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Capital Markets Day – Gran Tierra Energy, Inc.

Gran Tierra Energy, Inc. · Feb 1, 2019 · 115 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Capital Markets Day – Gran Tierra Energy, Inc. – slide 1
    Capital Markets Day New York January 30th 2019 London February 1st 2019
  2. Capital Markets Day – Gran Tierra Energy, Inc. – slide 2
    The forward-looking statements contained in this presentation are based on certain Gran Tierra's Statement of Reserves Data and Other Oil and Gas Information on Form assumptions made by Gran Tierra based on managements experience and…
  3. Capital Markets Day – Gran Tierra Energy, Inc. – slide 3
    AGENDA 11:00 am 11:10 am Introduction to Company 11:10 am 11:20 am Introduction to Colombia 11:20 am 11:30 am Transformation of GTEs Asset Base 11:30 am 12:10 pm Asset Overview GTEs Key Assets 12:10 pm 12:25 pm Break Lunch Served…
  4. Capital Markets Day – Gran Tierra Energy, Inc. – slide 4
    Introduction to Company
  5. Capital Markets Day – Gran Tierra Energy, Inc. – slide 5
    GRAN TIERRA SNAPSHOT Publicly listed, independent international exploration & 100% Diversified +90% production company focused in onshore Colombia Oil High-quality, Operated asset base Production Production 2016 2017 2018 2019E WI…
  6. Capital Markets Day – Gran Tierra Energy, Inc. – slide 6
    GRAN TIERRA EXCELLENT VALUE PROPOSITION High-Quality Profitable Production Assets Growth 90% operated, 100% oil Short cycle times Low decline rates Focused on full-cycle returns Low operating costs High-Quality Profitable Assets…
  7. Capital Markets Day – Gran Tierra Energy, Inc. – slide 7
    SOLID TRACK RECORD OF VALUE CREATION Highly Experienced Management Team Gary Guidry Ryan Ellson President & CEO CFO Manuel Buitrago Ed Caldwell Jim Evans Alan Johnson Colombia Country VP HSE VP Corporate VP Asset Manager Services…
  8. Capital Markets Day – Gran Tierra Energy, Inc. – slide 8
    GRAN TIERRAS FOCUSED STRATEGY Targeting 3-5 xs growth in NAV/share in 5 years S T R AT E G Y TAC T I C S Proven, Under-Explored Conventional Hydrocarbon Basins Apply Proven Technology World-class exploration program targeting WI…
  9. Capital Markets Day – Gran Tierra Energy, Inc. – slide 9
    PORTFOLIO TRANSFORMATION: 2015 - 2018 New Acquisitions Growth Acquisitions Management 3 Corporate 3 Exploration / Board 1 Asset discoveries 4 Assets Development of Acordionero 2015 2016 2017 2018 22,601 boepd1 26,216 boepd…
  10. Capital Markets Day – Gran Tierra Energy, Inc. – slide 10
    REVISITING OUR COMMITMENTS DELIVERING WHAT WE PROMISE WHAT WE SAID IN 2015 WHAT WE HAVE DELIVERED Add Visible Reserves & YE18 2P reserves = US1.9 bn free cash flow1 (5 Production Growth years); 2P Reserves up 149%, Production up…
  11. Capital Markets Day – Gran Tierra Energy, Inc. – slide 11
    DELIVERING ON OUR FOCUSED STRATEGY 204 196% Production Growth1 Reserves Growth1 3P reserves (mboe/d, gross WI) (mmboe, gross WI) 69% 142 149% Production 2P reserves 38.2 22.6 69 57 57% 66 1P reserves 42 Q2/2015 Q4/2018…
  12. Capital Markets Day – Gran Tierra Energy, Inc. – slide 12
    STEADILY GROWING PRODUCTION 45,000 Forecast 40,000- 40,000 42,000 Actuals 35,000 30,000 boepd 25,000 20,000 15,000 10,000 5,000 - 2015 2016 2017 2018 2019 E From 2015 to 2019, Gran Tierra forecasts average…
  13. Capital Markets Day – Gran Tierra Energy, Inc. – slide 13
    NET ASSET VALUE 4,000 Dec.31/2018 NAV Before Tax (USMM, US/share)1 8.70/sh 3,500 Jan. 23/2019 Share Price 3,369 3,000 2.32/share (USD) 1,063 5.96/sh 2,500 2,306 2,000 1,331 1,500 2.52/sh 1,342 367 1,000 2.32/sh 975 500 0…
  14. Capital Markets Day – Gran Tierra Energy, Inc. – slide 14
    KEY TAKEAWAYS World-class exploration portfolio 1.9 billion of free cash flow over the next 5 years from existing reserves High-Quality Assets Profitable Production Growth Potential for share buybacks CREATE LONG-TERM…
  15. Capital Markets Day – Gran Tierra Energy, Inc. – slide 15
    Introduction to Colombia
  16. Capital Markets Day – Gran Tierra Energy, Inc. – slide 16
    WHY INVEST IN COLOMBIA 1964 2017 Population 17 million (15.1% urban) 49.4 million (84.9% urban) Life expectancy at birth (yrs) 59 74 Infant mortality rate (per 1,000) 149 16.8 Poverty 62.0% 17.8% Extreme poverty 32.3% 7.0% GDP per capita…
  17. Capital Markets Day – Gran Tierra Energy, Inc. – slide 17
    WHY INVEST IN COLOMBIA HIGHLY COMPETITIVE O&G PILLAR FOR STRONG, STABLE ESTABLISHED FISCAL REGIME ECONOMIC GROWTH ECONOMIC ENVIRONMENT INFRASTRUCTURE Joined OECD in May 2018 NETWORK Flexible, progressive fiscal Large discoveries…
  18. Capital Markets Day – Gran Tierra Energy, Inc. – slide 18
    WHY INVEST IN COLOMBIA Oil and Gas is a Pillar of Growth in Colombia1 1200 Daily Oil Production (bopd) 399 5,325 km 513,000 bopd 1000 863 Kbopd active fields to date of pipelines estimated exports in 2018 800 Avg oil production…
  19. Capital Markets Day – Gran Tierra Energy, Inc. – slide 19
    WHY INVEST IN COLOMBIA Government Take as a % of NPV10 Brent = US60/bbl US Concession (Texas) US Concession (Louisiana) UK Concession Canada Concession (Alberta) Ecuador PSC Colombia Concession COLOMBIA Chad PSC Ghana Concession…
  20. Capital Markets Day – Gran Tierra Energy, Inc. – slide 20
    WHY INVEST IN COLOMBIA Post-Conflict Colombia - Putumayo 1958-2013 2016 September May November TODAY 2017 2018 2018 Five Decades Peace Agreement FARC Political Elections for Colombian Peace Process of Conflict Signed Party is…
  21. Capital Markets Day – Gran Tierra Energy, Inc. – slide 21
    Year in Review
  22. Capital Markets Day – Gran Tierra Energy, Inc. – slide 22
    2018 MILESTONES EXPLORATION DEVELOPMENT FINANCIAL SOCIAL o 5 exploration wells o Consecutive quarters of o YE18 2P reserves o Actively involved in drilled and tested production growth forecast to generate multiple social US1.9 bn…
  23. Capital Markets Day – Gran Tierra Energy, Inc. – slide 23
    Transformation of GTEs Asset Base
  24. Capital Markets Day – Gran Tierra Energy, Inc. – slide 24
    WHERE WE STARTED VS WHERE WE ARE NOW Middle Magdalena Putumayo January 1, 2015 o Two mature fields in Putumayo (Costayaco and Moqueta) o From 2012 to 2015 2P CAGR of 2P reserves was 1% and -1% for 3P o Focus was on frontier…
  25. Capital Markets Day – Gran Tierra Energy, Inc. – slide 25
    PETROLATINA: TRANSFORMATIONAL ACQUISITION IN MMV o Inline with strategy, GTE made the transformational Reserves2 (mmboe, WI) 13% acquisition of PetroLatina for US525 million in 3P reserves August 2016 111 o Provided diversification…
  26. Capital Markets Day – Gran Tierra Energy, Inc. – slide 26
    HAS OUR ACQUISITION STRATEGY WORKED Strategic decision to acquire & consolidate position within Colombia during the oil price downturn has added growth in production, reserves & resources RESOURCE CAPTURE Diversified within…
  27. Capital Markets Day – Gran Tierra Energy, Inc. – slide 27
    GTE RESERVES SUMMARY 2P Production increase is primarily from the 2P Capex and Cashflows (WI, USmm) development of Acordionero 750 No exploration success is assumed in the forecast Development expenditures over the next 5 years are…
  28. Capital Markets Day – Gran Tierra Energy, Inc. – slide 28
    GTE RESERVES SUMMARY 3P Production increase is primarily from the 3P Capex and Cashflows (WI, USmm) development of Acordionero 800 No exploration success is assumed in the forecast 638 598 Development expenditures over the next 7…
  29. Capital Markets Day – Gran Tierra Energy, Inc. – slide 29
    Asset Management
  30. Capital Markets Day – Gran Tierra Energy, Inc. – slide 30
    DRIVERS FOR GROWTH 2015-2019 AND BEYOND Development portfolio with assets at progressive stages of maturity Capital efficiency driving down drilling and completion costs, managing operating costs Application of proved enhanced…
  31. Capital Markets Day – Gran Tierra Energy, Inc. – slide 31
    ASSET LIFECYCLE NEW DISCOVERIES DEVELOPMENT MATURE Ayombero, PUT-7 & Vonu Acordionero Costayaco & Moqueta New discoveries under appraisal, Core development phase Mature waterfloods / bypassed pay whilst producing / infill…
  32. Capital Markets Day – Gran Tierra Energy, Inc. – slide 32
    WHERE WE ARE WHERE WOULD WE BE PRODUCTION, KBOEPD 50 41.0 40 36.2 32.1 Other New Assets 30 27.1 23.4 Other Legacy Assets Acordionero 20 Costayaco 10 Moqueta 0 2015 2016 2017 2018 2019 Growth from newly-added assets and…
  33. Capital Markets Day – Gran Tierra Energy, Inc. – slide 33
    SIGNIFICANT RESERVES GROWTH 250 Reserves Progression (MMboe) 2P Reserves by Property1 (MMboe) 200 65.5 61.8 Minor Fields 73.1 150 23 Suroriente 63.2 76.3 3 100 53.3 Ramiquiri 3 50 72.8 74.1 66.0 Moqueta 0 9 Acordionero 2011…
  34. Capital Markets Day – Gran Tierra Energy, Inc. – slide 34
    UNDEVELOPED LOCATIONS Number of Wells Undeveloped Reserves1 per Well (MMboe) 140 129 1.20 1.0 120 1.00 0.9 100 92 83 0.80 80 61 0.60 0.5 60 42 0.40 40 34 20 0.20 0 0.00 1P 2P 3P 1P 2P 3P PUD PPUD PPPUD Dec 31, 2017 Dec…
  35. Capital Markets Day – Gran Tierra Energy, Inc. – slide 35
    SIGNIFICANT COST REDUCTIONS ACROSS PORTFOLIO Drilling Time (days) Drilling & Completion Cost (USmm) 12 50 10 40 -30% -33% Acordionero Acordionero 8 30 -23% -23% Moqueta 6 Moqueta 51 10.9 20 -45% 4 7.9 -57% 31 28 28…
  36. Capital Markets Day – Gran Tierra Energy, Inc. – slide 36
    ACORDIONERO 76 MMBOE 22,500 BOEPD 2P WI Reserves 2019 Production Outlook1 Acordionero ASSET DETAILS o 100% WI Gran Tierra o Production up 357% since acquisition o Generating free cash flow from day 0 o 2019 drilling program…
  37. Capital Markets Day – Gran Tierra Energy, Inc. – slide 37
    ACORDIONERO ASSET OVERVIEW YE 2018 Category YE 20181 (MMbbl) NPV10 BT1 FDC2 (MM) FCF3 (MM) RLI4 (years) 2018 Producing (MM) 1P 32 840 60 1,034 4 Production Zones 2P 76 1,704 145 2,680 10 Lisama-A 18,680 bbl/d 3P 97…
  38. Capital Markets Day – Gran Tierra Energy, Inc. – slide 38
    ACORDIONERO FIELD OVERVIEW 25,000 16.0 14.0 20,000 12.0 Oil (bbl/d) / Water (bbl/d) / Fluid (bbl/d) / Cumulative Oil (MMbbl) 10.0 15,000 Water Injection (bbl/d) 8.0 10,000 6.0 4.0 5,000 2.0 Acordionero…
  39. Capital Markets Day – Gran Tierra Energy, Inc. – slide 39
    ACORDIONERO FIELD PRODUCTION RAMP UP 25,000 30 GTE Acquisition 22,500 Cumulative Field Production 25 15 MMBBLS DAILY GROSS OIL PRODUCTION (BOPD) 20,000 17,500 20 PRODUCING WELLS 15,000 12,500 15 10,000 10…
  40. Capital Markets Day – Gran Tierra Energy, Inc. – slide 40
    ACORDIONERO FURTHER DETAIL o 100% working interest (operator) Acordionero Conceptual Model o High netback 19 API oil (including water injection and gas injection) o Stacked pay: Overview Thick (330), permeable (200-1,300mD) oil pay…
  41. Capital Markets Day – Gran Tierra Energy, Inc. – slide 41
    Acordionero Full Field Development Plan ACORDIONERO - ASSET GROWTH NI 51-101 2017 YE 2018 YE Change A Sand C Sand A Sand C Sand A Sand C Sand OOIP (MMbbl) 224 55 250 62 +26 +7 1P RF (%) 13 23 13 28 NC +5 OOIP (MMbbl) 263 69…
  42. Capital Markets Day – Gran Tierra Energy, Inc. – slide 42
    AYOMBERO 64 MMBOE 4.6 MMBOE Estimated Resource1 2P WI Reserves ASSET DETAILS Chuira o 100% WI Gran Tierra o Highly-fractured, conventional carbonate Ayombero o Significant potential in 3 horizons o 2019 drilling program…
  43. Capital Markets Day – Gran Tierra Energy, Inc. – slide 43
    AYOMBERO ASSET OVERVIEW YE 20181 YE 20181 FDC2 FCF3 RLI4 2019 Category (MMbbl) NPV10 BT (MM) (MM) (years) Producing (MM) Production Zones 1P 2 22.4 20.4 31.6 30 Outlook5 2P 5 67.0 54.2 111 82 3P 8 118 87.9 206 147 1,000…
  44. Capital Markets Day – Gran Tierra Energy, Inc. – slide 44
    AYOMBERO FIELD OVERVIEW Key Field Characteristics La Luna Depth Map Ayombero-1 Logs o Highly-fractured, conventional carbonate Chuira o 3 prospective zones (Galembo, Ayombero Pujamana, Salada) o Analogous to La Paz field in…
  45. Capital Markets Day – Gran Tierra Energy, Inc. – slide 45
    AYOMBERO ACTIVITY UPDATE Ayombero-2 Ayombero-3 Mapped OOIP Ayombero 2 was an appraisal well Ayombero 3 was an appraisal targeting the Galembo member of well targeting the Galembo the La Luna Fm. member of the La Luna Formation,…
  46. Capital Markets Day – Gran Tierra Energy, Inc. – slide 46
    AYOMBERO ACTIVITY UPDATE Ayombero 1 and 2 - Petrophysical Comparison Similar lithology's across the G1 and G2 intervals seen in Ayombero 1 and 2 Deep Resistivity values are comparable in Ayombero 1 and 2 across the G2 and G3…
  47. Capital Markets Day – Gran Tierra Energy, Inc. – slide 47
    PUTUMAYO: COSTAYACO & MOQUETA ASSET OVERVIEW Reserves1 (MMBOE; WI) o 100% working interest (operator) Moqueta Costayaco o High netback 29 API oil 38 Overview o Strong, reliable cash flow, minimal future capital required 27 o…
  48. Capital Markets Day – Gran Tierra Energy, Inc. – slide 48
    COSTAYACO 19 MMBOE 6,750 BOEPD 2P WI Reserves 2019 production outlook1 ASSET DETAILS o 100% WI Gran Tierra o Multiple, high-quality reservoir units Costayaco o Sandstone & carbonate light oil development o 2019 drilling…
  49. Capital Markets Day – Gran Tierra Energy, Inc. – slide 49
    COSTAYACO ASSET OVERVIEW YE 2018 Category YE 20181 NPV10 BT1 FDC2 FCF3 RLI4 2018 Producing (MMbbl) (MM) (MM) (years) (MM) Production Zones 1P 12 161 46 191 4 Villeta (5) 2P 19 275 73 353 6 8,040 bbl/d 3P 27 433 93 594…
  50. Capital Markets Day – Gran Tierra Energy, Inc. – slide 50
    COSTAYACO FIELD OVERVIEW 60,000 60.0 FIELD PRODUCTION Dec 1, 2018 Oil 7,821 bopd Oil (bbl/d) / Water (bbl/d) / Fluid (bbl/d) / Water Injection Water 43,310 bwpd 50,000 50.0 WCT 84.7% GOR 290 scf/stb Water Injection 47,144…
  51. Capital Markets Day – Gran Tierra Energy, Inc. – slide 51
    MOQUETA 9 MMBOE 3,500 BOEPD 2P WI Reserves 2019 production outlook1 ASSET DETAILS Moqueta o 100% WI Gran Tierra o Highly-structured, with two main producing units o Sandstone light oil waterflood development o 2019 drilling…
  52. Capital Markets Day – Gran Tierra Energy, Inc. – slide 52
    MOQUETA ASSET OVERVIEW YE 2018 Category YE 20181 NPV10 BT1 FDC2 FCF3 RLI4 2018 Producing (MMbbl) (MM) (MM) (years) (MM) Production Zones 1P 7 104 25 127 5 Villeta (2) 2P 9 132 38 174 7 3,635 bbl/d Caballos 3P 11 166 38 231…
  53. Capital Markets Day – Gran Tierra Energy, Inc. – slide 53
    MOQUETA FIELD OVERVIEW 14,000 14.0 FIELD PRODUCTION Dec 1, 2018 Oil (bbl/d) / Water (bbl/d) / Fluid (bbl/d) / Water Injection Oil 3,600 bopd Water 6,445 bwpd 12,000 12.0 WCT 64.2% GOR 472 scf/stb 10,000 Water Injection…
  54. Capital Markets Day – Gran Tierra Energy, Inc. – slide 54
    CHAZA - ASSET GROWTH NI 51-101 2017 YE 2018 YE Change OOIP (MMbbl) 316 343 +27 1P RF (%) 30 27 -3 OOIP (MMbbl) 316 343 +27 2P RF (%) 33 30 -3 OOIP (MMbbl) 320 344 24 3P RF (%) 38 34 -4 Potential upside on Recovery…
  55. Capital Markets Day – Gran Tierra Energy, Inc. – slide 55
    PUT-7 - CUMPLIDOR 10 MMBOE 900 BOEPD 2P WI Reserves 2019 production outlook1 ASSET DETAILS o Discovered in November 2016 by GTE (100% WI) Put-7 o Multiple, productive reservoir units o Sandstone and carbonate medium to light…
  56. Capital Markets Day – Gran Tierra Energy, Inc. – slide 56
    CUMPLIDOR ASSET OVERVIEW YE 2018 Category YE 20181 NPV10 BT1 FDC2 FCF3 RLI4 2018 Producing (MMbbl) (MM) (MM) (years) (MM) Production Zones 1P 3 28 43 42 12 Villeta 2P 10 87 116 152 38 7945 bbl/d N Sand 3P 20 215 166 417…
  57. Capital Markets Day – Gran Tierra Energy, Inc. – slide 57
    CUMPLIDOR POTENTIAL FOR FUTURE ASSET GROWTH McDaniel 2017 YE 2018 YE Change OOIP (MMbbl) 36 37 +1 Cumplidor-2 1P Confianza-1 RF (%) 12 11 -1 Quinde-6 Alpha-1 Cumplidor-1 Quinde-4 Quinde-3 OOIP (MMbbl) 74 88 +14 Quinde-2…
  58. Capital Markets Day – Gran Tierra Energy, Inc. – slide 58
    COHEMBI KEY PRODUCTION DATA Gross Interval Net Pay NTG Cum. Prod Well (ft) (ft) (%) IP30 IP90 (mbbl) EUR Cohembi-1 27 12 44% 949 850 3,250 3,250 Cohembi-2 25 17 68% 1,472 1,477 1,047 1,047 Cohembi-3 30 22 73% 1,765 1,629 2,151 3,214…
  59. Capital Markets Day – Gran Tierra Energy, Inc. – slide 59
    COHEMBI WATERFLOOD N SAND DEVELOPMENT 2 injector conversions in 2018 o Suroriente Block (GTE WI = 15.8%) contains Cohembi N Sand oil field o Typical N Sand development w/excellent performance due to waterflood o 2P OOIP 179 MMBBL1…
  60. Capital Markets Day – Gran Tierra Energy, Inc. – slide 60
    DRIVERS FOR GROWTH 2015-2019 AND BEYOND Development portfolio with assets at progressive stages of maturity Capital efficiency driving down drilling and completion costs, managing operating costs Application of proved enhanced…
  61. Capital Markets Day – Gran Tierra Energy, Inc. – slide 61
    Exploration Campaign
  62. Capital Markets Day – Gran Tierra Energy, Inc. – slide 62
    DRIVERS FOR GROWTH 2015-2019 AND BEYOND GTE has built a material, world-class prospective resource base with 1.4 billion of unrisked prospective resources Applying a systematic approach to develop underexplored basins with stacked…
  63. Capital Markets Day – Gran Tierra Energy, Inc. – slide 63
    January 1, 2015 January 1, 2019 WHERE WE ARE NOW Putumayo Putumayo Total Net Acres 1,592 (M acres) 195% 540 Dec/2015 Dec/2018 Putumayo Llanos Middle Mag of Prospects* 78 136% 33 Middle Mag. Middle Mag. Dec/2015 Dec/2018…
  64. Capital Markets Day – Gran Tierra Energy, Inc. – slide 64
    PUTUMAYO BASIN - UNDEREXPLORED, PROVEN BASIN Colombias Putumayo basin is underexplored due to above ground security issues, now mitigated by Peace Agreement Same geology as Ecuador, where almost 6 billion bbls of oil produced1…
  65. Capital Markets Day – Gran Tierra Energy, Inc. – slide 65
    PUTUMAYO BASIN - GEOLOGY OVERVIEW PROVEN OIL RESERVOIR API Net Pay Porosity Permeability Reservoir Play Type (degrees) (ft) (%) (mD1) N Sand Stratigraphic 15-25 5-40 10-30 10-1000 M2 Matrix + Stratigraphic 25-35 10-100 3-10…
  66. Capital Markets Day – Gran Tierra Energy, Inc. – slide 66
    PUTUMAYO CARBONATE DEPOSITIONAL MODEL Outer Margin Lagoon Land Platform Tested oil from all marine facies, highest productivity to date in the outer platform 1. Modern analogue Ningaloo fringing reef off northwestern Australian…
  67. Capital Markets Day – Gran Tierra Energy, Inc. – slide 67
    PUTUMAYO N SAND PLAY GTE has identified 27 N Sand prospects WI mean prospective resources: 134 MMBOE (unrisked)/59 MMBOE (risked)1 N Sand relatively low risk for an exploration play (McDaniel estimated average chance of success =…
  68. Capital Markets Day – Gran Tierra Energy, Inc. – slide 68
    PUTUMAYO SEISMIC LINE MULTI-ZONE PROSPECTS A Cohembi Quinde/Cumplidor Pomorroso N Sand A LST Quinde/Cumplidor Pomorroso Cohembi 3 km High amplitudes in N Sand relate to productive reservoir; continuity of A…
  69. Capital Markets Day – Gran Tierra Energy, Inc. – slide 69
    PUTUMAYO BASIN SIZE OF THE PRIZE Total Putumayo Unrisked Mean Prospective Resources (1,106 MMBOE) Structural 14% N-Sand 12% A- Limestone*74% Total Putumayo Risked Mean Prospective Resources (298 MMBOE) Structural…
  70. Capital Markets Day – Gran Tierra Energy, Inc. – slide 70
    WORLD-CLASS EXPLORATION UPSIDE IN COLOMBIA GTE WI Unrisked Mean Prospective Resources (MMBOE) 1,600 1,419 Carbonate 1,400 Strat / Struc / Combo 117 1,200 132 64 533 1,000 150 134 800 600 400 822 886 200 0 A Limestone N…
  71. Capital Markets Day – Gran Tierra Energy, Inc. – slide 71
    WORLD-CLASS EXPLORATION UPSIDE IN COLOMBIA 400 GTE WI Risked Mean Prospective Resources (MMBOE) 361 350 Carbonate 16 18 300 Strat / Struc / Combo 29 25 118 250 59 200 150 243 100 214 50 0 A Limestone N Sand Structural La…
  72. Capital Markets Day – Gran Tierra Energy, Inc. – slide 72
    LARGE PUTUMAYO SEISMIC DATABASE Moqueta Costayaco o Gran Tierra has a substantial proprietary seismic database covering much of the Putumayo Basin Putumayo 3D coverage = 1,983 km 2 Vonu New Margarita 3D program = 342 km2 (2019)…
  73. Capital Markets Day – Gran Tierra Energy, Inc. – slide 73
    WHY DOES IT MATTER Golden Lane, Natih, La Paz, A-Limestone, Austin Chalk, Eagle Ford, La Luna, Mexico1 Oman1 Venezuela1 Colombia2 USA1 USA1 Colombia2 Depth 6,000-9,000 9,000 6,000-8,000 2,000 10,000 11,000 3,500 - 13,000 16,000…
  74. Capital Markets Day – Gran Tierra Energy, Inc. – slide 74
    MMV BASIN - GEOLOGY OVERVIEW API Net Pay Porosity Permeability HC ANALOG Reservoir Play Type (degree) (ft) (%) (mD1) RESERVOIR FIELDS La Cira Real GRP Structural Gas 10-27 20-25 300 Colorado-Mugrosa Abarco-Girasol-Jazmin-…
  75. Capital Markets Day – Gran Tierra Energy, Inc. – slide 75
    MMV BASIN EXPLORATION o GTE has identified multiple prospects across its extensive MMV land base o Positive potential factors for MMV exploration include: Thick, good quality reservoir may exist within Lisama A and C sands (like…
  76. Capital Markets Day – Gran Tierra Energy, Inc. – slide 76
    DRIVERS FOR GROWTH 2015-2019 AND BEYOND GTE has built a material, world-class prospective resource base with 1.4 billion of unrisked prospective resources Applying a systematic approach to develop underexplored basins with stacked…
  77. Capital Markets Day – Gran Tierra Energy, Inc. – slide 77
    Financial Overview & Path to Value Creation
  78. Capital Markets Day – Gran Tierra Energy, Inc. – slide 78
    GRAN TIERRA POSITIONED ACROSS PRICE CYCLES Why invest in Gran Tierra 100% oil weighted portfolio Unhedged for upside Ability to accelerate activity Maintains a strong balance sheet Focused on low cost, conventional HIGHER LOWER…
  79. Capital Markets Day – Gran Tierra Energy, Inc. – slide 79
    FINANCIAL PHILOSOPHY AND POLICIES DISCIPLINED MAINTENANCE OF CAPITAL DYNAMIC RISK APPROACH TO AMPLE LIQUIDITY ALLOCATION MANAGEMENT MANAGE LEVERAGE PROGRAM o Fund growth program o Undrawn committed o Investments target a o Primary…
  80. Capital Markets Day – Gran Tierra Energy, Inc. – slide 80
    2019 GUIDANCE Invest Drill Increase Production to Generate Cash Flow1 of 350-370 MM 38-40 gross wells 40-42,000 boepd 365-375 MM 31-32 development & 7-8 exploration wells Lower Operating Costs of & Lower G&A of Creating Free…
  81. Capital Markets Day – Gran Tierra Energy, Inc. – slide 81
    2019 GUIDANCE1 GROWTH WITHIN CASH FLOW Production Guidance Capital Guidance Base/High Low WI Production (boepd) 40,000 42,000 Total Capital (MM) 350-370 300-320 Y-o-Y growth2 10 16% Cash Flow Guidance Base High Low 2019 Capex Program…
  82. Capital Markets Day – Gran Tierra Energy, Inc. – slide 82
    2019 CAPITAL PROGRAM DETAILS1 Acordionero CPF Expansion Development Capital (235-245 MM; 65%) Acordionero (MMV) New truck loading facility o Drill 14 wells: 9 development & 5 water injection o Ongoing CPF expansion o Expand…
  83. Capital Markets Day – Gran Tierra Energy, Inc. – slide 83
    2019 MAJOR CAPITAL PROJECTS1 Acordionero CPF Expansion New storage tanks & processing Middle Magdalena Valley (MMV) equipment under Acordionero (MMV) construction o Ongoing CPF expansion o Expand gas-to-power capacity to 20MW o…
  84. Capital Markets Day – Gran Tierra Energy, Inc. – slide 84
    SUSTAINABLE BUSINESS MODEL1 Self-Funding Business Low Debt Levels 2019F net debt2 to cash flow3 of 1.0x 65/bbl Brent No near-term maturities: 4 Gran Tierra has created a self-funded, sustainable business model 1. See…
  85. Capital Markets Day – Gran Tierra Energy, Inc. – slide 85
    CASH FLOW & USES SENSITIVITY1 4 4 2019F net debt2 to cash flow3 of 2019F net debt2 to cash flow3 of 0.6-0.7x 75/bbl Brent 1.3x 55/bbl Brent Gran Tierra is positioned to create value in a variety of oil price scenarios 1. See…
  86. Capital Markets Day – Gran Tierra Energy, Inc. – slide 86
    DEPLOYING CAPITAL PROFITABLY GTE already generates high return on capital employed (ROCE), over 15% YTD in 2018 20.00 3-Yr Avg 2P FD&A Costs (US/BOE) GTE ROCE expected to trend toward long- 18.00 term internal rate of return target…
  87. Capital Markets Day – Gran Tierra Energy, Inc. – slide 87
    NETBACK PEER COMPARISON 50.00 GTE: Q3 2018 EBITDA Netback1 (NAR) US/bbl 44.34 40.00 Average: 30.64 Average: 27.82 Average: 29.04 Average: 28.89 30.00 20.00 10.00 0.00 Peer 10 Peer 11 Peer 12 Peer 13 Peer 14 Peer…
  88. Capital Markets Day – Gran Tierra Energy, Inc. – slide 88
    ASSET SUMMARY 1P Reserves 66 MMBOE Tremendous Development Potential 142 2P WI Gross Reserves of 142 mmboe 2P Reserves MMBOE Risked Resources are almost double the size of the current 3P asset portfolio 3P Reserves 204 Unrisked…
  89. Capital Markets Day – Gran Tierra Energy, Inc. – slide 89
    CORE ASSET PORTFOLIO VALUE 4,000 Dec.31/2018 NAV Before Tax (USMM, US/share)1 8.70/sh 3,500 Jan. 23/2019 Share Price 2.32/share (USD) 3,369 3,000 1,063 5.96/sh 2,500 2,306 2,000 1,331 1,500 2.52/sh 1,342 367 1,000 2.32/sh…
  90. Capital Markets Day – Gran Tierra Energy, Inc. – slide 90
    LARGE PROSPECTIVE RESOURCE BASE Gross WI Unrisked Chance of Chance of WI Risked Oil Prospects Mean Discovery Development Mean (%) Total (mmboe) (%) (%) (mmboe) Basin PUTUMAYO 35 284 35 84 84 100 N SANDS/OTHER MIDDLE MAG1 11 195…
  91. Capital Markets Day – Gran Tierra Energy, Inc. – slide 91
    TYPE EXPLORATION DEVELOPMENT ASSUMPTIONS Type Prospect Summary (based on McDaniels Jan 1, 2019 price forecast) Gross Production (WI, mbbl/d) Discovery Types (mmboe) (kboe/d) 40 5 10 25 50 Peak Production boe/d 5,141 9,381…
  92. Capital Markets Day – Gran Tierra Energy, Inc. – slide 92
    NPV PER BBL AND PER SHARE 1 Putumayo MMV 8.00 2 NPV10BT / bbl 7.47NPV10BT / share Llanos 299 16.83 NPV10BT / share 3 18.03 NPV10BT / bbl 4 47 16 18.78 NPV10BT / bbl 17.53 NPV10BT / share 1 Putumayo MMV Llanos 2 8.00…
  93. Capital Markets Day – Gran Tierra Energy, Inc. – slide 93
    TYPE EXPLORATION DEVELOPMENT ASSUMPTIONS Net Asset Value Before Tax (USmm,US/share) 25.53/sh HIGHLIGHTS 12,000 16.83/sh Total Risked Exploration 10,000 Net Asset Value of the Company is 9.9bln before tax (25.53/share) 8,000…
  94. Capital Markets Day – Gran Tierra Energy, Inc. – slide 94
    PERU SIGNIFICANT UPSIDE EXPOSURE PetroTal: fast-growing oil company with near-term production growth and high-impact exploration upside o Publicly traded on TSX-V (ticker TAL) and London AIM (ticker PTAL) Block 95 o GTE owns 46% of…
  95. Capital Markets Day – Gran Tierra Energy, Inc. – slide 95
    EXECUTIVE SUMMARY o GTE plans to drill 40-50 prospects over the next 5 years, targeting 65 - 75% of resource base o Target Prospective Resources: 253 MMBO Risked / 993 MMBO Unrisked o Develop new discoveries FIVE YEAR GROWTH…
  96. Capital Markets Day – Gran Tierra Energy, Inc. – slide 96
    Marketing & Transportation
  97. Capital Markets Day – Gran Tierra Energy, Inc. – slide 97
    TRANSPORTATION OPTIONALITY Ample takeaway capacity and no infrastructure Barranquilla bottlenecks to GTEs operations Cartagena / Truck route to Puerto Baha Shell Puerto Baha Storage Spare capacity exists in many pipelines due to…
  98. Capital Markets Day – Gran Tierra Energy, Inc. – slide 98
    Vasconia Brent differential OIL PRICE UPSIDE EXPOSURE 0 Key Differentials 0 GTE produces nearly 100% oil; all crude sales -5 -5 contracts use Brent as the reference price -10 -10 Strong netbacks and clean balance sheet -15 -15…
  99. Capital Markets Day – Gran Tierra Energy, Inc. – slide 99
    Environmental, Social & Governance
  100. Capital Markets Day – Gran Tierra Energy, Inc. – slide 100
    ENVIRONMENTAL, SOCIAL & GOVERNANCE EXCELLENCE SAFETY GHG EMISSIONS NATURAMAZONAS LICENSING In mid-Jul. 2018, GTE reached an Voluntary projects underway to Partnership with Conservation GTE has optimal performance important safety…

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