Gran Tierra Energy Inc. · AMEX:GTE
Gran Tierra Energy — Investor Presentation (August 2017)
36 slides from Gran Tierra Energy's investor presentation, August 2017
Slide 1: A Transformed Portfolio: Corporate Presentation August 2017
A TRANSFORMED PORTFOLIO High Quality Assets Large Resource Base Visible Production Growth Corporate Presentation August 2017 1
Slide 2: General Advisory and Forward-Looking Information Advisory
General Advisory The information contained in this presentation does not purport to be all-inclusive or contain all information that readers may require. You are encouraged to conduct your own analysis and review of Gran Tierra Energy Inc. (“Gran Tierra”, “GTE”, or the “Company”) and of the informat
Slide 3: Gran Tierra – Value Creation Model
GRAN TIERRA – VALUE CREATION MODEL • Focused on full-cycle returns • Low decline rates in any oil price environment • High netback production Value- High Quality Driven Assets Create Long-Term Shareholder Value Sustainable Profitable Business Production Model Growth • 5 year exploration program • La
Slide 4: Gran Tierra – Transformation to Growth Company
GRAN TIERRA – TRANSFORMATION TO GROWTH COMPANY Grow NAV/share1 by 3-5 x in 5 years Exploration Current 3P NAV1: Upside US$7.23/share 3P –> 2P –> 1P • Drill 30-35 • Developing exploration wells Acordionero over the next 3 Added 2P/3P years Reserves/ • Exploiting new Current 2P NAV1: discoveries: • Ex
Slide 5: Gran Tierra – Key Investment Attributes
GRAN TIERRA – KEY INVESTMENT ATTRIBUTES Consolidated dominant land position in highly prospective, underexplored Transformed Portfolio Putumayo Basin & acquired new core area in prolific Middle Magdalena Valley Basin 100% of production & reserves are in Colombia High Quality Assets 81% of
Slide 6: Company Snapshot
COMPANY SNAPSHOT Market Statistics 2016 Year-End 2P Gross W.I. Reserves (MMBOE)3 Symbol (NYSE American, TSX) GTE Share Price (at close Aug.02/17), NYSE American US$2.35 Suroriente Minor Fields 4.0 Daily Trading, 30-day Ave Vol, NYSE Amer. / TSX 1.40 MM / 1.23 MM 8.5 Ramiriqui Basic Shares 394.8 MM1
Slide 7: Corporate Strategy
CORPORATE STRATEGY Discovered Resources Undiscovered Resources New Inventory Appraise & develop newly Accelerating N-Sand, Expand/consolidate within acquired fields, including the large A-Limestone, U/T/Caballos Colombia via joint ventures & COLOMBIA Acordionero oil field exploration & develop
Slide 8: Delivering on Our Focused Strategy
DELIVERING ON OUR FOCUSED STRATEGY 1 1 Production Growth 2 Reserves Growth1 185 (US$mm) (mmboe, W.I., pre-royalties) 21% 169% 105% 116 30.1 24.8 69 57 54% 65 42 Q2/2016 Q2/2017 Dec-15 Dec-16 Actual 1P Reserves 2P Reserves 3P Reserves 3 Reserves Per Share Growth1 NAV Per Share Growth1 4 (US$/
Slide 9: Net Asset Value
NET ASSET VALUE 3,000 $7.23 Net Asset Value (NAV) Before Tax (US$MM, US$/share)1 $2,855 2,500 Aug 2/2017 $1,120 2,000 Share Price US $2.35/share $4.40 $1,735 1,500 $860 $244 $231 1,000 $2.22 $862 $876 500 0 Proved Proved Net Debt 1P NAV Probable 2P NAV Possible 3P NAV Developed Undeveloped Jun.30/20
Slide 10: 2017 Year to Date Highlights
2017 YEAR TO DATE HIGHLIGHTS1 August Strong Production Performance at Acordionero 2017 Since acquisition (<1 year), production increased 135% to 11,120 bopd Total Middle Magdalena Valley Basin production up to 11,958 bopd Lower Mag Continued A-Limestone Success at Costayaco Sinu-SJ Basin Bas
Slide 11: Core Assets
Core Assets 11
Slide 12: Middle Magdalena – Acordionero (100% WI)
MIDDLE MAGDALENA – ACORDIONERO (100% WI) 2P Oil Production Forecast (W.I., mbbl/d) Lisama A Structure Current Production = 11 mbbl/d 20 16 15 13 14 mbbl/d 15 12 10 10 8 7 9 6 5 - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 120 Reserves & NPV (mmboe; US$MM) 96 100 80 mmboe 60 48 40 19 20 - 1P R
Slide 13: Acordionero: Material Production Growth
ACORDIONERO: MATERIAL PRODUCTION GROWTH1 Aug.23/2016-Jul.31/2017: oil production increased Acquisition of PetroLatina closes; from 4,730 to 11,120 BOPD Gran Tierra assumes operatorship (135%) from drilling 6 development wells, pump optimizations Aug.23/2016-Jun.30/2017: Middle Mag Basin properties g
Slide 14: Acordionero Field Overview
ACORDIONERO FIELD OVERVIEW W AC-2 E Main Unconformity 60+° dip 35° dip Thick, permeable oil pay in Lisama A & C, new discovery in Lisama D; steep dip aid waterflood performance 14
Slide 15: Acordionero Forecasted Full 2P Development Plan
ACORDIONERO FORECASTED FULL 2P DEVELOPMENT PLAN* Lisama A Drilling: Structure AC-2 Pad: 4 new producers, 1 new injector AC -2 Pad AC-1 CPF Pad: 3 new producers, 1 new injector AC-1 CPF Central Pad: 4 new producers, 1 new injector AC-6 Pad: 4 new producers, 1 new injector Central Pad AC-4 P
Slide 16: Putumayo – Costayaco Overview (100% WI)
PUTUMAYO – COSTAYACO OVERVIEW (100% WI) 2P Oil Production Forecast (W.I., mbbl/d) 14 15 12 A-Limestone Upside Not Included mbbl/d 9 10 7 6 5 4 5 4 3 3 - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Reserves & NPV (mmboe; US$MM) 40 33 27 mmboe 30 21 20 10 - 1P Reserves 2P Reserves 3P Reserves NP
Slide 17: Costayaco: New Oil Play, Bypassed A-Limestone
COSTAYACO: NEW OIL PLAY, BYPASSED A-LIMESTONE1(100% WI) CYC-29 Horizontal Well Fracture Intensity 6000 ft horizontal length CYC-29 HZ Drilled/Completed Jul/2017 X axis in m, Y axis in ft 6X vertical exaggeration CYC-28: 1st horizontal well, 1,718 ft horizontal length; onstream Apr.27/2017, produci
Slide 18: Putumayo – Moqueta Overview (100% WI)
PUTUMAYO – MOQUETA OVERVIEW (100% WI) 2P Oil Production Forecast (W.I., mbbl/d) 8 6 6 5 mbbl/d 6 5 4 4 3 3 3 2 2 2 - 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Reserves & NPV (mmboe; US$MM) 23 25 Large increase in water injection expected to 20 18 mmboe repressure reservoirs & maintain plat
Slide 19: Moqueta Waterflood Optimization
MOQUETA WATERFLOOD OPTIMIZATION Oil Production Increase Increasing fluid handling capacity from 9,000 bbl/d to 16,000bbl/d MQT-10i Injection Optimizing & executing ongoing stimulation program Increased injection 44% via pump optimization & well conversion to 13,000 bbl water/day Complete fie
Slide 20: Marketing & Transportation
MARKETING & TRANSPORTATION Restructured marketing function, improved netbacks by up to $4.00/bbl Sales netbacks after transportation Lower Mag Basin vary by < $4.00/bbl depending on route Sinu-SJ Basin Acordionero Significant pipeline capacity in Putumayo for current & potential future Middle
Slide 21: Exploration
Exploration 21
Slide 22: Putumayo Basin: Underexplored Multi-Zone Potential
PUTUMAYO BASIN: UNDEREXPLORED MULTI-ZONE POTENTIAL OIL RESERVOIR ANALOG FIELDS CUMPLIDOR QUINDE Competitive advantages COHEMBI N Sand • Regional seismic coverage of 2D & 3D • Large contiguous land base • Significant multi-zone production M2 Limestone N Sands Stratigraphic Play ORITO • Discoverie
Slide 23: Putumayo Advantage: Large Seismic Database Defines Plays
PUTUMAYO ADVANTAGE: LARGE SEISMIC DATABASE DEFINES N SAND/A-LIMESTONE PLAYS Costayaco Moqueta Vonú Cumplidor-Confianza 3D : 1,616 km2 2D : 16,807 km 23
Slide 24: 2017 Colombia Exploration Drilling Plan
2017 COLOMBIA EXPLORATION DRILLING PLAN 1 Well, Sinu Basin 2 Wells, Middle Mag Valley Basin Ayombero-1 Acordionero Totumillo-1 Tonga-1 (Jan/2018 Spud) Moqueta Moqueta 1 Well, Llanos Basin 6 Wells, Putumayo Basin Costayaco Vonú-1 Exploration Discoveries Tautaco-1 Siriri-1 Planned Exploration Wells Na
Slide 25: Colombia Exploration Projects - 2017
COLOMBIA EXPLORATION PROJECTS - 2017 Q1 Q2 Q3 Q4 1 well 1 well 3 wells 5 wells Confianza Vonu Siriri Totumillo Tautaco Ayombero Pomorroso Northwest (PUT-7) (PUT-1) (PUT-4) (Midas) (LLA-10) (Midas) (PUT-7) (PUT-7) Nancy 2 Tonga (NBM) (Sinu-3) Jan/2018 Spud Exploration Discoveries Planned Exploration
Slide 26: Putumayo: Gran Tierra Controls Large Portion of N Sand & A-Limestone Fairways
PUTUMAYO: GRAN TIERRA CONTROLS LARGE PORTION OF N SAND & A-LIMESTONE FAIRWAYS 2017 Exploration Drilling Moqueta Costayaco Program New o Test seismically defined Discovery N Sands amplitude play Vonú-1 o Several wells to be deepened to test A-Limestone play throughout basin; early Siriri-1 successes
Slide 27: PUT-1 Block: Vonu-1 Well Multi-Zone Discovery
PUT-1 BLOCK (GTE 55% W.I. & OPERATOR) VONU-1 WELL: EXCITING MULTI-ZONE DISCOVERY* Log Analysis (Net Oil Pay – True Vertical Depth): • N Sand: 8.2 ft • M1 Limestone: 3.4 • M2 Limestone: 8.7 • A-Limestone: 91.1 • U Sand: 15.3 • TOTAL: 126.7 ft net oil pay Oil Production Tests: • A-Limestone: 1,938
Slide 28: PUT-4 Block: Siriri Prospect
PUT-4 BLOCK (GTE 100% W.I.): SIRIRI PROSPECT A Siriri-1 A’ A’ Siriri Put 4 Block Prospect P90 A A’ P10 Siriri-1 exploration well: targeting multi-zone potential in A-Limestone & N Sand fairways in Putumayo 28
Slide 29: Middle Magdalena Valley Basin: Midas Block Ayombero Prospect
MIDDLE MAGDALENA VALLEY (MMV) BASIN: MIDAS BLOCK (100% WI) AYOMBERO PROSPECT Dip Line A Ayombero A’ P90 Middle Mag Basin A A’ P10 Putumayo Basin Cretaceous seaway connected Putumayo to Magdalena Ayombero-1: targeting La Luna formation, carbonate potential equivalent to Putumayo Basin’s A-Limestone 2
Slide 30: Middle Magdalena Valley Basin: Midas Block Totumillo Prospect
MIDDLE MAGDALENA VALLEY (MMV) BASIN: MIDAS BLOCK (100% WI) TOTUMILLO PROSPECT Dip Line A Totumillo A’ P90 A A’ P10 Totumillo Prospect Totumillo-1: targeting potential Lisama Sand structure, south of producing Acordionero field 30
Slide 31: Gran Tierra – Key Investment Attributes
GRAN TIERRA – KEY INVESTMENT ATTRIBUTES Transformed Portfolio Lower Mag Sinu-SJ Basin High Quality Assets Basin Middle Mag Basin Large Resource Base lBogota Llanos Basin Control of Operations Visible Production Growth Putumayo Basin Sustainable business model, fully funded by forecasted ca
Slide 32: Appendix
Appendix 32
Slide 33: Presentation of Oil & Gas Information
PRESENTATION OF OIL & GAS INFORMATION BOEs (Barrel of Oil Equivalent) may be misleading particularly if used in isolation. A BOE conversion ratio of 6 thousand cubic feet of gas to 1 barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not
Slide 34: Presentation of Oil & Gas Information
PRESENTATION OF OIL & GAS INFORMATION Disclosure of Reserve Information and Cautionary Note to U.S. Investors Unless expressly stated otherwise, all estimates of proved, probable and possible reserves and related future net revenue disclosed in this presentation have been prepared in accordance with
Slide 35: Presentation of Oil & Gas Information
PRESENTATION OF OIL & GAS INFORMATION This presentation includes non-GAAP financial measures, including operating netback, debt-adjusted cash flow and funds flow from operations. These non-GAAP measures do not have a standardized meaning under GAAP. Investors are cautioned that these measures should
Slide 36: Investor Relations Contact
900, 520 – 3RD AVENUE SW CALGARY, ALBERTA, CANADA T2P 0R3 Investor Relations 403-265-3221 info@grantierra.com 36
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