Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 28, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | GRAN TIERRA ENERGY INC. | |
Entity Central Index Key | 1,273,441 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 287,962,518 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Oil and natural gas sales | $ 57,403 | $ 76,231 |
EXPENSES | ||
Operating | 19,067 | 22,661 |
Transportation | 12,328 | 8,773 |
Depletion, depreciation and accretion | 36,912 | 49,140 |
Asset impairment | 56,898 | 37,014 |
General and administrative | 8,805 | 7,294 |
Severance | 1,018 | 4,378 |
Equity tax | 3,051 | 3,769 |
Foreign exchange loss (gain) | 785 | (11,538) |
Financial instruments loss (gain) | 845 | (42) |
Total expenses | 139,709 | 121,449 |
Gain on acquisition | 11,712 | 0 |
INTEREST INCOME | 449 | 421 |
LOSS BEFORE INCOME TAXES | (70,145) | (44,797) |
INCOME TAX (EXPENSE) RECOVERY | ||
Current | (2,023) | (2,425) |
Deferred | 27,136 | 2,356 |
Income tax (expense) recovery | 25,113 | (69) |
NET LOSS AND COMPREHENSIVE LOSS | $ (45,032) | $ (44,866) |
NET LOSS PER SHARE - BASIC AND DILUTED (in dollars per share) | $ (0.15) | $ (0.16) |
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC (in shares) | 293,812,226 | 286,194,315 |
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED (in shares) | 293,812,226 | 286,194,315 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 51,308 | $ 145,342 |
Restricted cash | 18,474 | 92 |
Accounts receivable | 35,573 | 29,217 |
Marketable securities | 5,362 | 6,250 |
Inventory | 10,690 | 19,056 |
Taxes receivable | 34,712 | 28,635 |
Other current assets | 5,992 | 5,848 |
Total Current Assets | 162,111 | 234,440 |
Oil and Gas Properties | ||
Proved | 472,062 | 469,589 |
Unproved | 373,899 | 310,771 |
Total Oil and Gas Properties | 845,961 | 780,360 |
Other capital assets | 8,229 | 8,633 |
Total Property, Plant and Equipment | 854,190 | 788,993 |
Other Long-Term Assets | ||
Restricted cash | 6,414 | 3,317 |
Taxes receivable | 8,978 | 8,276 |
Other long-term assets | 13,998 | 8,511 |
Goodwill | 102,581 | 102,581 |
Total Other Long-Term Assets | 131,971 | 122,685 |
Total Assets | 1,148,272 | 1,146,118 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 77,303 | 70,778 |
Taxes payable | 943 | 1,067 |
Asset retirement obligation | 3,255 | 2,146 |
Total Current Liabilities | 81,501 | 73,991 |
Long-Term Liabilities | ||
Deferred tax liabilities | 30,880 | 34,592 |
Asset retirement obligation | 43,205 | 31,078 |
Other long-term liabilities | 8,096 | 4,815 |
Total Long-Term Liabilities | $ 82,181 | $ 70,485 |
Contingencies | ||
Shareholders’ Equity | ||
Common Stock (287,657,518 and 273,442,799 shares of Common Stock and 8,514,066 and 8,572,066 exchangeable shares, par value $0.001 per share, issued and outstanding as at March 31, 2016, and December 31, 2015, respectively) | $ 10,199 | $ 10,186 |
Additional paid in capital | 1,047,830 | 1,019,863 |
Deficit | (73,439) | (28,407) |
Total Shareholders’ Equity | 984,590 | 1,001,642 |
Total Liabilities and Shareholders’ Equity | $ 1,148,272 | $ 1,146,118 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, issued | 287,657,518 | 273,442,799 |
Common shares, outstanding | 287,657,518 | 273,442,799 |
Exchangeable shares, issued | 8,514,066 | 8,572,066 |
Exchangeable shares, outstanding | 8,514,066 | 8,572,066 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net loss | $ (45,032) | $ (44,866) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depletion, depreciation and accretion | 36,912 | 49,140 |
Asset impairment | 56,898 | 37,014 |
Deferred tax recovery | (27,136) | (2,356) |
Stock-based compensation expense (recovery) | 1,460 | (513) |
Cash settlement of restricted share units | (673) | (955) |
Unrealized foreign exchange gain | (183) | (6,069) |
Financial instruments loss (gain) | 845 | (42) |
Cash settlement of financial instruments | 44 | (2,357) |
Cash settlement of asset retirement obligation | (104) | (1,425) |
Gain on acquisition | (11,712) | 0 |
Net change in assets and liabilities from operating activities | (507) | (25,226) |
Net cash provided by operating activities | 10,812 | 2,345 |
Investing Activities | ||
Increase in restricted cash | (10,771) | (497) |
Additions to property, plant and equipment, excluding Corporate acquisitions | (26,180) | (73,446) |
Additions to property, plant and equipment - acquisition of PetroGranada Colombia Limited | (19,388) | 0 |
Changes in non-cash investing working capital | 50 | (54,324) |
Cash paid for acquisition, net of cash acquired | (50,909) | 0 |
Net cash used in investing activities | (107,198) | (128,267) |
Financing Activities | ||
Proceeds from issuance of shares of Common Stock | 1,198 | 502 |
Net cash provided by financing activities | 1,198 | 502 |
Foreign exchange gain (loss) on cash and cash equivalents | 1,154 | (2,968) |
Net decrease in cash and cash equivalents | (94,034) | (128,388) |
Cash and cash equivalents, beginning of period | 145,342 | 331,848 |
Cash and cash equivalents, end of period | $ 51,308 | $ 203,460 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Share Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Beginning balance at Dec. 31, 2014 | $ 10,190 | $ 1,026,873 | $ 239,622 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of Common Stock | 0 | 0 | ||
Exercise of stock options | 722 | |||
Stock-based compensation | 2,263 | |||
Repurchase of shares of Common Stock | (4) | (9,995) | ||
Net loss | (268,029) | |||
Ending balance at Dec. 31, 2015 | $ 1,001,642 | 10,186 | 1,019,863 | (28,407) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of Common Stock | 13 | 25,798 | ||
Exercise of stock options | 1,198 | |||
Stock-based compensation | 971 | |||
Repurchase of shares of Common Stock | 0 | 0 | ||
Net loss | (45,032) | (45,032) | ||
Ending balance at Mar. 31, 2016 | $ 984,590 | $ 10,199 | $ 1,047,830 | $ (73,439) |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Gran Tierra Energy Inc., a Nevada corporation (the “Company” or “Gran Tierra”), is a publicly traded company focused on oil and natural gas exploration and production in Colombia. The Company also has business activities in Peru and Brazil. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies These interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The information furnished herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of results for the interim periods. The note disclosure requirements of annual consolidated financial statements provide additional disclosures to that required for interim unaudited condensed consolidated financial statements. Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements as at and for the year ended December 31, 2015 , included in the Company’s 2015 Annual Report on Form 10-K, filed with the SEC on February 29, 2016 . The Company’s significant accounting policies are described in Note 2 of the consolidated financial statements which are included in the Company’s 2015 Annual Report on Form 10-K and are the same policies followed in these interim unaudited condensed consolidated financial statements. The Company has evaluated all subsequent events through to the date these interim unaudited condensed consolidated financial statements were issued. Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (the "FASB") issued guidance regarding the accounting for revenue from contracts with customers. In August 2015, the FASB issued Accounting Standards Update (“ASU") 2015-14, “Revenue from Contracts with Customers - Deferral of the Effective Date". The ASU defers the effective date of the new revenue recognition model by one year. As a result, the guidance will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)". The amendments in this ASU affect the guidance in ASU 2014-09 and clarify implementation guidance on principal versus agent considerations. The Company is currently assessing the impact the new revenue recognition model will have on its consolidated financial position, results of operations, cash flows, and disclosure. Simplifying the Accounting for Measurement - Period Adjustments In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement - Period Adjustments". The amendments require that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined and eliminates the requirement to retrospectively revise prior periods. Additionally, an acquirer should record in the same period the effects on earnings of any changes in the provisional accounts, calculated as if the accounting had been completed at the acquisition date. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The implementation of this update is not expected to materially impact the Company’s consolidated financial position, results of operations or cash flows or disclosure. Leases In February 2016, the FASB issued ASU 2016-02, “Leases". This ASU will require most lease assets and lease liabilities to be recognized on the balance sheet and the disclosure of key information about lease arrangements. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact the new lease standard will have on its consolidated financial position, results of operations, cash flows, and disclosure. Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting ". This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for forfeitures, income taxes, and statutory tax withholding requirements. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently assessing the impact this update will have on its consolidated financial position, results of operations, cash flows, and disclosure. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On January 13, 2016 (the “Petroamerica Acquisition Date”), the Company acquired all of the issued and outstanding common shares of Petroamerica Oil Corp. ("Petroamerica"), a Canadian corporation, pursuant to the terms and conditions of an arrangement agreement dated November 12, 2015 (the “Arrangement”). The transaction contemplated by the Arrangement was effected through a court approved plan of arrangement in Canada. The Arrangement was approved at a special meeting of Petroamerica shareholders and by the Court of Queen's Bench of Alberta on January 11, 2016. Under the Arrangement, each Petroamerica shareholder was entitled to receive, for each Petroamerica share held, either 0.40 of a Gran Tierra common share or $1.33 Canadian dollars in cash, or a combination of shares and cash, subject to a maximum of 70% of the consideration payable in cash. As consideration for the acquisition of all the issued and outstanding Petroamerica shares, the Company issued approximately 13.7 million shares of Gran Tierra Common Stock, par value $0.001 , and paid cash consideration of approximately $70.6 million . The fair value of Gran Tierra’s Common Stock issued was determined to be $25.8 million based on the closing price of shares of Common Stock of Gran Tierra as at the Petroamerica Acquisition Date. Total net purchase price of Petroamerica was $72.2 million , after giving consideration to net working capital of $24.2 million . Upon completion of the transaction on the Petroamerica Acquisition Date, Petroamerica became an indirect wholly-owned subsidiary of Gran Tierra. The acquisition was accounted for as a business combination using the acquisition method, with Gran Tierra being the acquirer, whereby the assets acquired and liabilities assumed were recognized at their fair values as at the Petroamerica Acquisition Date, and the results of Petroamerica were included with those of Gran Tierra from that date. Fair value estimates were made based on significant unobservable (Level 3) inputs and based on the best information available at the time. The following table shows the allocation of the consideration transferred based on the fair values of the assets and liabilities acquired: (Thousands of U.S. Dollars) Consideration Transferred: Cash $ 70,625 Shares of Common Stock issued net of share issue costs 25,811 $ 96,436 Allocation of Consideration Transferred (1) : Oil and gas properties Proved $ 48,595 Unproved 50,054 Net working capital (including cash acquired of $19.7 million, restricted cash of $2.5 million and accounts receivable of $5.0 million) 24,202 Long-term restricted cash 8,167 Other long-term assets 1,570 Long-term deferred tax liability (10,105 ) Long-term portion of asset retirement obligation (11,556 ) Other long-term liabilities (2,779 ) Gain on acquisition (11,712 ) $ 96,436 (1) The allocation of the consideration transferred is incomplete and is subject to change. Management is continuing to review and assess information to accurately determine the acquisition date fair value of the assets and liabilities acquired. During the measurement period, Gran Tierra will continue to obtain information to assist in finalizing the fair value of net assets acquired, which may differ materially from the above preliminary estimates. As indicated in the allocation of the consideration transferred, the fair value of identifiable assets acquired and liabilities assumed exceeded the fair value of the consideration transferred. Consequently, Gran Tierra reassessed the recognition and measurement of identifiable assets acquired and liabilities assumed and concluded that all acquired assets and assumed liabilities were recognized and that the valuation procedures and resulting measures were appropriate. As a result, Gran Tierra recognized a “Gain on acquisition” of $11.7 million in the interim unaudited condensed consolidated statement of operations. The gain reflects the impact on Petroamerica’s pre-acquisition market value resulting from the company's lack of liquidity and capital resources required to maintain current production and reserves and further develop and explore their inventory of prospects. Pro Forma Results (unaudited) Pro forma results for the three months ended March 31, 2016 and 2015, are shown below, as if the acquisition had occurred on January 1, 2015. Pro forma results are not indicative of actual results or future performance. Three Months Ended March 31, (Unaudited, thousands of U.S. Dollars, except per share amounts) 2016 2015 Oil and gas sales $ 57,874 $ 93,286 Net loss $ (56,757 ) $ (80,511 ) Net loss per share - basic and diluted $ (0.19 ) $ (0.28 ) The supplemental pro forma net loss of Gran Tierra for the three months ended March 31, 2016, was adjusted to exclude the $11.7 million gain on acquisition and $1.3 million of acquisition costs recorded in general and administrative ("G&A") expenses because they were not expected to have a continuing impact on Gran Tierra’s results of operations. The Company's consolidated statement of operations for the three months ended March 31, 2016, included oil and gas sales of $2.7 million and a loss after tax of $11.8 million from Petroamerica for the period subsequent to the Petroamerica Acquisition Date. |
Segment and Geographic Reportin
Segment and Geographic Reporting | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographic Reporting | Segment and Geographic Reporting The Company is primarily engaged in the exploration and production of oil and natural gas. The Company’s reportable segments are Colombia, Peru and Brazil based on geographic organization. The All Other category represents the Company’s corporate activities. The Company evaluates reportable segment performance based on income or loss before income taxes. The following tables present information on the Company’s reportable segments and other activities: Three Months Ended March 31, 2016 (Thousands of U.S. Dollars) Colombia Peru Brazil All Other Total Oil and natural gas sales $ 56,300 $ — $ 1,103 $ — $ 57,403 Interest income 229 5 12 203 449 Depletion, depreciation and accretion 35,736 141 718 317 36,912 Asset impairment 55,232 416 1,250 — 56,898 General and administrative expenses 3,265 409 292 4,839 8,805 (Loss) income before income taxes (72,721 ) (712 ) (1,509 ) 4,797 (70,145 ) Segment capital expenditures (1) 21,986 1,268 2,720 206 26,180 Three Months Ended March 31, 2015 (Thousands of U.S. Dollars) Colombia Peru Brazil All Other Total Oil and natural gas sales $ 74,067 $ — $ 2,164 $ — $ 76,231 Interest income 67 — 140 214 421 Depletion, depreciation and accretion 46,255 267 2,261 357 49,140 Asset impairment — 32,681 4,333 — 37,014 General and administrative expenses 2,716 1,040 627 2,911 7,294 Income (loss) before income taxes 2,928 (35,442 ) (6,881 ) (5,402 ) (44,797 ) Segment capital expenditures 21,123 37,697 13,907 719 73,446 (1) On January 13, 2016, the Company acquired all of the issued and outstanding common shares of Petroamerica, which acquisition was accounted for as a business combination (Note 3) and, therefore, property, plant and equipment acquired are not reflected in the table above. Additionally, on January 25, 2016, the Company acquired all of the issued and outstanding common shares of PetroGranada Colombia Limited ("PGC"), which acquisition was accounted for as an asset acquisition (Note 5) and property, plant and equipment acquired in this acquisition are not reflected in the table above. As at March 31, 2016 (Thousands of U.S. Dollars) Colombia Peru Brazil All Other Total Property, plant and equipment $ 638,097 $ 95,867 $ 116,314 $ 3,912 $ 854,190 Goodwill 102,581 — — — 102,581 All other assets 141,741 21,208 1,873 26,679 191,501 Total Assets $ 882,419 $ 117,075 $ 118,187 $ 30,591 $ 1,148,272 As at December 31, 2015 (Thousands of U.S. Dollars) Colombia Peru Brazil All Other Total Property, plant and equipment $ 574,351 $ 95,069 $ 115,552 $ 4,021 $ 788,993 Goodwill 102,581 — — — 102,581 All other assets 93,479 21,111 2,236 137,718 254,544 Total Assets $ 770,411 $ 116,180 $ 117,788 $ 141,739 $ 1,146,118 |
Property, Plant and Equipment a
Property, Plant and Equipment and Inventory | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment and Inventory | Property, Plant and Equipment and Inventory Property, Plant and Equipment (Thousands of U.S. Dollars) As at March 31, 2016 As at December 31, 2015 Oil and natural gas properties Proved $ 2,088,937 $ 1,998,330 Unproved 373,899 310,771 2,462,836 2,309,101 Other 28,557 28,342 2,491,393 2,337,443 Accumulated depletion, depreciation and impairment (1,637,203 ) (1,548,450 ) $ 854,190 $ 788,993 In the three months ended March 31, 2016 , the Company recorded ceiling test impairment losses in its Colombia and Brazil cost centers of $54.6 million and $1.3 million , respectively, related to lower oil prices. In the three months ended March 31, 2015 , the Company recorded a ceiling test impairment loss in its Brazil cost center of $4.3 million , related to lower oil prices. The Company follows the full cost method of accounting for its oil and gas properties. Under this method, the net book value of properties on a country-by-country basis, less related deferred income taxes, may not exceed a calculated “ceiling”. The ceiling is the estimated after tax future net revenues from proved oil and gas properties, discounted at 10% per year. In calculating discounted future net revenues, oil and natural gas prices are determined using the average price during the 12 months period prior to the ending date of the period covered by the balance sheet, calculated as an unweighted arithmetic average of the first-day-of-the month price for each month within such period for that oil and natural gas. That average price is then held constant, except for changes which are fixed and determinable by existing contracts. Therefore, ceiling test estimates are based on historical prices discounted at 10% per year and it should not be assumed that estimates of future net revenues represent the fair market value of the Company's reserves. In the three months ended March 31, 2016 , and 2015 , the Company recorded impairment losses in its Peru cost center of $0.4 million , and $32.7 million , respectively, related to costs incurred on Block 95. Asset impairment for the three months ended March 31, 2016 , and 2015 was as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Impairment of oil and gas properties $ 56,234 $ 37,014 Impairment of inventory 664 — $ 56,898 $ 37,014 Acquisition of PGC On January 25, 2016, the Company acquired all of the issued and outstanding common shares of PGC, pursuant to the terms and conditions of an acquisition agreement dated January 14, 2016. Upon completion of the transaction, PGC became an indirect wholly-owned subsidiary of Gran Tierra. The net purchase price of PGC was $19.4 million , after giving consideration to net working capital of $18.3 million . The acquisition was accounted for as an asset acquisition with the excess consideration transferred over the fair value of the net assets acquired allocated on a relative fair value basis to the net assets acquired. The following table shows the allocation of the cost of the acquisition based on the relative fair values of the assets and liabilities acquired: (Thousands of U.S. Dollars) Cost of asset acquisition: Cash $ 37,727 Allocation of Consideration Transferred: Oil and gas properties Proved $ 12,228 Unproved 15,563 27,791 Net working capital (including cash acquired of $0.2 million and restricted cash of $18.6 million) 18,339 Long-term deferred tax liability (8,402 ) $ 37,728 Contingent consideration of $4.0 million will be payable if cumulative production from the Putumayo-7 Block plus gross proved plus probable reserves under the Putumayo Block meet or exceed eight MMbbl. PGC is an oil and gas exploration, development and production company active in Colombia. Contingent consideration will be recognized when the contingency is resolved. Inventory At March 31, 2016 , oil and supplies inventories were $9.4 million and $1.3 million , respectively ( December 31, 2015 - $17.8 million and $1.3 million , respectively). At March 31, 2016 , the Company had 331 Mbbl of oil inventory ( December 31, 2015 - 616 Mbbl) NAR. In the three months ended March 31, 2016 , the Company recorded oil inventory impairment of $0.7 million ( three months ended March 31, 2015 - $nil) related to lower oil prices. |
Share Capital
Share Capital | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Capital | Share Capital The Company’s authorized share capital consists of 595,000,002 shares of capital stock, of which 570 million are designated as Common Stock, par value $0.001 per share, 25 million are designated as Preferred Stock, par value $0.001 per share, and two shares are designated as special voting stock, par value $0.001 per share. Shares of Common Stock Exchangeable Shares of Gran Tierra Exchangeco Inc. Exchangeable Shares of Gran Tierra Goldstrike Inc. Balance, December 31, 2015 273,442,799 4,933,177 3,638,889 Shares issued for acquisition (Note 3) 13,656,719 — — Options exercised 500,000 — — Exchange of exchangeable shares 58,000 (58,000 ) — Balance, March 31, 2016 287,657,518 4,875,177 3,638,889 Income (Loss) Per Share Basic income (loss) per share is calculated by dividing income (loss) attributable to common shareholders by the weighted average number of shares of Common Stock and exchangeable shares issued and outstanding during each period. Diluted income (loss) per share is calculated by adjusting the weighted average number of shares of Common Stock and exchangeable shares outstanding for the dilutive effect, if any, of share equivalents. The Company uses the treasury stock method to determine the dilutive effect. This method assumes that all Common Stock equivalents have been exercised at the beginning of the period (or at the time of issuance, if later), and that the funds obtained thereby were used to purchase shares of Common Stock of the Company at the volume weighted average trading price of shares of Common Stock during the period. Three Months Ended March 31, 2016 2015 Weighted average number of common and exchangeable shares outstanding 293,812,226 286,194,315 Weighted average shares issuable pursuant to stock options — — Weighted average shares assumed to be purchased from proceeds of stock options — — Weighted average number of diluted common and exchangeable shares outstanding 293,812,226 286,194,315 For the three months ended March 31, 2016 , 12,667,761 stock options ( three months ended March 31, 2015 - 13,742,502 stock options), on a weighted average basis, were excluded from the diluted income per share calculation as the stock options were anti-dilutive. Equity Compensation Awards In December 2015, the Company's Board of Directors approved a new equity compensation program for 2016 to realign the Company's compensation programs with its renewed short and long-term strategy. The 2016 equity compensation program reflects the Company's emphasis on pay-for-performance. In prior years, all equity awards were subject to vesting conditions based solely on the recipient’s continued employment over a specified period of time. In contrast, 80% of the equity awards granted in early 2016 consisted of Performance Stock Units (“PSU”) and 20% consisted of stock options. Gran Tierra's Compensation Committee and Board of Directors believed it was important to revise the Company's equity compensation program to incorporate a new form of equity award that vests based on the achievement of certain key measures of performance. The purpose of this change was to further incentivize the Company's executives to achieve the operational goals established by the Board of Directors and to increase share and net asset value for stockholders. The Company’s equity compensation awards outstanding as of March 31, 2016 , include PSUs, stock options, deferred share units ("DSUs") and restricted stock units (“RSUs”). The Company records stock-based compensation expense, measured at the fair value of the awards that are ultimately expected to vest, in the consolidated financial statements. Fair values are determined using pricing models such as the Black-Scholes-Merton or Monte Carlo simulation stock option-pricing models and/or observable share prices. For equity-settled stock-based compensation awards, fair values are determined at the grant date and are recognized over the requisite service period. For cash-settled stock-based compensation awards, fair values are determined at each reporting date and periodic changes are recognized as compensation costs, with a corresponding change to liabilities. Stock-based compensation expense is capitalized as part of oil and natural gas properties or expensed as part of operating expenses or G&A expenses, as appropriate. The following table provides information about PSU, DSU, RSU and stock option activity for the three months ended March 31, 2016 : PSUs DSUs RSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price/Stock Option ($) Balance, December 31, 2015 — — 1,015,457 12,851,557 4.60 Granted 2,297,700 59,229 — 1,286,525 2.65 Exercised — — (272,397 ) (500,000 ) 2.40 Forfeited — — (166,685 ) (457,436 ) (4.71 ) Expired — — — (127,051 ) (6.49 ) Balance, March 31, 2016 2,297,700 59,229 576,375 13,053,595 4.46 The amounts recognized for stock-based compensation were as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Compensation costs for PSUs $ 165 $ — Compensation costs for stock options 971 (422 ) Compensation costs for DSUs 146 — Compensation costs for RSUs 364 (60 ) 1,646 (482 ) Less: Stock-based compensation costs capitalized (186 ) (31 ) Stock-based compensation expense (recovery) $ 1,460 $ (513 ) Stock-based compensation expense for the three months ended March 31, 2016 , was primarily recorded in G&A expenses. For the three months ended March 31, 2015 , stock-based compensation was a recovery of $0.5 million due to the reversal of stock-based compensation expense for unvested stock options of terminated employees and a decrease in the Company's share price since December 31, 2014. The stock-based compensation recovery for the three months ended March 31, 2015, was primarily recorded in G&A expenses. At March 31, 2016 , there was $9.6 million ( December 31, 2015 - $3.9 million ) of unrecognized compensation cost related to unvested PSUs, stock options, DSUs and RSUs which is expected to be recognized over a weighted average period of 2.3 years. PSUs PSUs entitle the holder to receive, at the option of the Company, either the underlying number of shares of the Company's Common Stock upon vesting of such units or a cash payment equal to the value of the underlying shares. PSUs will cliff vest after three years, subject to the continued employment of the grantee. The number of PSUs that vest may range from zero to 200% of the target number granted based on the Company’s performance with respect to the applicable performance targets. The performance targets for the PSUs outstanding as of March 31, 2016 , are as follows: (i) 50% of the award is subject to targets relating to the total shareholder return (“TSR”) of the Company against a group of peer companies; (ii) 25% of the award is subject to targets relating to net asset value ("NAV") of the Company per share and NAV is based on before tax net present value discounted at 10% of proved plus probable reserves; (iii) 25% of the award is subject to targets relating to the execution of corporate strategy. The compensation cost of PSUs is subject to adjustment based upon the attainability of these performance targets. No settlement will occur with respect to the portion of the PSU award subject to each performance target for results below the applicable minimum threshold for that target. PSUs in excess of the target number granted will vest and be settled if performance exceeds the targeted performance goals. The Company currently intends to settle PSUs in cash. Stock Options Each stock option permits the holder to purchase one share of Common Stock at the stated exercise price. The exercise price equals the market price at the time of grant. Stock options generally vest over three years. The term of stock options granted starting May 2013 is five years or three months after the grantee’s end of service to the Company, whichever occurs first. Stock options granted prior to May 2013 continue to have a term of ten years or three months after the grantee’s end of service to the Company, whichever occurs first. For the three months ended March 31, 2016 , 500,000 shares of Common Stock were issued for cash proceeds of $1.2 million ( three months ended March 31, 2015 - $0.5 million ) upon the exercise of stock options. The weighted average grant date fair value for stock options granted in the three months ended March 31, 2016 , was $1.12 ( three months ended March 31, 2015 - $1.10 ). DSUs and RSUs DSUs and RSUs entitle the holder to receive, either the underlying number of shares of the Company's Common Stock upon vesting of such units or, at the option of the Company, a cash payment equal to the value of the underlying shares. The Company's historic practice has been to settle RSUs in cash and the Company currently intends to settle the RSUs and DSUs outstanding as of March 31, 2016 in cash. Once a DSU or RSU is vested, it is immediately settled. During the three months ended March 31, 2016 , DSUs were granted to directors and will vest 100% at such time the grantee ceases to be a member of the Board of Directors. |
Asset Retirement Obligation
Asset Retirement Obligation | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligation | Asset Retirement Obligation Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows: Three Months Ended Year Ended (Thousands of U.S. Dollars) March 31, 2016 December 31, 2015 Balance, December 31, 2015 $ 33,224 $ 35,812 Settlements (194 ) (6,317 ) Liability incurred 923 1,556 Liabilities assumed in acquisition (Note 3) 11,852 — Accretion 655 1,313 Revisions in estimated liability — 860 Balance, March 31, 2016 $ 46,460 $ 33,224 Asset retirement obligation - current $ 3,255 $ 2,146 Asset retirement obligation - long-term 43,205 31,078 $ 46,460 $ 33,224 For the three months ended March 31, 2016 , settlements included cash payments of $0.1 million with the balance in accounts payable and accrued liabilities at March 31, 2016 . Revisions to estimated liabilities relate primarily to changes in estimates of asset retirement costs and include, but are not limited to, revisions of estimated inflation rates, changes in property lives and the expected timing of settling the asset retirement obligation. At March 31, 2016 , the fair value of assets that are legally restricted for purposes of settling the asset retirement obligation was $8.5 million ( December 31, 2015 - $2.9 million ). These assets are accounted for as restricted cash on the Company's interim unaudited condensed consolidated balance sheets. |
Taxes
Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Taxes | Taxes The Company's effective tax rate was 36% in the three months ended March 31, 2016 , compared with 0.2% in the corresponding period in 2015 . The Company's effective tax rate differed from the U.S. statutory rate of 35% primarily due to an increase in the valuation allowance, which was largely attributable to impairment losses in Brazil, as well as non-deductible, other local taxes and third party royalty in Colombia. These were partially offset by other permanent differences, which mainly related to the non-taxable gain on the acquisition of Petroamerica, foreign currency translation adjustments and the impact of foreign taxes. The deferred tax recovery for three months ended March 31, 2016, included $22.4 million associated with the ceiling test impairment loss in Colombia. On December 23, 2014, the Colombian Congress passed a law which imposes an equity tax levied on Colombian operations for 2015, 2016 and 2017. The equity tax is calculated based on a legislated measure, which is based on the Company’s Colombian legal entities' balance sheet equity for tax purposes at January 1, 2015. This measure is subject to adjustment for inflation in future years. The equity tax rates for January 1, 2015, 2016 and 2017, are 1.15% , 1% and 0.4% , respectively. The legal obligation for each year's equity tax liability arises on January 1 of each year; therefore, the Company recognized the annual amounts of $3.1 million and $3.8 million , respectively, for the equity tax expense in the consolidated statement of operations during the three months ended March 31, 2016 and 2015 . At March 31, 2016 , accounts payable included $3.3 million (December 31, 2015 - $ nil ) which will be paid in May and September 2016 . |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Gran Tierra’s production from the Costayaco Exploitation Area is subject to an additional royalty (the "HPR royalty"), which applies when cumulative gross production from an Exploitation Area is greater than five MMbbl . The HPR royalty is calculated on the difference between a trigger price defined in the Chaza Block exploration and production contract (the "Chaza Contract") and the sales price. The Agencia Nacional de Hidrocarburos (National Hydrocarbons Agency) (“ANH”) has interpreted the Chaza Contract as requiring that the HPR royalty must be paid with respect to all production from the Moqueta Exploitation Area and initiated a noncompliance procedure under the Chaza Contract, which was contested by Gran Tierra because the Moqueta Exploitation Area and the Costayaco Exploitation Area are separate Exploitation Areas. ANH did not proceed with that noncompliance procedure. Gran Tierra also believes that the evidence shows that the Costayaco and Moqueta Fields are two clearly separate and independent hydrocarbon accumulations. Therefore, it is Gran Tierra’s view that, pursuant to the terms of the Chaza Contract, the HPR royalty is only to be paid with respect to production from the Moqueta Exploitation Area when the accumulated oil production from that Exploitation Area exceeds five MMbbl. Discussions with the ANH have not resolved this issue and Gran Tierra has initiated the dispute resolution process under the Chaza Contract by filing on January 14, 2013, an arbitration claim before the Center for Arbitration and Conciliation of the Chamber of Commerce of Bogotá, Colombia, seeking a decision that the HPR royalty is not payable until production from the Moqueta Exploitation Area exceeds five MMbbl . Gran Tierra supplemented its claim on May 30, 2013. The ANH filed a response to the claim seeking a declaration that its interpretation is correct and a counterclaim seeking, amongst other remedies, declarations that Gran Tierra breached the Chaza Contract by not paying the disputed HPR royalty, that the amount of the alleged HPR royalty is payable, and that the Chaza Contract be terminated. Gran Tierra filed a response to the ANH's counterclaim and filed its comments on the ANH's responses to Gran Tierra's claim. The ANH filed an amended counterclaim and Gran Tierra filed a response to the ANH's amended counterclaim. The submission of evidence in the arbitration has been completed and final arguments were made by the parties to the arbitration tribunal on April 7, 2016. The arbitration tribunal indicated it would make its award on June 8, 2016. On April 30, 2015, total cumulative production from the Moqueta Exploitation Area reached 5.0 MMbbl and Gran Tierra commenced paying the HPR royalty payable on production over that threshold. The estimated compensation which would be payable on cumulative production if the ANH's claims are accepted in the arbitration is $66.3 million plus related interest of $30.7 million . Gran Tierra also disagrees with the interest rate that the ANH has used in calculating the interest cost. Gran Tierra asserts that since the HPR royalty is denominated in the U.S. dollar, the contract requires the interest rate to be three-month LIBOR plus 4% , whereas the ANH has applied the highest legally authorized interest rate on Colombian peso liabilities, which during the period of production to date has averaged approximately 29% per annum. At March 31, 2016 , based on an interest rate of three-month LIBOR plus 4% related interest would be $7.1 million . At this time no amount has been accrued in the interim unaudited condensed consolidated financial statements nor deducted from the Company's reserves for the disputed HPR royalty as Gran Tierra does not consider it probable that a loss will be incurred. Additionally, the ANH and Gran Tierra are engaged in discussions regarding the interpretation of whether certain transportation and related costs are eligible to be deducted in the calculation of the HPR royalty. Discussions with the ANH are ongoing. Based on the Company's understanding of the ANH's position, the estimated compensation which would be payable if the ANH’s interpretation is correct could be up to $44.8 million as at March 31, 2016 . At this time no amount has been accrued in the interim unaudited condensed consolidated financial statements as Gran Tierra does not consider it probable that a loss will be incurred. The Company provided the purchaser of its Argentina business unit with certain indemnifications. The Company remains responsible for certain contingent liabilities related to such indemnifications, subject to defined limitations. The Company does not believe that these obligations are probable of having a material impact on its consolidated financial position, results of operations or cash flows. In addition to the above, Gran Tierra has a number of other lawsuits and claims pending. Although the outcome of these other lawsuits and disputes cannot be predicted with certainty, Gran Tierra believes the resolution of these matters would not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. Gran Tierra records costs as they are incurred or become probable and determinable. Letters of credit At March 31, 2016 , the Company had provided promissory notes totaling $74.9 million ( December 31, 2015 - $76.5 million ) as security for letters of credit relating to work commitment guarantees contained in exploration contracts and other capital or operating requirements . |
Financial Instruments, Fair Val
Financial Instruments, Fair Value Measurements, Credit Risk and Foreign Exchange Risk | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments, Fair Value Measurements, Credit Risk and Foreign Exchange Risk | Financial Instruments, Fair Value Measurement, Credit Risk and Foreign Exchange Risk Financial Instruments At March 31, 2016 , the Company’s financial instruments recognized in the balance sheet consist of cash and cash equivalents, restricted cash, accounts receivable, trading securities, accounts payable and accrued liabilities, contingent consideration and PSU liability included in other long-term liabilities, and RSU liability included in accounts payable and accrued liabilities and other long-term liabilities. Fair Value Measurement The fair value of trading securities, contingent consideration and RSU and PSU liabilities are being remeasured at the estimated fair value at the end of each reporting period. The fair value of trading securities which were received as consideration on the sale of the Company's Argentina business unit is estimated based on quoted market prices in an active market. The fair value of contingent consideration, which relates to the acquisition of the remaining 30% working interest in certain properties in Brazil, is estimated based on the consideration expected to be transferred and discounted back to present value by applying an appropriate discount rate that reflected the risk factors associated with the payment streams. The discount rate used is determined in accordance with accepted valuation methods. The fair value of the RSU liability was estimated based on quoted market prices in an active market. The fair value of the PSU liability was estimated based on quoted market prices in an active market and an option pricing model such as the Monte Carlo simulation option-pricing models. The fair value of trading securities, contingent consideration and RSU and PSU liabilities at March 31, 2016 , and December 31, 2015 , were as follows: (Thousands of U.S. Dollars) As at March 31, 2016 As at December 31, 2015 Trading securities $ 5,362 $ 6,250 Contingent consideration liability $ 1,061 $ 1,061 RSU and PSU liability $ 1,190 $ 1,189 $ 2,251 $ 2,250 The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Trading securities loss (gain) $ 845 $ (412 ) Foreign currency derivatives loss — 370 Financial instruments loss (gain) $ 845 $ (42 ) These gains and losses are presented as financial instruments gains or losses in the interim unaudited condensed consolidated statements of operations and cash flows. The fair value of long-term restricted cash approximates its carrying value because interest rates are variable and reflective of market rates. The fair values of other financial instruments approximate their carrying amounts due to the short-term maturity of these instruments. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels. Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets and liabilities and have the highest priority. Level 2 and 3 inputs are based on significant other observable inputs and significant unobservable inputs, respectively, and have lower priorities. The Company uses appropriate valuation techniques based on the available inputs to measure the fair values of assets and liabilities. At March 31, 2016 , and December 31, 2015 , the fair value of the trading securities acquired in connection with the disposal of the Argentina business unit and the RSU liability was determined using Level 1 inputs and the fair value of the contingent consideration payable in connection with the Brazil acquisition and PSU liability was determined using Level 3 inputs. The disclosure in the paragraph above regarding the fair value of cash and restricted cash was based on Level 1 inputs. The Company’s non-recurring fair value measurements include asset retirement obligations. The fair value of an asset retirement obligation is measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at the Company’s credit-adjusted risk-free interest rate. The significant level 3 inputs used to calculate such liabilities include estimates of costs to be incurred, the Company’s credit-adjusted risk-free interest rate, inflation rates and estimated dates of abandonment. Accretion expense is recognized over time as the discounted liabilities are accreted to their expected settlement value, while the asset retirement cost is amortized over the estimated productive life of the related assets. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Net changes in assets and liabilities from operating activities were as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Accounts receivable and other long-term assets (2,513 ) 13,484 Inventory 4,339 2,159 Prepaids 606 528 Accounts payable and accrued and other long-term liabilities (5,975 ) (21,414 ) Taxes receivable and payable 3,036 (19,983 ) Net changes in assets and liabilities from operating activities $ (507 ) $ (25,226 ) The following table provides additional supplemental cash flow disclosures: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 35,606 $ 55,335 See Note 3 in these condensed consolidated financial statements for disclosure regarding the Company's acquisition of Petroamerica. |
General and Administrative Expe
General and Administrative Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Income Statement [Abstract] | |
General and Administrative Expenses | General and Administrative Expenses Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 G&A expenses before stock-based compensation $ 14,085 $ 20,265 Stock-based compensation 1,397 (530 ) Capitalized G&A and overhead recoveries (6,677 ) (12,441 ) $ 8,805 $ 7,294 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 6, 2016, the Company issued $100 million aggregate principal amount of its 5.00% Convertible Senior Notes due 2021 (the "Notes " ) in a private placement to qualified institutional buyers. On April 22, 2016 , the Company issued an additional $15 million aggregate principal amount of the Notes pursuant to the underwriters’ exercise of their option to acquire additional Notes. The Notes bear interest at a rate of 5.00% per year, payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2016. The Notes will mature on April 1, 2021, unless earlier redeemed, repurchased or converted. The Notes are convertible at the option of the holder at any time prior to the close of business on the business day immediately preceding the maturity date. The conversion rate is initially 311.4295 shares of Common Stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $3.21 per share of Common Stock). The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event in certain circumstances. The Company may not redeem the Notes prior to April 5, 2019, except in certain circumstances following a fundamental change (as defined in the indenture governing the Notes). The Company may redeem for cash all or any portion of the Notes, at its option, on or after April 5, 2019, if (terms below are as defined in the indenture governing the Notes): (i) the last reported sale price of the Company's Common Stock has been at least 150% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption; and (ii) the Company has filed all reports that it is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, as applicable (other than current reports on Form 8-K), during the twelve months preceding the date on which the Company provides such notice. The redemption price will be equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. No sinking fund is provided for the Notes. If the Company undergoes a fundamental change, holders may require the Company to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Net proceeds from the sale of the Notes was approximately $109.0 million , after deducting the initial purchasers' discount and the offering expenses payable by the Company. The Company intends to use the net proceeds from the sale of Notes for general corporate purposes, which may include acquisitions and/or capital expenditures. |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (the "FASB") issued guidance regarding the accounting for revenue from contracts with customers. In August 2015, the FASB issued Accounting Standards Update (“ASU") 2015-14, “Revenue from Contracts with Customers - Deferral of the Effective Date". The ASU defers the effective date of the new revenue recognition model by one year. As a result, the guidance will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations (Reporting Revenue Gross versus Net)". The amendments in this ASU affect the guidance in ASU 2014-09 and clarify implementation guidance on principal versus agent considerations. The Company is currently assessing the impact the new revenue recognition model will have on its consolidated financial position, results of operations, cash flows, and disclosure. Simplifying the Accounting for Measurement - Period Adjustments In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement - Period Adjustments". The amendments require that an acquirer recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined and eliminates the requirement to retrospectively revise prior periods. Additionally, an acquirer should record in the same period the effects on earnings of any changes in the provisional accounts, calculated as if the accounting had been completed at the acquisition date. The ASU was effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The implementation of this update is not expected to materially impact the Company’s consolidated financial position, results of operations or cash flows or disclosure. Leases In February 2016, the FASB issued ASU 2016-02, “Leases". This ASU will require most lease assets and lease liabilities to be recognized on the balance sheet and the disclosure of key information about lease arrangements. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact the new lease standard will have on its consolidated financial position, results of operations, cash flows, and disclosure. Employee Share-Based Payment Accounting In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting ". This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for forfeitures, income taxes, and statutory tax withholding requirements. The ASU will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company is currently assessing the impact this update will have on its consolidated financial position, results of operations, cash flows, and disclosure. |
Business Combination (Tables)
Business Combination (Tables) - Petroamerica [Member] | 3 Months Ended |
Mar. 31, 2016 | |
Business Acquisition [Line Items] | |
Allocation of the Consideration Transferred Based on the Fair Values of Assets and Liabilities Acquired | The following table shows the allocation of the consideration transferred based on the fair values of the assets and liabilities acquired: (Thousands of U.S. Dollars) Consideration Transferred: Cash $ 70,625 Shares of Common Stock issued net of share issue costs 25,811 $ 96,436 Allocation of Consideration Transferred (1) : Oil and gas properties Proved $ 48,595 Unproved 50,054 Net working capital (including cash acquired of $19.7 million, restricted cash of $2.5 million and accounts receivable of $5.0 million) 24,202 Long-term restricted cash 8,167 Other long-term assets 1,570 Long-term deferred tax liability (10,105 ) Long-term portion of asset retirement obligation (11,556 ) Other long-term liabilities (2,779 ) Gain on acquisition (11,712 ) $ 96,436 (1) The allocation of the consideration transferred is incomplete and is subject to change. Management is continuing to review and assess information to accurately determine the acquisition date fair value of the assets and liabilities acquired. During the measurement period, Gran Tierra will continue to obtain information to assist in finalizing the fair value of net assets acquired, which may differ materially from the above preliminary estimates. |
Pro Forma Results of Acquisition | Pro forma results for the three months ended March 31, 2016 and 2015, are shown below, as if the acquisition had occurred on January 1, 2015. Pro forma results are not indicative of actual results or future performance. Three Months Ended March 31, (Unaudited, thousands of U.S. Dollars, except per share amounts) 2016 2015 Oil and gas sales $ 57,874 $ 93,286 Net loss $ (56,757 ) $ (80,511 ) Net loss per share - basic and diluted $ (0.19 ) $ (0.28 ) |
Segment and Geographic Report22
Segment and Geographic Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Geographic Segments | The following tables present information on the Company’s reportable segments and other activities: Three Months Ended March 31, 2016 (Thousands of U.S. Dollars) Colombia Peru Brazil All Other Total Oil and natural gas sales $ 56,300 $ — $ 1,103 $ — $ 57,403 Interest income 229 5 12 203 449 Depletion, depreciation and accretion 35,736 141 718 317 36,912 Asset impairment 55,232 416 1,250 — 56,898 General and administrative expenses 3,265 409 292 4,839 8,805 (Loss) income before income taxes (72,721 ) (712 ) (1,509 ) 4,797 (70,145 ) Segment capital expenditures (1) 21,986 1,268 2,720 206 26,180 Three Months Ended March 31, 2015 (Thousands of U.S. Dollars) Colombia Peru Brazil All Other Total Oil and natural gas sales $ 74,067 $ — $ 2,164 $ — $ 76,231 Interest income 67 — 140 214 421 Depletion, depreciation and accretion 46,255 267 2,261 357 49,140 Asset impairment — 32,681 4,333 — 37,014 General and administrative expenses 2,716 1,040 627 2,911 7,294 Income (loss) before income taxes 2,928 (35,442 ) (6,881 ) (5,402 ) (44,797 ) Segment capital expenditures 21,123 37,697 13,907 719 73,446 (1) On January 13, 2016, the Company acquired all of the issued and outstanding common shares of Petroamerica, which acquisition was accounted for as a business combination (Note 3) and, therefore, property, plant and equipment acquired are not reflected in the table above. Additionally, on January 25, 2016, the Company acquired all of the issued and outstanding common shares of PetroGranada Colombia Limited ("PGC"), which acquisition was accounted for as an asset acquisition (Note 5) and property, plant and equipment acquired in this acquisition are not reflected in the table above. |
Long-lived Assets by Geographical Area | As at March 31, 2016 (Thousands of U.S. Dollars) Colombia Peru Brazil All Other Total Property, plant and equipment $ 638,097 $ 95,867 $ 116,314 $ 3,912 $ 854,190 Goodwill 102,581 — — — 102,581 All other assets 141,741 21,208 1,873 26,679 191,501 Total Assets $ 882,419 $ 117,075 $ 118,187 $ 30,591 $ 1,148,272 As at December 31, 2015 (Thousands of U.S. Dollars) Colombia Peru Brazil All Other Total Property, plant and equipment $ 574,351 $ 95,069 $ 115,552 $ 4,021 $ 788,993 Goodwill 102,581 — — — 102,581 All other assets 93,479 21,111 2,236 137,718 254,544 Total Assets $ 770,411 $ 116,180 $ 117,788 $ 141,739 $ 1,146,118 |
Property, Plant and Equipment23
Property, Plant and Equipment and Inventory (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, Plant and Equipment (Thousands of U.S. Dollars) As at March 31, 2016 As at December 31, 2015 Oil and natural gas properties Proved $ 2,088,937 $ 1,998,330 Unproved 373,899 310,771 2,462,836 2,309,101 Other 28,557 28,342 2,491,393 2,337,443 Accumulated depletion, depreciation and impairment (1,637,203 ) (1,548,450 ) $ 854,190 $ 788,993 |
Asset Impairment | Asset impairment for the three months ended March 31, 2016 , and 2015 was as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Impairment of oil and gas properties $ 56,234 $ 37,014 Impairment of inventory 664 — $ 56,898 $ 37,014 |
Allocation of the Cost of the Acquisition Based on the Relative Fair Values of the Assets and Liabilities Acquired | The following table shows the allocation of the cost of the acquisition based on the relative fair values of the assets and liabilities acquired: (Thousands of U.S. Dollars) Cost of asset acquisition: Cash $ 37,727 Allocation of Consideration Transferred: Oil and gas properties Proved $ 12,228 Unproved 15,563 27,791 Net working capital (including cash acquired of $0.2 million and restricted cash of $18.6 million) 18,339 Long-term deferred tax liability (8,402 ) $ 37,728 |
Share Capital (Tables)
Share Capital (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Common Stock | Shares of Common Stock Exchangeable Shares of Gran Tierra Exchangeco Inc. Exchangeable Shares of Gran Tierra Goldstrike Inc. Balance, December 31, 2015 273,442,799 4,933,177 3,638,889 Shares issued for acquisition (Note 3) 13,656,719 — — Options exercised 500,000 — — Exchange of exchangeable shares 58,000 (58,000 ) — Balance, March 31, 2016 287,657,518 4,875,177 3,638,889 |
Weighted Average Share Outstanding | Three Months Ended March 31, 2016 2015 Weighted average number of common and exchangeable shares outstanding 293,812,226 286,194,315 Weighted average shares issuable pursuant to stock options — — Weighted average shares assumed to be purchased from proceeds of stock options — — Weighted average number of diluted common and exchangeable shares outstanding 293,812,226 286,194,315 |
RSU and Stock Option Activity | The following table provides information about PSU, DSU, RSU and stock option activity for the three months ended March 31, 2016 : PSUs DSUs RSUs Stock Options Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Share Units Number of Outstanding Stock Options Weighted Average Exercise Price/Stock Option ($) Balance, December 31, 2015 — — 1,015,457 12,851,557 4.60 Granted 2,297,700 59,229 — 1,286,525 2.65 Exercised — — (272,397 ) (500,000 ) 2.40 Forfeited — — (166,685 ) (457,436 ) (4.71 ) Expired — — — (127,051 ) (6.49 ) Balance, March 31, 2016 2,297,700 59,229 576,375 13,053,595 4.46 |
Amounts Recognized for Stock-based Compensation | The amounts recognized for stock-based compensation were as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Compensation costs for PSUs $ 165 $ — Compensation costs for stock options 971 (422 ) Compensation costs for DSUs 146 — Compensation costs for RSUs 364 (60 ) 1,646 (482 ) Less: Stock-based compensation costs capitalized (186 ) (31 ) Stock-based compensation expense (recovery) $ 1,460 $ (513 ) |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Asset Retirement Obligation [Abstract] | |
Changes in Asset Retirement Obligations | Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows: Three Months Ended Year Ended (Thousands of U.S. Dollars) March 31, 2016 December 31, 2015 Balance, December 31, 2015 $ 33,224 $ 35,812 Settlements (194 ) (6,317 ) Liability incurred 923 1,556 Liabilities assumed in acquisition (Note 3) 11,852 — Accretion 655 1,313 Revisions in estimated liability — 860 Balance, March 31, 2016 $ 46,460 $ 33,224 Asset retirement obligation - current $ 3,255 $ 2,146 Asset retirement obligation - long-term 43,205 31,078 $ 46,460 $ 33,224 |
Financial Instruments, Fair V26
Financial Instruments, Fair Value Measurements, Credit Risk and Foreign Exchange Risk (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Trading Securities and Contingent Consideration | The fair value of trading securities, contingent consideration and RSU and PSU liabilities at March 31, 2016 , and December 31, 2015 , were as follows: (Thousands of U.S. Dollars) As at March 31, 2016 As at December 31, 2015 Trading securities $ 5,362 $ 6,250 Contingent consideration liability $ 1,061 $ 1,061 RSU and PSU liability $ 1,190 $ 1,189 $ 2,251 $ 2,250 |
Gains or Losses on Financial Instruments | The following table presents gains or losses on financial instruments recognized in the accompanying interim unaudited condensed consolidated statements of operations: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Trading securities loss (gain) $ 845 $ (412 ) Foreign currency derivatives loss — 370 Financial instruments loss (gain) $ 845 $ (42 ) |
Supplemental Cash Flow Inform27
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Net Changes in Assets and Liabilities from Operating Activities | Net changes in assets and liabilities from operating activities were as follows: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Accounts receivable and other long-term assets (2,513 ) 13,484 Inventory 4,339 2,159 Prepaids 606 528 Accounts payable and accrued and other long-term liabilities (5,975 ) (21,414 ) Taxes receivable and payable 3,036 (19,983 ) Net changes in assets and liabilities from operating activities $ (507 ) $ (25,226 ) |
Additional Supplemental Cash Flow Disclosures | The following table provides additional supplemental cash flow disclosures: Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 Non-cash investing activities: Net liabilities related to property, plant and equipment, end of period $ 35,606 $ 55,335 |
General and Administrative Ex28
General and Administrative Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Statement [Abstract] | |
General and Administrative Expenses | General and Administrative Expenses Three Months Ended March 31, (Thousands of U.S. Dollars) 2016 2015 G&A expenses before stock-based compensation $ 14,085 $ 20,265 Stock-based compensation 1,397 (530 ) Capitalized G&A and overhead recoveries (6,677 ) (12,441 ) $ 8,805 $ 7,294 |
Business Combination - Addition
Business Combination - Additional Information (Details) $ / shares in Units, $ in Thousands | Jan. 13, 2016USD ($)shares | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Jan. 13, 2016CAD / shares | Jan. 13, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / shares |
Business Acquisition [Line Items] | |||||||
Consideration transferred for acquisition, number of shares issued | shares | 13,700,000 | ||||||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Gain on acquisition | $ 11,712 | $ 0 | |||||
Oil and natural gas sales | 57,403 | 76,231 | |||||
Loss after tax | 45,032 | $ 44,866 | |||||
General and Administrative Expense [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition costs | $ 1,300 | $ 1,300 | |||||
Petroamerica [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Cash transferred (Canadian dollars per share) | CAD / shares | CAD 1.33 | ||||||
Consideration payable in cash (up to, as a percent) | 70.00% | ||||||
Cash consideration | $ 70,625 | ||||||
Fair value of shares issued in acquisition | $ 25,800 | ||||||
Net purchase price | 72,200 | ||||||
Consideration transferred | 96,436 | ||||||
Net working capital | $ 24,202 | ||||||
Gain on acquisition | $ 11,712 | ||||||
Common Stock [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred for acquisition, number of shares issued | shares | 13,656,719 | ||||||
Common Stock [Member] | Petroamerica [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Shares of Gran Tierra per share of Petroamerica | shares | 0.40 | ||||||
Common Stock [Member] | Petroamerica [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
Subsidiaries [Member] | Petroamerica [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Oil and natural gas sales | 2,700 | ||||||
Loss after tax | $ 11,800 |
Business Combination - Allocati
Business Combination - Allocation of the Consideration Transferred Based on the Fair Values of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Jan. 13, 2016 | Mar. 31, 2016 | Mar. 31, 2015 |
Oil and gas properties | |||
Gain on acquisition | $ (11,712) | $ 0 | |
Petroamerica [Member] | |||
Consideration Transferred: | |||
Cash | $ 70,625 | ||
Shares of Common Stock issued net of share issue costs | 25,811 | ||
Consideration transferred | 96,436 | ||
Oil and gas properties | |||
Proved | 48,595 | ||
Unproved | 50,054 | ||
Net working capital (including cash acquired of $19.7 million, restricted cash of $2.5 million and accounts receivable of $5.0 million) | 24,202 | ||
Long-term restricted cash | 8,167 | ||
Other long-term assets | 1,570 | ||
Long-term deferred tax liability | (10,105) | ||
Long-term portion of asset retirement obligation | (11,556) | ||
Other long-term liabilities | (2,779) | ||
Gain on acquisition | (11,712) | ||
Total consideration transferred | 96,436 | ||
Cash acquired | 19,700 | ||
Restricted cash acquired | 2,500 | ||
Accounts receivable acquired | $ 5,000 |
Business Combination - Pro Form
Business Combination - Pro Forma Results of Acquisition (Details) - Petroamerica [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||
Oil and gas sales | $ 57,874 | $ 93,286 |
Net loss | $ (56,757) | $ (80,511) |
Net loss per share - basic and diluted (in dollars per share) | $ (0.19) | $ (0.28) |
Segment and Geographic Report32
Segment and Geographic Reporting - Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Oil and natural gas sales | $ 57,403 | $ 76,231 |
Interest income | 449 | 421 |
Depletion, depreciation and accretion | 36,912 | 49,140 |
Asset impairment | 56,898 | 37,014 |
General and administrative expenses | 8,805 | 7,294 |
(Loss) income before income taxes | (70,145) | (44,797) |
Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Oil and natural gas sales | 57,403 | 76,231 |
Interest income | 449 | 421 |
Depletion, depreciation and accretion | 36,912 | 49,140 |
Asset impairment | 56,898 | 37,014 |
General and administrative expenses | 8,805 | 7,294 |
(Loss) income before income taxes | (70,145) | (44,797) |
Segment capital expenditures | 26,180 | 73,446 |
Colombia [Member] | ||
Segment Reporting Information [Line Items] | ||
Asset impairment | 54,600 | |
Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Asset impairment | 1,300 | 4,300 |
Operating Segments [Member] | Colombia [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Oil and natural gas sales | 56,300 | 74,067 |
Interest income | 229 | 67 |
Depletion, depreciation and accretion | 35,736 | 46,255 |
Asset impairment | 55,232 | 0 |
General and administrative expenses | 3,265 | 2,716 |
(Loss) income before income taxes | (72,721) | 2,928 |
Segment capital expenditures | 21,986 | 21,123 |
Operating Segments [Member] | Peru [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Oil and natural gas sales | 0 | 0 |
Interest income | 5 | 0 |
Depletion, depreciation and accretion | 141 | 267 |
Asset impairment | 416 | 32,681 |
General and administrative expenses | 409 | 1,040 |
(Loss) income before income taxes | (712) | (35,442) |
Segment capital expenditures | 1,268 | 37,697 |
Operating Segments [Member] | Brazil [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Oil and natural gas sales | 1,103 | 2,164 |
Interest income | 12 | 140 |
Depletion, depreciation and accretion | 718 | 2,261 |
Asset impairment | 1,250 | 4,333 |
General and administrative expenses | 292 | 627 |
(Loss) income before income taxes | (1,509) | (6,881) |
Segment capital expenditures | 2,720 | 13,907 |
Corporate, Non-Segment [Member] | All Other [Member] | Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Oil and natural gas sales | 0 | 0 |
Interest income | 203 | 214 |
Depletion, depreciation and accretion | 317 | 357 |
Asset impairment | 0 | 0 |
General and administrative expenses | 4,839 | 2,911 |
(Loss) income before income taxes | 4,797 | (5,402) |
Segment capital expenditures | $ 206 | $ 719 |
Segment and Geographic Report33
Segment and Geographic Reporting - Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | $ 854,190 | $ 788,993 |
Goodwill | 102,581 | 102,581 |
Total Assets | 1,148,272 | 1,146,118 |
Continuing Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 854,190 | 788,993 |
Goodwill | 102,581 | 102,581 |
All other assets | 191,501 | 254,544 |
Total Assets | 1,148,272 | 1,146,118 |
Operating Segments [Member] | Continuing Operations [Member] | Colombia [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 638,097 | 574,351 |
Goodwill | 102,581 | 102,581 |
All other assets | 141,741 | 93,479 |
Total Assets | 882,419 | 770,411 |
Operating Segments [Member] | Continuing Operations [Member] | Peru [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 95,867 | 95,069 |
Goodwill | 0 | 0 |
All other assets | 21,208 | 21,111 |
Total Assets | 117,075 | 116,180 |
Operating Segments [Member] | Continuing Operations [Member] | Brazil [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 116,314 | 115,552 |
Goodwill | 0 | 0 |
All other assets | 1,873 | 2,236 |
Total Assets | 118,187 | 117,788 |
Corporate, Non-Segment [Member] | Continuing Operations [Member] | All Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment | 3,912 | 4,021 |
Goodwill | 0 | 0 |
All other assets | 26,679 | 137,718 |
Total Assets | $ 30,591 | $ 141,739 |
Property, Plant and Equipment34
Property, Plant and Equipment and Inventory - Schedule of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | $ 2,491,393 | $ 2,337,443 |
Accumulated depletion, depreciation and impairment | (1,637,203) | (1,548,450) |
Total Property, Plant and Equipment | 854,190 | 788,993 |
Proved [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 2,088,937 | 1,998,330 |
Unproved [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 373,899 | 310,771 |
Oil and natural gas properties [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | 2,462,836 | 2,309,101 |
Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Oil and natural gas properties | $ 28,557 | $ 28,342 |
Property, Plant and Equipment35
Property, Plant and Equipment and Inventory - Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Tangible Asset Impairment Charges [Abstract] | ||
Impairment of oil and gas properties | $ 56,234 | $ 37,014 |
Impairment of inventory | 664 | 0 |
Total asset impairment | $ 56,898 | $ 37,014 |
Property, Plant and Equipment36
Property, Plant and Equipment and Inventory - Additional Information (Details) $ in Thousands | Jan. 25, 2016USD ($)bbl | Mar. 31, 2016USD ($)bbl | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)bbl |
Property, Plant and Equipment [Line Items] | ||||
Asset impairment | $ 56,898 | $ 37,014 | ||
Net purchase price | $ 19,400 | 19,388 | 0 | |
Net working capital | 18,339 | |||
Contingent consideration | $ 4,000 | |||
Threshold by which contingent consideration is due (barrels) | bbl | 8 | |||
Crude oil inventories | 9,400 | $ 17,800 | ||
Supplies | $ 1,300 | $ 1,300 | ||
Oil inventory (barrels) | bbl | 331,000 | 616,000 | ||
Impairment of oil inventory | $ 664 | 0 | ||
Colombia [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment | 54,600 | |||
Brazil [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment | $ 1,300 | 4,300 | ||
Brazil and Colombia [Member] | Oil and natural gas properties [Member] | Assets [Member] | Income Approach Valuation Technique [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Discount rate (percent) | 10.00% | |||
Peru [Member] | Block 95 [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset impairment | $ 400 | $ 32,700 |
Property, Plant and Equipment37
Property, Plant and Equipment and Inventory - Allocation of the Cost of the PetroGranada Colombia Limited Acquisition (Details) $ in Thousands | Jan. 25, 2016USD ($) |
Property, Plant and Equipment [Abstract] | |
Cash | $ 37,727 |
Oil and gas properties | |
Oil and gas properties, Proved | 12,228 |
Oil and gas properties, Unproved | 15,563 |
Oil and gas properties, Total | 27,791 |
Net working capital | 18,339 |
Long-term deferred tax liability | (8,402) |
Asset acquisition, consideration transferred | 37,728 |
Cash acquired | 200 |
Restricted cash acquired | $ 18,600 |
Share Capital - Additional Info
Share Capital - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 01, 2013 | Apr. 30, 2013 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Authorized share capital | 595,000,002 | ||||
Common stock, authorized | 570,000,000 | ||||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, authorized | 25,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.001 | ||||
Special voting stock-authorized (in shares) | 2 | ||||
Special voting stock-par value (in dollars per share) | $ 0.001 | ||||
Stock-based compensation recovery | $ 1,460 | $ (513) | |||
Unrecognized compensation cost related to unvested stock options | $ 9,600 | $ 3,900 | |||
Unvested stock options recognition period | 2 years 3 months 18 days | ||||
Stock Options [Abstract] | |||||
Options exercised (in shares) | 500,000 | ||||
Proceeds from issuance of shares of Common Stock | $ 1,198 | 502 | |||
General and Administrative Expense [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Stock-based compensation recovery | $ 1,397 | $ (530) | |||
Stock Options [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Equity awards granted in period (as a percent) | 20.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Earnings Per Share [Abstract] | |||||
Options excluded from the diluted income per share calculation | 12,667,761 | 13,742,502 | |||
Stock Options [Abstract] | |||||
Term of stock options granted | 5 years | ||||
Term following end of service to the Company by the grantee of stock options granted | 3 months | 3 months | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Weighted average grant date fair value for options granted (in dollars per option) | $ 1.12 | $ 1.10 | |||
Stock Options [Member] | General and Administrative Expense [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Stock-based compensation recovery | $ (500) | ||||
PSUs [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Equity awards granted in period (as a percent) | 80.00% | ||||
Award vesting percentage subject to targets relating to total shareholder return | 50.00% | ||||
Award vesting percentage subject to targets relating to net asset value | 25.00% | ||||
Discount rate for Net Asset Valuation | 10.00% | ||||
Award vesting percentage subject to targets relating to the execution of corporate strategy | 25.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
DSUs [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Vesting percentage | 100.00% | ||||
Minimum [Member] | PSUs [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Vesting percentage | 0.00% | ||||
Maximum [Member] | PSUs [Member] | |||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||
Vesting percentage | 200.00% |
Share Capital - Schedule of Com
Share Capital - Schedule of Common Stock (Details) - shares | Jan. 13, 2016 | Mar. 31, 2016 |
Increase (Decrease) in Common Stock | ||
Beginning balance | 273,442,799 | |
Shares issued for acquisition | 13,700,000 | |
Options exercised | 500,000 | |
Ending balance | 287,657,518 | |
Common Stock [Member] | ||
Increase (Decrease) in Common Stock | ||
Beginning balance | 273,442,799 | |
Shares issued for acquisition | 13,656,719 | |
Options exercised | 500,000 | |
Exchange of exchangeable shares | 58,000 | |
Ending balance | 287,657,518 | |
Common Stock [Member] | Gran Tierra Exchangeco Inc [Member] | ||
Increase (Decrease) in Common Stock | ||
Beginning balance | 4,933,177 | |
Shares issued for acquisition | 0 | |
Options exercised | 0 | |
Exchange of exchangeable shares | (58,000) | |
Ending balance | 4,875,177 | |
Common Stock [Member] | Gran Tierra Goldstrike Inc [Member] | ||
Increase (Decrease) in Common Stock | ||
Beginning balance | 3,638,889 | |
Shares issued for acquisition | 0 | |
Options exercised | 0 | |
Exchange of exchangeable shares | 0 | |
Ending balance | 3,638,889 |
Share Capital - Weighted Averag
Share Capital - Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted average number of common and exchangeable shares outstanding | 293,812,226 | 286,194,315 |
Weighted average shares issuable pursuant to stock options | 0 | 0 |
Weighted average shares assumed to be purchased from proceeds of stock options | 0 | 0 |
Weighted average number of diluted common and exchangeable shares outstanding | 293,812,226 | 286,194,315 |
Share Capital - PSU, DSU, RSU a
Share Capital - PSU, DSU, RSU and Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Number of Outstanding Stock Options | |
Beginning Balance (in shares) | 12,851,557 |
Granted (in shares) | 1,286,525 |
Exercised (in shares) | (500,000) |
Forfeited (in shares) | (457,436) |
Expired (in shares) | (127,051) |
Ending Balance (in shares) | 13,053,595 |
Weighted Average Exercise Price/Stock Option ($) | |
Weighted Average Exercise Price $/Option, beginning balance (in dollars per share) | $ / shares | $ 4.60 |
Weighted Average Exercise Price $/Option, Granted (in dollars per share) | $ / shares | 2.65 |
Weighted Average Exercise Price $/Options, Exercised (in dollars per share) | $ / shares | 2.40 |
Weighted Average Exercise Price $/Options, Forfeited (in dollars per share) | $ / shares | (4.71) |
Weighted Average Exercise Price $/Options, Expired (in dollars per share) | $ / shares | (6.49) |
Weighted Average Exercise Price $/Option, ending balance (in dollars per share) | $ / shares | $ 4.46 |
PSUs [Member] | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 0 |
Granted (in shares) | 2,297,700 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Ending Balance (in shares) | 2,297,700 |
DSUs [Member] | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 0 |
Granted (in shares) | 59,229 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Ending Balance (in shares) | 59,229 |
RSUs [Member] | |
Number of Outstanding Share Units | |
Beginning Balance (in shares) | 1,015,457 |
Granted (in shares) | 0 |
Exercised (in shares) | (272,397) |
Forfeited (in shares) | (166,685) |
Expired (in shares) | 0 |
Ending Balance (in shares) | 576,375 |
Share Capital - Amounts Recogni
Share Capital - Amounts Recognized for Stock-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | $ 1,646 | $ (482) |
Less: Stock-based compensation costs capitalized | (186) | (31) |
Stock-based compensation expense (recovery) | 1,460 | (513) |
PSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | 165 | 0 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | 971 | (422) |
DSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | 146 | 0 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation costs | $ 364 | $ (60) |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||||
Beginning Balance | $ 33,224 | $ 35,812 | $ 35,812 | ||
Settlements | (194) | (6,317) | |||
Liability incurred | 923 | 1,556 | |||
Liabilities assumed in acquisition | 11,852 | 0 | |||
Accretion | 655 | 1,313 | |||
Revisions in estimated liability | 0 | 860 | |||
Balance, end of period | 46,460 | 33,224 | |||
Asset retirement obligation - current | $ 3,255 | $ 2,146 | |||
Asset retirement obligation - long-term | 43,205 | 31,078 | |||
Asset retirement obligation | 33,224 | 35,812 | $ 35,812 | 46,460 | 33,224 |
Cash settlement of asset retirement obligation | $ (104) | $ (1,425) | |||
Fair value of legally restricted assets | $ 8,500 | $ 2,900 |
Taxes (Details)
Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | |||
Effective tax rate (percent) | (36.00%) | (0.20%) | |
U.S. Statutory rate (percent) | 35.00% | ||
Foreign equity tax expense | $ 3,051,000 | $ 3,769,000 | |
Colombia [Member] | |||
Income Tax Examination [Line Items] | |||
Unpaid equity tax liability | 3,300,000 | $ 0 | |
Foreign Tax Authority [Member] | National Taxes and Customs Direction (DIAN) [Member] | |||
Income Tax Examination [Line Items] | |||
Deferred tax recovery associated with the ceiling test adjustment | $ (22,400,000) | ||
Tax Year 2015 [Member] | Colombia [Member] | |||
Income Tax Examination [Line Items] | |||
Equity tax rate (in hundredths) | 1.15% | ||
Tax Year 2016 [Member] | Colombia [Member] | |||
Income Tax Examination [Line Items] | |||
Equity tax rate (in hundredths) | 1.00% | ||
Tax Year 2017 [Member] | Colombia [Member] | |||
Income Tax Examination [Line Items] | |||
Equity tax rate (in hundredths) | 0.40% |
Contingencies (Details)
Contingencies (Details) $ in Millions | Apr. 30, 2015bbl | Mar. 31, 2016USD ($)hydrocarbon_accumulationbbl | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) |
Loss Contingencies [Line Items] | ||||
Number of separate hydrocarbon accumulations | hydrocarbon_accumulation | 2 | |||
Promissory notes provided as collateral for letters of credit | $ 74.9 | $ 76.5 | ||
Pending Litigation Moqueta Discovery [Member] | ||||
Loss Contingencies [Line Items] | ||||
Threshold by which additional royalty due (barrels) | bbl | 5,000,000 | |||
Total cumulative production of oil field (barrels) | bbl | 5,000,000 | |||
Contingent consideration liability | $ 66.3 | |||
Related interest costs | $ 30.7 | |||
Royalty agreement basis spread on variable rate | 4.00% | |||
Contested interest rate (percent) | 29.00% | |||
Related interest | $ 7.1 | |||
Pending Litigation Royalty, Transportation and Related Costs [Member] | ||||
Loss Contingencies [Line Items] | ||||
Contingent consideration liability | $ 44.8 |
Financial Instruments, Fair V46
Financial Instruments, Fair Value Measurements, Credit Risk and Foreign Exchange Risk - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Block-Brazil [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Participating interest percentage oil and gas property, remaining percentage | 30.00% |
Financial Instruments, Fair V47
Financial Instruments, Fair Value Measurements, Credit Risk and Foreign Exchange Risk - Fair Value of Trading Securities and Contingent Consideration (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Trading securities | $ 5,362 | $ 6,250 |
Contingent consideration liability | 1,061 | 1,061 |
Share unit liability | 1,190 | 1,189 |
Fair value of trading securities, contingent consideration, and RSU and PSU liabilities | $ 2,251 | $ 2,250 |
Financial Instruments, Fair V48
Financial Instruments, Fair Value Measurements, Credit Risk and Foreign Exchange Risk - Gains or Losses on Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Trading securities loss (gain) | $ 845 | $ (412) |
Foreign currency derivatives loss | 0 | 370 |
Financial instruments loss (gain) | $ 845 | $ (42) |
Supplemental Cash Flow Inform49
Supplemental Cash Flow Information - Net Changes in Assets and Liabilities from Operating Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable and other long-term assets | $ (2,513) | $ 13,484 |
Inventory | 4,339 | 2,159 |
Prepaids | 606 | 528 |
Accounts payable and accrued and other long-term liabilities | (5,975) | (21,414) |
Taxes receivable and payable | 3,036 | (19,983) |
Net changes in assets and liabilities from operating activities | $ 507 | $ 25,226 |
Supplemental Cash Flow Inform50
Supplemental Cash Flow Information - Additional Supplemental Cash Flow Disclosures (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Mar. 31, 2015 |
Supplemental Cash Flow Elements [Abstract] | ||
Net liabilities related to property, plant and equipment, end of period | $ 35,606 | $ 55,335 |
General and Administrative Ex51
General and Administrative Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense (recovery) | $ 1,460 | $ (513) |
General and administrative expenses | 8,805 | 7,294 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
G&A expenses before stock-based compensation | 14,085 | 20,265 |
Stock-based compensation expense (recovery) | 1,397 | (530) |
Capitalized G&A and overhead recoveries | (6,677) | (12,441) |
General and administrative expenses | $ 8,805 | $ 7,294 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] - 5.00% Convertible Senior Notes due 2021 - Convertible Debt [Member] | Apr. 22, 2016USD ($) | Apr. 06, 2016USD ($)day$ / shares |
Subsequent Event [Line Items] | ||
Interest rate (as a percent) | 5.00% | |
Additions to aggregate principal amount of Convertible Senior Notes | $ 15,000,000 | $ 100,000,000 |
Conversion rate (as a percent) | 0.3114295 | |
Initial conversion price (in dollars per share) | $ / shares | $ 3.21 | |
Threshold percentage of stock price trigger (at least) | 150.00% | |
Threshold trading days (at least) | day | 20 | |
Threshold consecutive trading days | 30 days | |
Redemption price percentage | 100.00% | |
Repurchase percentage | 100.00% | |
Net proceeds from sale of Notes | $ 109,000,000 |