Gran Tierra Energy Inc. · AMEX:GTE

Gran Tierra Energy — Investor Presentation (March 2009)

47 slides from Gran Tierra Energy's investor presentation, Mar 2, 2009

  1. Slide 1: Gran Tierra Energy Inc. March 2, 2009

    crantierra(_) energy inc. March 2, 2009

  2. Slide 2: Disclaimer

    Disclaimer GranTierra ‘energy inc. 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 resou

  3. Slide 3: Turning $90 Million into $1 Billion

    Turning $90 Million into $1 2 Billion Proceeds from GTE equity financings versus net after tax NPV10 of GTE 3P reserves (December 31, 2008 GLJ, NI 51-101 compliant)

  4. Slide 4: 1) Efficiently exploring more blocks

    1) Efficiently exploring more blocks 30 yon o a °o Exploration Blocks 2005 2006 2007 2008 The @) mi | li n acres (gross)* {6.2 million acres net)* * As at December 31, 2008

  5. Slide 5: 2) Increasing proven reserves by 33x

    2) Increasing proven reserves by 33x GranTierra energy ing, 15 10 Million barrels of oil 2005 2006 2007 2008* 19.2 millions: Total Proven Reserves - Net after royalty *(GTE.as of Dacember 31, 2008; SEC compliant)

  6. Slide 6: 3) Increasing production by 15X

    3) Increasing production by 15X GranTierra I EES BOPD (net after royalty) E 2005 2006 2007 2008, 1 5 000 BBL/Day Capacity ? (* 1009 Exit Target - Net after royalty)

  7. Slide 7: Reserves and production growth driven by the drill-bit

    Reserves and! production growth driven by the drill-bit - through major oil discoveries

  8. Slide 8: Costayaco

    Costayaco Gran Tierra’s Major Oil Discovery in Colombia

  9. Slide 9: Costayaco Field

    z i, Costayaco Field GranTierra = 52.4 Million ~< Gross Barrels Reserves (3P)* Colombia itd, | i

  10. Slide 10: Established Reserves

    Established Reserves Based on first six wells Chaza Block Uchupayaco Light and Medium Oil Reserves* Net After Royalty Reserves Reserves Category (MMbbl) Total Proved 14.7 Total Probable 6.7 Total Proved Plus Probable 21.5 Total Possible 14.7 Total PPP 36.2 * Reserve study completed by GLI Petroleum

  11. Slide 11: Taking Costayaco to 17,500 BOPD in 3Q 2009

    Taking Costayaco to 17,500 cnx. in) 3Q, 2009 *Forecast net after royalty production on gross production of 25,000. BBL:/Day

  12. Slide 12: Wells Planned For 2009

    5 Wells Planned For 2009 Chaza Block 2008: Rhee 5 Producers Completed 2009: avs ve aa 9 4 Producers Planned iL 1 Water Injector Planned Uchupayaco 2

  13. Slide 13: Investing in facilities

    Investing in facilities Expanding Costayaco’s Infrastructure to reach production plateau Now 10 km pipe line to Uchupayaco completed. Carries 9,000 BOPD, capacity for 50,000 BOPD. 2009-2012 = 25,000 BOPD gross plateau Santana Oil production from Costayaco; sales point 15,000 BOPD by pipeline, 10,000

  14. Slide 14: More reserves, more production

    More reserves, more production 20 ° (s,000.) Aeq Jad j10 40 sjaiseg 2009 2008 2007 2006 2 g z J a : S 5 5 & g 3 5 g £

  15. Slide 15: Our Vision

    Ty i Our Vision: Taking Gran Tage tC 5 0. 00 0.... >

  16. Slide 16: Aggressive 2009 Exploration in Colombia

    Aggressive 2009 Exploration in Colombia GranTierra 665 km 1.5 million Seismic (85% 3D; 15% 2D) Exploration wells planned outside Costayaco Leads and prospects Basins Net acres 16

  17. Slide 17: Developing the Putumayo Basin

    Developing the Putumayo Basin GranTierra' Colombia £ Bogota exploration land holder in the # Putumayo Basin

  18. Slide 18: Developing the Putumayo Basin Blocks

    Developing the Putumayo Basin 7 Blocks 828,064 Net Acres 375 km_ Seismic planned in 2009 2 Wells planned for 2009 18

  19. Slide 19: Colombia: Exploration and Development Path

    Colombia: a GranTierra Exploration and Development Path energy ine. MI < 2S 5 3 oy & = 2 5 zB = Llanos Extending the Maracaibo + Up to 2 Exploration wells as Colombia Popa Field + Gas-Condensate Discovery + Initial test at 8.5 MMCFGD and 236 BPD gross (Condensate) + Initiating long-term test + Acqui

  20. Slide 20: Our Vision

    Our Vision: Taking Gran} etre t 1 00,¢ 000...

  21. Slide 21: Elephant hunting in Peru

    Elephant hunting in Peru crantera) = The Marafon Basin E 1 Billion = Barrels Recoverable

  22. Slide 22: Iquitos Arch - The hunting ground

    Iquitos Arch - The hunting ground 22 is

  23. Slide 23: If it walks like an elephant, talks like an elephant

    If it walks like an elephant, talks like an craters) elephant... oes Andes Mountains Maranon Basin Iquitos Arch Oil & Gas Formation Migration of Oil & Gas Entrapment Gran Tierra - Blocks 122 & 128 Brooks North Slope Barrow Arch Prudhoe Bay 13.5 Billion BO = Middle East Zagros Arabian Gulf Qatar Nort

  24. Slide 24: Blocks 122 & 128 - At the Top of the Arch

    Blocks 122 & 128 - At the Top of the Arch 2 Blocks Gran Tierra Acres Seismic (2009 & 2010) Exploration wells (2010) 500 km 2) ¢ Blocks 122 and 128 are a likely focal point for petroleum migration from adjacent Maranon basin & 2 & 5 8 5 6 ¢ Environmental impact Bick 328 assessment for seismic initiat

  25. Slide 25: Argentina—Option Value

    Argentina—Option Value cranterra() energy ine O Noroeste Basin exploration land -—-] holder in the # Noroeste Basin « 1.3 million acres (net) « New Discovery Proa-1 3Q 2008 oil discovery Tested 2,324 BOPD gross Currently on long term test at 900 BOPD « Improving Prices + Increasing from $33 to $40/B

  26. Slide 26: Stakeholder Engagement

    Stakeholder Engagement Key to success [ + Employ over 150 local oil & gas experts ¢ Work closely with government agencies | ¢ Develop the communities where we operate + Education support - Building infrastructure + Aboriginal support (traditional medicine research) - Funding of medical services Fish

  27. Slide 27: 2009 Key Milestones

    2009 Key Milestones + Full field development plan Q2 + 25,000 BOPD (gross) plateau in 2H + Continuous development drilling program + Complete Los Aceites development Q2 + Define Popa Field commerciality Q3 + Continuous exploration drilling program + Pre-feasibility engineering study Q1 + Complete EI

  28. Slide 28: Program is Fully Funded

    Program is Fully Funded Grantiera) Costayaco C a S h Putumayo on hand’ anos Middle Magdalena Lower Megeain In available Catatumbo Basin C r e d i t Facilities*

  29. Slide 29: Investment Highlights

    Investment Highlights ales 3) "energy inc, O $177 million in cash and strong cash flow No debt

  30. Slide 30: Gran Tierra Financials

    Gran Tierra Financials 30

  31. Slide 31: Recent Financial Results

    Recent Financial Results én $000's us) Revenue and Other Income (it end natural gas sales Interest Liguidated damages Derivative financial instruments Foreign exchange Income (loss) before Income taxes Income tax expense (recovery) [Net income oss) Eamings (loss) per share - basic GranTierra energy

  32. Slide 32: Balance Sheet

    Balance Sheet GranTierra energy inc. = (In $000’s Us) December 31, 2008 December 31, 2007 Assets Cash $176,754 § 18,189 Other Current Assets 18,291 13,321 195,045 31,510 fame (Oil end Gas Properties Proved 380,855 44,292 Unproved 384,195 18,910 765,050 63,202 Other Long-torm assots 112,530 18,085 To

  33. Slide 33: Company summary

    Company summary Symbol (NYSE Alternext, TSX): Headquarters: Year End: Basic Shares Outstanding Fully Diluted: # of Employees: Director & Officer Ownership: GTE Calgary, Canada December 31 239.3 million 270.2 million 180 11%

  34. Slide 34: Slide 34

  35. Slide 35: Slide 35

  36. Slide 36: Appendices

    Appendices 36

  37. Slide 37: Management Team

    Management Team = Management Dana Coffield, PhD, President & CEO Previously EnCana and ARCO Shane O'Leary, COO Proviously FirstCalgary, EnCana, BP/Amoco Martin Eden, CFO Previously Artumas, Noxon, Emst & Young Rafael Orunesu, Prasident, GTE Argentina Previously Pluspetrol and YPF Eddie Dyos, Praside

  38. Slide 38: Colombian Operating Netbacks Per Bbl (ANH Contract Chaza-Costayaco)

    Colombian Operating Netbacks Per Bbl GranTierra' ANH Contract (Chaza - Costayaco) aaa = WTI $40.00 $60.00 $80.00 WTI Discount (1) $ 8.17 $8.17 $ 8.17 Royalty (8.31%) (2)(3) $ 2.64 $ 4.31 $ 5.97 3 party NPI royalty S22 $2.14 $ 3.05 Economic Rights (acreage feo) $ 0.10 $ 0.10 $ 0.10 Operating costs (4

  39. Slide 39: Colombian Operating Netbacks Per Bbl (Juanambu)

    Colombian Operating Netbacks Per Bbl @) oogs GrantTierra! Association Contract (Juanambu) soma = wTl $40.00 $60.00 $80.00 WTI Discount (1) $ 7.89 $ 7.89 § 7.89 Royalty (88) $ 2.57 $ 4.17 $ 5.77 3°¢ party NPI royalty Siz § 2.09 § 3.01 Operating costs (2) $ 6.18 $ 6.18 $ 6.18 Operating netback before

  40. Slide 40: Colombian Operating Netbacks Per Bbl (Guayuyaco)

    Colombian Operating Netbacks Per Bbl Association Contract (Guayuyaco) orate = WTI $40.00 $60.00 $80.00 WTI Discount (1) $ 8.47 $ 8.47 $ 8.47 Royalty (sx) $ 2.52 $ 4.12 § 5.72 3°¢ party over-riding royalty § 0.29 $ 0.47 § 0.77 Operating costs (2) $16.04 $16.04 $16.04 Operating netback before tax $12.

  41. Slide 41: Colombian Operating Netbacks Per Bbl (Santana)

    Colombian Operating Netbacks Per Bbl Risk Sharing Contract (Santana) wl WTI Discount (1) Royalty (20%) 3r¢ party over-riding royalty Operating costs (2) Operating netback before tax Colombian income tax rates: 33% 1. 2; Price offset for API, transportation, marketing, insurance (based on Q4 2008 ave

  42. Slide 42: Argentina Operating Netbacks Per Bbl (Surubi)

    Argentina Operating Netbacks Per Bbl oO « GranTierra' Surubi — = WTI $40.00 $60.00 $80.00 WTI Discount (1) $ 5.00 $15.00 $30.00 Provincial Sales Tax (1.8%) $ 0.63 $ 0.81 $ 0.90 Royalty (12%) § 4.20 $ 5.40 $ 6.00 Operating costs (2) $ 3.27 $ 3.27 $327 Operating netback before tax $26.90 $35.52 $39.83

  43. Slide 43: Argentina Operating Netbacks Per Bbl (Vinalar)

    Argentina Operating Netbacks Per Bbl Vinalar WTI $40.00 $60.00 $80.00 WTI Discount (1) $ 5.00 $15.00 $30.00 Provincial Sales Tax (1.8%) $ 0.63 § 0.81 $ 0.90 Royalty (12%) $ 4.20 $ 5.40 § 6.00 3°¢ party over-riding royalty (2.7%) $ 0.95 $ 4.22 § 1.35 Operating costs (2) $13.37 $13.37 $13.37 Operating

  44. Slide 44: Argentina Operating Netbacks Per Bbl (Palmar Largo)

    Argentina Operating Netbacks Per Bbl GranTierra Palmar Largo swam wr $40.00 $60.00 $80.00 WTI Discount (1) $ 5.00 $15.00 $30.00 Provincial Sales Tax (1.5%) $ 0.53 $ 0.68 $ 0.75 Royalty (12%) § 4.20 $ 5.40 $ 6.00 Operating costs (2) $24.89 $24.89 ($24.89 Operating netback before tax § 5.38 $14.03 $18

  45. Slide 45: Argentina Operating Netbacks Per Bbl (Chivil)

    Argentina Operating Netbacks Per Bbl Chivil wTl WTI Discount (1) Provincial Sales Tax (1.5%) Royalty (12%) Operating costs (2) Operating netback before tax Argentina income tax rates: 35% 1. Based on expected received price for 2009. 2. Based on 2009 budget averago. GranTierra' ‘energy inc $40.00 $6

  46. Slide 46: 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 Depreci

  47. Slide 47: Gran Tierra Energy Inc.

    GranTierra O energy inc.

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