Record Average Quarterly Production of 10,390 BOPD Attained;
Positioning for Renewed Exploration in Late 2009 and 2010 CALGARY,
May 7 /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 ended March 31, 2009. All dollar amounts are in
United States dollars unless otherwise indicated. Selected
highlights comparing the quarters ended March 31, 2009 and 2008: -
265% increase in production to 10,390 barrels of oil per day
(BOPD), net after royalty (NAR), compared with 2,843 BOPD NAR, for
the same period in 2008; - 61% increase in revenue and interest to
$33.6 million compared with $20.8 million for the same period in
2008; - 202% increase in net income to $14.1 million compared with
$4.7 million for the same period in 2008. On a per share basis, net
income increased to $0.06 per share basic and diluted, compared
with $0.05 per share basic and $0.04 per share diluted for the
first quarter of 2008; - Cash and cash equivalents of $147.7
million at March 31, 2009; and - Gran Tierra Energy continues to be
debt free. "The first quarter 2009 results reflect our continued
focus on operating performance in Colombia, Peru and Argentina, and
continuing development of the Costayaco Field," said Dana Coffield,
President and Chief Executive Officer of Gran Tierra Energy. "The
company is currently evaluating the optimum production plateau for
the Costayaco field taking into consideration reserves, reservoir
performance, good operating practice, and net present value of the
project. Accordingly, we are revising the planned production
plateau for Costayaco to 19,000 BOPD gross, and extending the
plateau period to approximately four years. Economic modeling shows
no material reduction in value in producing reserves at this new
plateau, and at the same time, we believe operating performance
will be enhanced long-term. We are now expecting to maintain an
average consolidated company production rate between 14,000 to
16,000 BOPD NAR for the balance of 2009. In addition, our capital
expenditure plans have been revised to focus on the highest impact
investment opportunities in our portfolio as Gran Tierra Energy
strives to deliver the best value to its shareholders. "We will
continue to explore our large land position encompassing 5.6
million net acres through a program that anticipates four
exploration wells in Colombia in the second half of 2009, as well
as multiple seismic programs in Colombia and Peru in preparation
for additional exploration drilling in 2010. Our balance sheet
remains very strong, and we expect that our capital expenditure
program for 2009 will be fully funded from cash flow and cash on
hand." First Quarter 2009 Financial Highlights: Revenue and
interest increased by 61% to $33.6 million for the three months
ended March 31, 2009 compared with $20.8 million for the same
period in 2008. While partially offset by lower oil prices,
increased revenue this quarter was the result of a 265% increase in
production, primarily due to increased production from the
continued development of the Costayaco field in the Chaza Block in
Colombia, the addition of production from Solana Resources'
interests in Colombia following the acquisition, and the successful
drilling of the Proa-1 exploration well in the Surubi Block in
Argentina. The average price received per barrel of oil in the
first quarter of 2009 decreased 56% to $35.36 per barrel from
$80.21 per barrel in the first quarter of 2008. Operating expenses
increased by 180% to $7.1 million for the quarter ended March 31,
2009 compared with $2.5 million for the same quarter in 2008. On a
per barrel basis, operating costs for the first quarter of 2009
declined by 23% to $7.56 per barrel compared with $9.77 per barrel
for the same period in 2008. Depletion, depreciation and
amortization for the first three months of 2009 increased to $27.5
million or $29.36 per barrel from $3.1 million for the same quarter
in 2008 due to higher production levels as well as amortization of
$20.9 million related to the fair value of property, plant and
equipment recorded on the acquisition of Solana Resources on
November 14, 2008. General and administrative expenses increased by
24% to $5.1 million for the quarter ended March 31, 2009 compared
with $4.1 million for the same period in 2008. However, on a per
barrel basis, general and administrative costs in the first quarter
of 2009 decreased by 66% to $5.47 per barrel compared with $15.97
per barrel in the first quarter of 2008. Included in the first
quarter 2009 results is a $20.2 million foreign exchange gain of
which $18.9 million is due to an unrealized foreign exchange gain
related to translation of the deferred tax liability recorded on
the acquisition of Solana Resources. Net income for the first
quarter of 2009 increased by 202% to $14.1 million compared with
$4.7 million for the same period in 2008. On a per share basis, net
income increased to $0.06 per share basic and diluted, compared
with $0.05 per share basic and $0.04 per share diluted in the first
quarter of 2008. Balance Sheet Highlights: The company reported
cash and equivalents of $147.7 million at March 31, 2009 as
compared with $176.8 million at December 31, 2008. Working capital
increased to $135.1 million at March 31, 2009, compared with $132.8
million at December 31, 2008. Shareholders' equity increased to
$807.9 million at March 31, 2009 from $791.9 million at December
31, 2008, and the company had no outstanding long-term debt as of
March 31, 2009. Accounts receivable increased to $33.5 million as
at March 31, 2009 compared with $7.9 million as at December 31,
2008, reflecting a return to regular operations following the
suspension of production in Colombia due to the general strike that
affected the region. 2008 Reserve Review: Externally audited proved
oil reserves (as per SEC Reserves Definitions) NAR to Gran Tierra
Energy as of December 31, 2008 tripled to 19.2 million barrels of
oil (BO) proved compared with 6.4 million BO proved as of December
31, 2007. As per Canadian NI 51-101 and the Reserves definitions in
the COGE Handbook, reserves NAR to Gran Tierra Energy as at
December 31, 2008 increased to 18.8 million BO proved, 8.7 million
BO probable, and 18.6 million BO possible. This compares to
reserves as at December 31, 2007 of 6.4 million BO proved, 5.0
million BO probable and 4.9 million BO possible. The company has
recently completed a core analysis study on the Costayaco-4 well
indicating significantly lower water saturation (higher oil
saturation) than previously assumed in the year end reserve audit.
This information will be utilized in future reserve audits, and is
expected to have a positive impact on reserves in all categories.
Production Highlights: Average daily consolidated light and medium
crude oil production for the three months ended March 31, 2009
increased 265% to 10,390 BOPD NAR compared with 2,843 BOPD NAR for
the same period of 2008. Average daily consolidated gas production
for the first quarter of 2009 was 27 barrels of oil equivalent per
day (BOEPD) NAR. Average daily Colombian production of light and
medium crude oil for the three months ended March 31, 2009
increased 300% to 9,459 BOPD NAR compared with 2,366 BOPD NAR for
the same period in 2008. Natural gas production was 27 BOEPD NAR
during the first quarter of 2009, compared with no production in
the same period of the previous year. Average daily Argentine
production of light and medium crude oil for the quarter ended
March 31, 2009 increased 95% to 931 BOPD NAR compared with 477 BOPD
NAR for the same quarter in 2008. While production increased on a
year-over-year basis, production in the Putumayo region of Colombia
was negatively impacted by the strike at the Ecopetrol operated
Orito facilities, which resulted in a suspension of crude oil
transportation in southern Colombia from November 20, 2008 through
to January 11, 2009. 2009 Capital Plan Update: Gran Tierra Energy's
planned capital program has been revised to $160 million for
exploration and production development operations in Colombia,
Peru, and Argentina for 2009. Approximately $145 million is
allocated to Colombia, with $115 million for development drilling
and associated facilities construction and approximately $30
million for exploration drilling and new seismic data acquisition.
This budget includes the drilling of four exploration wells in
Colombia, and three additional development wells following
Costayaco-7 in the Costayaco field. Colombia Operations Update
Putumayo Basin -------------- Gran Tierra Energy is one of the
largest exploration landholders in the Putumayo Basin of southern
Colombia, with production from three contract areas, as well as
five other exploration blocks, three of which are pending final
approval by the National Hydrocarbon Agency (ANH). The total
Putumayo acreage encompasses 494,758 gross acres, or 384,328 net
acres. Gran Tierra Energy is the Operator of all of its Putumayo
licenses. Putumayo West A and B Technical Evaluation Areas - New
Exploration Licenses Pending Following the completion of 400
kilometers of seismic reprocessing in 2008, Gran Tierra Energy made
application for three exploration and exploitation licenses on the
highest potential prospects in these two areas. Negotiations with
the ANH have recently been completed for these new exploration
licenses in the Putumayo basin, two of which are on trend with the
Costayaco Field discovery. The Piedemonte Norte Block, encompassing
78,743 acres, lies southwest of the Chaza Block where the Costayaco
field is located. The Piedemonte Sur Block, encompassing
approximately 73,897 acres, is located immediately west of the
Orito Field, the largest oil field in the Putumayo Basin. Further
south, the Rumiyaco Block, encompassing 82,625 acres in the central
Putumayo Basin, is also pending approval. Upon final approval by
regulatory authorities, Gran Tierra Energy will have a 100% working
interest and be operator of these prospective blocks. These new
blocks will be the focus of exploration drilling efforts by Gran
Tierra Energy in 2010. Chaza Block (100% working interest, 80,242
gross acres) The bulk of Gran Tierra Energy's 2009 capital spending
is scheduled to be dedicated to further developing the Costayaco
field. The company reported the recent drilling completion of
Costayaco-7 at the northern limit of the Costayaco Field. Testing
is to be initiated in mid-May and is expected to take approximately
2 weeks. Costayaco-8, a development well located 600 meters south
of Costayaco-1, is expected to begin drilling on May 8th, with
drilling expected to take approximately one month. Costayaco-9 and
possibly Costayaco-10 (the latter subject to rig timing) are
scheduled to follow this year. New infrastructure construction is
planned to continue, including support facilities, crude gathering
lines, water lines, two pumping stations, and storage batteries.
The company will continue evaluating the optimum production plateau
for the field taking into consideration reserves, reservoir
performance, good operating practice, and net present value of the
project. Current plans for the Costayaco field contemplate reaching
a plateau of 19,000 BOPD gross in the fourth quarter of 2009, and
maintaining that plateau for approximately four years. In addition
to the ongoing Costayaco field development activities, new seismic
acquisition and one exploration well is currently budgeted for 2009
in the Chaza Block. The Rio Mocoa prospect is scheduled to be
drilled to the west of the Costayaco field in the fourth quarter of
2009. Drilling of a second prospect, Moqueta, is planned for early
2010. Guayuyaco Block (70% working interest, 52,366 gross acres)
The Guayuyaco Block contains both the Guayuyaco and Juanambu
producing oil fields. At this time, no further exploration activity
has been budgeted for this block in 2009. Azar Block (40% working
interest, 51,639 gross acres) During 2009, two seismic programs are
planned for the Azar Block, a 40 kilometer 2D program and a 50
square kilometer 3D program. The exploration well (Yaniyaco-1) that
was scheduled to be drilled during the fourth quarter of 2009 is
being deferred until 2010. Mecaya Block (15% working interest,
74,128 gross acres) In the second quarter of 2009 a work-over test
of Mecaya-1 is planned. In addition, an exploration well (Mecaya-2)
is planned to be drilled during the third quarter of 2009. Santana
Block (35% working interest, 1,119 gross acres) During 2009
upgrades to the refinery are scheduled. No exploration activities
are planned for the Santana block during 2009. Llanos Basin
------------ Following the divestiture of Guachiria, Guachiria
Norte, and Guachiria Sur in April, Gran Tierra Energy has an
interest in two blocks in the Llanos Basin; one of which it
operates, encompassing 180,471 gross acres, or 142,502 net acres.
San Pablo Block (100% working interest, 104,534 gross acres) The
commitment to drill one obligation exploration well, Amatista-1 has
been traded for 50 square kilometers of 3D seismic to further
define the prospectivity of the identified leads prior to drilling.
Garibay Block (50% non-operated working interest, 75,936 gross
acres) The 2009 scheduled expenditures include a 100 square
kilometer 3D seismic program to further define the exploration
potential of the area. Magdalena Basin --------------- Gran Tierra
Energy is the Operator of three blocks in the Magdalena Basin
encompassing 201,293 gross acres, or 58,396 net acres; two in the
Middle Magdalena Basin (Rio Magdalena and Talora Blocks) and one in
the Lower Magdalena (Magangue Block). Rio Magdalena Block (40%
working interest, 72,312 gross acres) A 75 square kilometer 3D
seismic program has been initiated over the new Popa gas-condensate
discovery and an adjacent exploration prospect. A long-term
production test has also been initiated on the Popa-2
gas-condensate discovery. Production is currently averaging 0.5
million cubic feet of gas per day (MMCF/D). While this block
previously encompassed 144,670 gross acres, Gran Tierra was
required to relinquish 50% of its area during the first quarter of
2009 as part of the end of the fifth phase of exploration on this
block. Talora Block (20% working interest, 108,334 gross acres)
Approval has been sought from the ANH for Gran Tierra Energy to
assign its interest to PetroSouth Energy. No additional work is
budgeted for this block. Magangue Block (37.8% working interest,
20,647 gross acres) A new compressor has been installed at the
Guepaje gas field, which is forecast to produce an average of 2.7
MMCF/D gross, 0.8 MMCF/D NAR, during 2009. No exploration
activities are planned for the Magangue block during 2009.
Catatumbo Basin --------------- The Catatumbo Basin is an extension
of the Maracaibo basin in Venezuela. Gran Tierra Energy is the
Operator of one block encompassing 393,150 gross acres, or 294,351
net acres. Catguas Block Area A (50% working interest, 113,792
acres gross) No work is scheduled in Catguas Area A in 2009.
Catguas Block Area B (85% working interest, 279,358 acres gross):
In the second half of 2009 one well re-entry and two exploration
well commitments are scheduled to be fulfilled in Area B based on
the results of new seismic data acquired in 2008. Peru Operations
Update: Blocks 122 and 128 (100% working interest and Operator)
Gran Tierra Energy has expanded its environmental impact assessment
on Blocks 122 and 128 in the Maranon Basin of northeastern Peru to
include stratigraphic test drilling which is expected to expedite
the exploration process in 2010. The environmental impact
assessment for Block 128 has been submitted to the Peruvian
government for review and approval; Gran Tierra Energy anticipates
the submission for Block 122 to follow in the second quarter. These
assessments are in preparation for a 500 kilometer 2D seismic
survey expected to be acquired in the fourth quarter of 2009 and
the first quarter of 2010 over 16 principal leads amongst the 24
leads identified on the two blocks. Stratigraphic test drilling on
up to four prospects is expected to take place in 2010 also. In
addition, a pre-feasibility engineering field development study is
scheduled to be completed in the second quarter of 2009 to assist
with planning in the event a commercial discovery is made in 2010.
Total 2009 capital budgeted for Peru is $10 million. Argentina
Operations Update: Gran Tierra Energy is the largest exploration
landholder in the Noroeste Basin of northern Argentina. The company
has a working interest in eight blocks of land, seven operated by
Gran Tierra Energy, encompassing approximately 1.6 million gross
acres, or 1.3 million net acres. The company drilled one
exploration well in 2008, Proa-1, resulting in the discovery of the
Proa oil field. The work program for 2009 consists of conducting
nine workovers of existing producing wells, and facilities
upgrades. A 162 square kilometer 3D seismic acquisition in the
Chivil and Surubi Blocks to define additional structural and
stratigraphic traps on the Proa oil field discovery trend is
currently being deferred. Additional exploration drilling is
contemplated in 2010 once the 3D seismic program is acquired.
Production is expected to be maintained at approximately 1,000
BOPD, NAR, in 2009. Total 2009 capital budgeted for Argentina is $5
million. Conference Call Information: Gran Tierra Energy Inc. will
host its first quarter 2009 results conference call on Thursday,
May 7th at 11:00 a.m. Eastern Daylight Time (EDT). Prior to the
conference call, Gran Tierra Energy will release its financial
results at 8:00 a.m. EDT. President and CEO Dana Coffield, CFO
Martin Eden, and COO Shane O'Leary 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=PLTPAHQJP
Interested parties may access the conference call by dialing (888)
680-0878 (domestic) or (617) 213-4855 (international), pass code
93524500. 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
May 14th, 2009. To access the replay dial (888) 286-8010 (domestic)
or (617) 801-6888 (international) pass code 95375467. 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. 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/. Cautionary Statement: 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. Estimates of total net proved oil
reserves at December 31, 2008 reflected as being calculated as per
SEC Reserves Definitions have been prepared in accordance with the
definitions for proved reserves set out in Rule 4-10 of Regulation
S-X of the U.S. Securities and Exchange Commission. Estimates of
reserves per Canadian requirements for proved, proved plus probable
and proved plus probable plus possible cases were under the reserve
definitions of National Instrument 51-101 (NI 51-101) of Canada.
The evaluation was conducted in accordance with standard industry
practice and reserves definitions, procedures and guidance
contained in the Canadian Oil and Gas Evaluation Handbook (COGE
Handbook). Gas volumes are converted to barrels of oil equivalent
("boe") at the rate of 20 thousand cubic feet ("mcf") of gas per
barrel of oil based upon the approximate relative values of natural
gas and oil. Natural gas liquid ("NGL") volumes are converted to
boe on a one-to-one basis with oil. Forward Looking Statements: The
statements in this news release regarding Gran Tierra Energy's
belief that the company's planned production plateau will be 19,000
BOPD extending to approximately four years, that its performance
will be enhanced long-term, that its production will be 14,000 -
16,000 BOPD, net after royalty, for the balance of 2009, its plans
to conduct additional testing and results of drilling operations in
the Costayaco field, its exploration drilling plans, its revised
capital expenditure plans and its beliefs that this will focus on
the highest impact opportunities in its portfolio, and the
allocation of capital to projects with the potential to increase
shareholder value, together with all other statements that 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 Annual Report on Form 10-K filed
February 27, 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. ITEM 1 - FINANCIAL
STATEMENTS ----------------------------- Gran Tierra Energy Inc.
Condensed Consolidated Statements of Operations and Retained
Earnings (Accumulated Deficit) (Unaudited) (Thousands of U.S.
Dollars, Except Share and Per Share Amounts) Three Months Ended
March 31, ---------------------------- 2009 2008
---------------------------- REVENUE AND OTHER INCOME Oil and
natural gas sales $ 33,151 $ 20,749 Interest 414 70
---------------------------- 33,565 20,819
---------------------------- EXPENSES Operating 7,086 2,527
Depletion, depreciation and accretion 27,529 3,064 General and
administrative 5,125 4,133 Derivative financial instruments loss -
1,184 Foreign exchange (gain) loss (20,222) 14
---------------------------- 19,518 10,922
---------------------------- INCOME BEFORE INCOME TAXES 14,047
9,897 Income tax recovery (expense) 85 (5,221)
---------------------------- NET INCOME AND COMPREHENSIVE INCOME
14,132 4,676 RETAINED EARNINGS (ACCUMULATED DEFICIT), BEGINNING OF
PERIOD 6,984 (16,511) ---------------------------- RETAINED
EARNINGS (ACCUMULATED DEFICIT), END OF PERIOD $ 21,116 $ (11,835)
---------------------------- ---------------------------- NET
INCOME PER SHARE - BASIC 0.06 0.05 NET INCOME PER SHARE - DILUTED
0.06 0.04 WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 238,907,060
96,984,978 WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED
248,914,219 119,127,570 (See notes to the condensed consolidated
financial statements) Gran Tierra Energy Inc. Condensed
Consolidated Balance Sheets (Unaudited) (Thousands of U.S. Dollars)
March 31, December 31, ---------------------------- 2009 2008
---------------------------- ASSETS Current Assets Cash and cash
equivalents $ 147,710 $ 176,754 Accounts receivable 33,537 7,905
Inventory 2,628 999 Taxes receivable 2,538 5,789 Prepaids 1,563
1,103 Derivative financial instruments 146 233 Deferred tax assets
1,222 2,262 ---------------------------- Total Current Assets
189,344 195,045 ---------------------------- Oil and Gas Properties
(using the full cost method of accounting) Proved 402,366 380,855
Unproved 353,454 384,195 ---------------------------- Total Oil and
Gas Properties 755,820 765,050 Other Assets 2,252 2,502
---------------------------- Total Property, Plant and Equipment
758,072 767,552 ---------------------------- Long Term Assets
Deferred tax assets 3,245 10,131 Other long-term assets 1,599 1,315
Goodwill 98,210 98,582 ---------------------------- Total Long Term
Assets 103,054 110,028 ---------------------------- Total Assets $
1,050,470 $ 1,072,625 ----------------------------
---------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities Accounts payable $ 16,590 $ 21,134 Accrued
liabilities 11,526 12,841 Current taxes payable 25,686 28,163
Deferred tax liability - 100 Asset retirement obligation - current
475 - ---------------------------- Total Current Liabilities 54,277
62,238 ---------------------------- ----------------------------
Long term liabilities 25 40 Deferred tax liability 183,124 213,093
Deferred remittance tax 940 1,077 Asset retirement obligation 4,180
4,251 ---------------------------- Total Long Term Liabilities
188,269 218,461 ---------------------------- Commitments and
Contingencies Subsequent Event Shareholders' Equity Common shares
226 226 (199,786,010 and 190,248,384 common shares and 39,533,780
and 48,238,269 exchangeable shares, par value $0.001 per share,
issued and outstanding as at March 31, 2009 and December 31, 2008,
respectively) Additional paid in capital 755,726 753,236 Warrants
30,856 31,480 Retained earnings 21,116 6,984
---------------------------- Total Shareholders' Equity 807,924
791,926 ---------------------------- Total Liabilities and
Shareholders' Equity $ 1,050,470 $ 1,072,625
---------------------------- ---------------------------- (See
notes to the condensed consolidated financial statements) Gran
Tierra Energy Inc. Condensed Consolidated Statements of Cash Flows
(Unaudited) (Thousands of U.S. Dollars) Three Months Ended March
31, ---------------------------- 2009 2008
---------------------------- Operating Activities Net income $
14,132 $ 4,676 Adjustments to reconcile net income to net cash
(used in) provided by operating activities: Depletion, depreciation
and accretion 27,529 3,064 Deferred taxes (3,982) 621 Stock based
compensation 1,125 448 Unrealized loss on financial instruments 87
693 Unrealized foreign exchange gain (18,298) - Settlement of asset
retirement obligations (52) - Net changes in non-cash working
capital Accounts receivable (25,260) (12,189) Inventory (57) 214
Prepaids (460) (86) Accounts payable and accrued liabilities
(3,176) 5,934 Taxes receivable and payable 774 5,778
---------------------------- Net cash (used in) provided by
operating activities (7,638) 9,153 ----------------------------
Investing Activities Oil and gas property expenditures (21,627)
(6,530) Long term assets and liabilities (299) (8)
---------------------------- Net cash (used in) investing
activities (21,926) (6,538) ---------------------------- Financing
Activities Proceeds from issuance of common stock 520 5,220
---------------------------- Net cash provided by financing
activities 520 5,220 ---------------------------- Net (decrease)
increase in cash and cash equivalents (29,044) 7,835 Cash and cash
equivalents, beginning of period 176,754 18,189 Cash and cash
equivalents, end of period $ 147,710 $ 26,024
---------------------------- ---------------------------- Cash $
22,877 $ 26,024 Term deposits 124,833 -
---------------------------- ---------------------------- Cash and
cash equivalents, end of period $ 147,710 $ 26,024
---------------------------- ----------------------------
Supplemental cash flow disclosures: Cash paid for taxes $ 1,540 $ -
---------------------------- ---------------------------- Non-cash
investing activities: Non-cash working capital related to capital
additions $ 8,413 $ 10,739 ----------------------------
---------------------------- (See notes to the condensed
consolidated financial statements) DATASOURCE: Gran Tierra Energy
Inc. CONTACT: Investor Contacts: Dana Coffield, Gran Tierra Energy
Inc., President & Chief Executive Officer, (866) 973-4873, ;
Tom McMillan, Equicom Group, Investor Relations, (403) 536-5903,
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