- NET INCOME
(LOSS) AND COMPREHENSIVE INCOME (LOSS) 30,825 (12,694) 13,941
23,495 RETAINED EARNINGS (ACCUMULATED DEFICIT), BEGINNING OF PERIOD
(9,900) 19,678 6,984 (16,511)
------------------------------------------------------- RETAINED
EARNINGS, END OF PERIOD $ 20,925 $ 6,984 $ 20,925 $ 6,984
-------------------------------------------------------
------------------------------------------------------- NET INCOME
(LOSS) PER SHARE - BASIC $ 0.13 $ (0.07) $ 0.06 $ 0.19 NET INCOME
(LOSS) PER SHARE - DILUTED $ 0.12 $ (0.07) $ 0.05 $ 0.16 WEIGHTED
AVERAGE SHARES OUTSTANDING - BASIC 243,675,113 176,768,596
241,258,568 123,421,898 WEIGHTED AVERAGE SHARES OUTSTANDING -
DILUTED 260,937,333 176,768,596 253,590,103 143,194,590 Gran Tierra
Energy Inc. Condensed Consolidated Balance Sheets (Thousands of
U.S. Dollars) As at December 31, --------------------------- 2009
2008 --------------------------- ASSETS Current Assets Cash and
cash equivalents $ 270,786 $ 176,754 Restricted cash 1,630 -
Accounts receivable 35,639 7,905 Inventory 4,879 999 Taxes
receivable 1,751 5,789 Prepaids 1,820 1,103 Derivative financial
instruments - 233 Deferred tax assets 4,252 2,262
--------------------------- Total Current Assets 320,757 195,045
--------------------------- Oil and Gas Properties (using the full
cost method of accounting) Proved 474,679 380,855 Unproved 234,889
384,195 --------------------------- Total Oil and Gas Properties
709,568 765,050 Other capital assets 3,175 2,502
--------------------------- Total Property, Plant and Equipment
712,743 767,552 --------------------------- Other Long Term Assets
Restricted cash 162 - Deferred tax assets 7,218 10,131 Other long
term assets 347 1,315 Goodwill 102,581 98,582
--------------------------- Total Other Long Term Assets 110,308
110,028 --------------------------- Total Assets $ 1,143,808 $
1,072,625 --------------------------- ---------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts
payable $ 36,786 $ 21,134 Accrued liabilities 40,229 12,841
Derivative financial instruments 44 - Taxes payable 28,087 28,163
Deferred tax liability - 100 Asset retirement obligation 450 -
--------------------------- Total Current Liabilities 105,596
62,238 --------------------------- Long Term Liabilities Deferred
tax liability 216,625 213,093 Deferred remittance tax 903 1,117
Asset retirement obligation 4,258 4,251 ---------------------------
Total Long Term Liabilities 221,786 218,461
--------------------------- Commitments and Contingencies
Shareholders' Equity Common shares 1,431 226 (219,459,361 and
190,248,384 common shares and 24,639,513 and 48,238,269
exchangeable shares, par value $0.001 per share, issued and
outstanding as at December 31, 2009 and 2008 respectively)
Additional paid in capital 766,963 754,832 Warrants 27,107 29,884
Retained earnings 20,925 6,984 --------------------------- Total
Shareholders' Equity 816,426 791,926 ---------------------------
Total Liabilities and Shareholders' Equity $ 1,143,808 $ 1,072,625
--------------------------- --------------------------- Gran Tierra
Energy Inc. Condensed Consolidated Statements of Cash Flows
(Thousands of U.S. Dollars) Three Months Ended Year Ended December
31 December 31,
------------------------------------------------------- 2009 2008
2009 2008 -------------------------------------------------------
Operating Activities Net income (loss) $ 30,825 $ (12,694) $ 13,941
$ 23,495 Adjustments to reconcile net income (loss) to net cash
provided by operating activities: Depletion, depreciation and
accretion 40,397 10,516 135,863 25,737 Deferred taxes (9,705) 1,311
(15,355) (6,418) Stock based compensation 1,826 1,255 5,309 2,520
Unrealized (gain) loss on financial instruments (17) (3,124) 277
(2,882) Unrealized foreign exchange (gain) loss (13,486) 6,985
19,496 6,985 Settlement of asset retirement obligations - (334)
(52) (334) Net changes in non-cash working capital Accounts
receivable 34,165 61,527 (27,926) 34,943 Inventory (1,563) (324)
(1,849) (107) Prepaids (819) 309 (717) 261 Accounts payable and
accrued liabilities 36,914 3,730 36,875 10,697 Taxes receivable and
payable 11,888 (3,865) (409) 14,840
------------------------------------------------------- Net cash
provided by operating activities 130,425 65,292 165,453 109,737
------------------------------------------------------- Investing
Activities Restricted cash 100 - (1,792) - Additions to property,
plant and equipment (15,336) (28,630) (80,932) (55,217) Proceeds
from disposition of oil and gas property 600 - 5,400 - Cash
acquired on acquisition net of acquisition costs - 81,912 - 81,912
Long term assets and liabilities 720 476 968 446
------------------------------------------------------- Net cash
provided by (used in) investing activities (13,916) 53,758 (76,356)
27,141 -------------------------------------------------------
Financing Activities Proceeds from issuance of common stock 2,678
(56) 4,935 21,687
------------------------------------------------------- Net cash
provided (used) by financing activities 2,678 (56) 4,935 21,687
------------------------------------------------------- Net
increase in cash and cash equivalents 119,187 118,994 94,032
158,565 Cash and cash equivalents, beginning of year 151,599 57,760
176,754 18,189
------------------------------------------------------- Cash and
cash equivalents, end of year $ 270,786 $ 176,754 $ 270,786 $
176,754 -------------------------------------------------------
------------------------------------------------------- Cash $
182,197 $ 110,688 $ 182,197 $ 110,688 Term deposits 88,589 66,066
88,589 66,066
------------------------------------------------------- Cash and
cash equivalents, end of year $ 270,786 $ 176,754 $ 270,786 $
176,754 -------------------------------------------------------
-------------------------------------------------------
Supplemental cash flow disclosures: Cash paid for interest $ - $ -
$ - $ - Cash paid for taxes $ 3,631 $ 1,886 $ 31,527 $ 11,587
-------------------------------------------------------
------------------------------------------------------- Non-cash
investing activities: Non-cash working capital related to property,
plant and equipment $ 17,972 $ 11,096 $ 17,972 $ 11,096
-------------------------------------------------------
------------------------------------------------------- DATASOURCE:
Gran Tierra Energy Inc. CONTACT: For media and investor inquiries
please contact Jason Crumley, Director, Investor Relations at (403)
265-3221, or .
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