Gran Tierra Energy Inc. Reports Robust Reserves Replacement and Record High Reserves

2025-01-23

NYSE - New York Stock Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada

Sixth Consecutive Year of 1P Total Reserves Growth Resulting in Highest Total Reserves in Company History _Delivered __702% __1P and __1,249% __2P Reserves Replacement Including Recent Acquisition _ _Total Liquids 1P and 2P Reserves Increased to __128 __and __217 __Million Barrels of Oil Equivalent with 1P and 2P Reserve Life Index increasing to __10 __and __17 __Years, Respectively _ _Added Total Reserves of __89 __MMBOE 1P, __159 __MMBOE 2P and __191 __MMBOE 3P _ _Net Present Value Before Tax Discounted at 10% of __$2.0 __Billion (1P), __$3.2 __Billion (2P), and __$4.5 __Billion (3P) _ _Net Asset Value per Share of __$35.24 __Before Tax and __$19.53 __After Tax (1P), and __$71.16 __Before Tax and __$41.05 __After Tax (2P) _ Strong Finding, Development & Acquisition Costs of $4.49 (1P), $2.52 (2P) and $2.10 (3P), Excluding Changes in Future Development Costs

CALGARY, Alberta, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. ( “Gran Tierra” or the “Company” ) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) , an independent international energy company focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador, today announced the Company’s 2024 year-end reserves as evaluated by the Company’s independent qualified reserves evaluator McDaniel & Associates Consultants Ltd. ( “McDaniel” ) in a report with an effective date of December 31, 2024 (the “GTE McDaniel Reserves Report” ).

All dollar amounts are in United States ( “U.S.” ) dollars and all reserves and production volumes are on a working interest before royalties ( “WI” ) basis (net). Reserves are expressed in barrels ( “bbl” ), bbl of oil equivalent ( “boe” ) or million boe ( “MMBOE” ), while production is expressed in boe per day (“ BOEPD ”), unless otherwise indicated. The following reserves categories are discussed in this press release: Proved Developed Producing ( “PDP” ), Proved ( “1P” ), 1P plus Probable ( “2P” ) and 2P plus Possible ( “3P” ).

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “2024 was another strong year underpinned by multiple exploration discoveries in Ecuador, continued success in managing our Colombian assets, and our new country entry into Canada. The organic and inorganic portfolio growth creates a future runway of highly economic development opportunities in proven plays with access to infrastructure. Gran Tierra’s entry into Canada fits our corporate strategy of focusing on proven hydrocarbon basins which have access to established infrastructure and competitive fiscal regimes. Furthermore, with the addition of Canada, Gran Tierra is well positioned for long-term commodity cycles with approximately 20% of its production, 23% 1P reserves and 26% 2P reserves now attributed to conventional natural gas and shale gas.

We continue to generate shareholder value through focusing on portfolio longevity and executing on our mandate of growing cash flow and reserves, while maintaining low decline rates through production, development and enhanced oil recovery techniques. Gran Tierra has assembled a diversified, high-quality asset base across multiple attractive jurisdictions and combined with our management team’s strong track record of accretive acquisitions and value creation, we look forward to a successful 2025.

The success of 2024 is reflected in yet another year of over 100% reserve replacement on a Proved basis. Gran Tierra achieved strong 702% (1P), 1,249% (2P) and 1,500% (3P) reserves replacement through exploration success in Colombia and Ecuador and our entry into Canada. This success resulted in record highs for the Company’s year-end 1P, 2P and 3P oil and gas reserves.”

*See the below tables for the definitions of net asset values per share.

Highlights

2024 Year-End Reserves and Values

| Before Tax (as of December 31, 2024) | Units | 1P | 2P | 3P | | | | | Reserves | MMBOE | 167 | | 293 | | 385 | | | Net Present Value at 10% Discount (“NPV10”) | $ million | 1,950 | | 3,242 | | 4,517 | | | Net Debt 1 | $ million | (682 | ) | (682 | ) | (682 | ) | | Net Asset Value (NPV10 less Net Debt) (“NAV”) | $ million | 1,268 | | 2,560 | | 3,835 | | | Outstanding Shares | million | 35.97 | | 35.97 | | 35.97 | | | NAV per Share | $/share | 35.24 | | 71.16 | | 106.62 | |

| After Tax (as of December 31, 2024) | Units | 1P | 2P | 3P | | | | | Reserves | MMBOE | 167 | | 293 | | 385 | | | NPV10 | $ million | 1,385 | | 2,159 | | 2,930 | | | Net Debt 1 | $ million | (682 | ) | (682 | ) | (682 | ) | | NAV | $ million | 703 | | 1,477 | | 2,248 | | | Outstanding Shares | million | 35.97 | | 35.97 | | 35.97 | | | NAV per Share | $/share | 19.53 | | 41.05 | | 62.48 | |

1 Based on estimated unaudited 2024 year-end Net Debt of $682 million comprised of Senior Notes of $787 million (gross) less cash and cash equivalents of $104 million, prepared in accordance with GAAP.

As of December 31, 2024, Gran Tierra achieved: Before Tax NAV of $1.3 billion (1P), $2.6 billion (2P), and $3.8 billion (3P) After Tax NAV of $0.7 billion (1P), $1.5 billion (2P), and $2.2 billion (3P) Strong reserves replacement ratios* of: 702% 1P, with 1P reserves additions of 89 MMBOE 1,249% 2P, with 2P reserves additions of 159 MMBOE 1,500% 3P, with 3P reserves additions of 191 MMBOE

Finding, development and acquisition costs ( “FD&A” ), including change in future development costs ( “FDC” ), on a per boe basis of $9.74 (1P), $8.11 (2P) and $6.92 (3P). FD&A costs excluding change in FDC, on a per boe basis of $4.49 (1P), $2.52 (2P) and $2.10 (3P).

Canada now represents 46% of 1P and 51% of 2P reserves compared to Gran Tierra’s total reserves. FDC are forecast by McDaniel to be $1,029 million for 1P reserves and $1,809 million for 2P reserves. Gran Tierra’s 2025 base case mid-point guidance for cash flow of $280 million is equivalent to 27% of such 1P FDC and 15% of 2P FDC, which highlights the Company’s potential ability to fund future development capital. Increases in FDC relative to 2023 year-end reflect that the GTE McDaniel Reserves Report now assigns Gran Tierra 227 Proved Undeveloped future drilling locations (up from 95 at 2023 year-end) and 441 Proved plus Probable Undeveloped future drilling locations (up from 147 at 2023 year-end).

*The reserve replacement ratios were calculated based on an annualized production figure based on November and December for Canada plus Colombia and Ecuador actual production, in each case, for the fourth quarter of 2024. The total production rate was 46,619 BOEPD. “Cash flow” refers to GAAP line item “net cash provided by operating activities”. Gran Tierra’s 2025 base case guidance is based on a forecast 2025 average Brent oil price of $75/bbl. See Gran Tierra’s press release dated January 23, 2025 for additional information regarding cash flow guidance referred to herein. This forecast price used in Gran Tierra’s forecast is lower than the 2025 McDaniel Brent price forecast.

GTE McDaniel Reserves Report

All reserves values, future net revenue and ancillary information contained in this press release have been prepared by McDaniel and calculated in compliance with Canadian National Instrument 51-101 – _Standards of Disclosure for Oil and Gas Activities _( “NI 51-101” ) and the Canadian Oil and Gas Evaluation Handbook ( “COGEH” ) and derived from the GTE McDaniel Reserves Report, unless otherwise expressly stated.

Future Net Revenue

Future net revenue reflects McDaniel’s forecast of revenue estimated using forecast prices and costs, arising from the anticipated development and production of reserves, after the deduction of royalties, operating costs, development costs and abandonment and reclamation costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses. The estimate of future net revenue below does not necessarily represent fair market value.

| Consolidated Properties at December 31, 2024 | | | | | | | | | | | | | | | Proved (1P) Total Future Net Revenue ($ million) | | | | | | | | | | | | | | | Forecast Prices and Costs | | | | | | | | | | | | | | | | Sales Revenue | Total Royalties | Operating Costs | Future Development Capital | Abandonment and Reclamation Costs | Future Net Revenue Before Future Taxes | Future Taxes | Future Net Revenue After Future Taxes* | | | | | | | 2025-2029 (5 Years) | 5,139 | (981 | ) | (1,385 | ) | (1,025 | ) | (27 | ) | 1,721 | (491 | ) | 1,230 | | Remainder | 3,617 | (578 | ) | (1,549 | ) | (4 | ) | (377 | ) | 1,109 | (370 | ) | 739 | | Total (Undiscounted) | 8,756 | (1,559 | ) | (2,934 | ) | (1,029 | ) | (404 | ) | 2,830 | (861 | ) | 1,969 | | Total (Discounted @ 10%) | | | | | | 1,950 | (565 | ) | 1,385 | | | | |

| Consolidated Properties at December 31, 2024 | | | | | | | | | | | | | | | Proved Plus Probable (2P) Total Future Net Revenue ($ million) | | | | | | | | | | | | | | | Forecast Prices and Costs | | | | | | | | | | | | | | | Years | Sales Revenue | Total Royalties | Operating Costs | Future Development Capital | Abandonment and Reclamation Costs | Future Net Revenue Before Future Taxes | Future Taxes | Future Net Revenue After Future Taxes* | | | | | | | 2025-2029 (5 Years) | 6,620 | (1,297 | ) | (1,583 | ) | (1,438 | ) | (25 | ) | 2,277 | (791 | ) | 1,486 | | Remainder | 8,685 | (1,529 | ) | (2,967 | ) | (371 | ) | (420 | ) | 3,398 | (1,082 | ) | 2,316 | | Total (Undiscounted) | 15,305 | (2,826 | ) | (4,550 | ) | (1,809 | ) | (445 | ) | 5,675 | (1,873 | ) | 3,802 | | Total (Discounted @ 10%) | | | | | | 3,242 | (1,083 | ) | 2,159 | | | | |

| Consolidated Properties at December 31, 2024 | | | | | | | | | | | | | | | Proved Plus Probable Plus Possible (3P) Total Future Net Revenue ($ million) | | | | | | | | | | | | | | | Forecast Prices and Costs | | | | | | | | | | | | | | | Years | Sales Revenue | Total Royalties | Operating Costs | Future Development Capital | Abandonment and Reclamation Costs | Future Net Revenue Before Future Taxes | Future Taxes | Future Net Revenue After Future Taxes* | | | | | | | 2025-2029 (5 Years) | 7,490 | (1,467 | ) | (1,672 | ) | (1,563 | ) | (25 | ) | 2,763 | (1,015 | ) | 1,748 | | Remainder | 13,422 | (2,598 | ) | (4,106 | ) | (519 | ) | (439 | ) | 5,760 | (1,907 | ) | 3,853 | | Total (Undiscounted) | 20,912 | (4,065 | ) | (5,778 | ) | (2,082 | ) | (464 | ) | 8,523 | (2,922 | ) | 5,601 | | Total (Discounted @ 10%) | | | | | | 4,517 | (1,587 | ) | 2,930 | | | | |

*The after-tax future net revenue of the Company’s oil and gas properties reflects the tax burden on the properties on a stand-alone basis. It does not consider the corporate tax situation, or tax planning. It does not provide an estimate of the value at the Company level which may be significantly different. The Company’s financial statements, when available for the year ended December 31, 2024, should be consulted for information at the Company level.

Total Company WI Reserves

The following table summarizes Gran Tierra’s NI 51-101 and COGEH compliant reserves in aggregate for Colombia, Ecuador and Canada derived from the GTE McDaniel Reserves Report calculated using forecast oil and gas prices and costs.

| | Light and Medium Crude Oil | Heavy Crude Oil | Tight Oil | Conventional Natural Gas | Shale Gas | Natural Gas Liquids | 2024 Year-End | | Reserves Category | Mbbl* | Mbbl* | Mbbl* | MMcf | MMcf | Mbbl* | Mboe* | | Proved Developed Producing | 25,539 | 20,631 | 329 | 123,192 | 2,302 | 14,464 | 81,877 | | Proved Developed Non-Producing | 1,864 | 1,256 | 18 | 5,769 | 47 | 746 | 4,852 | | Proved Undeveloped | 26,529 | 22,491 | 3,040 | 81,541 | 16,785 | 11,476 | 79,923 | | Total Proved | 53,932 | 44,378 | 3,387 | 210,502 | 19,134 | 26,686 | 166,652 | | Total Probable | 30,480 | 27,532 | 6,092 | 196,621 | 32,869 | 24,036 | 126,388 | | Total Proved plus Probable | 84,412 | 71,910 | 9,479 | 407,123 | 52,003 | 50,722 | 293,040 | | Total Possible | 27,606 | 29,916 | 2,848 | 99,333 | 14,506 | 12,317 | 91,659 | | Total Proved plus Probable plus Possible | 112,018 | 101,826 | 12,327 | 506,456 | 66,509 | 63,039 | 384,699 |

*Mbbl (thousand bbl of oil). MMcf (million cubic feet). *Mboe (thousand boe).

Net Present Value Summary

Gran Tierra’s reserves were evaluated using the average of three independent qualified reserves evaluators’ commodity price forecasts at January 1, 2025 (McDaniel, Sproule and GLJ). See “Forecast Prices” for more information. It should not be assumed that the net present value of cash flow estimated by McDaniel represents the fair market value of Gran Tierra’s reserves.

| Total Company | Discount Rate | | | | | | ($ millions) | 0% | 5% | 10% | 15% | 20% | | Before Tax | | | | | | | Proved Developed Producing | 1,288,263 | 1,269,021 | 1,143,703 | 1,032,260 | 941,153 | | Proved Developed Non-Producing | 119,025 | 98,908 | 84,070 | 72,745 | 63,864 | | Proved Undeveloped | 1,422,638 | 1,002,220 | 722,242 | 527,670 | 387,664 | | Total Proved | 2,829,926 | 2,370,149 | 1,950,015 | 1,632,675 | 1,392,681 | | Total Probable | 2,842,656 | 1,852,742 | 1,292,189 | 945,677 | 717,447 | | Total Proved plus Probable | 5,672,582 | 4,222,891 | 3,242,204 | 2,578,352 | 2,110,128 | | Total Possible | 2,848,360 | 1,835,802 | 1,274,763 | 931,210 | 706,630 | | Total Proved plus Probable plus Possible | 8,520,942 | 6,058,693 | 4,516,967 | 3,509,562 | 2,816,758 | | After Tax | | | | | | | Proved Developed Producing | 984,109 | 1,012,837 | 921,809 | 835,838 | 764,272 | | Proved Developed Non-Producing | 82,049 | 67,860 | 57,418 | 49,460 | 43,223 | | Proved Undeveloped | 902,725 | 603,616 | 405,947 | 269,984 | 173,307 | | Total Proved | 1,968,883 | 1,684,313 | 1,385,174 | 1,155,282 | 980,802 | | Total Probable | 1,831,204 | 1,148,223 | 773,804 | 548,846 | 404,333 | | Total Proved plus Probable | 3,800,087 | 2,832,536 | 2,158,978 | 1,704,128 | 1,385,135 | | Total Possible | 1,799,304 | 1,130,855 | 770,970 | 554,619 | 415,175 | | Total Proved plus Probable plus Possible | 5,599,391 | 3,963,391 | 2,929,948 | 2,258,747 | 1,800,310 |

Reserve Life Index (Years)

| | December 31, 2024* | | | | Total Proved | 10 | | | | Total Proved plus Probable | 17 | | | | Total Proved plus Probable plus Possible | 23 | | |

Calculated using an annualized WI production figure based on November and December 2024 for Canada plus Colombia and Ecuador actual average WI production, in each case, for the fourth quarter of 2024. The total production rate was 46,619 BOEPD.

Future Development Costs

FDC reflects McDaniel’s best estimate of what it will cost to bring the Proved Undeveloped and Probable Undeveloped reserves on production. Changes in forecast FDC occur annually as a result of development activities, acquisition and disposition activities, and changes in capital cost estimates based on improvements in well design and performance, as well as changes in service costs. FDC for 2P reserves increased to $1,809 million at year-end 2024 from $923 million at year-end 2023. The increase in FDC in 2024 was predominantly attributed to the acquisition of i3 Energy plc in 2024.

| ($ millions) | Total Proved | Total Proved Plus Probable | Total Proved Plus Probable Plus Possible | | 2025 | 141 | 147 | 153 | | 2026 | 343 | 379 | 387 | | 2027 | 291 | 380 | 388 | | 2028 | 135 | 311 | 358 | | 2029 | 115 | 221 | 277 | | Remainder | 4 | 371 | 519 | | Total (undiscounted) | 1,029 | 1,809 | 2,082 |

| ($ millions) | Proved | Proved plus Probable | Proved plus Probable plus Possible | | Acordionero | 175 | 175 | 175 | | Chaza Block (Costayaco & Moqueta) | 138 | 163 | 163 | | Suroriente | 130 | 213 | 292 | | Ecuador | 212 | 331 | 428 | | Canada - Central | 179 | 378 | 378 | | Canada - Simonette | 106 | 238 | 238 | | Other | 89 | 311 | 408 | | Total FDC Costs (undiscounted) | 1,029 | 1,809 | 2,082 |

Finding, Development and Acquisition Costs

Finding, Development and Acquisition Costs, Excluding FDC *

Finding, Development and Acquisition Costs, Including FDC *

Finding, Development and Acquisition Costs, Excluding FDC *

Finding, Development and Acquisition Costs, Including FDC *

Finding, Development and Acquisition Costs, Excluding FDC *

Finding, Development and Acquisition Costs, Including FDC *

Finding, Development and Acquisition Costs, Excluding FDC *

Finding, Development and Acquisition Costs, Including FDC *

*In all cases, the FD&A number is calculated by dividing the identified capital expenditures by the applicable reserves additions both before and after changes in FDC costs. Both FD&A costs take into account reserves revisions during the year on a per boe basis. The aggregate of the exploration and development costs incurred in the financial year and the changes during that year in estimated future development costs may not reflect the total FD&A costs related to reserves additions for that year.

Forecast Prices

The pricing assumptions used in estimating NI 51-101 and COGEH compliant reserves data disclosed above with respect to net present values of future net revenue are set forth below. The price forecasts are based on an average of three independent qualified reserves evaluators’ commodity price forecasts at January 1, 2025 (McDaniel, Sproule and GLJ). All three of these companies are independent qualified reserves evaluators and auditors pursuant to NI 51-101.

| | Brent Crude Oil | WTI Crude Oil | Alberta AECO Gas | Foreign Exchange Rate | | Year | $US/bbl | $US/bbl | $CAD/MMBtu | $US/$CAD | | | January 1, 2025 | January 1, 2025 | January 1, 2025 | January 1, 2025 | | 2025 | $ 75.58 | $ 71.58 | $ 2.36 | 0.712 | | 2026 | $ 78.51 | $ 74.48 | $ 3.33 | 0.728 | | 2027 | $ 79.89 | $ 75.81 | $ 3.48 | 0.743 | | 2028 | $ 81.82 | $ 77.66 | $ 3.69 | 0.743 | | 2029 | $ 83.46 | $ 79.22 | $ 3.76 | 0.743 |

Contact Information

For investor and media inquiries please contact:

Gary Guidry, Chief Executive Officer Ryan Ellson, Executive Vice President & Chief Financial Officer +1-403-265-3221 info@grantierra.com

About Gran Tierra Energy Inc.

Gran Tierra Energy Inc., together with its subsidiaries, is an independent international energy company currently focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Canada, Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company’s portfolio. The Company’s common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company’s website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may be directed to info@grantierra.com or (403) 265-3221.

Gran Tierra Energy Inc. Reports Robust Reserves Replacement and Record High Reserves

Highlights

GTE McDaniel Reserves Report

Future Net Revenue

Total Company WI Reserves

Net Present Value Summary

Reserve Life Index (Years)

Future Development Costs

Finding, Development and Acquisition Costs

Forecast Prices

Contact Information

About Gran Tierra Energy Inc.

Earlier from Gran Tierra Energy Inc.