Gran Tierra Energy Announces 2009 Year-End Reserves
Another Record Year for Proved Oil and Gas Reserves
Year-end 2009 Highlights (net after royalties):
- Approximately 5.7 million barrels of working interest oil was produced
in 2009;
- Proved oil reserves increased 14.6 % to approximately 22.1 million
barrels (SEC compliant);
- Proved plus probable (2P) oil reserves are approximately 27.9 million
barrels (no SEC equivalent in 2008);
- Proved plus probable plus possible (3P) oil reserves are approximately
39.4 million barrels (no SEC equivalent in 2008);
- Approximately 0.1 billion cubic feet of working interest gas was
produced in 2009;
- Proved gas reserves increased 61.0 % to approximately 1.9 billion
cubic feet (SEC compliant);
- Proved plus probable (2P) gas reserves are approximately 3.6 billion
cubic feet (no SEC equivalent in 2008);
- Proved plus probable plus possible (3P) gas reserves are approximately
38.1 billion cubic feet (no SEC equivalent in 2008).
All reserves values contained in the 2009 Highlights, provided above, have been calculated using United States Securities Exchange Commission rules. For reserves values calculated in compliance with Canadian National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook, see “Reserves Reported in Accordance with Canadian Reporting Requirements” below in this press release.
“2009 was another excellent year for the growth of Gran Tierra Energy’s reserve base, fueled in large part by development drilling in the Costayaco Field in
Reserves Reported in Accordance with United States Reporting Requirements
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The following reserves are reported consistent with United States Securities and Exchange Commission rules.
The following table summarizes Gran Tierra Energy’s year-end 2009 working interest reserves and net after royalty reserves (with start of month average 2009 oil price). Also shown in the following table are Gran Tierra Energy’s net after royalty reserves for year-end 2008 (with constant
Total Company
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Total Company 2009 Year-End 2009 Year-End 2008 Year-End
Light and Medium Oil Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR* NAR
(SEC Compliant) Reserves Reserves Reserves
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Reserves Category MBO** MBO MBO
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Proved
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Developed Producing 26,606 20,375 8,966
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Developed Nonproducing 1,032 899 1,300
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Undeveloped 1,037 808 8,972
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Total Proved 28,675 22,082 19,238
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Total Probable 7,543 5,821 N/A
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Total Proved plus Probable 36,218 27,902 N/A
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Total Possible 15,093 11,538 N/A
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Total PPP 51,130 39,440 N/A
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* NAR (net after royalty).
** MBO (thousand barrels of oil).
- The increases in proved oil reserves is mainly associated with
development drilling in the Costayaco Field in Colombia.
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Total Company 2009 Year-End 2009 Year-End 2008 Year-End
Gas Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR NAR
(SEC Compliant) Reserves Reserves Reserves
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Reserves Category MMSCF*** MMSCF MMSCF
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Proved
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Developed Producing 1,391 1,113 1,161
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Developed Nonproducing 877 756 0
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Undeveloped 0 0 0
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Total Proved 2,268 1,869 1,161
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Total Probable 2,076 1,739 N/A
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Total Proved plus Probable 4,344 3,608 N/A
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Total Possible 40,171 34,520 N/A
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Total PPP 44,515 38,128 N/A
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*** MMSCF (million standard cubic feet).
- The increase in proved gas reserves is due to workover activity on
VM.x-1001 in the Valle Morado Field in Argentina.
Colombia
Gran Tierra Energy's Colombia year-end 2009 working interest and net after
royalty reserves are shown in the following table (with start of month average
2009 oil price). Also shown in the following table is Gran Tierra Energy's
Colombian net after royalty reserves for year-end 2008 (with constant December
31, 2008 oil price and cost).
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Colombia 2009 Year-End 2009 Year-End 2008 Year-End
Light and Medium Oil Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR NAR
(SEC Compliant) Reserves Reserves Reserves
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Reserves Category MBO MBO MBO
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Proved
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Developed Producing 25,427 19,350 7,832
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Developed Nonproducing 968 844 1,061
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Undeveloped 794 597 8,788
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Total Proved 27,189 20,791 17,681
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Total Probable 6,564 4,972 N/A
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Total Proved plus Probable 33,754 25,762 N/A
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Total Possible 12,496 9,430 N/A
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Total PPP 46,250 35,192 N/A
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- The increase in proved reserves in Colombia is mainly associated with
development drilling in the Costayaco Field.
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Colombia 2009 Year-End 2009 Year-End 2008 Year-End
Gas Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR NAR
(SEC Compliant) Reserves Reserves Reserves
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Reserves Category MMSCF MMSCF MMSCF
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Proved
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Developed Producing 1,391 1,113 1,161
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Developed Nonproducing 0 0 0
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Undeveloped 0 0 0
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Total Proved 1,391 1,113 1,161
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Total Probable 815 652 N/A
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Total Proved plus Probable 2,206 1,765 N/A
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Total Possible 1,735 1,388 N/A
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Total PPP 3,941 3,153 N/A
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The Costayaco Field 2009 year-end net after royalty reserves are shown in
the following table (with start of month average 2009 oil price). Also shown
in the following table is a comparison of the Costayaco Field 2009 year-end
gross lease reserves (with start of the month average 2009 oil price) to the
gross lease reserves estimated in July 31, 2009 (with constant July 31, 2009
oil price and cost).
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Costayaco 2009 Year-End 2009 Year-End July 31, 2009
Light and Medium Oil Costayaco Costayaco Costayaco
Gran Tierra Gross Gross
Energy Lease Lease
NAR Reserves Reserves
(SEC Compliant) Reserves
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Reserves Category MBO MBO MBO
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Proved
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Developed Producing 18,151 24,016 9,546
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Total Proved 18,748 24,810 19,657
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Total Probable 4,592 6,133 N/A
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Total Proved plus Probable 23,340 30,943 N/A
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Total Possible 8,745 11,718 N/A
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Total PPP 32,085 42,661 N/A
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Argentina
Gran Tierra Energy's Argentina working interest and net after royalty
reserves are shown in the following table (with start of month average 2009
oil price). Also shown in the following table is Gran Tierra Energy's
Argentina net after royalty reserves for year-end 2008 (with constant December
31, 2008 oil price and cost).
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Argentina 2009 Year-End 2009 Year-End 2008 Year-End
Light and Medium Oil Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR NAR
(SEC Compliant) Reserves Reserves Reserves
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Reserves Category MBO MBO MBO
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Proved
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Developed Producing 1,179 1,025 1,134
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Developed Nonproducing 64 55 239
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Undeveloped 243 211 184
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Total Proved 1,486 1,291 1,557
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Total Probable 978 850 N/A
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Total Proved plus Probable 2,464 2,140 N/A
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Total Possible 2,416 2,109 N/A
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Total PPP 4,879 4,248 N/A
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- The decrease in proved oil reserves is due to production.
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Argentina 2009 Year-End 2009 Year-End 2008 Year-End
Gas Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR NAR
(SEC Compliant) Reserves Reserves Reserves
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Reserves Category MMSCF MMSCF MMSCF
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Proved
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Developed Producing 0 0 0
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Developed Nonproducing 877 756 0
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Undeveloped 0 0 0
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Total Proved 877 756 0
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Total Probable 1,261 1,087 N/A
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Total Proved plus Probable 2,138 1,843 N/A
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Total Possible 38,436 33,132 N/A
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Total PPP 40,574 34,975 N/A
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- The increase in proved gas reserves is due to workover activity on
VM.x-1001 in the Valle Morado Field in Argentina.
Reserves Reported in Accordance with Canadian Reporting Requirements
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The following reserves are compliant with Canadian National Instrument 51-101 (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (COGEH) (with forecasted oil price and costs):
Total Company
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Total Company 2009 Year-End 2009 Year-End 2008 Year-End
Light and Medium Oil Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR NAR
(NI 51-101 compliant) Reserves Reserves Reserves
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Reserves Category MBO MBO MBO
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Proved
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Developed Producing 26,942 19,705 9,194
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Developed Nonproducing 1,032 898 1,329
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Undeveloped 1,051 784 8,289
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Total Proved 29,025 21,386 18,811
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Total Probable 7,304 5,410 8,676
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Total Proved plus Probable 36,329 26,795 27,487
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Total Possible 14,915 11,085 18,599
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Total PPP 51,243 37,880 46,086
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Gran Tierra Energy's year-end 2009 NAR reserves compared to year-end 2008
NAR reserves (compliant with NI 51-101 and COGEH) are as follows:
- Proved light and medium oil reserves increased 13.5% due to
development drilling in the Costayaco Field in Colombia.
- In addition, Gran Tierra Energy also has year-end 2009 NAR proved gas
reserves of approximately 1.9 billion cubic feet (BCF), an increase
of 61.0 % from 1.2 BCF NAR proved gas reserves at year-end 2008 due
to testing results in the Valle Morado Field in Argentina.
- Probable light and medium oil reserves decreased 38% due to changes
in reserve category allocation.
- In addition, Gran Tierra Energy also has year-end 2009 NAR probable
gas reserves of approximately 1.7 BCF, a decrease of 5.6% from 1.8 BCF
NAR at year-end 2008.
- Possible light and medium oil reserves decreased 41.5% due to negative
test results of Costayaco-7.
- In addition, Gran Tierra Energy also has year-end 2009 NAR possible
gas reserves of approximately 34.5 BCF, an increase of 108% from
16.6 BCF NAR at year-end 2008 due to testing results in the Valle
Morado Field in Argentina.
Gran Tierra Energy’s year-end 2009
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Colombia 2009 Year-End 2009 Year-End 2008 Year-End
Light and Medium Oil Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR NAR
(NI 51-101 compliant) Reserves Reserves Reserves
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Reserves Category MBO MBO MBO
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Proved
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Developed Producing 25,725 18,647 8,050
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Developed Nonproducing 968 843 1,080
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Undeveloped 822 585 8,108
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Total Proved 27,515 20,075 17,237
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Total Probable 6,322 4,557 7,706
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Total Proved plus Probable 33,837 24,632 24,943
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Total Possible 12,503 8,980 15,806
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Total PPP 46,340 33,611 40,749
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- The increases in proved reserves in Colombia is mainly associated
with development drilling in the Costayaco Field. The decrease in
possible reserves is due primarily to the negative test results from
Costayaco-7.
- In addition to the above proved light and medium oil reserves, Gran
Tierra Energy also has year-end 2009 NAR proved gas reserves of
approximately 1.1 BCF in Colombia. Gran Tierra Energy had 1.2 BCF
proved gas reserves at year-end 2008 in Colombia.
- In addition to the above probable light and medium oil reserves, Gran
Tierra Energy also has year-end 2009 NAR probable gas reserves of
approximately 0.7 BCF in Colombia. Gran Tierra Energy had 0.7 BCF NAR
probable gas reserves at year-end 2008 in Colombia.
- In addition to the above possible light and medium oil reserves, Gran
Tierra Energy also has year-end 2009 NAR possible gas reserves of
approximately 1.4 BCF in Colombia. Gran Tierra Energy had 1.9 BCF NAR
possible gas reserves at year-end 2008 in Colombia.
The Costayaco Field 2009 year-end net after royalty reserves are shown in the following table (with forecast oil price and cost). Also shown in the following table is a comparison of the Costayaco Field 2009 year-end gross lease reserves (with forecast oil price and cost) to the gross lease reserves estimated in
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Costayaco 2009 Year-End 2009 Year-End July 31, 2009
Light and Medium Oil Costayaco Costayaco Costayaco
Gran Tierra Gross Gross
Energy Lease Lease
NAR Reserves Reserves
(NI 51-101 compliant) Reserves
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Reserves Category MBO MBO MBO
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Proved
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Developed Producing 17,398 24,257 9,800
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Total Proved 17,983 25,079 19,657
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Total Probable 4,153 5,864 10,635
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Total Proved plus Probable 22,136 30,943 30,292
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Total Possible 8,290 11,718 13,217
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Total PPP 30,426 42,661 43,509
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Approximately 2.64 million barrels of oil (MMBO) was produced from
Gran Tierra Energy’s
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Argentina 2009 Year-End 2009 Year-End 2008 Year-End
Light and Medium Oil Gran Tierra Gran Tierra Gran Tierra
Energy Energy Energy
Working Interest NAR NAR
(NI 51-101 compliant) Reserves Reserves Reserves
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Reserves Category MBO MBO MBO
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Proved
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Developed Producing 1,217 1,058 1,144
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Developed Nonproducing 64 55 249
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Undeveloped 229 199 181
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Total Proved 1,510 1,311 1,574
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Total Probable 982 853 970
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Total Proved plus Probable 2,492 2,164 2,544
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Total Possible 2,412 2,105 2,793
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Total PPP 4,903 4,269 5,337
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- Gran Tierra Energy had no proved gas reserves in Argentina at
year-end 2008;
- In addition to the above probable light and medium oil reserves, Gran
Tierra Energy also has year-end 2009 NAR probable gas reserves of
approximately 1.1 BCF in Argentina. Gran Tierra Energy had year-end
2008 NAR probable gas reserves of approximately 1.2 BCF;
- In addition to the above possible light and medium oil reserves, Gran
Tierra Energy also has year-end 2009 NAR possible gas reserves of
approximately 33.1 BCF in Argentina. Gran Tierra Energy had year-end
2008 NAR possible gas reserves of approximately 14.7 BCF.
Current Production
Gran Tierra Energy is currently producing approximately 14,800 barrels of oil per day (BOPD) NAR. About 14,000 BOPD NAR production is from
With the production capacity available from existing wells, Gran Tierra Energy plans to maintain its net after royalty production in
Gran Tierra Energy’s net after royalty production rate for
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. is an international oil and gas exploration and production company, headquartered in
Additional information concerning Gran Tierra Energy is available at www.grantierra.com, on SEDAR (www.sedar.com) and with the Securities and Exchange Commission (www.sec.gov).
Cautionary Statements:
Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. The estimate of reserves for individual properties may not reflect the same confidence level as estimates of reserves for all properties, due to the effects of aggregation.
A Barrel of oil equivalent (BOE) is calculated using the conversion factor of 6,000 cubic feet (“6Mcf”) of natural gas being equivalent to one barrel of oil. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf per barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Forward-Looking Statements
The statements in this press release regarding Gran Tierra Energy’s expectations, plans, projections and actions including Gran Tierra Energy’s expectations regarding its 2010 exploration drilling campaign and expected funding of the campaign, and expected 2010 NAR production in
Factors that could cause results to differ materially from those described in the forward-looking statements include: Gran Tierra Energy’s operations are located in
All forward-looking statements in this press release are expressly qualified by information contained in Gran Tierra Energy’s filings with regulatory authorities and, subject to its obligations under applicable securities laws, Gran Tierra Energy does not undertake to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Gran Tierra Energy Inc.