Another Record Year for Proved Oil and Gas Reserves CALGARY, Feb.
22 /PRNewswire-FirstCall/ -- Gran Tierra Energy Inc. (NYSE Amex:
GTE; TSX: GTE), a company focused on oil exploration and production
in South America, today announced the results of an independent
reserve evaluation of the company's reserves by GLJ Petroleum
Consultants Ltd. effective December 31, 2009. Year-end 2009
Highlights (net after royalties): - Approximately 5.7 million
barrels of working interest oil was produced in 2009; - Proved oil
reserves increased 14.6 % to approximately 22.1 million barrels
(SEC compliant); - Proved plus probable (2P) oil reserves are
approximately 27.9 million barrels (no SEC equivalent in 2008); -
Proved plus probable plus possible (3P) oil reserves are
approximately 39.4 million barrels (no SEC equivalent in 2008); -
Approximately 0.1 billion cubic feet of working interest gas was
produced in 2009; - Proved gas reserves increased 61.0 % to
approximately 1.9 billion cubic feet (SEC compliant); - Proved plus
probable (2P) gas reserves are approximately 3.6 billion cubic feet
(no SEC equivalent in 2008); - Proved plus probable plus possible
(3P) gas reserves are approximately 38.1 billion cubic feet (no SEC
equivalent in 2008). All reserves values contained in the 2009
Highlights, provided above, have been calculated using United
States Securities Exchange Commission rules. For reserves values
calculated in compliance with Canadian National Instrument 51-101
and the Canadian Oil and Gas Evaluation Handbook, see "Reserves
Reported in Accordance with Canadian Reporting Requirements" below
in this press release. "2009 was another excellent year for the
growth of Gran Tierra Energy's reserve base, fueled in large part
by development drilling in the Costayaco Field in Colombia and
testing operations in the Valle Morado Field in Argentina," said
Dana Coffield, President and CEO. "The focus for 2010 is to grow
reserves through an active exploration drilling campaign, with
seven exploration wells budgeted in Colombia and four exploration
wells budgeted in Peru. In addition, drilling and seismic
operations are budgeted to further define the gas potential of our
lands in Argentina. We expect this to be funded out of available
cash and cashflow from operations, allowing the company to remain
debt free." Reserves Reported in Accordance with United States
Reporting Requirements
-------------------------------------------------------------------------
The following reserves are reported consistent with United States
Securities and Exchange Commission rules. The following table
summarizes Gran Tierra Energy's year-end 2009 working interest
reserves and net after royalty reserves (with start of month
average 2009 oil price). Also shown in the following table are Gran
Tierra Energy's net after royalty reserves for year-end 2008 (with
constant December 31, 2008 oil price and cost). Total Company
-------------------------------------------------------------------------
Total Company 2009 Year-End 2009 Year-End 2008 Year-End Light and
Medium Oil Gran Tierra Gran Tierra Gran Tierra Energy Energy Energy
Working Interest NAR* NAR (SEC Compliant) Reserves Reserves
Reserves
-------------------------------------------------------------------------
Reserves Category MBO** MBO MBO
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 26,606 20,375 8,966
-------------------------------------------------------------------------
Developed Nonproducing 1,032 899 1,300
-------------------------------------------------------------------------
Undeveloped 1,037 808 8,972
-------------------------------------------------------------------------
Total Proved 28,675 22,082 19,238
-------------------------------------------------------------------------
Total Probable 7,543 5,821 N/A
-------------------------------------------------------------------------
Total Proved plus Probable 36,218 27,902 N/A
-------------------------------------------------------------------------
Total Possible 15,093 11,538 N/A
-------------------------------------------------------------------------
Total PPP 51,130 39,440 N/A
-------------------------------------------------------------------------
* NAR (net after royalty). ** MBO (thousand barrels of oil). - The
increases in proved oil reserves is mainly associated with
development drilling in the Costayaco Field in Colombia.
-------------------------------------------------------------------------
Total Company 2009 Year-End 2009 Year-End 2008 Year-End Gas Gran
Tierra Gran Tierra Gran Tierra Energy Energy Energy Working
Interest NAR NAR (SEC Compliant) Reserves Reserves Reserves
-------------------------------------------------------------------------
Reserves Category MMSCF*** MMSCF MMSCF
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 1,391 1,113 1,161
-------------------------------------------------------------------------
Developed Nonproducing 877 756 0
-------------------------------------------------------------------------
Undeveloped 0 0 0
-------------------------------------------------------------------------
Total Proved 2,268 1,869 1,161
-------------------------------------------------------------------------
Total Probable 2,076 1,739 N/A
-------------------------------------------------------------------------
Total Proved plus Probable 4,344 3,608 N/A
-------------------------------------------------------------------------
Total Possible 40,171 34,520 N/A
-------------------------------------------------------------------------
Total PPP 44,515 38,128 N/A
-------------------------------------------------------------------------
*** MMSCF (million standard cubic feet). - The increase in proved
gas reserves is due to workover activity on VM.x-1001 in the Valle
Morado Field in Argentina. Colombia Gran Tierra Energy's Colombia
year-end 2009 working interest and net after royalty reserves are
shown in the following table (with start of month average 2009 oil
price). Also shown in the following table is Gran Tierra Energy's
Colombian net after royalty reserves for year-end 2008 (with
constant December 31, 2008 oil price and cost).
-------------------------------------------------------------------------
Colombia 2009 Year-End 2009 Year-End 2008 Year-End Light and Medium
Oil Gran Tierra Gran Tierra Gran Tierra Energy Energy Energy
Working Interest NAR NAR (SEC Compliant) Reserves Reserves Reserves
-------------------------------------------------------------------------
Reserves Category MBO MBO MBO
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 25,427 19,350 7,832
-------------------------------------------------------------------------
Developed Nonproducing 968 844 1,061
-------------------------------------------------------------------------
Undeveloped 794 597 8,788
-------------------------------------------------------------------------
Total Proved 27,189 20,791 17,681
-------------------------------------------------------------------------
Total Probable 6,564 4,972 N/A
-------------------------------------------------------------------------
Total Proved plus Probable 33,754 25,762 N/A
-------------------------------------------------------------------------
Total Possible 12,496 9,430 N/A
-------------------------------------------------------------------------
Total PPP 46,250 35,192 N/A
-------------------------------------------------------------------------
- The increase in proved reserves in Colombia is mainly associated
with development drilling in the Costayaco Field.
-------------------------------------------------------------------------
Colombia 2009 Year-End 2009 Year-End 2008 Year-End Gas Gran Tierra
Gran Tierra Gran Tierra Energy Energy Energy Working Interest NAR
NAR (SEC Compliant) Reserves Reserves Reserves
-------------------------------------------------------------------------
Reserves Category MMSCF MMSCF MMSCF
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 1,391 1,113 1,161
-------------------------------------------------------------------------
Developed Nonproducing 0 0 0
-------------------------------------------------------------------------
Undeveloped 0 0 0
-------------------------------------------------------------------------
Total Proved 1,391 1,113 1,161
-------------------------------------------------------------------------
Total Probable 815 652 N/A
-------------------------------------------------------------------------
Total Proved plus Probable 2,206 1,765 N/A
-------------------------------------------------------------------------
Total Possible 1,735 1,388 N/A
-------------------------------------------------------------------------
Total PPP 3,941 3,153 N/A
-------------------------------------------------------------------------
The Costayaco Field 2009 year-end net after royalty reserves are
shown in the following table (with start of month average 2009 oil
price). Also shown in the following table is a comparison of the
Costayaco Field 2009 year-end gross lease reserves (with start of
the month average 2009 oil price) to the gross lease reserves
estimated in July 31, 2009 (with constant July 31, 2009 oil price
and cost).
-------------------------------------------------------------------------
Costayaco 2009 Year-End 2009 Year-End July 31, 2009 Light and
Medium Oil Costayaco Costayaco Costayaco Gran Tierra Gross Gross
Energy Lease Lease NAR Reserves Reserves (SEC Compliant) Reserves
-------------------------------------------------------------------------
Reserves Category MBO MBO MBO
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 18,151 24,016 9,546
-------------------------------------------------------------------------
Total Proved 18,748 24,810 19,657
-------------------------------------------------------------------------
Total Probable 4,592 6,133 N/A
-------------------------------------------------------------------------
Total Proved plus Probable 23,340 30,943 N/A
-------------------------------------------------------------------------
Total Possible 8,745 11,718 N/A
-------------------------------------------------------------------------
Total PPP 32,085 42,661 N/A
-------------------------------------------------------------------------
Argentina Gran Tierra Energy's Argentina working interest and net
after royalty reserves are shown in the following table (with start
of month average 2009 oil price). Also shown in the following table
is Gran Tierra Energy's Argentina net after royalty reserves for
year-end 2008 (with constant December 31, 2008 oil price and cost).
-------------------------------------------------------------------------
Argentina 2009 Year-End 2009 Year-End 2008 Year-End Light and
Medium Oil Gran Tierra Gran Tierra Gran Tierra Energy Energy Energy
Working Interest NAR NAR (SEC Compliant) Reserves Reserves Reserves
-------------------------------------------------------------------------
Reserves Category MBO MBO MBO
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 1,179 1,025 1,134
-------------------------------------------------------------------------
Developed Nonproducing 64 55 239
-------------------------------------------------------------------------
Undeveloped 243 211 184
-------------------------------------------------------------------------
Total Proved 1,486 1,291 1,557
-------------------------------------------------------------------------
Total Probable 978 850 N/A
-------------------------------------------------------------------------
Total Proved plus Probable 2,464 2,140 N/A
-------------------------------------------------------------------------
Total Possible 2,416 2,109 N/A
-------------------------------------------------------------------------
Total PPP 4,879 4,248 N/A
-------------------------------------------------------------------------
- The decrease in proved oil reserves is due to production.
-------------------------------------------------------------------------
Argentina 2009 Year-End 2009 Year-End 2008 Year-End Gas Gran Tierra
Gran Tierra Gran Tierra Energy Energy Energy Working Interest NAR
NAR (SEC Compliant) Reserves Reserves Reserves
-------------------------------------------------------------------------
Reserves Category MMSCF MMSCF MMSCF
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 0 0 0
-------------------------------------------------------------------------
Developed Nonproducing 877 756 0
-------------------------------------------------------------------------
Undeveloped 0 0 0
-------------------------------------------------------------------------
Total Proved 877 756 0
-------------------------------------------------------------------------
Total Probable 1,261 1,087 N/A
-------------------------------------------------------------------------
Total Proved plus Probable 2,138 1,843 N/A
-------------------------------------------------------------------------
Total Possible 38,436 33,132 N/A
-------------------------------------------------------------------------
Total PPP 40,574 34,975 N/A
-------------------------------------------------------------------------
- The increase in proved gas reserves is due to workover activity
on VM.x-1001 in the Valle Morado Field in Argentina. Reserves
Reported in Accordance with Canadian Reporting Requirements
--------------------------------------------------------------------
The following reserves are compliant with Canadian National
Instrument 51-101 (NI 51-101) and the Canadian Oil and Gas
Evaluation Handbook (COGEH) (with forecasted oil price and costs):
Total Company
-------------------------------------------------------------------------
Total Company 2009 Year-End 2009 Year-End 2008 Year-End Light and
Medium Oil Gran Tierra Gran Tierra Gran Tierra Energy Energy Energy
Working Interest NAR NAR (NI 51-101 compliant) Reserves Reserves
Reserves
-------------------------------------------------------------------------
Reserves Category MBO MBO MBO
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 26,942 19,705 9,194
-------------------------------------------------------------------------
Developed Nonproducing 1,032 898 1,329
-------------------------------------------------------------------------
Undeveloped 1,051 784 8,289
-------------------------------------------------------------------------
Total Proved 29,025 21,386 18,811
-------------------------------------------------------------------------
Total Probable 7,304 5,410 8,676
-------------------------------------------------------------------------
Total Proved plus Probable 36,329 26,795 27,487
-------------------------------------------------------------------------
Total Possible 14,915 11,085 18,599
-------------------------------------------------------------------------
Total PPP 51,243 37,880 46,086
-------------------------------------------------------------------------
Gran Tierra Energy's year-end 2009 NAR reserves compared to
year-end 2008 NAR reserves (compliant with NI 51-101 and COGEH) are
as follows: - Proved light and medium oil reserves increased 13.5%
due to development drilling in the Costayaco Field in Colombia. -
In addition, Gran Tierra Energy also has year-end 2009 NAR proved
gas reserves of approximately 1.9 billion cubic feet (BCF), an
increase of 61.0 % from 1.2 BCF NAR proved gas reserves at year-end
2008 due to testing results in the Valle Morado Field in Argentina.
- Probable light and medium oil reserves decreased 38% due to
changes in reserve category allocation. - In addition, Gran Tierra
Energy also has year-end 2009 NAR probable gas reserves of
approximately 1.7 BCF, a decrease of 5.6% from 1.8 BCF NAR at
year-end 2008. - Possible light and medium oil reserves decreased
41.5% due to negative test results of Costayaco-7. - In addition,
Gran Tierra Energy also has year-end 2009 NAR possible gas reserves
of approximately 34.5 BCF, an increase of 108% from 16.6 BCF NAR at
year-end 2008 due to testing results in the Valle Morado Field in
Argentina. Colombia Gran Tierra Energy's year-end 2009 Colombia
working interest and net after royalty 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 net after royalty reserves for year-end 2008 (NI 51-101
compliant with forecast oil price and cost).
-------------------------------------------------------------------------
Colombia 2009 Year-End 2009 Year-End 2008 Year-End Light and Medium
Oil Gran Tierra Gran Tierra Gran Tierra Energy Energy Energy
Working Interest NAR NAR (NI 51-101 compliant) Reserves Reserves
Reserves
-------------------------------------------------------------------------
Reserves Category MBO MBO MBO
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 25,725 18,647 8,050
-------------------------------------------------------------------------
Developed Nonproducing 968 843 1,080
-------------------------------------------------------------------------
Undeveloped 822 585 8,108
-------------------------------------------------------------------------
Total Proved 27,515 20,075 17,237
-------------------------------------------------------------------------
Total Probable 6,322 4,557 7,706
-------------------------------------------------------------------------
Total Proved plus Probable 33,837 24,632 24,943
-------------------------------------------------------------------------
Total Possible 12,503 8,980 15,806
-------------------------------------------------------------------------
Total PPP 46,340 33,611 40,749
-------------------------------------------------------------------------
- The increases in proved reserves in Colombia is mainly associated
with development drilling in the Costayaco Field. The decrease in
possible reserves is due primarily to the negative test results
from Costayaco-7. - In addition to the above proved light and
medium oil reserves, Gran Tierra Energy also has year-end 2009 NAR
proved gas reserves of approximately 1.1 BCF in Colombia. Gran
Tierra Energy had 1.2 BCF proved gas reserves at year-end 2008 in
Colombia. - In addition to the above probable light and medium oil
reserves, Gran Tierra Energy also has year-end 2009 NAR probable
gas reserves of approximately 0.7 BCF in Colombia. Gran Tierra
Energy had 0.7 BCF NAR probable gas reserves at year-end 2008 in
Colombia. - In addition to the above possible light and medium oil
reserves, Gran Tierra Energy also has year-end 2009 NAR possible
gas reserves of approximately 1.4 BCF in Colombia. Gran Tierra
Energy had 1.9 BCF NAR possible gas reserves at year-end 2008 in
Colombia. The Costayaco Field 2009 year-end net after royalty
reserves are shown in the following table (with forecast oil price
and cost). Also shown in the following table is a comparison of the
Costayaco Field 2009 year-end gross lease reserves (with forecast
oil price and cost) to the gross lease reserves estimated in July
31, 2009 (with forecast oil price and cost).
-------------------------------------------------------------------------
Costayaco 2009 Year-End 2009 Year-End July 31, 2009 Light and
Medium Oil Costayaco Costayaco Costayaco Gran Tierra Gross Gross
Energy Lease Lease NAR Reserves Reserves (NI 51-101 compliant)
Reserves
-------------------------------------------------------------------------
Reserves Category MBO MBO MBO
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 17,398 24,257 9,800
-------------------------------------------------------------------------
Total Proved 17,983 25,079 19,657
-------------------------------------------------------------------------
Total Probable 4,153 5,864 10,635
-------------------------------------------------------------------------
Total Proved plus Probable 22,136 30,943 30,292
-------------------------------------------------------------------------
Total Possible 8,290 11,718 13,217
-------------------------------------------------------------------------
Total PPP 30,426 42,661 43,509
-------------------------------------------------------------------------
Approximately 2.64 million barrels of oil (MMBO) was produced from
August 1, 2009 to December 31, 2009. Taking the production volume
into account, there is an increase in proved and probable reserves
associated with the successful drilling and testing of Costayaco-8,
Costayaco-9 and Costayaco-10. The reductions in possible reserves
are mainly associated with the failure to test oil in Costayaco-7.
Argentina Gran Tierra Energy's Argentina year-end 2009 working
interest and net after royalty 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 net
after royalty reserves for year-end 2008 (NI 51-101 compliant with
forecast oil price and cost).
-------------------------------------------------------------------------
Argentina 2009 Year-End 2009 Year-End 2008 Year-End Light and
Medium Oil Gran Tierra Gran Tierra Gran Tierra Energy Energy Energy
Working Interest NAR NAR (NI 51-101 compliant) Reserves Reserves
Reserves
-------------------------------------------------------------------------
Reserves Category MBO MBO MBO
-------------------------------------------------------------------------
Proved
-------------------------------------------------------------------------
Developed Producing 1,217 1,058 1,144
-------------------------------------------------------------------------
Developed Nonproducing 64 55 249
-------------------------------------------------------------------------
Undeveloped 229 199 181
-------------------------------------------------------------------------
Total Proved 1,510 1,311 1,574
-------------------------------------------------------------------------
Total Probable 982 853 970
-------------------------------------------------------------------------
Total Proved plus Probable 2,492 2,164 2,544
-------------------------------------------------------------------------
Total Possible 2,412 2,105 2,793
-------------------------------------------------------------------------
Total PPP 4,903 4,269 5,337
-------------------------------------------------------------------------
- Gran Tierra Energy had no proved gas reserves in Argentina at
year-end 2008; - In addition to the above probable light and medium
oil reserves, Gran Tierra Energy also has year-end 2009 NAR
probable gas reserves of approximately 1.1 BCF in Argentina. Gran
Tierra Energy had year-end 2008 NAR probable gas reserves of
approximately 1.2 BCF; - In addition to the above possible light
and medium oil reserves, Gran Tierra Energy also has year-end 2009
NAR possible gas reserves of approximately 33.1 BCF in Argentina.
Gran Tierra Energy had year-end 2008 NAR possible gas reserves of
approximately 14.7 BCF. Current Production Gran Tierra Energy is
currently producing approximately 14,800 barrels of oil per day
(BOPD) NAR. About 14,000 BOPD NAR production is from Colombia and
approximately 800 BOPD NAR production is from Argentina. With the
production capacity available from existing wells, Gran Tierra
Energy plans to maintain its net after royalty production in
Colombia between 13,000 BOPD and 15,000 BOPD independent of any
exploration success in 2010. Gran Tierra Energy's net after royalty
production rate for Argentina is expected to remain constant at
approximately 1,000 barrels of oil equivalent per day (BOEPD)
throughout 2010. 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/, on SEDAR (http://www.sedar.com/) and
with the Securities and Exchange Commission (http://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 Barrel of oil equivalent (BOE) is calculated using the conversion
factor of 6,000 cubic feet ("6Mcf") 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 per 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 Gran Tierra
Energy's expectations regarding its 2010 exploration drilling
campaign and expected funding of the campaign, and expected 2010
NAR production in Colombia and Argentina 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", "will",
"scheduled", "may", and variations of these words are
forward-looking statements. These forward-looking 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. 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. 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; and those other risks found
in the periodic reports filed by Gran Tierra Energy with the United
States Securities and Exchange Commission, including in the section
entitled "Risk Factors" in its Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on November 5, 2009,
and available at the Securities and Exchange Commission's internet
site http://www.sec.gov/ and on SEDAR at http://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. DATASOURCE: Gran
Tierra Energy Inc. CONTACT: For media and investor inquiries please
contact Jason Crumley, Director, Investor Relations, (403) 265-3221
or
Copyright
