Gran Tierra Energy Achieves Record Reserves and Growth

Gran Tierra Energy Reports Impressive Reserves Growth

Gran Tierra Energy Inc. (NYSE: GTE), an independent energy company focused on oil and natural gas exploration in Canada, Colombia, and Ecuador, has announced remarkable growth in its year-end reserves. This achievement marks the sixth consecutive year of increase in proved reserves, setting a new record in the company’s history.

Record Reserves Figures

According to the recently released 2024 reserves report by McDaniel & Associates, Gran Tierra has achieved a staggering 702% reserves replacement ratio for proved reserves (1P) and an impressive 1,249% for proved plus probable reserves (2P). These numbers illustrate the company’s strong operational efficiency and successful exploration efforts.

Details from 2024 Year-End Evaluations

The company’s total liquids reserves increased to 128 million barrels of oil equivalent (1P) and 217 million barrels of oil equivalent (2P). Notably, the reserve life index has improved, reaching 10 years for 1P and 17 years for 2P reserves. The net present value for these reserves is significant, estimated at $2.0 billion for 1P, and $3.2 billion for 2P reserves.

Strategic Growth Plan

Gran Tierra's commitment to growth has led to the addition of substantial reserves recently, totaling 89 MMBOE for 1P and 191 MMBOE for 3P. Through focused operations in Colombia and further expansion into Canadian markets, Gran Tierra aims to sustain its upward trajectory in reserves and production.

Management Commentary

Gary Guidry, the company’s President and CEO, highlighted the vitality of 2024 as a transformative year bolstered by exploration successes and effective management of assets. With the entry into Canada, Gran Tierra has diversified not only its geographical footprint but also its portfolio with a blend of conventional gas and oil assets, positioning itself well for future commodity cycles.

Financial Implications

Gran Tierra Energy's asset valuation and financial health are also noteworthy, as indicated by a strong net asset value (NAV) per share—$35.24 before tax and $19.53 after tax for 1P reserves. These figures, in conjunction with a well-structured capital expenditure plan, showcase the company's dedication to sustaining its financial performance while enhancing shareholder value.

Projected Costs and Future Endeavors

Finding, development, and acquisition costs remained competitive at $4.49 per boe for 1P reserves, reflecting a well-planned operational approach. Gran Tierra emphasizes that a significant portion of its future development capital—forecasted at $1,029 million for 1P—will be strategically allocated to ensure long-term growth.

Looking Ahead

Gran Tierra Energy's reported success reinforces its strategic plans moving into the next fiscal year. The company is primed to leverage its established footprint across key regions and continue its focus on growth opportunities. With a robust growth strategy and a commitment to sustainable practices, Gran Tierra is well-positioned to weather industry fluctuations while enhancing its reserve base.

Frequently Asked Questions

What were Gran Tierra Energy's recent reserve replacement ratios?

Gran Tierra achieved a reserves replacement ratio of 702% for proved reserves (1P) and 1,249% for proved plus probable reserves (2P) in 2024.

How much did Gran Tierra's 1P and 2P reserves increase to?

As of the end of 2024, Gran Tierra's total liquids 1P reserves increased to 128 million barrels of oil equivalent, while 2P reserves increased to 217 million barrels of oil equivalent.

What is the significance of Gran Tierra's entry into Canada?

The entry into Canada has diversified Gran Tierra's asset portfolio, enhancing its exposure to conventional gas and oil reserves, providing better resilience against commodity price fluctuations.

What is the projected capital expenditure for Gran Tierra's 2025 fiscal year?

The forecasted future development capital for 1P reserves is estimated at $1,029 million, highlighting the company's commitment to expanding its asset base and reserve potential.

Who can investors contact for more information about Gran Tierra?

Investors can reach out to Gary Guidry, CEO, or Ryan Ellson, CFO, via +1-403-265-3221 for inquiries regarding company operations and investments.

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