Gran Tierra Energy Inc. · AMEX:GTE
Gran Tierra Energy — Investor Presentation (September 2015)
46 slides from Gran Tierra Energy's investor presentation, September 2015
Slide 1: Corporate Presentation September 2015
corporate presentation SEPTEMBER 2015 1
Slide 2: Disclaimer
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 relating to our contingent resou
Slide 3: Contents
Contents 1. GRAN TIERRA OVERVIEW 2. COLOMBIA: CORE ASSET BASE 3. PERU & BRAZIL 4. MEXICO: LONG TERM STRATEGIC OPTION 5. CORPORATE SOCIAL RESPONSIBILITY 1
Slide 4: Gran Tierra Overview
2 section 1 Gran Tierra Overview
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS 1 MANAGEMENT TEAM WITH SIGNIFICANT EXPERIENCE AND PROVEN TRACK RECORD Team with operational and technical experience across North America, Latin America, Asia, Europe, Middle East and Africa Team was previously with Caracal Energy which was bought for $1.8 billion Average annua
Slide 6: Company Overview
COMPANY OVERVIEW 4 Market Statistics Symbol (NYSE MKT, TSX) GTE Share Price (at close September 4, 2015) US$2.40 Basic & Diluted Shares Outstanding 1 286 MM Market Capitalization5 US$686 MM Working Capital 6 US$200 MM Enterprise Value 5 US$486 MM Production, Reserves and Acreage NPV 10% Before Tax U
Slide 7: Management Experience
MANAGEMENT EXPERIENCE High quality, proven technical team with experience in difficult reservoirs and remote locations. Global Expertise – Relevant oil & gas experience in 24 regions worldwide. Countries where the management team has experience 5
Slide 8: Gran Tierra Management Team
GRAN TIERRA MANAGEMENT TEAM 6 The Gran Tierra management team is based in Canada, and has relevant oil & gas experience in basins worldwide. Gran Tierra’s management team is complimented by an excellent execution team in Colombia who have proven they are the premiere operator in the Putumayo Basin,
Slide 9: Management Team (continued)
JIM EVANS Most recently Head of Corporate Services at Glencore E&P Canada, and prior thereto with Caracal VP CORPORATE Held several management and executive positions with companies operating internationally SERVICES Certified General Accountant 25+ years experience DAVID HARDY 25 years in legal pro
Slide 10: Gran Tierra Board of Directors
8 GRAN TIERRA BOARD OF DIRECTORS GARY GUIDRY President and Chief Executive Officer, Gran Tierra Energy inc. CEO 35+ years experience ROBERT HODGINS Chartered accountant, investor and director with over 30 years of oil and gas industry experience CHAIRMAN Currently Mr. Hodgins is a director and Chair
Slide 11: Board of Directors (continued)
EVAN HAZELL Experience in the global oil and gas industry for 30+ years, initially as a petroleum engineer and then 30+ years experience as an investment banker Director of Oryx Petroleum and Kaisen Energy Corp., as well as non-profit and community organizations Calgary Opera, CAWST, CMLC and Calgar
Slide 12: Net Asset Value
NET ASSET VALUE1 10 7.0 2,000 $200 $1,699 6.0 $99 $0.69 1,600 $127 $0.35 5.0 $589 $0.45 1,200 4.0 US$/share US$MM 3.0 $2.06 800 $684 Share Price: $2.402 2.0 Market Cap: $686MM2 400 1.0 $2.39 $5.94 0.0 0 Costayaco Moqueta Other Brazil Working NAV Colombia Capital 1 Based on GLJ Reserve Report, effect
Slide 13: Positioning: Immediate Plans
IMMEDIATE PLANS Focus on Core Assets Colombian Exploration Colombian Growth Opportunities COLOMBIA Grow existing production in High grade Colombian Continue evaluation on acquisition Costayaco and Moqueta through exploration portfolio and farm-in opportunities EOR and development drilling Expand int
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Slide 15: Financial Strength
FINANCIAL STRENGTH Gran Tierra’s financial strength is supported by a healthy balance sheet and no debt, allowing the Company the flexibility to enter value-add opportunities when they arise. UNDRAWN CASH WORKING CAPITAL DEBT FACILITY NET ASSET VALUE 167 200 200 1.7 MILLION * MILLION * MILLION BILLI
Slide 16: Promising Future: 2015 Outlook
PROMISING FUTURE 14 2015 OUTLOOK Implementation of cost reductions and capital efficiencies has resulted 2015 CAPITAL in Gran Tierra forecasting a very strong 2015 performance, and has set PROGRAM the Company up for success in 2016 and beyond. ($185 MILLION) Colombia Peru Brazil Corporate 2015 TARGE
Slide 17: Funds Flow from Operations
FUNDS FLOW FROM OPERATIONS** Based on Gran Tierra’s forecasted gross W.I. 2015 exit production rate of 25,000 to 26,000 BOEPD, the Company expects funds flow from operations to be approximately: 2015 2016 (US$MM) Brent Funds Flow Funds Flow Low 2015 remaining* – $50.00 $110 – $115 $155 – $170 2016 –
Slide 18: Colombia: Core Asset Base
16 section 2 Colombia: Core Asset Base
Slide 19: Colombia: Leading Operator in an Attractive E&P Environment
COLOMBIA LEADING OPERATOR IN AN ATTRACTIVE E&P ENVIRONMENT SUPPORTIVE Strong economic environment with a pro-western government that ensures contract stability ECONOMIC Well educated and high-quality national workforce ENVIRONMENT GREAT Recent large discoveries in the country POTENTIAL FOR Developme
Slide 20: Costayaco Field
COSTAYACO FIELD 18 CORE ASSET TECHNICAL EXCELLENCE IN RESERVOIR MANAGEMENT Track record of reserves growth, with improved recovery Expect to average ~13,200 BOEPD GROSS W.I. in 2015 COSTAYACO LIGHT AND MEDIUM OIL RESERVES (GROSS W.I.): MMBO MMBO RESERVES CATEGORY (SEC) (COGEH) Proved 26.5 26.0 Proba
Slide 21: Costayaco Reserve Growth
RESERVE GROWTH (GROSS) BEFORE ROYALTY AND PRODUCTION 80 70 60 Initial Recoverable (MMBO) 50 40 30 20 10 0 C1 C1-C5 C1-C7 C1-C10 C1-C14 C1-C17 C1-C18 C1-C22 2007 2008 2009 2010 2011 2012 2013 2014 1P 2P 3P 19
Slide 22: Moqueta Field
MOQUETA FIELD 20 GROWING THE PLATFORM NEW RESERVES – ADDITIONAL POTENTIAL TO BE DELINEATED NEAR TERM Oil-water contact not observed to date GROWTH Expect to average ~6,500 BOEPD GROSS W.I. in 2015 MOQUETA LIGHT AND MEDIUM OIL RESERVES TOP RESERVOIR (GROSS W.I.): 3D DEPTH MAP MMBO MMBO RESERVES CATEG
Slide 23: Moqueta Reserve Growth
RESERVE GROWTH (GROSS) BEFORE ROYALTY AND PRODUCTION 35 30 Initial Recoverable (MMBO) 25 20 15 10 5 0 M1-M2 M1-M6 M1-M8 M1-M12 M1-M17 2010 2011 2012 2013 2014 1P 2P 3P 21
Slide 24: Putumayo Basin
PUTUMAYO BASIN 22 CORE POSITION 8 Blocks Over 550,000 Gross Acres (450,000 Net)1 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-42 Discoveries with predictable reservoir performance and low wat
Slide 25: Growth in Colombia
GROWTH IN COLOMBIA CARIBBEAN SEA Cartagena Barranquilla GROWTH THROUGH EXPLORATION, PORT OF COVEÑAS DEVELOPMENT AND CAPTURING PANAMA Sinu-San OF ACQUISITION AND PARTNERING Jacinto Basin Magdalena VENEZUELA OPPORTUNITIES Basin Multiple opportunities are currently under evaluation that offer potential
Slide 26: Peru & Brazil
24 section 3 Peru & Brazil
Slide 27: Portfolio of Opportunity
PORTFOLIO OF OPPORTUNITY CAPTURED PROJECTS IN PERU AND BRAZIL COLOMBIA Management evaluating strategic options for value maximization 18 Leads and FARM-OUT Bring in industry / financial partners to Prospects BRAZIL fund projects PERU Carry for exploration and development costs 9 Leads SPINCO Spin-of
Slide 28: Peru: Bretaña Block 95
PERU 26 BLOCK 95 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 the retention period to fa
Slide 29: Peru: Exploration Blocks
PERU EXPLORATION BLOCKS 123 AND 129 Immediately up-dip and along strike from prolific Marañon Basin producing fields New 2D seismic acquired, prospects mapped Well permitting process underway P50 prospective resource estimate of ~630 MMBOE1, unrisked EXPLORATION BLOCKS 107 AND 133 New 2D seismic acq
Slide 30: Commitments Summary – Peru
COMMITMENTS SUMMARY – PERU 28 FULLFILLING THE COMMITMENTS OR PAYING THE PENALTY OPTIONS ON THE EXISTING BLOCK Block Work Commitment Exit Penalty Block 95 Work commitment fulfilled $0.0 Block 123 Currently in force majeure and could exit $1.5MM at zero cost. If force majeure is lifted, GTE could move
Slide 31: Brazil: Recôncavo Basin
BRAZIL RECÔNCAVO BASIN 100% W.I. in seven blocks 47,733 gross acres 2P Gross W.I. reserves in the Tiê field increased 48% from year-end 2013 to 5.6 MMBOE (SEC compliant at December 31, 2014) • Expect to average ~1,000 BOEPD GROSS W.I. in 2015 Working to remove gas-flaring restrictions and planning f
Slide 32: Mexico: Long Term Strategic Option
30 section 4 Mexico: Long Term Strategic Option
Slide 33: Mexico: Unique Opportunity
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 Significant interest from inter
Slide 34: Rare Opportunity to Participate in Opening of a Major Resource
RARE OPPORTUNITY TO PARTICIPATE IN THE OPENING UP OF A MAJOR RESOURCE 32 One of the Top 10 oil producing countries in the world Opportunities across shallow water, heavy oil, onshore, unconventional and deepwater Round One released shallow offshore blocks in December 2014, and onshore blocks in May
Slide 35: Onshore Bid Round
ONSHORE BID ROUND SUMMARY TABLE FOR ONSHORE OIL & GAS (THIRD PHASE OF ROUND 1) Accumulated % of Oil Number of Original Oil in Oil and Gas Already Contractual Targeted Place – OOIP Production Recovered Location Areas Area (km2) Hydrocarbon (mmboe) (mmboe) from OOIP Nuevo Leon 9 415 Dry natural gas 24
Slide 36: Corporate Social Responsibility
34 section 5 Corporate Social Responsibility
Slide 37: Corporate Social Responsibility: Key to Success
CORPORATE SOCIAL RESPONSIBILITY KEY TO SUCCESS Our Corporate Social Responsibility plan is 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, underpinne
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Slide 39: Corporate Social Responsibility: A Shared Value Approach
CORPORATE SOCIAL RESPONSIBILITY A SHARED VALUE APPROACH Responsible 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 we operate must also succeed PRINCIPLE
Slide 40: Appendix
38 section 6 Appendix
Slide 41: Glossary of Terms
GLOSSARY OF TERMS bbl: Barrel MM: Million BNBOE: Billion Barrels of Oil Equivalent MMBO: Million Barrels of Oil BOE: Barrel of Oil Equivalent MMBOE: Million Barrels of Oil Equivalent BOEPD: Barrel of Oil Equivalent per Day MMcf: Million Cubic Feet bopd: Barrels of Oil per Day MMstb: Million Stock Ta
Slide 42: Funds Flow from Continuing Operations
40 FUNDS FLOW FROM CONTINUING OPERATIONS Three Months Ended June 30 Funds Flow From Continuing Operations – Non-GAAP Measure ($000s) 2015 2014 Net income (loss) $(38,564) $9,137 Adjustments to reconcile net income (loss) to funds flow from continuing operations Loss from discontinued operations, net
Slide 43: Funds Flow Non-GAAP Measure Explanation
Funds flow from continuing operations, as presented, is net income or loss adjusted for loss from discontinued operations, net of income taxes, DD&A expenses, deferred tax recovery or expense, non-cash stock-based compensation, unrealized foreign exchange and financial instruments gains and losses,
Slide 44: Contingent Resources Advisory
42 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 the Bretaña Sur 95-3-4-1X appraisal
Slide 45: Prospective Resources Advisory
PROSPECTIVE RESOURCES ADVISORY: On January 29, 2014, Gran Tierra announced the results of a prospective resource estimate for its four largest prospects in Peru, provided by its independent reserves auditor, GLJ Petroleum Consultants (“GLJ”) effective October 1, 2013. The resource estimate was prepa
Slide 46: Calgary Office Address
200, 150 - 13TH AVENUE SW CALGARY, ALBERTA, CANADA T2R 0V2
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