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September 2019 Corporate Presentation – Gran Tierra Energy, Inc.

Gran Tierra Energy, Inc. · Sep 23, 2019 · 36 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. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 1
    Creating Value in Colombia & Ecuador September 2019
  2. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 2
    REASONS TO INVEST IN GRAN TIERRA Balanced portfolio: production, development & exploration, 100% oil High-Quality Profitable Focused on low cost, conventional oil & gas Assets Production developments with low declines, 95%…
  3. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 3
    GRAN TIERRA: FULL-CYCLE E&P DELIVERING RETURNS STRATEGY/TACTICS IMPACT ON SHAREHOLDER RETURNS Proven, Under-Explored Basins GROWTH Access to Existing Infrastructure SHORT CYCLE TIMES Strong Economic Environments STABILITY…
  4. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 4
    ENVIRONMENTAL, SOCIAL & GOVERNANCE EXCELLENCE Environment NaturAmazonas, a reforestation project with Conservation International 1 Largest voluntary O&G industry conservation project in Colombia 13MM to be invested over 5 years Will…
  5. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 5
    GRAN TIERRA SNAPSHOT Independent international exploration & production company focused 100% Diversified +95% in Colombia & Ecuador, attractive investment destinations High-quality, Operated Oil asset base Production Production 2016…
  6. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 6
    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 Apply Proven Technology Hydrocarbon Basins World-class exploration program targeting WI…
  7. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 7
    DELIVERING ON OUR FOCUSED STRATEGY 215 212% Production Growth1 Reserves Growth1 3P reserves (mboe/d, gross WI) (mmboe, gross WI) 56% 150 163% Production 2P reserves 35.3 22.6 69 57 67% 70 1P reserves 42 Q2/2015 Q2/2019…
  8. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 8
    FREE CASH FLOW DRIVERS IN 2020 & BEYOND Key Investments For Future Free Cash Flow 2017-2019 2020 & Beyond Significant Investments in Major Capital & Significant Free Cash Flow Available Development Projects o Acordionero o Gran…
  9. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 9
    CAPITAL ALLOCATION FRAMEWORK LEVERAGE MAINTAIN INVESTMENT SHAREHOLDER DISCIPLINE FLEXIBILITY CRITERIA RETURNS o Target net o Undrawn 300MM o Apply investment o Return 2019F free debt/EBITDA of 1.0- committed bank target of minimum…
  10. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 10
    ACCESS TO EXISTING TRANSPORTATION INFRASTRUCTURE Gran Tierra benefits from large spare capacity in pipelines & trucking throughout Colombia & Ecuador, which leads to: Strong oil prices linked to Brent Narrow oil price differentials…
  11. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 11
    Vasconia Brent LARGE TAKEAWAY CAPACITY = STRONG OIL PRICES differential Key Differentials Crude oil prices strong in Colombia & 0 0 Ecuador with steady, narrow differentials, -5 -5 unlike in the US & Canada; current -10 -10…
  12. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 12
    SIGNIFICANT RESERVES GROWTH 250 Reserves Progression (MMboe) 2P Reserves by Property1 (MMboe) 200 65.6 Minor Fields 65.5 25 73.1 150 Ramiquiri 100 53.3 63.2 79.7 3 50 72.8 74.1 69.9 0 Acordionero Moqueta 2011 2012 2013 2014…
  13. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 13
    DEPLOYING CAPITAL PROFITABLY GTE already generates high return on average capital employed (ROACE)1, over 13% in 2018 No Near-Term Maturities GTE ROACE expected to trend toward long-term internal rate of return target of 20%+…
  14. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 14
    Sep 19/2019 Share Price 1.51/share (USD) NET ASSET VALUE 9.08/sh 4,000 Dec.31/2018 NAV Before Tax (USMM, US/share)1 3,500 3,000 6.02/sh 3,418 1,151 2,500 2,000 2,267 1,500 2.24/sh 1,422 1,000 1,412 567 500 845 1.51/sh 0…
  15. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 15
    WATERFLOODING IMPROVED OIL RECOVERY Improves recovery by: Sweeping oil towards producing wells Typical Waterfloods Significantly Increase Production, Maintaining/increasing reservoir pressure Recovery Factors & Reserves2 Displacing…
  16. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 16
    MOQUETA 12 WELL WATERFLOOD IMPACT EXAMPLE Primary Production Secondary Production 1,200 Production 9,000 Response Moqueta 10i - Water injection Rate (bbl/day) 1,000 7,500 800 6,000 Rate (bbl/day) 600 4,500 400…
  17. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 17
    COHEMBI 19 WELL WATERFLOOD IMPACT EXAMPLE GTE becomes operator Map of Cohembi Waterflood 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 BWIPD BOPD 1,500 1,500 1,000 1,000 500 500 0 0 1-Jan-19 1-Feb-19 1-Mar-19…
  18. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 18
    WATERFLOOD PORTFOLIO AND IMPACT 2P Original Oil-In-Place (MMbbls) 800 MMbbls1 Original Oil-In-Place (OOIP) under 83 waterflood in GTEs 4 biggest oil fields 179 Primary recovery factors typically do not exceed 336 20% of OOIP -…
  19. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 19
    ACORDIONERO ASSET OVERVIEW ASSET DETAILS o 100% WI Gran Tierra o Generating free cash flow since date of acquisition o 2019 drilling program includes 17 wells Acordionero o Fault-bounded to the east / south o West dipping steep monocline…
  20. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 20
    ACORDIONERO FURTHER DETAIL o 100% working interest (operator) NI 51-101 2017 YE 2018 YE Change o High netback 19 API oil A C A C A C o Stacked pay: Sand Sand Sand Sand Sand Sand Thick (330), permeable (200-1,300mD) - Overview oil…
  21. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 21
    AYOMBERO ASSET OVERVIEW ASSET DETAILS o 100% WI Gran Tierra o Highly-fractured, conventional carbonate o Significant potential in 3 horizons Chuira o Unrisked Prospective Resources1: Ayombero 21 MMBOE (P90) & 119 MMBOE (P10) o…
  22. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 22
    AYOMBERO FIELD OVERVIEW Significant Upside La Luna Depth Map Ayombero-1 Logs o 3 wells drilled to date: similar lithologies, oil Chuira saturations & over-pressure in Galembo Ayombero Member of La Luna Carbonate reservoir,…
  23. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 23
    AYOMBERO COMPLEX, BUT SIGNIFICANT UPSIDE Reservoir Challenges Next Steps Potential Oil-In-Place Map Highly over-pressured formations Applying knowledge from similar, have proved challenging in terms challenging reservoirs which are of…
  24. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 24
    COLOMBIA & ECUADOR: WORLD CLASS OIL POTENTIAL Total Basin GTE Cumulative Proved Oil 2018 Oil Net Land Production Reserves Production Position Basin1 (Bn bbls) (Bn bbls) (Kbbls/day) (MM acres) Middle Magdalena Valley 2.7 0.4 147 0.1…
  25. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 25
    PUTUMAYO & ORIENTE - UNDEREXPLORED, PROVEN BASINS Colombias Putumayo basin is underexplored due to past above-ground security issues, now mitigated by Peace Agreement Same geology as Ecuador, where almost 6 billion bbls of oil…
  26. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 26
    PUTUMAYO BASIN SIZE OF THE PRIZE Total Putumayo Unrisked Mean Prospective Resources (1,106 MMBOE)1 Structural 14% N-Sand 12% A- Limestone*74% Total Putumayo Risked Mean Prospective Resources (298 MMBOE) 1 Structural…
  27. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 27
    Appendix
  28. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 28
    BOARD OF DIRECTORS Highly Experienced, Independent Board of Directors Gary Guidry Robert Hodgins, Chairman Peter Day Evan Hazell Ronald Royal Sondra Scott David Smith Brooke Wade Gran Tierra is committed to best corporate…
  29. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 29
    GRAN TIERRA EXCELLENT VALUE PROPOSITION High-Quality Profitable Production Assets Growth +95% operated, 100% oil Short cycle times Low decline rates Focused on full-cycle returns Low operating costs High-Quality Profitable Assets…
  30. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 30
    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…
  31. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 31
    HEDGING SUMMARY Oil price 2019 hedges Period and Type of Instrument Volume (bopd) Reference Purchased Put (/bbl) Sold Call (/bbl) Collars: April 1, 2019 to December 31, 2019 5,000 Brent 60.00 71.50 Period and Type of Instrument Volume…
  32. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 32
    MCDANIEL 2018 & 2019 PRICE DECKS Brent Comparison (US/bbl) McDaniel, Jan 1, 2019 McDaniel, Jan 1, 2018 SEC Brent, Jan 1, 2019 SEC Brent, Jan 1, 2018 85 80 75 70 65 60 55 50 45 40 2019 2020 2021 2022 2023 2024…
  33. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 33
    NON-GAAP MEASURES EBITDA EBITDA, as presented, is net loss adjusted for DD&A expenses, asset impairment, interest expense and income tax recovery or expense. Management uses this financial measure to analyze performance and income or loss…
  34. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 34
    NON-GAAP MEASURES Funds Flow from Operations Funds flow from operations, as presented, is net cash provided by operating activities adjusted for net change in assets and liabilities from operating activities and cash settlement of asset…
  35. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 35
    PRESENTATION OF OIL & GAS INFORMATION Reserves and Prospective Resources Information Unless otherwise noted, estimates of the Companys reserves, net present value of future net revenue attributable to Companys reserves and prospective…
  36. September 2019 Corporate Presentation – Gran Tierra Energy, Inc. – slide 36
    900, 520 3RD AVENUE SW CALGARY, ALBERTA, CANADA T2P 0R3 END Investor Relations 403-265-3221 infograntierra.com 40

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