Contacts:
Dana Coffield | Al Palombo |
Gran Tierra Energy, Inc. | Cameron Associates |
President & Chief Executive Officer | Investor Relations |
(800) 916-4873 | (212) 245-8800 Ext. 209 |
info@grantierra.com | al@cameronassoc.com |
GRAN TIERRA ENERGY REPORTS FIRST QUARTER 2007 RESULTS OF OPERATIONS
Company Advances Exploration Drilling Program and Grows Production
CALGARY, Alberta, May 15, 2007, Gran Tierra Energy Inc. (OTCBB: GTRE.OB) a company focused on oil exploration and production in South America, today announced the financial results of operations for the quarter ended March 31, 2007.
Total revenue for the quarter was $4.5 million as compared to $1.0 million for same quarter of 2006. Net loss for the quarter amounted to $6.7 million or $(0.07) per share as compared to a net loss of $1.2 million or $(0.03) per share for the comparable quarter of 2006. Included in the first quarter losses are expenses in the amount of $4.1 million in liquidated damages relating to the potential amount payable to stockholders who participated in a 2006 financing whereby the registration statement for the 50 million units sold during the raise had yet to become effective. The registration of these shares became effective May 14, 2007. There was no comparable expense in the first quarter of 2006.
The company reported cash and cash equivalents of $13.3 million at the end of the first quarter of 2007 as compared to $24 million at December 31, 2006. Total working capital reported at the end of the quarter was $7.0 million as compared to $14.3 million at December 31, 2006. Shareholders’ equity decreased from approximately $76.2 million at December 31, 2006 to $69.7 million at March 31, 2007. The company reported no outstanding long-term debt.
Oil and condensate production for the quarter ended March 31, 2007 averaged at 1,260 barrels per day, net after royalty. This is up from approximately 1,050 barrels per day for the fourth quarter of 2006 as a result of drilling activity.
The company reports that it has drilled and completed seven wells to date in 2007. The first well, Puesto Climaco-2D in Argentina, was successful and is currently producing oil. The company drilled and completed six exploration wells in Colombia. Four were dry holes which included the Laura-1 in the Talora Block, the Caneyes-1 in the Rio Magdalena Block, and the Soyona-1 and Cachapa-1 wells in the Primavera Block. The company’s share of capital in three of the dry holes was funded by joint venture partners resulting in no expended capital on those wells by Gran Tierra. The two remaining wells, Juanambu-1 and Costayaco-1 have both encountered oil. Juanambu-1 is currently testing the productivity of the reservoirs and Costayaco-1 will begin testing upon completion of the Juanambu-1 tests.
The company has working interests in 18 exploration and production contracts, in three countries, Argentina, Colombia, and Peru which encompass approximately 6.2 million acres of land. The vast majority of this land is operated by Gran Tierra, bringing its net acreage position to 5.3 million acres. At the end of 2006 the company reported that it had 3.0 million barrels of externally audited proved oil reserves.
Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy, Inc., commented, “As the first quarter numbers reflect, we have continued making the appropriate investments of capital relating to drilling opportunities resulting from the land acquisitions completed throughout 2006. Our drilling programs in both Colombia and Argentina have begun in earnest and we are very pleased with our progress and results to date.”
Conference Call Information:
Gran Tierra Energy, Inc. will hold a conference call to review its first quarter and results on Tuesday, May 15, 2007 at 11:00 a.m. Eastern. The call will be hosted by Dana Coffield, President and Chief Executive Officer. Interested parties may access the conference call by dialing (866) 578-5747 (domestic) or (617) 213-8054 (international), pass code # 22520344. The call will also be available via web cast at www.grantierra.com, http://www.streetevents.com, http://www.fulldisclosure.com and will be available on the Gran Tierra website until the next earnings conference call
If you are unable to participate, an audio replay of the call will be available beginning two hours after the call and will be available until 11:59 p.m. on April 7, 207 by dialing (888) 286-8010 (domestic) or (617) 801-6888 (international) using confirmation pass code 26306681.
About Gran Tierra Energy Inc.
Gran Tierra Energy, Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated and traded in the United States and operating in South America. The Company holds interests in producing and prospective properties in Argentina, Colombia and Peru. To date, the Company has pursued a strategy that focuses on establishing a portfolio of producing properties, development and exploration opportunities, through selective acquisitions, to provide a base for future growth. Additional information concerning Gran Tierra is available at www.grantierra.com. Investor inquiries may be directed to info@grantierra.com or 1-800-916-GTRE (4873).
Financial Tables to Follow
Gran Tierra Energy Inc. |
Consolidated Balance Sheet (Stated in US dollars) |
| | | | March 31,
2007 | | | December 31,
2006 | |
| | | | (unaudited) | | | | |
ASSETS | | | | | | | |
| Current assets | | | | | | | |
| Cash and cash equivalents | | $ | 13,313,573 | | $ | 24,100,780 | |
| Restricted cash | | | 1,280,951 | | | 2,291,360 | |
| Accounts receivable | | | 7,870,012 | | | 5,089,561 | |
| Inventory | | | 553,232 | | | 811,991 | |
| Taxes receivable | | | 1,184,078 | | | 404,120 | |
| Prepaids | | | 629,550 | | | 676,524 | |
| Total Current Assets | | | 24,831,396 | | | 33,374,336 | |
| Oil and gas properties, using the full cost method of accounting | | | |
| Proved | | | 40,339,042 | | | 37,760,231 | |
| Unproved | | | 18,423,141 | | | 18,333,054 | |
| Total Oil and Gas Properties | | | 58,762,183 | | | 56,093,285 | |
| Other assets | | | 768,772 | | | 614,104 | |
| Total Property, Plant and Equipment | | | 59,530,955 | | | 56,707,389 | |
| Long term assets |
| Deferred tax asset | | | 127,201 | | | 444,324 | |
| Long term investment | | | 383,018 | | | 379,678 | |
| Goodwill | | | 15,005,083 | | | 15,005,083 | |
| Total Long Term Assets | | | 15,515,302 | | | 15,829,085 | |
Total Assets | | $ | 99,877,653 | | $ | 105,910,809 | |
| | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY |
| Current liabilities | | | | | | | |
| Accounts payable | | $ | 7,075,754 | | $ | 6,729,839 | |
| Accrued liabilities | | | 4,662,182 | | | 9,199,820 | |
| Liquidated damages | | | 5,390,215 | | | 1,527,988 | |
| Current taxes payable | | | 727,875 | | | 1,642,045 | |
| Total Current Liabilities | | | 17,856,026 | | | 19,099,692 | |
| | | | | | | | |
| Long term liabilities | | | 418,983 | | | 412,929 | |
| Deferred tax liability | | | 10,916,334 | | | 9,875,657 | |
| Derivative financial instruments | | | 657,000 | | | - | |
| Asset retirement obligation | | | 334,871 | | | 327,752 | |
| Total Long Term Liabilities | | | 12,327,188 | | | 10,616,338 | |
| Shareholders' equity | | | | | | | |
| Common shares | | | 95,455 | | | 95,455 | |
| (79,582,754 common shares and 15,873,011 exchangeable shares, par value $0.001 per share, issued and outstanding) | | | | | | | |
| (2006 common and exchangeable shares respectively 78,789,104 and 16,666,661) | | | | | | | |
| Additional paid in capital | | | 71,460,999 | | | 71,311,155 | |
| Warrants | | | 12,831,553 | | | 12,831,553 | |
| Accumulated deficit | | | (14,693,568 | ) | | (8,043,384 | ) |
| Total Shareholders' Equity | | | 69,694,439 | | | 76,194,779 | |
Total Liabilities and Shareholders' Equity | | $ | 99,877,653 | | $ | 105,910,809 | |
Gran Tierra Energy Inc. |
Consolidated Statement of Operations and Accumulated Deficit (unaudited) |
(Stated in US dollars) | | |
| | |
| | | |
| | | |
| | | | Three Months Ended March 31, | |
| | | | 2007 | | | 2006 | |
REVENUE AND OTHER INCOME | | | | | | | |
| Oil sales | | $ | 4,276,049 | | $ | 1,049,629 | |
| Natural gas sales | | | 48,127 | | | - | |
| Interest | | | 192,654 | | | - | |
| | | | 4,516,830 | | | 1,049,629 | |
EXPENSES | | | | | | | |
| Operating | | | 2,180,824 | | | 353,080 | |
| Depletion, depreciation and accretion | | | 2,324,074 | | | 362,475 | |
| General and administrative | | | 1,939,122 | | | 1,591,029 | |
| Liquidated damages | | | 4,132,150 | | | - | |
| Derivative financial instruments | | | 657,000 | | | - | |
| Foreign exchange loss | | | 232,252 | | | (95,464 | ) |
| | | | 11,465,422 | | | 2,211,120 | |
| | | | | | | | |
LOSS BEFORE INCOME TAX | | | (6,948,592 | ) | | (1,161,491 | ) |
| Income tax | | | 298,408 | | | (57,457 | ) |
NET LOSS | | $ | (6,650,184 | ) | $ | (1,218,948 | ) |
| | | | | | | | |
| ACCUMULATED DEFICIT, beginning of period | | | (8,043,384 | ) | | (2,219,680 | ) |
ACCUMULATED DEFICIT, end of period | | $ | (14,693,568 | ) | $ | (3,438,628 | ) |
| | | | | | | | |
| NET LOSS PER COMMON SHARE - BASIC & DILUTED | | | (0.07 | ) | | (0.03 | ) |
| | | | | | | | |
Weighted average common shares outstanding - basic & diluted | | | 95,455,765 | | | 44,176,362 | |
