Gran Tierra Energy Inc. (“Gran Tierra” or the “Company“) (NYSE MKT:GTE)(TSX:GTE), a company focused on oil exploration and production in Colombia, today announced the Company’s 2015 year-end estimated reserves as evaluated by the Company’s independent qualified reserve evaluator McDaniel & Associates Consultants Ltd. (“McDaniel“) in a report with an effective date of December 31, 2015 (the “GTE McDaniel Reserves Report“). Subsequent to year-end 2015, on January 13, 2016, the Company completed its acquisition of all the issued and outstanding common shares of Petroamerica Oil Corp. (“Petroamerica“) and expects to complete its acquisition of all the issued and outstanding common shares of PetroGranada Colombia Limited (“PGC“) on or about January 25, 2016. Gran Tierra is also announcing pro forma combined reserves and resources that have resulted from the Petroamerica acquisition and are expected to result from the PGC acquisition.
All dollar amounts are in United States (“U.S.“) dollars, unless otherwise indicated. Unless otherwise expressly stated, all reserves values contained in this press release have been 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“). For reserves values calculated in compliance with SEC rules, see “Reserves Reported in Accordance with United States Reporting Requirements” below in this press release.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented “Gran Tierra’s mature legacy assets have performed as expected providing stable cash flow and production. Including the completed acquisition of Petroamerica which occurred subsequent to year-end, and the acquisition of PGC, which is expected to be completed on or about January 25, 2016, the Company’s Proved plus Probable (“2P“) working interest (“WI“) reserves increased by 14% compared with year-end 2014. In addition, as a result of the Petroamerica and PGC acquisitions, Gran Tierra’s unrisked net Prospective Resources are expected to increase to 681.7 million barrels of oil equivalent (“MMBOE “) (36% increase) and risked Prospective Resources to 178.2 MMBOE (50% increase) in Colombia compared with the Company’s Prospective Resources as at September 30, 2015.”
Highlights
- Annual production for 2015 averaged 23,401 company interest barrels of oil equivalent per day (“BOEPD“) before royalties, or 19,489 BOEPD net after royalty.
- Year-end 2015 WI oil and gas reserves based on NI 51-101 and COGEH:
- Proved reserves (“1P“) increased 7,251 thousand barrels of oil equivalent (“MBOE“) from year-end 2014, before production, due to technical and economic revisions. In Brazil, 1P reserves increased by 83% based on reservoir performance. After production of 8,542 MBOE, year-end 2015 1P reserves were 48,350 MBOE compared to 49,100 MBOE at year-end 2014;
- 2P reserves increased 7,0251 MBOE from year-end 2014 due to technical and economic revisions. In Brazil, 2P reserves increased based on reservoir performance and budgeted plans to implement water injection. After production of 8,542 MBOE, year-end 2015 2P reserves were 65,962 MBOE compared to 66,9391 MBOE year-end 2014;
- Proved plus Probable plus Possible (“3P“) reserves were 81,009 MBOE after 2015 production a decrease of 8% from year-end 2014, excluding Peru reserves1.
- Year-end 2015 before tax net present values discounted at 10% for Gran Tierra’s reserves based on NI 51-101 and COGEH:
- 1P of $814.0 million compared to $1,111.3 million at year-end 2014
- 2P of $1,100.5 million compared to $1,499.6 million at year-end 2014
- 3P of $1,374.1 million compared to $2,038.9 million at year-end 2014.
- Combined year-end 2015 WI oil and gas reserves of Petroamerica and (subject to closing) PGC2:
| Reserves Category | Volume (MBOE) |
Net Present Value Before Tax, Discounted at 10% ($ million) |
| Proved | 4,681 | 47.6 |
| Proved plus Probable | 10,267 | 130.7 |
| Proved plus Probable plus Possible | 15,002 | 233.3 |
- Pro forma combined net asset value of $4.49 per share, based on before tax net present values discounted at 10% of 2P proforma combined reserves of the Company, Petroamerica and PGC, and estimated year-end 2015 working capital, net of cash paid for the Petroamerica and PGC acquisitions, of $97.0 million. This estimated net asset value does not represent fair market value.
- Pro forma Colombia WI Prospective Resources for Petroamerica and (subject to closing) PGC, and Gran Tierra Prospective Resources announced December 20153:
| Mean Unrisked Prospective Resources (MMBOE) |
Mean Risked Prospective Resources (MMBOE) |
|
| Gran Tierra, year-end 2015 Colombia Only | 501.1 | 119.0 |
| Combined Petroamerica and PGC, year-end 2015 | 180.6 | 59.2 |
| TOTAL | 681.7 | 178.2 |
| Change as a result of the Petroamerica and PGC acquisitions | 36% increase | 50% increase |
__________________
1 Excludes any reserves for Peru. On February 19, 2015, Gran Tierra made the decision to suspend all further development expenditures on the Bretaña Field on Block 95 in Peru other than what was necessary to maintain tangible asset integrity and security. As a result of the decision to defer development, all probable and possible reserves associated with the field were reclassified as contingent resources.
2 Based on the independent report prepared by McDaniel as of December 31, 2015 (the “PTA McDaniel Reserves Report“) for Petroamerica and the independent report prepared by McDaniel as of December 31, 2015 (the “PGC McDaniel Reserves Report“) for PGC. As the Petroamerica acquisition closed and the PGC acquisition is expected to close subsequent to year-end 2015, these reserves are expected to be consolidated during 2016. These reports and the GTE McDaniel Reserves Report have not yet been submitted to the Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) (“ANH“).
3 Based on the independent evaluation of Prospective Resources prepared by McDaniel as at September 30, 2015, with respect to Gran Tierra’s Colombian properties (the “GTE McDaniel Prospective Resources Report“), the independent evaluation of Petroamerica’s Prospective Resources prepared by McDaniel as at December 31, 2015 (the “PTA McDaniel Prospective Resources Report“) and derived from the PTA McDaniel Prospective Resources Report as PGC owns the remaining 50% WI in the Putumayo-7 Block, the other 50% WI being owned by Petroamerica. These reports have not yet been submitted to the ANH.
Reserves Reported in Accordance with Canadian Reporting Requirements
The following tables summarize Gran Tierra’s NI 51-101 and COGEH compliant reserves in Colombia and Brazil derived from the GTE McDaniel Reserves Report and a report prepared by GLJ Petroleum Consultants Ltd. (“GLJ“) for Gran Tierra effective December 31, 2014 (the “GTE GLJ 2014 Reserves Report“), in each case calculated using forecasted oil and gas prices and costs. As noted above, probable and possible reserves associated with the Bretaña field on Block 95 in Peru are excluded from the table below.
| Total Company | 2015 Year-End | 2014 Year-End |
| Oil and Liquids (COGEH compliant) |
WI Reserves | WI Reserves(***) |
| Reserves Category | Mbbl(*) | Mbbl(*) |
| Total Proved | 47,475 | 48,920 |
| Total Probable | 17,124 | 17,222 |
| Total Proved plus Probable | 64,599 | 66,142 |
| Total Possible | 14,614 | 20,638 |
| Total Proved plus Probable plus Possible | 79,213 | 86,780 |
(*)Mbbl (thousand barrels of oil).
| Total Company | 2015 Year-End | 2014 Year-End |
| Gas (COGEH compliant) |
WI Reserves | WI Reserves(***) |
| Reserves Category | MMcf(**) | MMcf(**) |
| Total Proved | 5,248 | 1,081 |
| Total Probable | 2,929 | 3,699 |
| Total Proved plus Probable | 8,177 | 4,780 |
| Total Possible | 2,597 | 3,144 |
| Total Proved plus Probable plus Possible | 10,774 | 7,924 |
| (**)MMcf (million cubic feet) | ||
| Total Company | 2015 Year-End | 2014 Year-End |
| BOE(COGEH compliant) | WI Reserves | WI Reserves(***) |
| Reserves Category | MBOE | MBOE |
| Total Proved | 48,350 | 49,100 |
| Total Probable | 17,612 | 17,839 |
| Total Proved plus Probable | 65,962 | 66,939 |
| Total Possible | 15,047 | 21,162 |
| Total Proved plus Probable plus Possible | 81,009 | 88,101 |
(***) On February 19, 2015, Gran Tierra made the decision to cease all further development expenditures on the Bretaña field on Block 95 in Peru other than what is necessary to maintain tangible asset integrity and security. As a result of this decision, all probable and possible reserves associated with the field were reclassified as contingent resources. These probable and possible reserves are therefore excluded from the tables above.
Future Development Costs
The following table sets forth future development costs, excluding abandonment costs, deducted in the estimation of the future net revenue attributable to the reserve categories noted below (using forecast prices and costs):
| Year | Proved Reserves ($000s) |
Proved Plus Probable Reserves ($000s) |
| 2016 | 34,917 | 58,440 |
| 2017 | 17,848 | 33,160 |
| 2018 | 2,862 | 24,005 |
| 2019 | 1,220 | 10,011 |
| 2020 | 8,432 | 1,882 |
| Remaining | 3,824 | 4,705 |
| Total (undiscounted) | 69,103 | 132,203 |
Before Tax Net Present Values
The following table summarizes before tax net present values for Gran Tierra’s NI 51-101 and COGEH compliant reserves at year-end 2015.
| Total Company | Before Tax Net Present Value ($ million) | ||||
| Discount Rate | |||||
| 0% | 5% | 10% | 15% | 20% | |
| Reserves Category | |||||
| Total Proved | 1,222 | 981 | 814 | 693 | 603 |
| Total Probable | 537 | 385 | 286 | 220 | 173 |
| Total Proved plus Probable | 1,759 | 1,366 | 1,100 | 913 | 776 |
| Total Possible | 609 | 397 | 274 | 198 | 148 |
| Total Proved plus Probable plus Possible | 2,368 | 1,763 | 1,374 | 1,111 | 924 |
Pro Forma Combined Reserves and Net Present Value
On January 13, 2016, Gran Tierra completed its acquisition of all the issued and outstanding common shares of Petroamerica, and expects to complete its acquisition of all the issued and outstanding common shares of PGC on or about January 25, 2016. The following table summarizes pro forma combined NI 51-101 and COGEH compliant WI reserves at year-end 2015 after giving effect to the Petroamerica and PGC acquisitions and derived from the GTE McDaniel Reserves Report, the PTA McDaniel Reserves Report and the PGC McDaniel Reserves Report.
| BOE (COGEH compliant) |
Gran Tierra WI Reserves |
Combined Petroamerica and PGC WI Reserves |
Pro Forma Combined |
| Reserves Category | MBOE | MBOE | MBOE |
| Total Proved | 48,350 | 4,681 | 53,031 |
| Total Probable | 17,612 | 5,586 | 23,198 |
| Total Proved plus Probable | 65,962 | 10,267 | 76,229 |
| Total Possible | 15,047 | 4,735 | 19,782 |
| Total Proved plus Probable plus Possible | 81,009 | 15,002 | 96,011 |
Readers are cautioned that the aggregate estimates set forth above may reflect different price estimates and other assumptions.
The following table summarizes pro forma combined before tax net present values discounted at 10% at year-end 2015.
| Gran Tierra | Combined Petroamerica and PGC |
Pro Forma Combined |
|
| Reserves Category | $ million | $ million | $ million |
| Total Proved | 814 | 48 | 862 |
| Total Probable | 286 | 83 | 369 |
| Total Proved plus Probable | 1,100 | 131 | 1,231 |
| Total Possible | 274 | 103 | 377 |
| Total Proved plus Probable plus Possible | 1,374 | 234 | 1,608 |
Reserves Reported in Accordance with United States Reporting Requirements
The following tables summarize Gran Tierra’s SEC compliant reserves in Colombia and Brazil as derived from the GTE McDaniel Reserves Report and the GTE GLJ 2014 Reserves Report calculated using average start-of-month 2015 and 2014 oil and gas prices.
| Total Company | 2015 Year-End | 2015 Year-End | 2014 Year-End |
| Oil and Liquids (SEC Compliant) |
Company Interest Reserves |
Net After Royalty (“NAR”) Reserves |
Company Interest Reserves (***) |
| Reserves Category | Mbbl(*) | Mbbl(*) | Mbbl(*) |
| Total Proved | 45,941 | 38,109 | 49,698 |
| Total Probable | 18,506 | 15,276 | 17,263 |
| Total Proved plus Probable | 64,447 | 53,385 | 66,961 |
| Total Possible | 14,767 | 12,155 | 20,103 |
| Total Proved plus Probable plus Possible | 79,214 | 65,540 | 87,064 |
| Total Company | 2015 Year-End | 2015 Year-End | 2014 Year-End |
| Gas (SEC Compliant) |
Company Interest Reserves |
NAR Reserves |
Company Interest Reserves (***) |
| Reserves Category | MMcf(**) | MMcf(**) | MMcf(**) |
| Total Proved | 5,190 | 4,628 | 1,081 |
| Total Probable | 2,931 | 2,616 | 3,822 |
| Total Proved plus Probable | 8,121 | 7,244 | 4,903 |
| Total Possible | 2,653 | 2,374 | 3,152 |
| Total Proved plus Probable plus Possible | 10,774 | 9,618 | 8,055 |
| Total Company | 2015 Year-End | 2015 Year-End | 2014 Year-End |
| BOE (SEC Compliant) |
Company Interest Reserves |
NAR Reserves |
Company Interest Reserves (***) |
| Reserves Category | MBOE | MBOE | MBOE |
| Total Proved | 46,806 | 38,880 | 49,878 |
| Total Probable | 18,994 | 15,712 | 17,900 |
| Total Proved plus Probable | 65,800 | 54,592 | 67,778 |
| Total Possible | 15,209 | 12,551 | 20,628 |
| Total Proved plus Probable plus Possible | 81,009 | 67,143 | 88,406 |
Before Tax Net Present Values
The following table summarizes before tax net present values for Gran Tierra’s SEC compliant reserves at year-end 2015 calculated using average start-of-month oil and gas prices.
| Total Company | Before Tax Net Present Value ($ million) | ||||
| Discount Rate | |||||
| 0% | 5% | 10% | 15% | 20% | |
| Reserves Category | |||||
| Total Proved | 844 | 719 | 626 | 556 | 501 |
| Total Probable | 301 | 226 | 174 | 138 | 111 |
| Total Proved plus Probable | 1,145 | 945 | 800 | 694 | 612 |
| Total Possible | 343 | 234 | 169 | 127 | 99 |
| Total Proved plus Probable plus Possible | 1,488 | 1,179 | 969 | 821 | 711 |
The SEC standardized measure of after tax future net cash flows discounted at 10% from Gran Tierra’s estimated SEC compliant proved oil and gas reserves at December 31, 2015, is $464.8 million.
Pro Forma Combined Reserves and Net Present Value
On January 13, 2016, Gran Tierra completed its acquisition of all the issued and outstanding common shares of Petroamerica, and expects to complete its acquisition of all the issued and outstanding common shares of PGC on or about January 25, 2016. The following table summarizes pro forma combined SEC compliant company interest reserves at year-end 2015 as derived from the GTE McDaniel Reserves Report, the PTA McDaniel Reserves Report and the PGC McDaniel Reserves Report.
| BOE (SEC Compliant) |
Gran Tierra Company Interest Reserves |
Combined Petroamerica and PGC Company Interest Reserves |
Pro Forma Combined |
| Reserves Category | MBOE | MBOE | MBOE |
| Total Proved | 46,806 | 4,464 | 51,270 |
| Total Probable | 18,994 | 5,513 | 24,507 |
| Total Proved plus Probable | 65,800 | 9,977 | 75,777 |
| Total Possible | 15,209 | 4,471 | 19,680 |
| Total Proved plus Probable plus Possible | 81,009 | 14,448 | 95,457 |
The following table summarizes pro forma combined before tax net present values discounted at 10% at year-end 2015.
| Gran Tierra | Combined Petroamerica and PGC |
Pro Forma Combined |
|
| Reserves Category | $ million | $ million | $ million |
| Total Proved | 626 | 43 | 669 |
| Total Probable | 174 | 46 | 220 |
| Total Proved plus Probable | 800 | 89 | 889 |
| Total Possible | 169 | 58 | 227 |
| Total Proved plus Probable plus Possible | 969 | 147 | 1,116 |
Prospective and Contingent Resources
In addition to the GTE McDaniel Prospective Resources Report, an updated independent assessment of Gran Tierra’s contingent and prospective resources on its Peruvian exploration and development properties was completed by GLJ as of September 30, 2015, (the “GTE GLJ Contingent and Prospective Resources Report“) in accordance COGEH and the standards established by NI 51-101.
Additionally, an independent assessment of prospective resources has been completed by McDaniel on Petroamerica, the acquisition of which has closed, as reflected in the PTA McDaniel Prospective Resources Report.
The following table summarizes the prospective resources for Colombia, proforma with the acquisitions, and for Peru derived from the GTE McDaniel Prospective Resources Report, the PTA McDaniel Prospective Resources Report and the GTE GLJ Contingent and Prospective Resources Report:
| WI Prospective Resources – Unrisked (1)(2) | Risked Resources | |||||
| Colombia | Prospects/ | Low | P50 | Mean | High | Mean(2) |
| Basin | (Leads) | |||||
| Gran Tierra | ||||||
| Light and Medium Crude Oil (MMbbl)(****) | ||||||
| Putumayo(3)(5) | 30 | 102.0 | 262.2 | 371.3 | 764.6 | 99.4 |
| Llanos(3)(5) | 3 | 4.5 | 16.1 | 25.7 | 58.5 | 5.0 |
| Sinu(3)(5) | 4 (leads) | 8.4 | 43.4 | 83.1 | 210.7 | 11.7 |
| Total (3)(4)(5) | 114.9 | 321.7 | 480.1 | 1,033.8 | 116.1 | |
| Conventional Natural Gas (MMcf) (**) | ||||||
| Putumayo(3)(5) | 30 | – | – | – | – | – |
| Llanos(3)(5) | 3 | – | – | – | – | – |
| Sinu(3)(5) | 4 (leads) | 13.4 | 67.1 | 126.3 | 318.1 | 18.1 |
| Total (3)(4)(5) | 13.4 | 67.1 | 126.3 | 318.1 | 18.1 | |
| BOE (MMBOE) | ||||||
| Putumayo(3)(5) | 30 | 102.0 | 262.2 | 371.3 | 764.6 | 99.4 |
| Llanos(3)(5) | 3 | 4.5 | 16.1 | 25.7 | 58.5 | 5.0 |
| Sinu(3)(5) | 4 (leads) | 10.6 | 54.5 | 104.1 | 263.7 | 14.6 |
| Total (3)(4)(5) | 117.1 | 332.8 | 501.1 | 1,086.8 | 119.0 | |
| Petroamerica and PGC | ||||||
| Light and Medium Crude Oil (MMbbl)(****) | ||||||
| Putumayo(3)(5) | 15 | 12.9 | 44.4 | 70.1 | 156.8 | 35.4 |
| Llanos(3)(5) | 9 and 2 leads | 38.9 | 88.8 | 110.5 | 209.8 | 23.8 |
| Total (3)(4)(5) | 24 and 2 leads | 51.8 | 133.2 | 180.6 | 366.6 | 59.2 |
| Pro Forma Combined | ||||||
| BOE (MMBOE) | ||||||
| Putumayo(3)(5) | 45 | 114.9 | 306.6 | 441.4 | 921.4 | 134.8 |
| Llanos(3)(5) | 9 and 2 leads | 43.4 | 104.9 | 136.2 | 268.3 | 28.8 |
| Sinu(3)(5) | 4 (leads) | 10.6 | 54.5 | 104.1 | 263.7 | 14.6 |
| Total (3)(4)(5) | 54 and 6 leads | 168.9 | 466.0 | 681.7 | 1,453.4 | 178.2 |
(****) million barrels of oil
(1) There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. See “Disclosure of Oil and Gas Information” below for important cautionary notes regarding prospective resources.
(2) The risked resources are partially risked prospective resources that have been risked for chance of discovery, but have not been risked for the chance of development. The chance of development is defined as the probability of a project being commercially viable. Quantifying the chance of development requires consideration of both economic contingencies and other contingencies, such as legal, regulatory, market access, political, social license, internal and external approvals and commitment to project finance and development timing. As many of these factors are extremely difficult to quantify, the chance of development is uncertain and must be used with caution. The chance of development was estimated to be 75 percent in the Putumayo and Llanos Basins and 60 percent in the Sinu Basin.
(3) Total based on the probabilistic aggregation of zones within a prospect and arithmetic aggregation of the individual prospects to the Total level. The estimates of prospective resources for individual properties may not reflect the same confidence level as estimates of prospective resources for all properties, due to the effects of aggregation. Aggregation of multiple zones and multiple prospects may lead to slight numeric variation due to rounding errors.
(4) The unrisked total assumes every prospect is successful and as such is not representative of the exploration portfolio unrisked total as defined in COGE Handbook Volume 2 Section 2.8.2.
(5) Company gross resources are based on WI share of the property gross resources.
(6) Based on a Mcf to BOE conversion of 6 to 1.
| WI Prospective Resources – Unrisked (1)(2) | Risked Resources | |||||
| Peru | Prospects/ | Low | P50 | Mean | High | Mean(2) |
| Basin | (Leads) | |||||
| Light and Medium Crude Oil (MMbbl)(****) | ||||||
| Maranon(3)(5) | 5 | 159.9 | 774.8 | 1,604.8 | 3,274.7 | 317.1 |
| Ucayali(3)(5) | 1 | 61.1 | 218.3 | 312.9 | 682.8 | 60.1 |
| Total (3)(4)(5) | 221.0 | 993.1 | 1,917.7 | 3,957.5 | 377.2 | |
| Conventional Natural Gas (MMcf)(**) | ||||||
| Maranon(3)(5) | 5 | – | – | – | – | – |
| Ucayali(3)(5) | 1 | – | – | – | – | – |
| Total (3)(4)(5) | – | – | – | – | – | |
| BOE (MMBOE) | ||||||
| Maranon(3)(5) | 5 | 159.9 | 774.8 | 1,604.8 | 3,274.7 | 317.1 |
| Ucayali(3)(5) | 1 | 61.1 | 218.3 | 312.9 | 682.8 | 60.1 |
| Total (3)(4)(5) | 221.0 | 993.1 | 1,917.7 | 3,957.5 | 377.2 | |
(1) There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. See “Disclosure of Oil and Gas Information” below for important cautionary notes regarding prospective resources.
(2) The risked resources are partially risked prospective resources that have been risked for chance of discovery, but have not been risked for the chance of development. The chance of development is defined as the probability of a project being commercially viable. Quantifying the chance of development requires consideration of both economic contingencies and other contingencies, such as legal, regulatory, market access, political, social license, internal and external approvals and commitment to project finance and development timing. As many of these factors are extremely difficult to quantify, the chance of development is uncertain and must be used with caution. The chance of development was estimated to be 69 percent in the Maranon and Ucayali Basins.
(3) Total based on the probabilistic aggregation of zones within a prospect and arithmetic aggregation of the individual prospects to the Total level. The estimates of prospective resources for individual properties may not reflect the same confidence level as estimates of prospective resources for all properties, due to the effects of aggregation. Aggregation of multiple zones and multiple prospects may lead to slight numeric variation due to rounding errors.
(4) The unrisked total assumes every prospect is successful and as such is not representative of the exploration portfolio unrisked total as defined in COGE Handbook Volume 2 Section 2.8.2.
(5) Company gross resources are based on WI share of the property gross resources.
(6) Based on a Mcf to BOE conversion of 6 to 1.
The following tables summarize Gran Tierra’s contingent resources as of September 30, 2015, as derived from the GTE Contingent and Prospective Resources Report:
| Summary of Contingent Resources (1)(2)(3) | |||
| Peru | 1C | 2C | 3C |
| Heavy Oil (MMbbl) (****) | |||
| Bretaña | 34.2 | 53.0 | 80.9 |
| 34.2 | 53.0 | 80.9 | |
(1) All of the Company’s contingent resources have been classified as heavy oil. There is uncertainty that it will be commercially viable to produce any portion of the resources.
(2) “Contingent Resources” are 100% of the volumes estimated to be recoverable from the field in the event that it is developed.
(3) The volumes reported here are “unrisked” in the sense that no adjustment has been made for the risk that the field may not be developed in the form envisaged or may not be developed at all (i.e. no “Chance of Development” factor has been applied).
Forecast prices
The pricing assumptions used in estimating NI 51-101 and COGEH compliant reserves data disclosed above with respect to net present values of future net revenue are set forth below. The forecast inflation rate for price is 2% from 2030 onwards. The price forecast is based off McDaniel’s standard price forecast effective January 1, 2016. McDaniel is an independent qualified reserves auditor pursuant to NI 51-101.
| Brent | |
| Crude Oil | |
| Year | $US/bbl |
| 2016 | $47.50 |
| 2017 | $56.20 |
| 2018 | $65.00 |
| 2019 | $71.70 |
| 2020 | $75.80 |
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 (GTE) and the Toronto Stock Exchange (GTE), and operating in South America. Gran Tierra holds interests in producing and prospective properties in Colombia, Peru and Brazil. Gran Tierra 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.
Gran Tierra’s Securities and Exchange Commission filings are available on a website maintained by the Securities and Exchange Commission at www.sec.gov and on SEDAR at www.sedar.com.
For more information on Gran Tierra please go to: www.grantierra.com.
