Record Quarterly Production of 12,611 Barrels of Oil Per Day
Attained CALGARY, Aug. 10 /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 June 30,
2009. All dollar amounts are in United States dollars unless
otherwise indicated. Key facts about the quarter: - 271% increase
in production to 12,611 barrels of oil per day (BOPD) net after
royalty (NAR) for the quarter ended June 30, 2009, compared with
3,399 BOPD NAR for the same period in 2008; - Net loss for the
quarter ended June 30, 2009 was $28.2 million and includes a
foreign exchange loss of $33.7 million, of which $31.0 million was
an unrealized foreign exchange loss; - Funds flow from operations
for the quarter ended June 30, 2009 was $36.0 million as compared
to $17.9 million for the same period in 2008 (see table below); -
Cash and cash equivalents of $146.5 million at June 30, 2009; -
Gran Tierra Energy continues to be debt free; - Ecopetrol's oil
pipeline in Southern Colombia was disrupted between June 7 and June
20: consolidated production averaged 2,963 BOPD NAR during this
period; - Three new highly prospective exploration contracts signed
for a total of 235,264 acres in Putumayo Basin of Southern Colombia
with 100% working interest; and - Costayaco-8 logging demonstrates
that reservoirs lie completely within the field's oil column;
subsequent testing produced 2,640 BOPD from the lower reservoir and
2,211 BOPD from the upper reservoir. "During the second quarter we
executed our exploration and development program, grew production
to record levels, and generated strong cash flow from operations,"
said Dana Coffield, President and Chief Executive Officer of Gran
Tierra Energy. "Non-cash depletion, depreciation and accretion
expenses of $32.7 million and unrealized foreign exchange losses of
$31.0 million, contributed to our net loss for the quarter of $28.2
million. However, our funds flow from operations was $36.0 million
in the second quarter and our underlying asset base remains strong.
We believe we have successfully positioned ourselves to generate
the cash necessary to fund future growth and allow us to fund our
ongoing development and exploration program, including fourteen
exploration wells in Colombia and Peru beginning in late 2009 and
continuing through 2010. Our balance sheet remains very strong, and
we expect that our capital expenditure program for the next twelve
months will be more than fully funded from cash flow and cash on
hand." Production Review Three Months Ended Three Months Ended June
30, 2009 June 30, 2008 -------------------------------
----------------------------- (Barrels of Oil) Colombia Argentina
Total Colombia Argentina Total -------------------------------
----------------------------- Gross Production 1,213,251 91,444
1,304,695 326,845 55,247 382,092 Royalties (155,966) (11,089)
(167,055) (55,052) (6,630) (61,682) Inventory Adjustment 1,257
8,698 9,955 (13,130) 2,089 (11,041) -------------------------------
----------------------------- Production (NAR) 1,058,542 89,053
1,147,595 258,663 50,706 309,369 -------------------------------
----------------------------- -------------------------------
----------------------------- Barrels of Oil Per Day (BOPD)(NAR)
11,632 979 12,611 2,842 557 3,399 -------------------------------
----------------------------- -------------------------------
----------------------------- Six Months Ended Six Months Ended
June 30, 2009 June 30, 2008 -------------------------------
----------------------------- (Barrels of Oil) Colombia Argentina
Total Colombia Argentina Total -------------------------------
----------------------------- Gross Production 2,191,556 198,609
2,390,165 583,764 112,359 696,123 Royalties (281,022) (24,451)
(305,473) (95,460) (13,483) (108,943) Inventory Adjustment 1,730
(1,328) 402 (14,304) (4,785) (19,089)
------------------------------- -----------------------------
Production (NAR) 1,912,264 172,830 2,085,094 474,000 94,091 568,091
------------------------------- -----------------------------
------------------------------- ----------------------------- BOPD
(NAR) 10,565 955 11,520 2,604 517 3,121
------------------------------- -----------------------------
------------------------------- -----------------------------
Financial Review Three Months Ended June 30, Six Months Ended June
30, ------------------------------- -----------------------------
2009 2008 % Change 2009 2008 % Change
------------------------------- -----------------------------
(Thousands of U.S. Dollars) Revenue and Interest $ 58,511 $ 33,144
77 $ 92,076 $ 53,963 71 -------------------------------
----------------------------- -------------------------------
----------------------------- Net income (loss) $(28,200) $ 8,526
(431) $(14,068) $ 13,202 (207) -------------------------------
----------------------------- -------------------------------
----------------------------- (US Dollars per Share) Net Income
(Loss) Per Share - Basic $ (0.12) $ 0.08 (250) $ (0.06) $ 0.13
(146) ------------------------------- -----------------------------
------------------------------- ----------------------------- Net
Income (Loss) Per Share - Diluted $ (0.12) $ 0.07 (271) $ (0.06) $
0.11 (155) -------------------------------
----------------------------- -------------------------------
----------------------------- Funds flow from operations reconciled
to net income (loss) is as follows: Funds flow From Operations -
Three Months Ended Six Months Ended Non-GAAP Measure (1) June 30,
June 30, ------------------- -------------------- 2009 2008 2009
2008 ------------------- -------------------- (Thousands of U.S.
Dollars) Net income (loss) $(28,200) $ 8,526 $(14,068) $ 13,202
Adjustments to reconcile net income to net cash (used in) provided
by operating activities Depletion, depreciation and accretion
32,691 5,400 60,220 8,464 Deferred taxes (971) (1,487) (4,953)
(866) Stock-based compensation 1,160 399 2,285 847 Unrealized loss
on financial instruments 284 5,077 371 5,770 Unrealized foreign
exchange loss 31,007 - 12,709 - -------------------
-------------------- Funds flows from operations $ 35,971 $ 17,915
$ 56,564 $ 27,417 ------------------- --------------------
------------------- -------------------- (1) Gran Tierra Energy has
disclosed the non-GAAP measure "funds flow from operations" in this
press release which does not have any standardized meaning
prescribed under GAAP. Management uses this financial measure to
analyze operating performance and the income (loss) generated by
Gran Tierra Energy's principal business activities prior to the
consideration of how non-cash items affect that income, and
believes that this financial measure is also useful supplemental
information for investors to analyze operating performance and Gran
Tierra Energy's financial results. Investors should be cautioned
that this measure should not be construed as an alternative to net
income (loss) or other measures of financial performance as
determined in accordance with GAAP. Gran Tierra Energy's method of
calculating this measure may differ from other companies and,
accordingly, it may not be comparable to similar measures used by
other companies. Funds flow from operations, as presented, is based
on net income (loss) adjusted for depletion, depreciation and
accretion, deferred taxes, stock based compensation, unrealized
loss (gain) on financial instruments and unrealized foreign
exchange losses (gains). Second Quarter 2009 Financial Highlights:
Revenue and interest increased by 77% to $58.5 million for the
three months ended June 30, 2009 compared with $33.1 million for
the same period in 2008. For the six months ended June 30, 2009
revenue and interest increased by 71% to $92.1 million compared
with $54.0 million for the same period the previous year. While
partially offset by the effect of lower oil prices, increased
revenue this quarter was the result of a 271% increase in
production, primarily due to increased production from the
continued development of the Costayaco field in the Chaza Block in
Colombia, and the addition of production from Solana Resources'
interests in Colombia following the acquisition on November 14,
2008. The average price received per barrel of oil in the second
quarter of 2009 decreased 52% to $50.79 per barrel from $106.80 per
barrel in the second quarter of 2008. Operating expenses increased
by 138% to $8.9 million for the quarter ended June 30, 2009
compared with $3.7 million for the same quarter in 2008. On a per
barrel basis, operating expenses for the second quarter of 2009
declined by 36% to $7.74 per barrel compared with $12.04 per barrel
for the same period in 2008. For the six months ended June 30,
2009, operating expenses increased by 155% to $16.0 million
compared with $6.3 million for the same period in 2008. On a per
barrel basis, operating expenses for the first half of 2009
declined by 30% to $7.66 per barrel compared with $11.01 per barrel
in the first half of 2008. Per barrel operating expenses in both
periods of 2009 were lower due to high production wells and
increases in operational efficiency. Depletion, depreciation and
accretion expenses (DD A) for the first three months of 2009
increased to $32.7 million or $28.49 per barrel from $5.4 million
or $17.45 per barrel for the same quarter in 2008 due to higher
production levels and amortization of $24.6 million in the quarter
related to the fair value of property, plant and equipment recorded
on the acquisition of Solana Resources. DD A for the six months
ended June 30, 2009 was $60.2 million or $28.88 per barrel,
including $45.5 million related to Solana Resources property, plant
and equipment, compared with $8.5 million or $14.90 per barrel for
the same period in 2008. General and administrative expenses (G A)
increased by 51% to $7.0 million for the quarter ended June 30,
2009 compared with $4.6 million for the same period in 2008.
However, on a per barrel basis, general and administrative costs in
the second quarter of 2009 decreased by 59% to $6.12 per barrel
compared with $15.00 per barrel in the second quarter of 2008. G A
expenses for the six months ended June 30, 2009 were $12.2 million
or $5.83 per barrel compared with $8.8 million or $15.44 per barrel
for the same period in 2008. The decrease in G A expenses on a per
barrel basis for the periods ending June 30, 2009 was the result of
higher production offsetting the increase in employee related costs
in connection with Gran Tierra Energy's expanded operations in
Colombia. Included in the second quarter 2009 results is a $33.7
million foreign exchange loss of which $31.0 million is due to a
non-cash unrealized foreign exchange loss related to translation of
the deferred tax liability recorded on the acquisition of Solana
Resources. For the six months ended June 30, 2009, the company
recorded a non-cash $12.7 million foreign exchange loss due to the
translation of the same deferred tax liability. A strengthening in
the Colombian peso against the U.S. dollar results in foreign
exchange losses, estimated at $70,000 for each one peso decrease in
the exchange rate of the Colombian peso to one U.S. dollar. The net
loss for the second quarter of 2009 was $28.2 million compared with
a net income of $8.5 million for the same period in 2008. On a per
share basis, the net loss was $0.12 per share basic and diluted,
compared with a net income of $0.08 per share basic and $0.07 per
share diluted in the second quarter of 2008. For the six months
ended June 30, 2009 the net loss was $14.1 million compared with
net income of $13.2 million for the same period in 2008. The net
loss for the first half of 2009 was $0.06 per share basic and
diluted compared to net income of $0.13 per share basic and $0.11
per share diluted for the first half of 2008. Balance Sheet
Highlights: The company reported cash and equivalents of $146.5
million at June 30, 2009 as compared with $176.8 million at
December 31, 2008. Working capital increased to $152.3 million at
June 30, 2009, compared with $132.8 million at December 31, 2008.
Shareholders' equity decreased to $781.7 million at June 30, 2009
from $791.9 million at December 31, 2008, and the company had no
outstanding long-term debt as of June 30, 2009. Production
Highlights: Average daily consolidated light and medium crude oil
production for the three months ended June 30, 2009 increased 271%
to a record 12,611 BOPD NAR compared with 3,399 BOPD NAR for the
same period of 2008. Average daily Colombian production of light
and medium crude oil for the three months ended June 30, 2009
increased 309% to a record 11,632 BOPD NAR compared with 2,842 BOPD
NAR for the same period in 2008. Average daily Argentine production
of light and medium crude oil for the quarter ended June 30, 2009
increased 76% to a record 979 BOPD NAR compared with 557 BOPD NAR
for the same quarter in 2008. While production increased on a
year-over-year basis, production was negatively impacted by the 14
day disruption of Ecopetrol's Trans Andean pipeline in Southern
Colombia between June 7 and June 20, 2009. During this period,
consolidated production averaged approximately 2,963 BOPD NAR. As a
result of this disruption, production was reduced by approximately
3,400 BOPD NAR (or 309,400 barrels of oil) for the second quarter.
2009 Capital Plan Update: Gran Tierra Energy's planned capital
program for 2009 has decreased by $9 million to $151 million for
exploration and production development operations in Colombia,
Peru, and Argentina for 2009. This decrease is mainly due to
activity deferred to 2010. Approximately $141 million is allocated
to Colombia, with $115 million for development drilling and
associated facilities construction and approximately $26 million
for exploration drilling and new seismic data acquisition.
Approximately $5 million is allocated to Peru for seismic
operations and approximately $5 million is allocated to Argentina
for production maintenance operations. 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, in addition to
five other exploration blocks. The total Putumayo acreage
encompasses 494,758 gross acres, or 384,329 net acres. Gran Tierra
Energy is the operator of all of its Putumayo licenses. New
Exploration Licenses Granted Gran Tierra Energy successfully
negotiated three new exploration and exploitation licenses during
the quarter for three blocks totaling 235,264 acres. Two of these
blocks are on the same geological trend with the Costayaco Field
discovery. The Piedemonte Norte Block, encompasses 78,742 acres,
and lies southwest of the Chaza Block where the Costayaco field is
located. The Piedemonte Sur Block, which encompasses approximately
73,898 acres, is located immediately west of the Orito Field, the
largest oil field in the Putumayo Basin. Further south, the
Rumiyaco Block, encompasses 82,624 acres in the central Putumayo
Basin. Gran Tierra Energy has a 100% working interest and is the
operator of these 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) Gran Tierra
Energy successfully completed the drilling and logging of
Costayaco-8 towards the end of the quarter, revealing that both the
Upper T Sandstone of the Villeta formation and the Caballos
formation were within the field's oil column. Subsequent to the
quarter, the well underwent further testing. The Caballos interval
produced oil at an average rate of 2,640 BOPD with no water for 11
hours using a jet pump. The Upper T Sandstone interval produced oil
at an average rate of 2,211 BOPD with no water for 7 hours when
tested with a jet pump. This well is currently being tied into
existing infrastructure. Costayaco-9 spudded July 17, 2009 and
Costayaco-10 is 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. The 2D seismic program planned for the Chaza block has
been completed. There continues to be one exploration well budgeted
for 2009 in the Chaza Block. The Rio Mocoa-1 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
is budgeted for this block in 2009. Azar Block (40% working
interest, 51,639 gross acres) The two seismic programs planned for
the Azar Block, a 40 kilometer 2D program and a 50 square kilometer
3D program, have been initiated. Mecaya Block (15% working
interest, 74,128 gross acres) In the third quarter of 2009 a
work-over test of Mecaya-1 is planned. The exploration well
(Mecaya-2) that was planned for the third quarter of 2009 has been
deferred to 2010. Santana Block (35% working interest, 1,119 gross
acres) No exploration activities are planned for the Santana block
during 2009. Llanos Basin ------------ In April 2009, Gran Tierra
Energy closed the sale of the company's interests in the Guachiria
Norte, Guachiria, and Guachiria Sur blocks in Colombia. Principal
terms included consideration of $7.0 million comprising an initial
cash payment of $4.0 million at closing, followed by 15 monthly
installments of $200,000 each which began on June 1, 2009 and
extending through August 3, 2010. Gran Tierra Energy recorded net
proceeds of $6.3 million after settlement of outstanding
obligations. Gran Tierra Energy retained a 10% overriding royalty
interest on the Guachiria Sur block, which, in the event of a
discovery, is designed to reimburse 200% of the costs for
previously acquired seismic data. Gran Tierra Energy has an
interest in two other blocks in the Llanos Basin; one of which it
operates, encompassing 180,471 gross acres, or 142,503 net acres.
San Pablo Block (100% working interest, 104,534 gross acres) The 50
square kilometer 3D seismic program, which replaced the commitment
to drill one obligation exploration well, has been initiated to
further define the prospectivity of the identified leads prior to
drilling. Garibay Block (50% non-operated working interest, 75,936
gross acres) The 110 square kilometer 3D seismic program, to
further define the exploration potential of the area, has been
completed. 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) The 75 square kilometer 3D seismic
program over the new Popa gas-condensate discovery and an adjacent
exploration prospect has been completed along with the long-term
production test of the Popa-2 gas-condensate discovery. While this
block previously encompassed 144,670 gross acres, Gran Tierra
Energy 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 National
Hydrocarbon Agency of Colombia 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. Production is currently shut in while
liquid metering is being installed. 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): The well re-entry and
two exploration well commitments scheduled for the second half of
2009 have been deferred until 2010. Peru Operations Update: Blocks
122 and 128 (100% working interest and operator) The expanded
environmental impact assessments for Blocks 122 and 128 have been
submitted to the Peruvian government for review and approval.
Consultations with communities in the region have begun. These
assessments are in preparation for a 500 kilometer 2D seismic
survey expected to be acquired in 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, the pre-feasibility
engineering field development study has been completed. 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. Conference Call Information: Gran Tierra Energy Inc.
will host its second quarter 2009 results conference call on
Monday, August 10th at 10:00 a.m. Eastern Daylight Time (EDT).
Prior to the conference call, Gran Tierra Energy will release its
financial results at 7:00 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=PAFK7EB3M
Interested parties may access the conference call by dialing
1-888-713-4199 (domestic) or 617-213-4861 (international), pass
code 85503441. 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
August 17, 2009. To access the replay dial 888-286-8010 (domestic)
or 617-801-6888 (international) pass code 41557388. 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/. Forward Looking Statements: The statements
in this news release regarding Gran Tierra Energy's belief that the
company has successfully positioned itself to generate cash as
necessary, the company's capital expenditure program for the next
twelve months will be funded from cash flow and cash on hand,
together with all other statements regarding expected or planned
development, testing, drilling or exploration, or that otherwise
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 Quarterly Report on
Form 10-Q filed May 7, 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. 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 Six
Months Ended June 30, June 30, ------------------------
-------------------------- 2009 2008 2009 2008
------------------------ -------------------------- REVENUE AND
OTHER INCOME Oil and natural gas sales $ 58,284 $ 33,042 $ 91,435 $
53,791 Interest 227 102 641 172 ------------ ------------
------------ ------------ 58,511 33,144 92,076 53,963 ------------
------------ ------------ ------------ EXPENSES Operating 8,878
3,726 15,964 6,253 Depletion, depreciation and accretion 32,691
5,400 60,220 8,464 General and administrative 7,025 4,641 12,150
8,774 Derivative financial instruments loss 284 6,278 284 7,462
Foreign exchange (gain) loss 33,708 (397) 13,486 (383) ------------
------------ ------------ ------------ 82,586 19,648 102,104 30,570
------------ ------------ ------------ ------------ INCOME (LOSS)
BEFORE INCOME TAXES (24,075) 13,496 (10,028) 23,393 Income tax
expense (4,125) (4,970) (4,040) (10,191) ------------ ------------
------------ ------------ NET INCOME (LOSS) AND COMPREHENSIVE
INCOME (LOSS) (28,200) 8,526 (14,068) 13,202 RETAINED EARNINGS
(ACCUMULATED DEFICIT), BEGINNING OF PERIOD 21,116 (11,835) 6,984
(16,511) ------------ ------------ ------------ ------------
ACCUMULATED DEFICIT, END OF PERIOD $ (7,084) $ (3,309) $ (7,084) $
(3,309) ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ NET INCOME
(LOSS) PER SHARE - BASIC $ (0.12) $ 0.08 $ (0.06) $ 0.13 NET INCOME
(LOSS) PER SHARE - DILUTED $ (0.12) $ 0.07 $ (0.06) $ 0.11 WEIGHTED
AVERAGE SHARES OUTSTANDING - BASIC 241,426,744 105,123,188
239,962,497 101,054,083 WEIGHTED AVERAGE SHARES OUTSTANDING -
DILUTED 241,426,744 123,979,074 239,962,497 119,136,907 Gran Tierra
Energy Inc. Condensed Consolidated Balance Sheets (Unaudited)
(Thousands of U.S. Dollars) June 30, December 31,
------------------------- 2009 2008 -------------------------
ASSETS Current Assets Cash and cash equivalents $ 146,534 $ 176,754
Restricted cash 1,664 - Accounts receivable 52,766 7,905 Inventory
2,275 999 Taxes receivable 2,278 5,789 Prepaids 1,619 1,103
Derivative financial instruments - 233 Deferred tax assets 1,218
2,262 ------------------------- Total Current Assets 208,354
195,045 ------------------------- Oil and Gas Properties (using the
full cost method of accounting) Proved 382,577 380,855 Unproved
358,937 384,195 ------------------------- Total Oil and Gas
Properties 741,514 765,050 Other Capital Assets 3,309 2,502
------------------------- Total Property, Plant and Equipment
744,823 767,552 ------------------------- Other Long Term Assets
Deferred tax assets 4,100 10,131 Other long-term assets 975 1,315
Goodwill 98,210 98,582 ------------------------- Total Other Long
Term Assets 103,285 110,028 ------------------------- Total Assets
$ 1,056,462 $ 1,072,625 -------------------------
------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities Accounts payable $ 22,690 $ 21,134 Accrued
liabilities 17,350 12,841 Derivative financial instruments 138 -
Taxes payable 15,603 28,163 Deferred tax liability - 100 Asset
retirement obligation 280 - ------------------------- Total Current
Liabilities 56,061 62,238 ------------------------- Deferred tax
liability 213,867 213,093 Deferred remittance tax 1,124 1,117 Asset
retirement obligation 3,740 4,251 ------------------------- Total
Long Term Liabilities 218,731 218,461 -------------------------
Commitments and Contingencies Shareholders' Equity Common shares
230 226 (209,011,873 and 190,248,384 common shares and 32,449,365
and 48,238,269 exchangeable shares, par value $0.001 per share,
issued and outstanding as at June 30, 2009 and December 31, 2008,
respectively) Additional paid in capital 759,648 753,236 Warrants
28,876 31,480 Retained earnings (accumulated deficit) (7,084) 6,984
------------------------- Total Shareholders' Equity 781,670
791,926 ------------------------- Total Liabilities and
Shareholders' Equity $ 1,056,462 $ 1,072,625
------------------------- ------------------------- Gran Tierra
Energy Inc. Condensed Consolidated Statements of Cash Flows
(Unaudited) (Thousands of U.S. Dollars) Six Months Ended June 30,
------------------------- 2009 2008 -------------------------
Operating Activities Net income (loss) $ (14,068) $ 13,202
Adjustments to reconcile net income to net cash (used in) provided
by operating activities: Depletion, depreciation and accretion
60,220 8,464 Deferred taxes (4,953) (866) Stock based compensation
2,285 847 Unrealized loss on financial instruments 371 5,770
Unrealized foreign exchange loss 12,709 - Settlement of asset
retirement obligations (52) - Net changes in non-cash working
capital Accounts receivable (43,142) (28,462) Inventory (225) 159
Prepaids (516) (44) Accounts payable and accrued liabilities 1,505
3,888 Taxes receivable and payable (9,049) 9,464
------------------------- Net cash provided by operating activities
5,085 12,422 ------------------------- Investing Activities Oil and
gas property and other capital asset expenditures (39,268) (11,712)
Proceeds from disposition of oil and gas property 4,200 - Long term
assets and liabilities 340 (52) ------------------------- Net cash
used in investing activities (34,728) (11,764)
------------------------- Financing Activities Restricted cash
(1,664) - Proceeds from issuance of common stock 1,087 16,456
------------------------- Net cash provided by (used in) financing
activities (577) 16,456 ------------------------- Net (decrease)
increase in cash and cash equivalents (30,220) 17,114 Cash and cash
equivalents, beginning of period 176,754 18,189
------------------------- Cash and cash equivalents, end of period
$ 146,534 $ 35,303 -------------------------
------------------------- Cash $ 37,532 $ 17,506 Term deposits
109,002 17,797 ------------------------- Cash and cash equivalents,
end of period $ 146,534 $ 35,303 -------------------------
------------------------- Supplemental cash flow disclosures: Cash
paid for taxes $ 16,680 $ 2,179 -------------------------
------------------------- Non-cash investing activities: Non-cash
working capital related to capital additions $ 15,656 $ 14,037
------------------------- ------------------------- DATASOURCE:
Gran Tierra Energy Inc. CONTACT: For media and investor inquiries
please contact Thomas McMillan, Equicom Group, (866) 973-4873,
(403) 536-5903,
Copyright
