| 100% WI | Asset Sold 50% WI | ||
| Consideration 2 | – | $52 million | |
| Net Sections of Land | 49 | 25 | |
| PDP books | 1.6 MMBOE | 0.8 MMBOE | |
| 1P books | 7.8 MMBOE | 3.9 MMBOE | |
| 2P books | 27.6 MMBOE | 13.8 MMBOE | |
| NPV AT 10% | NPV AT 10% | ||
| PDP | $8.8 million | $4.4 million | |
| 1P | $55.0 million | $27.5 million | |
| 2P | $244.6 million | $122.3 million | |
| Q3 2024 Production | 1,590 BOEPD | 795 BOEPD | |
The Company retains a 50% functioning ardour within the Assets, that embody round 25 web areas of Simonette Montney lands with 0.8 million bbls of oil matching (“ MMBOE ”) of Proved Developed Producing (“ PDP ”) books, 3.9 MMBOE of Proved (“ 1P ”) books and 13.8 MMBOE of (“ 2P ”) books, in every state of affairs, as at July 31, 20241. On an web present value marked down by 10% after tax obligation foundation, the Assets have been valued by GLJLtd at $4.4 million for Proved Developed Producing books, $27.5 million for Proved books and $122.3 million for Proved plus Probable books. Finally, the Assets and talked about NPVs encompass Logan’s buy of Gran Tierra’s complete ardour within the gross bypassing aristocracy over Logan’s land within the matching location of the Simonette Montney play.
Consideration
In enhancement to the preliminary money cash issue to contemplate, Logan will definitely lug the preliminary development properly within the Lower Montney space valued at $3 million internet toGran Tierra Gran Tierra will definitely get high precedence accessibility and particular phrases on present Logan had framework as part of the lately developed joint endeavor.
Transaction Details
Total issue to contemplate from Logan consists of $52 million in money cash earnings and introduced development of the preliminary Simonette properly pierced within the Lower Montney space for approximated non-cash earnings of $3 million internet toGran Tierra The acquisition value will definitely endure standard modifications primarily based upon a dependable day of September 1, 2024. As an end result of the acquisition, Gran Tierra anticipates to hurry up 2 wells on the 1-24 pad within the Simonette Montney location proper into the 4th quarter of 2024 which have been initially anticipated to be pierced within the preliminary quarter of 2026. Closing of the acquisition is anticipated to happen by the tip of 2024, primarily based on the success of standard closing issues.
( 1) Based on the i3 Energy GLJ Report outdated July 31, 2024. See“Presentation of Oil and Gas Information”.
( 2) Does not encompass the $3 million non-cash earnings associating with the funding lug of the preliminary Simonette properly by Logan
Contact Information
For financier and media questions please name:
Gary Guidry
President & & Chief Executive Officer
Ryan Ellson
Executive Vice President &Chief Financial Officer
+1 -403 -265 -3221
…
About Gran Tierra Energy Inc
Gran Tierra Energy Inc together with its subsidiaries is an impartial international energy agency presently focused on oil and gasoline expedition and manufacturing in Canada, Colombia andEcuador The Company is presently establishing its present profile of properties in Canada, Colombia and Ecuador and will definitely stay to go after added brand-new growth possibilities that will surely higher improve the Company’s profile. The Company’s odd shares professions on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange below the ticker icon GTE. Additional data worrying Gran Tierra is obtainable at Except to the extent particularly talked about or else, data on the Company’s website or simply accessible from our website or any sort of numerous different website isn’t built-in by advice proper into and must not be considered part of this information launch. Investor questions is perhaps routed to … or (403) 265-3221.
Gran Tierra’s Securities and Exchange Commission (the“ SEC ”) filings are provided on the SEC website at The Company’s Canadian safeties governing filings are provided on SEDAR+ at and UK governing filings are provided on the National Storage Mechanism website at #/ nsm/nationalstoragemechanism.
Forward Looking Statements and Legal Advisories:
This information launch contains level of views, projections, estimates, and numerous different declarations concerning future events or outcomes that make up progressive declarations inside the significance of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as modified, and Section 21E of the Securities Exchange Act of 1934, as modified, and financial overview and onward wanting data inside the significance of applicable Canadian safeties laws (collectively,“ forward-looking statements ”). All declarations moreover declarations of historic realities consisted of on this information launch regarding our firm approach, methods and objectives of our administration for future procedures, capital expense methods and benefits of the changes in our funding program or bills, our liquidity and financial downside, and people declarations come earlier than by, adhered to by or that or else encompass phrases“expect,”“plan,”“can,”“will,”“should,”“estimate,” and“believes,” derivations thereof and comparable phrases decide progressive declarations. In particular, nonetheless with out limiting the foregoing, this information launch contains progressive declarations pertaining to: some great benefits of the acquisition, making use of earnings from the sale of a ardour within the Assets, the Company’s boring program, accessibility to framework and capital funding, future web capital from oil and gasoline residential or business properties, and the Company’s future monetary obligation levels. The progressive declarations had on this information launch mirror quite a few product parts and assumptions and presumptions of Gran Tierra consisting of, with out constraint, that Gran Tierra will definitely stay to carry out its procedures in a style common with its present assumptions, charges and worth quotes (consisting of relative to asset charges and forex trade charge), the potential of Gran Tierra to effectively set up and pierce wells, the effectivity of Logan as driver of the Assets, and the potential of Gran Tierra to implement its firm and practical methods within the style presently ready.
Among the important parts that may set off our actual outcomes to range materially from the progressive declarations on this information launch encompass, nonetheless usually are not restricted to effectivity by Logan as driver in a style numerous than presently anticipated by the Company and the weather described now and again in Gran Tierra’s common information submitted with the Securities and Exchange Commission, consisting of, with out constraint, below the inscription“Risk Factors” in Gran Tierra’s Annual Report on Form 10-Ok for the 12 months completed December 31, 2023 submitted February 20, 2024, and its numerous different filings with the SEC. These filings are provided on the SEC website at and on SEDAR+ at
The progressive declarations had on this information launch are primarily based upon particular presumptions made by Gran Tierra primarily based upon administration’s expertise and numerous different parts regarded as appropriate. Gran Tierra thinks these presumptions to be wise at the moment, nonetheless the progressive declarations endure run the danger of and unpredictabilities, a lot of that are previous Gran Tierra’s management, which could set off actual outcomes to range materially from these indicated or revealed by the ahead wanting declarations. All progressive declarations are made for the reason that day of this information launch and the reality that this information launch stays provided doesn’t make up an outline by Gran Tierra that Gran Tierra thinks these progressive declarations stay to carry true since any sort of succeeding day. Actual outcomes may differ materially from the anticipated outcomes revealed in progressive declarations. Gran Tierra disclaims any sort of intent or duty to improve or change any sort of progressive declarations, whether or not as an end result of brand-new data, future events or in any other case, apart from as particularly wanted by applicable laws. In enhancement, historic, present and progressive sustainability-related declarations is perhaps primarily based upon standards for figuring out growth which can be nonetheless establishing, inside controls and procedures that stay to progress, and presumptions that endure alter sooner or later.
Presentation of Oil and Gas Information
All books value, future web earnings and supplementary data had on this information launch have really been ready by i3 Energy plc’s (“ i3 Energy ”) (which was gotten by Gran Tierra Energy on October 31, 2024) impartial skilled books critic GLJLtd (“ GLJ ”) in an affordable market worth document with a dependable day of July 31, 2024 (the“ i3 Energy GLJ Report ”) and computed in conformity with National Instrument 51-101– Standards of Disclosure for Oil and Gas Activities (“ NI 51-101 ”) and the Canadian Oil and Gas Evaluation Handbook (“ COGEH ”), until or else particularly talked about.
Barrel of oil matchings (“ boe ”) have really been remodeled on the premise of 6 thousand cubic toes (“ Mcf ”) gasoline to 1 bbl of oil. Boe’s is perhaps misleading, particularly if made use of alone. A boe conversion proportion of 6 Mcf: 1 bbl is predicated upon an influence similarity conversion method largely applicable on the heater thought and doesn’t stand for a value similarity on the wellhead. In enhancement, thought of that the price proportion primarily based upon the present value of oil as in comparison with gasoline is dramatically numerous from the ability matching of 6 to 1, utilizing a boe conversion proportion of 6 Mcf: 1 bbl will surely be misleading as an indicator of value.
The complying with books classifications are talked about on this information launch: Proved, Proved plus Probable and Proved plus Probable plus Possible andProved Developed Producing Proved books are these books that may be approximated with a excessive degree of assurance to be recoverable. It is most probably that the true staying quantities recuperated will definitely transcend the approximated confirmed books. Probable books are these added books which can be a lot much less particular to be recuperated than confirmed books. It is simply as most probably that the true staying quantities recuperated will definitely be higher or a lot lower than the quantity of the approximated verified plus doable books. Possible books are these added books which can be a lot much less particular to be recuperated than doable books. There is a ten% risk that the quantities actually recuperated will definitely equate to or transcend the quantity of Proved plus Probable plus Possible books. Proved created producing books are these confirmed books which can be anticipated to be recuperated from conclusion durations open on the time of the quote. These books is perhaps presently producing or, if shut-in, they must have previously gotten on manufacturing, and the day of resumption of producing must be acknowledged with wise assurance. Certain phrases made use of on this information launch nonetheless not specified are laid out in NI 51-101, CSA Staff Notice 51-324– Revised Glossary to NI 51-101 Standards of Disclosure for Oil and Gas Activities (“ CSA Staff Notice 51-324 ”) and/or the COGEH and, until the context or else wants, could have the very same definitions right here as in NI 51-101, CSA Staff Notice 51-324 and the COGEH, most likely.
Estimates of web present value and future web earnings had right here don’t all the time stand for cheap market worth. Estimates of books and future web earnings for particular residential or business properties won’t mirror the very same diploma of self-confidence as quotes of books and future web earnings for all residential or business properties, because of the impression of gathering. There is not any assure that the projection value and worth presumptions utilized by GLJ in analyzing i3 Energy’s books will definitely be obtained and variations will be product. There are numerous unpredictabilities integral in approximating quantities of petroleum and gasoline books. The books data acknowledged within the i3 Energy GLJ Report are quotes simply and there’s no guarantee that the projected books will definitely be recuperated. Actual books is perhaps greater than or a lot lower than the quotes equipped therein. All examinations of future web earnings had within the i3 Energy GLJ Report need the discount of aristocracies, operating costs, development costs, manufacturing costs and desertion and restoration costs nonetheless previous to issue to contemplate of oblique costs corresponding to administration, overhanging and numerous different numerous prices. It should not be thought that the quotes of future web earnings offered on this information launch stand for the cheap market worth of the books.
References to a growth the place proof of hydrocarbons has really been run into isn’t all the time an indication that hydrocarbons will definitely be recoverable in industrial quantities or in any sort of projected amount. i3 Energy’s reported manufacturing is a mixture of gentle petroleum and power, hefty petroleum, restricted oil, customary gasoline, shale gasoline and coal mattress methane for which there’s not an correct failure as a result of i3 Energy’s oil gross sales portions generally stand for blends of higher than one merchandise variety. Well examination outcomes should be considered as preliminary and never all the time a measure of long-lasting effectivity or of finest recuperation. Well log analyses displaying oil and gasoline build-ups usually are not all the time a measure of future manufacturing or finest recuperation. If it’s instructed {that a} stress short-term analysis or well-test evaluation has really not been carried out, any sort of data divulged in that regard must be considered preliminary up till such analysis has really been completed. References to density of“oil pay” or of a growth the place proof of hydrocarbons has really been run into isn’t all the time an indication that hydrocarbons will definitely be recoverable in industrial quantities or in any sort of projected amount.
Disclosure of Reserve Information and Cautionary Note to UNITED STATE Investors
Unless particularly talked about or else, all quotes of verified, doable and possible books and related future web earnings divulged on this information launch have really been ready in line with NI 51-101. Estimates of books and future web earnings made in line with NI 51-101 will definitely range from matching quotes ready in line with applicable SEC insurance policies and disclosure wants of the united state Financial Accounting Standards Board (“ FASB ”), and people distinctions is perhaps product. NI 51-101, for instance, wants disclosure of books and related future internet earnings approximates primarily based upon projection prices and costs, whereas SEC and FASB standards name for that books and related future web earnings be approximated making use of typical prices for the earlier one 12 months. In enhancement, NI 51-101 permits the dialogue of books approximates on a“company gross” foundation, standing for Gran Tierra’s functioning ardour share previous to discount of aristocracies, whereas SEC and FASB standards name for the dialogue of web e book quotes after the discount of aristocracies and comparable repayments. There are moreover distinctions within the technological books analysis standards applicable below NI 51-101 and, pursuant thereto, the COGEH, and people applicable below SEC and FASB wants.
In enhancement to being a reporting firm in particular Canadian territories, Gran Tierra is a registrant with the SEC and primarily based on residential firm protection wants below united state authorities safeties laws, consisting of relative to the disclosure of books and numerous different oil and gasoline data in line with united state authorities safeties laws and applicable SEC insurance policies and pointers (collectively,“ SEC requirements ”). Disclosure of such data in line with SEC wants is consisted of within the Company’s Annual Report on Form 10-Ok and in numerous different information and merchandise submitted with or outfitted to the SEC and, as applicable, Canadian safeties governing authorities. The SEC permits oil and gasoline companies that endure residential firm protection wants below united state authorities safeties laws, of their filings with the SEC, to disclose simply approximated verified, doable and possible books that fulfill the SEC’s meanings of such phrases. Gran Tierra has really divulged approximated verified, doable and possible books in its filings with the SEC. In enhancement, Gran Tierra prepares its financial declarations in line with United States usually permitted accountancy ideas, which name for that the notes to its yearly financial declarations encompass supplemental disclosure in regard of the Company’s oil and gasoline duties, consisting of quotes of its confirmed oil and gasoline books and a typical process of reasonably priced future web capital associating with verified oil and gasoline e book quantities. This supplemental financial declaration disclosure exists in line with FASB wants, which straighten with matching SEC wants worrying books analysis and protection.
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