Gran Tierra Energy Inc. · AMEX:GTE
Gran Tierra Energy — SMH Capital Markets Investor Growth Conference 2007
30 slides from Gran Tierra Energy's conference presentation, Nov 8, 2007
Slide 1: Gran Tierra Energy Inc.
GranTierra energy inc. Dana Coffield, PhD. SMH Capital Markets President and CEO. Investor Growth Conference November 9, 2007
Slide 2: Disclaimer
) Disclaimer This presentation material contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The opinions, forecasts, projections, statements of resource potential or other
Slide 3: International E&P Growth Story
Gran Tierra Energy International E & P Growth Story International oil and gas exploration and production company - OTC Bulletin Board: GTRE Strategy: Acquire underdeveloped assets, create value by drilling — Balanced portfolio of production enhancement and exploration driling opportunities — Lower r
Slide 4: International E&P Growth Story: 2007 drilling results and 2008 focus
Gran Tierra Energy International E & P Growth Story = Drilling results for first half of 2007: — Almost doubled YE 2006 Proved reserves to 5.6 million barrels of oil, net after royalty — More than tripled YE 2006 Proved, Probable and Possible reserves to 23.8 million barrels of oil — Doubled product
Slide 5: Management — Global Experience
) Management — Global Experience = Dana Coffield, PhD, President & CEO — Previously EnCana International and ARCO International "| Martin Eden, CFO —- Previously Artumas Group, Nexen, Ernst & Young = Max Wei, VP Operations — Previously EnCana International, Occidental = Rafael Orunesu, President, GT
Slide 6: Board of Directors
1e Johnson Director, H Director, Fort Chicag: Nadine Smith Former Dire mer Director, American Ret
Slide 7: Current Operations
») Current Operations foe ersloraton& proavcton Calgary — Corporate headquarters Colombia = Bogota operating office — Working interests in 9 E&P Contracts, 3 producing = Alloperated by Gran Tierra = 950 BOPD (30 2007) plus exploration = 1,191,498 gross acres (935,953 net) Argentina — Buenos Aires op
Slide 8: Rio Magdalena
Rio Magdalena Exploration Gran Tierra operator of all properties Putumayo Basin (working interest %) — 359% Santana; light oil production 35% Guayuyaco; light oll production = 50% Chaza; light oil production = 40% Azar, exploration — 15% Mecaya; explora 100% Putumayo A, technical evaluation = 100% P
Slide 9: Colombia 2008 Development Activities
) Colombia 2008 Development Activities yg fs LB cron Tierra Eneray Acreage ‘Other Operators @ oWFied = Costayaco-1, Chaza Block z [Budgeted 7 delineation @| |New 6" production line development wells Juanambu-t AC =e Tested 5,906 BOPD by natural flow’ Reserves: 2.7 MMBO proved, 5.5 MMBO probable and
Slide 10: Colombia exploration activities
sition and one ration well Saniana & = Putumayo A and B TEA’ ‘Juanambu oil discovery [3 utumayo A and B TEA’s [Le development [| Svenuveeo} = Seismic reprocessing and ostayaco ol discovery a geologic studies, prosp development ay oie, * Chaza, Guayuyaco and Mecaya Blocks — New seismic acquisition, n
Slide 11: Exploration Well
Exploration Well 2008 30 KM: =Coogle
Slide 12: Argentina 2008 Activities
») Argentina 2008 Activities Palmar Largo Field Proa Production enhancement and exploration 37 MMBO produced Prospect ve 23 7 72) 2 20 26 oo 60 on at beds 0 so 0" ~- Surubi Block ——— = Proa-1 exploration well = Light oil exploration prospect = Vinalar, Chivil and Palmar Largo Blocks — Twelve oll wel
Slide 13: Peru blocks
blocks (ConocoPhillips, Petrobras
Slide 14: Marañon Basin
») Mararsion Basin Proven basin, new concept + Gran Tierra Energy testing new concept in Marafion Basin * Acreage on regional high (Iquitos, Arch) adjacent to proven prolific petroleum system + High acts as regional focal point for petroleum migration from basin Coma + Analogous geologie settings ar
Slide 15: Financial Snapshot
) Financial Snapshot Basic shares*— 95.0 million = Directors and officers: 17% = Institutional: Approximately 40% Fully diluted shares ~ 132.6 million = 3.4 million stock options Public Financings (registrations effective) — $12 million @ $0.80/share (2005); acquisition financing — $75 million @ $1.
Slide 16: Growth - Land
Gross Acres # Blocks ceeeosargey Growth - Land 2005 2006 1HO7. Current Acreage = 19 blocks in 3 countries - Argentina, Colombia and Peru * 18 operated by Gran Tierra * 6.5MM gross acres - 5.9MM net acres As Operator, Gran Tierra Energy * Manages operations Manages budgets Manages prospect generation
Slide 17: Growth - Reserves
% 23.8 MMBO""* ™ 3 3 3 a 2" z \\ 3s F 5° vso™ | |2 i 7ammeo | |é ° F 0.7 MMBO" | i —— 2005 2006 1H2007 Growth - Reserves From external reserve auditors: *Dec. 31, 2005 ~ Gafiney, Cline & Associates “Dec. 31, 2008 ~ Gafiney, Cline & Associates ***June 30, 2007 — Gaffney, Cline & Associates reserve ad
Slide 18: Growth - Production
:) Growth - Production sani 2005 2006 2007 Oct 033 BOPD 2000 2 Colombia illing 4 fo) (drilling ZZ; 1000 Colombia Argentina (acquisitions) (drilling) ao Mills Argentina (acquisitions) 105 2005 3005 4005 1006 2006 3006 4006 1007 2007 3007 Oct-07
Slide 19: 2008 Drilling Program
| )) 2008 Drilling Program = Well workovers PORE IGetE! — Fourteen well workovers in Argentina = Convert 2007 reserve additions to = Production base maintenance 2008 production growth = Delineation/development drilling * Complement with continued = Six development wells in Colombia BER is = Producti
Slide 20: Growth — Future potential
») Growth — Future potential Oil Prospective Resource Potential 79 MMBO 16 MMBO: Arrrir iy) Gas Prospective Resource Potential 336 BCF 96 BCF Prospective Resource Potential* = 61 prospects and leads = 79 MMBO unrisked (16 MMBO risked) + 336 BCFG unrisked (96 BCFG risked) = Charts exclude Peru; explo
Slide 21: Gran Tierra Energy: base today, 2008 focus, next steps
) Gran Tierra Energy = Our Base Today - Established South American platform (Colombia, Argentina, Peru) = 19 blocks, 6.5 million gross acres, majority operated by Gran Tierra Energy - 2,033 BOPD net after royalty production (October, 2007) — 23.8 MMBO Proved, Probable and Possible reserves, net afte
Slide 22: Additional Information
») Additional Information 2
Slide 23: Colombian Operating Netbacks Per BO: Santana
Colombian Operating Netbacks Per BO Risk Sharing Contract (Santana) wri $65.00 $80.00 $95.00 WTI Discount (1) $13.25 $13.25 $13.25 Royalty (20%) $10.35 $13.36 $16.35 3 party over-riding royalty $ 0.83 $ 1.07 $ 1.31 Operating costs (2) $21.37 $21.37 $21.37, Operating netback before tax $19.20 $30.96
Slide 24: Colombian Operating Netbacks Per Bbl: Guayuyaco
Colombian Operating Netbacks Per Bbl Association Contract (Guayuyaco) wri $65.00 $80.00 $95.00 WTI Discount (1) $13.25 $13.25 $13.25 Royalty (8%) $4.14 $ 5.34 $ 6.54 34 party over-riding royalty $ 0.95 $ 1.23 $ 1.50 Operating costs (2) $15.88 $15.88 $15.88 Operating netback before tax $30.78 $44.30
Slide 25: Colombian Operating Netbacks Per BO: Juanambu
Colombian Operating Netbacks Per BO Association Contract (Juanambu) wrTl $65.00 $80.00 $95.00 WTI Discount (1) $13.25 $13.25 $13.25 Royalty (8%) $ 4.14 $ 5.34 $ 6.54 3 party over-riding royalty $ 0.95 $ 1.23 $ 1.50 Operating costs (2) $ 4.29 $ 4.29 $429 Operating netback before tax $42.37 $55.89 $69
Slide 26: Colombian Operating Netbacks Per BO: Chaza
Colombian Operating Netbacks Per BO ANH Contract (Chaza) wT $65.00 $95.00 WTI Discount (1) $ 6.38 $ 6.38 Royalty (8%) (2)(3) $ 4.69 $ 7.09 34 party over-riding royalty $ 1.08 $ 1.63 Economic Rights (acreage fee) $ 0.10 $ 0.10 Operating costs (4) $ 4.17 $447 Operating netback before tax $48.58 $75.63
Slide 27: Argentina Operating Netbacks Per BO: Palmar Largo
Argentina Operating Netbacks Per BO Palmar Largo wl $65.00 $80.00 $95.00 WTI Discount (1) $25.33 $35.83 $46.33 Provincial Sales Tax (1.5%) $ 0.60 $ 0.66 $ 073 Royalty (12%) $ 4.76 $ 5.30 $ 5.84 Operating costs (2) $17.93 $17.93 $17.93 Operating netback before tax $16.38 $20.28 $24.17 ‘Argentina inco
Slide 28: Argentina Operating Netbacks Per BO: Chivil
Argentina Operating Netbacks Per BO Chivil ») wT $65.00 $80.00 WTI Discount (1) $25.33 $35.83 Provincial Sales Tax (1.5%) $ 0.60 $ 0.66 Royalty (12%) $ 5.30 Operating costs (2) $18.18 Operating netback before tax $16.13 $20.03 Argentina income tax rates: 35% (1) Discount formula for WTI price range
Slide 29: Argentina Operating Netbacks Per BO: Vinalar
Argentina Operating Netbacks Per BO Vinalar D) wtl $65.00 $80.00 $95.00 WTI Discount (1) $25.22 $35.72 $46.22 Provincial Sales Tax (1.8%) $ 0.72 $ 0.80 $ 0.88 Royalty (12%) $ 5.34 $ 5.85 Operating costs (2) $17.01 $17.01 Operating netback before tax $17.28 $21.16 $25.04 ‘Argentina income tax rates:
Slide 30: Peru Fiscal Regime Summary
Peru Fiscal Regime Summary = — Royalty-tax contract structure + Royalties Daily production. Royalty % <5,000 bopd 5% 5,000-100,000 5%-20% (sliding scale) >100,000 bopd 20% Transportation costs are deductible for royalty calculation = Income tax 30% Taxable income deductions: Royalty Operating costs
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