Gran Tierra Energy Inc. · AMEX:GTE
Gran Tierra Energy — Investor Presentation (September 2007)
28 slides from Gran Tierra Energy's investor presentation, Sep 14, 2007
Slide 1: Corporate Presentation
GrantTierra energy inc. Corporate Presentation September, 2007
Slide 2: Disclaimer
) Disclaimer This presentation material contains forwardJooking 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: Gran Tierra Energy: International E&P Growth Story
)) Gran Tierra Energy International E & P Growth Story International oil and gas exploration and production company (OTCBB:GTRE) Strategy: Acquire underdeveloped assets, create value by drilling — Balanced portfolio of production enhancement and exploration drilling opportunities — Lower risk, predi
Slide 4: Management — Global Experience
) Management — Global Experience = Dana Coffield, PhD, President & CEO — Previously EnCana International and ARCO International = Martin Eden, CFO — Previously Artumas Group, Nexen, Emst & Young = Max Wei, VP Operations — Previously EnCana International, Occidental = Rafael Orunesu, President, GTE A
Slide 5: Board of Directors
| Energy Energy Services nerg) ervices — Founder, Enserco Energy jer, Former ( — Found = Verne Johnson — Director, Harvest Energy Trust ctor, Fort Chicago Energy Partners LP = Nadine Smith — Former Directe — Former Directe = James Hart — Former CFO, Gr. — Previously Ent = Dana Coffield ) & Director,
Slide 6: Current Operations
) Current Operations exploration & proaustion epoction & preaueton f Calgary — 8 office staff Colombia — Working interests in 9 E&P Contracts, 3 producing — Alloperated by Gran Tierra — 522 BOPD (1H 2007) plus exploration — 1,191,498 gross acres (935,953 net) — 18 office staff, 71 field personnel Ar
Slide 7: Colombia operations
+ Gran Tierra operator of all pro utumayo Basin (w = 35% Santana : - Guayuyaco; light oil production & 4 exploration Was » 4 Ma i | Basin gl xploration EO!) Juanambu-1 2, . sross Aen 953 net) By May 2007 scidluction bade in fee J : and production base in gh Potumaye country with significant growth S
Slide 8: Costayaco-1 and Juanambu-1 Discoveries
Costayaco-1 Discovery Juanambu-1 Discovery Guayuyace & Santana| . Bloc Putumayo Basin beginni Juanambu-1, Guayuyaco Block = Total Depth MN Optimum completions and flow production are under evaluation nitial production being transported by truck to existing infrastructure while reserves and new facil
Slide 9: Juanambu and Costayaco oil discoveries
N Juanambu oil discovery Costayaco oil discovery Putumayo Basin km 2D) & = 12 months Putumayo B 0 Putumayo B i &, TEA Colombia to 935,953 acres [cran @ OilField ‘a Operated Acreage Oth r Operators
Slide 10: Argentina operations
Gran Tierra l Largo (Pluspet ight ol produet 15% Valle Morado (GTRE Operator): shut.in gasieondensat ictoria (GTRE Operator Puesto Climaco-2D Dene] Deeper Pool Discovery January, 2007 ve and production ificant growth opp.
Slide 11: Puesto Climaco-2D, Vinalar Block
Puesto Climaco-2D, Vinalar Block = Completed January, 2007 Deeper pool test beneath existing Puesto Climaco oil field Low risk, predictable results Reached target by drilling out from existing well bore Tested up to 2,825 BOPD (gross before royalty) Added reserves of 0.5 MMBO (gross)* Currently prod
Slide 12: Peru foreland basin
foreland basin’ with prolific petroleum em icant players with production (Pluspetrol), new field devel (Barrett), and exploration nearby (ConocoPhillips and Petrobras)
Slide 13: Peru exploration
al high. or ‘forel
Slide 14: Financial Snapshot
) Financial Snapshot = Basic shares - 94.5 million — Directors and officers: 17% — Institutional: Approximately 40% = Fully diluted shares — 134.0 million — 34.4 million warrants — 34 million stock options = Public Financings — $12 million @ $0.80/share (2005); acquisition financing — $75 million @
Slide 15: Growth - Land
Gross Acres Growth - Land 2005 2006 1HO7 Current Acreage = 19 blocks in 3 countries — Argentina, Colombia and Peru = 18 operated by Gran Tierra = 6.5 MM gross acres — 5.9MMnetacres Changes in Q2 2007 = Relinquished Primavera Block — Stranded legacy asset — Minority interest (15%) — 2 dry holes (cost
Slide 16: Growth - Reserves
D Growth - Reserves 23.8 MMBO*** co 20 2 Net after royalty reserves 2 Vy (June 30, 2007) 3 s \ = 5.6 MMBO Proved a ® = 7.0 MMBO Probable 2 . 71MMBo™ | |% = 11.2 MMBO Possible ° F 0.7 MMBO* e & ° 2005 2006 142007 1H2007 drilling additions From external reserve auditors: *Dec. 31, 2005 ~ Gaffney, Clin
Slide 17: Production (net after royalty)
Production (net after royalty) 2005 2006 1HO7 Argentina Colombia (drilling) (acquisitions) ty, a Argentina (acquisitions) 1005 2005 2005 4005 1008 2008 3006 4006 1007 2007 BOPD Production forecast incorporating new oil from Costayaco and Juanambu discoveries is currently under evaluation
Slide 18: 2007 Drilling Program
)) 2007 Drilling Program * Original 2007 work program: 10 exploration wells plus workovers + 2.development wells to be added, beginning in 407; balance of exploration program deferred + Results to date dramatically exceeded reserve add expectations, with associated lower finding costs + Production a
Slide 19: Growth — Future potential
) Growth — Future potential Oil Prospective Resource Potential Prospective Resource Potential* "= 61 prospects and leads = 79 MMBO unrisked (16 MMBO risked) = 336 BCFG unrisked (96 BCFG risked) * Excludes 2007 drilling program = Charts exclude Peru; Exploration play concept in Peru has unrisked Gas
Slide 20: Gran Tierra Energy: base, value creation, 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 — 1,140 BOPD net after royalty production (1H 2007) — 5.6 MMBO Proved reserves, net after royalty (at June 30, 2007)
Slide 21: Back-up
Slide 22: Colombian Operating Netbacks Per BO (Santana)
Colombian Operating Netbacks Per BO Risk Sharing Contract (Santana) WTI $60.00 $70.00 $80.00 WTI Discount (1) $12.30 $13.25 $13.25 Royalty (20%) $ 9.54 $11.35 $13.35 3" party over-riding royalty $ 0.76 $ 0.91 $ 1.27 Operating costs (2) $ 8.44 $ 8.44 $ 8.44 Operating netback before tax $28.96 $36.05
Slide 23: Colombian Operating Netbacks Per Bbl (Guayuyaco)
Colombian Operating Netbacks Per Bbl Association Contract (Guayuyaco) WTI $60.00 $70.00 $80.00 WTI Discount (1) $12.30 $13.25 $13.25 Royalty (8%) $ 3.82 $ 4.54 $ 5.34 3" party over-riding royalty $ 0.88 $ 1.04 $ 1.46 Operating costs (2) $ 9.01 $ 9.01 $ 9.01 Operating netback before tax $33.99 $42.16
Slide 24: Colombian Operating Netbacks Per BO (Juanambu)
Colombian Operating Netbacks Per BO Association Contract (Juanambu) WTI $60.00 $70.00 $80.00 WTI Discount (1) $12.30 $13.25 $13.25 Royalty (8%) $ 3.82 $ 4.54 $ 5.34 3" party over-riding royalty $ 0.88 $ 1.04 $ 1.23 Operating costs (2) $ 7.50 $ 7.50 $ 7.50 Operating netback before tax $35.50 $43.67 $
Slide 25: Colombian Operating Netbacks Per BO (Chaza)
Colombian Operating Netbacks Per BO ANH Contract (Chaza) WTI $60.00 $70.00 $80.00 WTI Discount (1) $ 8.44 $ 8.44 $ 8.44 Royalty (8%) (2)(3) $ 4.12 $ 4.92 $ 5.72 3° party over-riding royalty $ 0.95 $ 1.13 $ 1.32 Economic Rights (acreage fee) $ 0.10 $ 0.10 $ 0.10 Operating costs (4) $ 8.50 $ 8.50 $ 8.
Slide 26: Argentina Operating Netbacks Per BO (Palmar Largo)
Argentina Operating Netbacks Per BO Palmar Largo WTI $60.00 $70.00 $80.00 WTI Discount (1) $22.00 $29.35 $36.70 Provincial Sales Tax (1.5%) $ 0.57 $ 0.61 $ 0.65 Royalty (12%) $ 4.56 $ 4.88 $ 5.20 Operating costs (2) $11.51 $11.51 $11.51 Operating netback before tax $21.36 $23.65 $25.94 Argentina inc
Slide 27: Argentina Operating Netbacks Per BO (Chivil)
Argentina Operating Netbacks Per BO Chivil WTI $60.00 $70.00 $80.00 WTI Discount (1) $22.00 $29.35 $36.70 Provincial Sales Tax (1.5%) $ 0.57 $ 0.61 $ 0.65 Royalty (12%) $ 4.56 $ 4.88 $ 5.20 Operating costs (2) $13.67 $13.67 $13.67 Operating netback before tax $19.20 $21.49 $23.78 Argentina income ta
Slide 28: Argentina Operating Netbacks Per BO (Vinalar)
Argentina Operating Netbacks Per BO Vinalar WTI $60.00 $70.00 $80.00 WTI Discount (1) $21.89 $29.24 $36.59 Provincial Sales Tax (1.8%) $ 0.69 $ 0.73 $ 0.78 Royalty (12%) $ 4.57 $ 4.89 $ 5.21 Operating costs (2) $ 5.55 $ 5.55 $ 5.55 Operating netback before tax $27.30 $29.59 $31.87 Argentina income t
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