RE: great news3 Feb 2019 16:42
Highlights
Gran Tierra's existing producing assets are forecasted to generate Proved plus Probable ("2P") oil and gas sales of $5.2 billion and before tax free cash flow1 of $2.5 billion and after tax free cash flow1 of $1.9 billion over the five year time period of 2019 to 2023
Demonstrated the significant value Gran Tierra has added to and created within its portfolio:
° The acquisitions and discoveries made by the Company over the last four years are estimated to now account for 81% of total Company 2P before tax net present value discounted at 10% ("NPV10") and have grown expected 2019 production to four times the level of Gran Tierra's legacy assets
Increased average annual Colombia production for 2018 to 36,209 barrels of oil equivalent per day ("BOEPD"), up 15% from 2017
Increased 2P reserves to 142 million barrels of oil equivalent ("MMBOE"), before tax 2P NPV10 to $2.7 billion and before tax 2P net asset value ("NAV") to $5.96 per share2
Achieved 2P reserve replacement of 140% with total 2018 2P reserve additions of 19 MMBOE, with approximately 13 MMBOE of these additions attributable to the Acordionero oil field, the Company's single largest asset
Increased the 2P expected recovery factors in Acordionero to 26.5% in the Lisama A Sand (up from 23.5% a year ago) and to 35.0% in the Lisama C Sand (up from 27.5% a year ago):
° This material growth in estimated Acordionero recovery factors was a major driver of Gran Tierra's 2P reserves growth and indicative of positive drilling and production results in 2018
° Gran Tierra believes additional growth in Proved ("1P"), 2P and Proved plus Probable plus Possible ("3P") Acordionero recovery factors may be realized with planned increases in water injection
Grew the number of Company undeveloped drilling locations as follows:
° Number of 1P locations is 42, up from 34 at year-end 2017
° Number of 2P locations is 92, up from 61 at year-end 2017
° Number of 3P locations is 129, up from 83 at year-end 2017
Achieved Colombia 2P three-year average finding, development and acquisition ("FD&A") costs excluding future development costs ("FDC") of $11.51 per barrel of oil equivalent ("BOE") and 2P three-year average FD&A costs including FDC of $15.56 per BOE
Estimated reserve life indices of 10 years (2P) and 15 years (3P)
Maintained a world-class exploration portfolio represented by significant Mean Prospective Resources:
° The Company's WI Mean Unrisked Prospective Resources as at July 31, 2018 were 1,419 MMBOE, including 822 MMBOE in the Putumayo Basin A-Limestone play
° The Company's WI Mean Risked Prospective Resources as at July 31, 2018 were 361 MMBOE, with 59% or 214 MMBOE attributable to the Putumayo A-Limestone
° The A-Limestone represents a potentially substantial future conventional resource play for Gran Tierra, which the Company believes equates to 1,429 prospective drilling opportunities
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