Gran Tierra Energy Inc. · AMEX:GTE
Gran Tierra Energy — RBC 2015 Global Energy & Power Executive Conference
32 slides from Gran Tierra Energy's conference presentation, Jun 1, 2015
Slide 1: RBC 2015 Global Energy & Power Executive Conference
1 GRAN TIERRA ENERGY INC. RBC 2015 Global Energy & Power Executive Conference June 2015
Slide 2: Disclaimer
2 GRAN TIERRA ENERGY INC. Disclaimer This presentation contains disclosure respecting contingent resources . There can be no certainty that it will be commercially viable to produce any portion of the contingent resources . Please see the appendices to this presentation for important advisories rela
Slide 3: Contents
3 GRAN TIERRA ENERGY INC. Contents I. Gran Tierra Overview II. Colombia: Core Asset Base III. Peru & Brazil IV. Mexico: Long Term Strategic Option V. Corporate Social Responsibility
Slide 4: Gran Tierra Overview
4 GRAN TIERRA ENERGY INC. GRAN TIERRA OVERVIEW Section I
Slide 5: Investment Highlights
5 GRAN TIERRA ENERGY INC. Investment Highlights Newly appointed management team with significant experience and proven track record x Team with operational and technical experience across North America, Latin America, Asia, Europe, Middle East and Africa x Team was previously with Caracal Energy whi
Slide 6: Company Overview
6 GRAN TIERRA ENERGY INC. Company Overview Market Statistics Symbol (NYSE MKT, TSX) ▪ GTE Share Price (at close May 22, 2015) ▪ US$3.33 Basic & Diluted Shares Outstanding 1 ▪ 286 MM Market Capitalization 5 ▪ US$952 MM Working Capital 6 ▪ US$181 MM Enterprise Value 5 ▪ US$771 MM Production, Reserves
Slide 7: Management team
7 GRAN TIERRA ENERGY INC. Gary Guidry CEO 35 years experience • 2011 - 2014: President & CEO of Caracal Energy with operations in Chad - sold to Glencore for $1.8bn • 2005 - 2009: President & CEO of Tanganyika with operations in Syria - sold to Sinopec for $2.1bn • Previously, held various senior ma
Slide 8: Net Asset Value
8 GRAN TIERRA ENERGY INC. $5.87 $2.39 $2.06 $0.45 $0.35 $0.63 $1,681 $684 $589 $127 $99 $181 - 400 800 1,200 1,600 2,000 - 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Costayaco Moqueta Other Colombia Brazil Working Capital NAV US$mm US$/share Net Asset Value 1 Share Price: $3.33 Market Cap: $952MM 1 Based on GLJ Re
Slide 9: Focus on Core Assets
9 GRAN TIERRA ENERGY INC. Focus on Core Assets ▪ Maintain and grow production in Costayaco and Moqueta through EOR and Development drilling ▪ Commence polymer flood studies Immediate Plans Colombian Exploration ▪ High grade Colombian exploration portfolio Colombian Growth Opportunities ▪ Continue ev
Slide 10: Colombia: Core Asset Base
10 GRAN TIERRA ENERGY INC. COLOMBIA: CORE ASSET BASE Section II
Slide 11: Colombia: Leading Operator in an Attractive E&P Environment
11 GRAN TIERRA ENERGY INC. Colombia LEADING OPERATOR IN AN ATTRACTIVE E&P ENVIRONMENT Supportive Economic Environment ▪ Strong economic environment with a pro - western government that ensures contract stability ▪ Well educated and high - quality national workforce Great Potential for Growth ▪ Recen
Slide 12: Putumayo Basin
12 GRAN TIERRA ENERGY INC. Putumayo Basin CORE POSITION ▪ Under - explored basin ▪ Dominant land position in foothills trend with a prolific hydrocarbon system ▪ Recently acquired new Blocks; Put - 31 and farm - in to Put - 4 2 ▪ Discoveries with predictable reservoir performance and low water handl
Slide 13: Costayaco Field
13 GRAN TIERRA ENERGY INC. Costayaco Field CORE ASSET Technical Excellence in Reservoir Management ▪ Track record of reserves growth, with improved recovery ▪ Expect to average ~12,300 BOEPD GROSS WI in 2015 Costayaco Light and Medium Oil Reserves (Gross WI): RESERVES CATEGORY MMBO (SEC) MMBO (COGEH
Slide 14: Moqueta Field
14 GRAN TIERRA ENERGY INC. Moqueta Field GROWING THE PLATFORM New Reserves – Near Term Growth Moqueta Light and Medium Oil Reserves (Gross WI): 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 M1-M2 2010 M1-M6 2011 M1-M8 2012 M1-M12 2013 M1-M17 2014 1P 2P 3P RESERVE GROWTH (GROSS) BEFORE ROYALTY AND PR
Slide 15: Growth in Colombia
15 GRAN TIERRA ENERGY INC. Growth in Colombia Growth Through Exploration, Development and Capturing of acquisition and partnering Opportunities • Multiple opportunities are currently under evaluation that offer potential for reserves and production growth including: – Under capitalized companies – A
Slide 16: Peru & Brazil
16 GRAN TIERRA ENERGY INC. PERU & BRAZIL Section III
Slide 17: Portfolio of Opportunity
17 GRAN TIERRA ENERGY INC. Portfolio of Opportunity CAPTURED PROJECTS IN PERU AND BRAZIL ▪ Management evaluating strategic options for value maximization 18 Leads and Prospects 9 Leads Farm - Out ▪ Bring in industry/financial partners to fund projects ▪ Carry for exploration and development costs Sp
Slide 18: Commitments Summary - Peru
18 GRAN TIERRA ENERGY INC. Commitments Summary - Peru FULLFILLING THE COMMITMENTS OR PAYING THE PENALTY OPTIONS ON THE EXISTING BLOCK Block 95 ▪ Work Commitment fulfilled Block 123 ▪ Work Commitment: 1 well if GTE elects to move to the next phase. Currently in force majeure and could exit at zero co
Slide 19: Bretaña Oil Discovery
19 GRAN TIERRA ENERGY INC. ▪ Bretaña Norte 95 - 2 - 1XD ▪ 99 foot gross (53 foot net) oil column ▪ 3,095 bopd natural flow (18.5 ° API) from horizontal side - track ▪ Additional exploration potential in Envidia Lobe ▪ Development suspended ▪ Future development area defined and to be retained within
Slide 20: Other Peruvian Exploration Blocks
20 GRAN TIERRA ENERGY INC. Other Peruvian E xploration Blocks Block 123 and 129 ▪ Immediately up - dip and along strike from prolific Marañon Basin producing fields ▪ New 2D seismic acquired, prospects mapped ▪ Well permitting process to begin in June ▪ Potential drilling in 1H 2017 • P50 prospectiv
Slide 21: Brazil
21 GRAN TIERRA ENERGY INC. Brazil MODERN CONCEPTS & TECHNOLOGY IN A MATURE BASIN 100% WI in 7 Blocks ▪ 47,733 gross acres ▪ 2P Gross WI reserves in the Tiê field increased 48% from year - end 2013 to 5.6 MMBOE (SEC compliant at December 31, 2014) ▪ Expect to average ~1,040 BOEPD GROSS WI in 2015 ▪ W
Slide 22: Mexico: Long Term Strategic Option
22 GRAN TIERRA ENERGY INC. Section IV MEXICO: LONG TERM STRATEGIC OPTION Mexico
Slide 23: Mexico: Unique Opportunity
23 GRAN TIERRA ENERGY INC. Mexico UNIQUE OPPORTUNITY TO ACCESS DEVELOPMENT, EOR & LOW RISK EXPLORATION In 2014, Mexico opened up its upstream industry to international investment following 76 years of Pemex’s monopoly ▪ ~20 BNBOE of resources on offer ▪ Supporting legislation passed in August 2014 ▪
Slide 24: Onshore Bid Round (Cont'd)
24 GRAN TIERRA ENERGY INC. Onshore Bid Round ( Cont’d ) Summary table for onshore oil & gas (Third phase of Round 1) Third phase of round o ne covers 26 onshore areas that contain ~2.5BNBOE Original oil in place (“OOIP ”). • Five are located across five states: Chiapas, Tabasco, Tamaulipas, Coahuila
Slide 25: Corporate Social Responsibility
25 GRAN TIERRA ENERGY INC. CORPORATE SOCIAL RESPONSIBILITY Section V
Slide 26: Corporate Social Responsibility
26 GRAN TIERRA ENERGY INC. Corporate Social Responsibility KEY TO SUCCESS CSR plan ongoing to deliver sustainable value to our stakeholders through responsible resource development. We are integrating economic, and social and environmentally beneficial practices into our business, underpinned by sha
Slide 27: Corporate Social Responsibility cont'd
27 GRAN TIERRA ENERGY INC. Corporate Social Responsibility cont’d A SHARED VALUE APPROACH ▪ R esponsible for delivering sustainable value to our stakeholders by integrating economic and social value and environmental best practices to our business ▪ For the company to succeed, the community in which
Slide 28: 200, - 13th Avenue SW Calgary, Alberta, Canada T2R 0V2
28 GRAN TIERRA ENERGY INC. 200, 150 - 13th Avenue SW Calgary, Alberta, Canada T2R 0V2
Slide 29: Glossary of Terms
29 GRAN TIERRA ENERGY INC. Glossary of Terms bbl: Barrel BNBOE Billion Barrels of Oil Equivalent BOE: Barrel of Oil Equivalent BOEPD: Barrel of Oil Equivalent per Day bopd: Barrels of Oil per Day CAGR: Compounded Annual Growth LTT: Long - term Test MM: Million MMBO: Million Barrels of Oil MMBOE: Mil
Slide 30: Appendix: Non-GAAP Measures
30 GRAN TIERRA ENERGY INC. Appendix Funds flow from continuing operations is a non - GAAP measure which does not have any standardized meaning prescribed under GAAP . Management uses this financial measure to analyze operating performance and income or loss generated by our principal business activi
Slide 31: Appendix: Contingent Resources Advisory
31 GRAN TIERRA ENERGY INC. Appendix Contingent Resources Advisory : On January 31 , 2015 , Gran Tierra received the draft results of a reserves estimate for Bretaña field in Peru, provided by its independent reserves auditor, GLJ Petroleum Consultants (“GLJ ”), in response to the drilling results of
Slide 32: Appendix: Prospective Resources Advisory
32 GRAN TIERRA ENERGY INC. Appendix Prospective Resources Advisory : On January 29, 2014, Gran Tierra announced the results of a prospective resource estimate for its four largest prospects in Peru , p rovided by its independent reserves auditor, GLJ Petroleum Consultants (“GLJ”) effective October 1
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