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Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc.

Gran Tierra Energy, Inc. · Dec 11, 2019 · 42 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. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 1
    Creating Value in Colombia & Ecuador December 2019
  2. Creating Value in Colombia & Ecuador December 2019 – 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. Creating Value in Colombia & Ecuador December 2019 – 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. Creating Value in Colombia & Ecuador December 2019 – 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. Creating Value in Colombia & Ecuador December 2019 – 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. Creating Value in Colombia & Ecuador December 2019 – 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. Creating Value in Colombia & Ecuador December 2019 – 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) 46% 150 163% Production 2P reserves 32.9 22.6 69 57 67% 70 1P reserves 42 Q2/2015 Q3/2019…
  8. Creating Value in Colombia & Ecuador December 2019 – 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. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 9
    2020 GUIDANCE1 SIGNIFICANT FREE CASH FLOW Key Assumptions Financial Guidance Base Case High Case WI Production (boepd) 35,500 37,500 Operating (MM) Netback2 360-380 410-430 Total Capital (MM) 200-220 EBITDA2 (MM) 330-350 380-400 Brent…
  10. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 10
    2020 CAPITAL PROGRAM DETAILS 75% 25% Development Capital Exploration Capital 150-170MM 40-60MM Acordionero MMV Basin 13 development wells 2020 CAPEX 0-1 exploration wells Well tie-ins; flowlines; additional cellars Putumayo Basin…
  11. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 11
    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…
  12. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 12
    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%+…
  13. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 13
    Dec 6/2019 Share Price 0.99/share (USD) NET ASSET VALUE 4,000 Dec.31/2018 NAV Before Tax (USMM, US/share)1 9.11/sh 3,500 3,000 3,342 5.97/sh 1,151 2,500 2,000 2,191 1,500 1,422 2.10/sh 1,000 1,412 643 500 769 0.99/sh 0…
  14. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 14
    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…
  15. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 15
    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 -…
  16. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 16
    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…
  17. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 17
    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…
  18. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 18
    AC-54 EXPANSION OF THE ACORDIONERO FIELD FURTHER DETAILS o AC-54: this development well is the southernmost well drilled in the Acordionero field to date and encountered 348 feet measured depth of net pay and was completed in the…
  19. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 19
    EARLY WATERFLOOD RESPONSE Acordionero Early waterflood response can be evaluated by observing several variables in offsetting Fill Up production wells, e.g. pressure, gas-oil ratio Start Injection Incline Period (GOR)…
  20. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 20
    PIP1 INCREASES & PRODUCTION GAINS Acordionero-26 Acordionero-27 1,400 60.0 2,000 70.0 1,800 Rate (STB/day) - PIP (psi) Rate (STB/day) - PIP (psi) 1,200 50.0 60.0 ESP Frequency (Hz) ESP Frequency (Hz) 1,600 1,000…
  21. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 21
    AVERAGE ACORDIONERO WELL WATERFLOOD RESPONSE 1,000 50,000 950 Following the recent increase in water 45,000 Average Acordionero Pump Intake injection, material pressure increase is 900 being observed in producing wells 40,000…
  22. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 22
    ACORDIONERO SIGNIFICANT FACILITY EXPANSION 2016 Today Major capital investments complete, Acordionero continues to generate free cash flow 23
  23. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 23
    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…
  24. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 24
    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…
  25. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 25
    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,…
  26. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 26
    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…
  27. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 27
    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…
  28. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 28
    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…
  29. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 29
    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…
  30. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 30
    Appendix
  31. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 31
    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…
  32. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 32
    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…
  33. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 33
    CAPITAL ALLOCATION FRAMEWORK LEVERAGE MAINTAIN INVESTMENT SHAREHOLDER DISCIPLINE FLEXIBILITY CRITERIA RETURNS o Target net o 300MM committed o Apply investment o Return free cash flow debt/EBITDA…
  34. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 34
    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…
  35. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 35
    Vasconia Brent LARGE TAKEAWAY CAPACITY = STRONG OIL PRICES differential 0 Key Differentials 0 Crude oil prices strong in Colombia & -5 -5 Ecuador with steady, narrow differentials, -10 -10 unlike in the US & Canada; current -15…
  36. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 36
    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…
  37. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 37
    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…
  38. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 38
    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…
  39. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 39
    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…
  40. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 40
    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…
  41. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 41
    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…
  42. Creating Value in Colombia & Ecuador December 2019 – Gran Tierra Energy, Inc. – slide 42
    900, 520 3RD AVENUE SW CALGARY, ALBERTA, CANADA T2P 0R3 END Investor Relations 403-265-3221 infograntierra.com 46

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