Revenues grow to $33.1 Million and Net Income to $8.5 Million
CALGARY, Alberta, Aug. 11 /PRNewswire-FirstCall/ -- Gran Tierra
Energy Inc. (Amex: GTE; TSX: GTE), a company focused on oil
exploration and production in South America, today announced
financial and operating results for the second quarter ended June
30, 2008. Total revenue for the second quarter of 2008 was $33.1
million compared to $3.8 million for the same quarter of 2007, and
$20.8 million for the first quarter of 2008. Net income for the
quarter was $8.5 million, or $0.08 per share basic ($0.07 per share
diluted), compared to a net loss of $5.1 million or $0.05 per share
basic and diluted for the corresponding quarter of 2007, and
compared to net income of $4.7 million or $0.05 per share basic
($0.04 per share diluted) for the first quarter of 2008. For the
six month period ended June 30, 2008, revenue was $54.0 million
compared to $8.3 million for same period of 2007. Net income for
the period was $13.2 million, or $0.13 per share basic ($0.11 per
share diluted), compared to a net loss of $11.7 million or $0.12
per share basic and diluted for the same period of 2007. Cash and
cash equivalents were $35.3 million at June 30, 2008 compared to
$18.2 million at December 31, 2007, and $26.0 million at the end of
the first quarter of 2008. Total working capital was $31.7 million
at June 30, 2008, compared to $8.1 million at December 31, 2007.
Shareholders' equity was $107.6 million at June 30, 2008, compared
to $76.8 million at December 31, 2007. The company has no long-term
debt. Average oil production for the second quarter of 2008 was
3,399 barrels per day (BOPD), net after royalty, compared to 1,021
BOPD for the same quarter of 2007, and 2,842 BOPD for the first
quarter 2008. Second quarter oil production in Argentina grew to
557 BOPD, net after royalty, from 476 BOPD for the first quarter
2008, and second quarter oil production in Colombia grew to 2,842
BOPD, net after royalty, from 2,366 BOPD for the first quarter
2008. The company's current production is averaging approximately
4,100 BOPD, net after royalty. Average oil production for the six
month period ended June 30, 2008 was 3,121 BOPD, net after royalty,
compared to 1,140 BOPD, net after royalty, for the comparable
period of 2007. Average realized oil sales prices, net after
royalty, were $106.80 per barrel for the second quarter of 2008 and
$94.69 per barrel for the six months ended June 30, 2008. The
company attained several operational milestones in the second
quarter of 2008 that it believes should lead to continued growth
for the balance of 2008 and beyond. In Colombia, development
activities at the Costayaco Field continued. The company drilled
Costayaco-3 and -4, and initiated drilling Costayaco-5 which has
since been completed. Truck loading and unloading facilities for
crude transportation were constructed, and pipeline construction
for a line to connect the Costayaco Field to the existing pipeline
system was initiated. This line has since been completed and is
currently being tested. A mid-year independent reserve engineering
report for the Costayaco field was completed. It reported that
effective July 1, 2008, the Costayaco field had gross proved
reserves of 20.5 million barrels of oil, gross proved plus probable
reserves of 34.9 million barrels of oil and gross proved plus
probable plus possible reserves of 61.4 million barrels of oil. In
addition, the company drilled an exploration well in the Rio
Magdalena Block, Popa-2, which is currently being tested. In the
Azar Block, the company tested the Palmera-1 well and development
plans for the well are currently being evaluated. In Argentina, the
company completed plans for drilling the Proa.x-1 exploration well
in the Surubi Block and is currently drilling this well. In Peru,
results of a new 20,000 linear kilometer aeromagnetic and gravity
data program over Blocks 122 and 128 are being evaluated and an
environmental impact assessment has been initiated in preparation
for 2-D seismic data acquisition in late 2009. Commenting on the
results of the quarter, Dana Coffield, President and Chief
Executive Officer of Gran Tierra Energy, stated, "The outstanding
second quarter 2008 results represent the fourth consecutive
quarterly increase in revenues and profitability. This continuous
quarter over quarter growth is the direct result of our focus on
developing the full breadth of our exploration and development
portfolio as efficiently as possible, with the success of the
Costayaco field remaining the focus of our capital program."
Conference Call Information: Gran Tierra Energy Inc. will hold a
conference call to review its second quarter results on Monday,
August 11, 2008 at 11:00 a.m. Eastern. The call will be hosted by
Dana Coffield, President and Chief Executive Officer. Interested
parties may access the conference call by dialing (888) 713-4213
(domestic) or (617) 213-4865 (international), pass code # 37148965.
Participants may pre-register for the call at:
https://www.theconferencingservice.com/prereg/key.process?key=PFTHEDJUC.
Pre-registrants will be issued a pin number to use when dialing
into the live call which will provide quick access to the
conference by bypassing the operator upon connection. The call will
also be available via web cast at http://www.grantierra.com/,
http://www.streetevents.com/, and http://www.fulldisclosure.com/,
and will be available on the Gran Tierra Energy website until the
next earnings conference call. If you are unable to participate, an
audio replay of the call will be available beginning two hours
after the call and will be available until 11:59 p.m. on August 18,
2008, by dialing (888) 286-8010 (domestic) or (617) 801- 6888
(international) using confirmation pass code 71727488. An audio
replay of the call will also be available on Gran Tierra Energy's
web site, http://www.grantierra.com/, until the next earnings call.
About Gran Tierra Energy Inc.: Gran Tierra Energy Inc. is an
international oil and gas exploration and production company
operating in South America, headquartered in Calgary, Canada,
incorporated in the United States, and trading on the American
Stock Exchange (GTE) and the Toronto Stock Exchange (GTE). The
company holds interests in producing and prospective properties in
Argentina, Colombia and Peru. The company 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 1-800-916-4873. 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. Forward Looking Statements:
Estimates of total net proved oil reserves for the Costayaco field
at June 30, 2008 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. Reserves were
estimated for proved, proved plus probable and proved plus probable
plus possible cases under the reserve definitions of National
Instrument 51-101 (NI 51-101) of Canada and for the proved case
under the definitions of the Securities Exchange Commission (SEC)
of the United States. 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). The statement in this news
release regarding Gran Tierra Energy's belief that the company's
attainment of several operational milestones in the second quarter
of 2008 should lead to continued growth for the balance of 2008 and
beyond is a forward looking statement 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. This statement is subject to risks,
uncertainties and other factors that could cause actual results or
outcomes to differ materially from those contemplated by the
forward-looking statement. There are a number of important factors
that could cause the result or outcome discussed herein to differ
materially from that indicated by the forward- looking statement,
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 the production, transport or sale of its
products; and geographic, political and weather conditions. 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/A filed May 12,
2008. These filings are available on a Web site maintained by the
Securities and Exchange Commission at http://www.sec.gov/. Gran
Tierra Energy does not undertake an obligation to update
forward-looking or other statements in this release. 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 Accumulated Deficit (Unaudited)
(Thousands of US Dollars, Except Per Share Amounts) Three Months
Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007
REVENUE AND OTHER INCOME Oil and natural gas sales $33,042 $3,611
$53,791 $7,935 Interest 102 139 172 332 33,144 3,750 53,963 8,267
EXPENSES Operating 3,726 1,925 6,253 4,106 Depletion, depreciation
and accretion 5,400 2,377 8,464 4,701 General and administrative
4,641 2,680 8,774 4,619 Liquidated damages - 3,235 - 7,367
Derivative financial instruments 6,278 20 7,462 677 Foreign
exchange gain (397) (239) (383) (7) 19,648 9,998 30,570 21,463
INCOME (LOSS) BEFORE INCOME TAXES 13,496 (6,248) 23,393 (13,196)
INCOME TAX (EXPENSES) RECOVERIES (4,970) 1,176 (10,191) 1,474 NET
INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) 8,526 (5,072) 13,202
(11,722) ACCUMULATED DEFICIT, BEGINNING OF PERIOD (11,835) (14,694)
(16,511) (8,044) ACCUMULATED DEFICIT, END OF PERIOD $(3,309)
$(19,766) $(3,309) $(19,766) NET INCOME (LOSS) PER COMMON SHARE -
BASIC $0.08 $(0.05) $0.13 $(0.12) NET INCOME (LOSS) PER COMMON
SHARE - DILUTED $0.07 $(0.05) $0.11 $(0.12) WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING - BASIC 105,123,188 95,205,518 101,054,083
95,329,950 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - DILUTED
123,979,074 95,205,518 119,136,907 95,329,950 Gran Tierra Energy
Inc. Condensed Consolidated Balance Sheets (Unaudited) (Thousands
of U.S. dollars) June 30, December 31, 2008 2007 ASSETS Current
Assets Cash and cash equivalents $35,303 $18,189 Accounts
receivable 39,157 10,695 Inventory 628 787 Taxes receivable 1,272
1,177 Prepaids 486 442 Deferred tax asset 1,148 220 Total Current
Assets 77,994 31,510 Oil and Gas Properties (using the full cost
method of accounting) Proved 50,116 44,292 Unproved 21,655 18,910
Total Oil and Gas Properties 71,771 63,202 Other Assets 1,593 716
Total Property, Plant and Equipment 73,364 63,918 Long Term Assets
Deferred tax asset 684 1,839 Taxes receivable 560 525 Goodwill
15,005 15,005 Total Long Term Assets 16,249 17,369 Total Assets
$167,607 $112,797 LIABILITIES AND SHAREHOLDERS' EQUITY Current
Liabilities Accounts payable $13,307 $11,327 Accrued liabilities
13,825 6,139 Derivative financial instruments 5,540 1,594 Current
taxes payable 12,843 3,284 Deferred tax liability 810 1,108 Total
Current Liabilities 46,325 23,452 Long term liabilities 115 132
Deferred tax liability 8,510 9,235 Deferred remittance tax 1,262
1,332 Derivative financial instruments 2,879 1,055 Asset retirement
obligation 938 799 Total Long Term Liabilities 13,704 12,553
Shareholders' Equity Common shares 218 95 (99,582,314 and
80,389,676 common shares and 11,192,859 and 14,787,303 exchangeable
shares, par value $0.001 per share, issued and outstanding as at
June 30, 2008 and December 31, 2007, respectively) Additional paid
in capital 99,807 72,458 Warrants 10,862 20,750 Accumulated deficit
(3,309) (16,511) Total Shareholders' Equity 107,578 76,792 Total
Liabilities and Shareholders' Equity $167,607 $112,797 Contacts:
Dana Coffield Al Palombo Gran Tierra Energy Inc. Cameron Associates
President & Chief Executive Officer Investor Relations (800)
916-4873 (212) 245-8800 Ext. 209 DATASOURCE: Gran Tierra Energy
Inc. CONTACT: Dana Coffield, President & Chief Executive
Officer of Gran Tierra Energy Inc., 1-800-916-4873, ; or Investor
Relations, Al Palombo of Cameron Associates, +1-212-245-8800, ext.
209, , for Gran Tierra Energy Inc. Web site:
http://www.grantierra.com/
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