Crimson Cloud Declares Annual Pre-PDAC Mining Showcase 2023 Agenda

FOURTH QUARTER AND FULL-YEAR 2022 OPERATIONAL AND FINANCIAL HIGHLIGHTS

Message to Shareholders

Gary Guidry, President and Chief Govt Officer of Gran Tierra, commented: “We’re more than happy to announce that Gran Tierra achieved a number of Firm monetary data in 2022. Our glorious efficiency final 12 months was pushed by our profitable outcomes from our improvement and exploration drilling, waterflooding packages, area efficiency, and disciplined value administration mixed with sturdy oil costs. Our many 2022 achievements resulted in year-over-year manufacturing progress of 16%, sturdy reserves substitute ratios properly above 100%, and the very best annual figures within the Firm’s historical past for web revenue, funds movement from operations ² and free money movement ² . We imagine our success on a number of fronts throughout 2022 demonstrates Gran Tierra’s potential to be a full-cycle oil and fuel exploration, improvement and manufacturing firm targeted on worth creation for our stakeholders.

We have now began 2023 sturdy with year-to-date common manufacturing of roughly 32,300 bopd, which is inside our beforehand introduced 2023 steering vary. Our 2023 Acordionero and Costayaco improvement drilling packages are actually underway, whereas the Moqueta improvement drilling marketing campaign that we began in fourth quarter 2022 is continuous. We proceed to deal with the event of our current property, appraisal of latest discoveries that we made final 12 months and new exploration drilling, whereas producing free money movement ² to strengthen our steadiness sheet and return capital to shareholders by share buybacks.

As well as, our ‘Past Compliance Coverage’ continues. The place Gran Tierra identifies vital alternatives and advantages to the surroundings and communities, we voluntarily attempt to transcend what’s legally required to guard the surroundings and supply social advantages as a result of it’s the proper factor to do. We’re very happy with the Firm’s monitor report in all points of our environmental, social and governance stewardship.”

Operational:

• Manufacturing :
  • Gran Tierra achieved 2022 common WI manufacturing of 30,746 bopd (100% oil), a 16% enhance from 2021, because of profitable drilling and workover campaigns within the Acordionero and Costayaco fields, manufacturing coming on-line from exploration discoveries and fewer disruption from native blockades in comparison with 2021.
  • The Firm’s complete present common manufacturing ¹ is roughly 32,300 bopd. The present manufacturing degree is throughout the Firm’s beforehand introduced 2023 steering vary of 32,000-34,000 bopd.
  • Constructing on the profitable improvement and exploration drilling in 2022, as beforehand forecast, Gran Tierra expects 2023 manufacturing of 32,000-34,000 bopd, a 4-11% enhance from 2022. This projected 2023 manufacturing enhance would consequence from the Firm’s beforehand forecast 2023 improvement drilling program of 10-12 wells in Acordionero, 6-8 wells in Costayaco, and 2-3 wells in Moqueta. Gran Tierra additionally plans to drill 4-6 exploration wells in 2023.
• 2022 12 months-Finish Reserves and Values ⁴ :

• The Firm achieved vital progress in its 2022 year-end 1P NPV10 earlier than tax valuation, which elevated by 26% in comparison with 2021 year-end, and its 2022 year-end 2P NPV10 earlier than tax valuation, which elevated by 25% year-on-year. This progress was pushed by the Firm’s profitable improvement and exploration packages and a powerful restoration in oil costs.
• On a per share foundation, Gran Tierra’s 2022 year-end 1P NAV earlier than tax of $4.62 per share grew a powerful 77% from 2021 year-end, whereas the Firm’s 2022 year-end 2P NAV earlier than tax of $7.36 per share was up a big 56% year-on-year.
• Gran Tierra’s progress in 2022 year-end 1P NPV10 and 2P NPV10 after tax valuations was 6% and 5%, respectively, in comparison with 2021 year-end, which included the brand new Colombian tax regime. The brand new Colombian tax regime lowered the Firm’s NPV10 after tax in all reserves classes by roughly 8% to 12% relative to the earlier tax regime.
• On a per share foundation, Gran Tierra’s 2022 year-end 1P NAV after tax of $2.53 per share grew a powerful 59% from 2021 year-end, whereas the Firm’s 2022 year-end 2P NAV after tax of $3.99 per share was up a big 37% year-on-year.
• The Firm achieved sturdy reserves substitute ratios of:
  • 126% 1P, with 1P reserves additions of 14 MMBOE (38% attributable to exploration discoveries).
  • 148% 2P, with 2P reserves additions of 17 MMBOE (95% attributable to exploration discoveries).
  • 280% 3P, with 3P reserves additions of 31 MMBOE (103% attributable to exploration discoveries).
• The fabric 1P reserves additions have been largely pushed by success with improvement drilling and waterflooding outcomes at Acordionero and Costayaco, along with a number of exploration discoveries.
• The fabric 2P and 3P reserve additions resulted from the success of the Firm’s 2022 exploration program, which made a number of impartial discoveries.
• The Firm’s discovering and improvement prices ( “F&D” ), together with change in future improvement prices, on a per boe foundation have been $18.18 (1P), $20.08 (2P) and $12.20 (3P).

Monetary:

• Highest Internet Revenue on File: Gran Tierra generated web revenue of $139.0 million or $0.38 per share (fundamental and diluted), in comparison with web revenue of $42.5 million, or $0.12 per share (fundamental and diluted) in 2021.
• Return on Common Capital Employed ² : The Firm achieved a return on common capital employed ² of 27% throughout 2022.
• 2022 Adjusted EBITDA ² : The Firm realized Adjusted EBITDA ² of $489.6 million, a rise of 103% from $241.5 million in 2021.
• 2022 Internet Money Supplied by Working Actions: The Firm generated web money supplied by working actions of $427.7 million, a rise of 75% from $244.8 million in 2021, which was the very best since 2013.
• 2022 Funds Move from Operations ² : Gran Tierra realized funds movement from operations of $366.0 million, the very best within the Firm’s historical past, which was a rise of 96% from $186.5 million in 2021.
• 2022 Capital Expenditures and Free Money Move ² : Gran Tierra’s capital expenditures of $236.6 million have been on-budget and have been greater than absolutely funded by the Firm’s 2022 funds movement from operations ² of $366.0 million, which allowed Gran Tierra to generate free money movement ² of $129.4 million, the very best degree within the Firm’s historical past.
• Key Metrics Throughout the Quarter: The Firm realized web revenue of $33.3 million, Adjusted EBITDA ² of $108.8 million, and funds movement from operations ² of $81.3 million, in contrast with $38.7 million, $121.2 million, and $93.7 million, respectively, in third quarter 2022 ( “the Prior Quarter” ).
• Credit score Facility Paid Down and Money Stability: In 2022, Gran Tierra decreased debt by $87.9 million and decreased web debt ² by $173.1 million. The Firm had $126.9 million in money and money equivalents as at December 31, 2022.
• Bond Buybacks: As a part of Gran Tierra’s ongoing dedication to scale back its web debt ² , throughout 2022, the Firm purchased again roughly $20.1 million in face worth of Gran Tierra’s 6.25% senior notes due February 2025 (the ” 2025 bonds “), representing roughly 6.7% of the excellent 2025 bonds. The price of the 2025 bonds’ buyback was roughly $17.3 million, representing a reduction of about 14% to the face worth of the 2025 bonds.
• Share Buybacks: Pursuant to the Firm’s present regular course issuer bid, Gran Tierra bought roughly 23 million shares throughout 2022, representing about 6.2% of shares excellent as of June 30, 2022.
• 2022 Working Prices:
  • Working bills per bbl have been $14.60, solely 4% larger than 2021. This small enhance in 2022 was primarily on account of larger energy era, area operations, and chemical prices on account of elevated manufacturing and waterflood actions in all main fields.
  • Complete working bills have been $162.4 million, in comparison with $135.7 million in 2021, representing a 20% enhance. The overwhelming majority of this enhance was on account of Gran Tierra’s 16% enhance in manufacturing in 2022, relative to 2021.
• 2022 Money Common and Administrative Prices: The Firm’s gross money common and administrative ( “G&A” ) prices decreased to $2.87 per bbl from $2.88 per bbl in 2021. Complete money G&A prices have been $31.9 million, a rise of 15% from $27.9 million in 2021, which was the results of elevated prices regarding particular tasks.
• Oil Gross sales:
  • 2022 : Gran Tierra’s web oil gross sales elevated 50% to $711.4 million, in comparison with $473.7 million in 2021. This enhance was primarily pushed by the 40% enhance within the Brent oil value and the Firm’s 16% enhance in manufacturing. Oil gross sales have been $63.95 on a per bbl foundation, a 31% enhance from 2021.
  • The Quarter: Gran Tierra generated oil gross sales of $162.6 million, a lower of three% or $5.8 million from the Prior Quarter, primarily pushed by a 9% lower within the Brent oil value and the widening of oil value differentials, which was partially offset by a 7% enhance in manufacturing. Oil gross sales have been $55.06 per bbl, an 8% lower from the Prior Quarter.
• Working Netback ² :
  • 2022 : Gran Tierra’s working netback of $48.43 per bbl was up 43% from $33.75 in 2021.
  • The Quarter: The Firm’s working netback of $38.63 per bbl was up 3% from the fourth quarter 2021 and decreased 13% from the Prior Quarter.

Gran Tierra’s Dedication to Go “Past Compliance” in Environmental, Social and Governance (“ESG”)

Security:

• In 2022, 1,048 supervisors and workforce leaders participated in well being, security and environmental ( “HSE” ) coaching, overlaying over 6,200 coaching hours.
• Gran Tierra Vitality has marked every December as Security Month for the previous 4 years. This company-wide initiative has strengthened Gran Tierra’s HSE controls to make sure the well being and security of the Firm’s individuals, in order that they’ll safely return residence to their households, through the vacation season. The Firm’s Security Month goals for everybody in Gran Tierra to speak brazenly with one another about security and replicate on the Firm’s previous and future efficiency, in its journey to realize a purpose of zero security incidents.

Setting:

• By way of the Naturamazonas challenge within the Putumayo Basin, in partnership with the worldwide non-governmental group Conservation Worldwide, Gran Tierra has dedicated to reforesting 1,000 hectares of land and securing and sustaining 18,000 hectares of forest within the Andes-Amazon rainforest hall. The Naturamazonas challenge alone is predicted to sequester roughly 8.7 million tonnes of carbon dioxide over its lifetime. For extra data, please go to https://www.grantierra.com/sustainability/naturamazonas.
• Gran Tierra has planted roughly 1,470,000 timber and has conserved, preserved, or reforested roughly 3,870 hectares of land by all the Firm’s environmental efforts since 2018.

Decreasing Greenhouse Fuel (“GHG”) Emissions:

• For the final six years, Gran Tierra has voluntarily revealed on its web site an evaluation of its Scope 1 GHG emissions and, beginning in 2021, has revealed its Scope 2 GHG emissions beginning in 2021.
• Gran Tierra is decreasing GHG emissions at its amenities by gas-to-power tasks that preserve extra pure fuel that might in any other case be flared and use the fuel as a substitute for energy era. In 2022, Gran Tierra’s gas-to-power tasks generated 69% of the overall power utilized in all the Firm’s operations.
• In 2022, Gran Tierra launched its first TCFD (Activity Drive on Local weather-Associated Monetary Disclosures) Annex alongside its SASB (Sustainability Accounting Requirements Board) Report. The Firm reviews Scope 1 (direct emissions from owned or managed sources) and Scope 2 (oblique operations from exterior energy sources) within the Firm’s yearly GHG emissions report. The Firm’s continued enhanced reporting goals to determine, measure and handle ESG-impacts to raised perceive and diminish Gran Tierra’s environmental footprint.
• Gran Tierra additionally performs a essential position in environmental tasks that assist in pure carbon sequestration, which is the method whereby forests, wetlands and vegetation sequester and retailer atmospheric carbon dioxide ( “CO ₂ ” ) and convert it into natural matter. By way of the reforestation and conservation efforts led by Gran Tierra, over 33,000 tonnes of CO ₂ is sequestered annually within the areas close to the Firm’s operations. ⁶

Social:

• Over 299,000 individuals participated in and benefited from Gran Tierra’s voluntary social funding packages over the previous 5 years in Colombia and Ecuador.
• Gran Tierra is dedicated to working with the Colombian and Ecuadorian nationwide and native governments and native communities to additional their peace-building efforts. In 2022, the Firm invested over $4.6 million regionally in tasks in Colombia and Ecuador recognized by the communities themselves to fulfill their wants. The tasks included agricultural manufacturing functionality enhancements, entrepreneurship assist, neighborhood strengthening packages, and infrastructure enhancements for faculties, properties and neighborhood facilities.

Financial Alternatives:

• Gran Tierra maintains its dedication to contribute to the social and financial improvement of the areas the place it operates by maximizing native hiring and contracting of native items and providers. By way of this dedication, the Firm awarded over $109 million to native firms for items and providers in Colombia and Ecuador throughout 2022.
• Gran Tierra strives to maximise native employment and improvement alternatives which meet or exceed authorities necessities for native employment. Since 2015, Gran Tierra has created roughly 26,000 labor alternatives in Colombia. The Firm additionally created roughly 470 labor alternatives in Ecuador for 2022.

Human Rights:

• The respect for human rights, and its inclusion into how Gran Tierra delivers its enterprise, is of paramount significance to the Firm. Gran Tierra’s dedication to the United Nations ( “UN” ) Guiding Ideas for Enterprise and Human Rights is embedded within the Firm’s coverage. As a part of the Firm’s efforts, 95 human rights coaching periods have been held in Colombia and Ecuador in 2022, which included nearly 500 staff, contractors and suppliers.
• Over the previous three years, roughly 4,900 individuals have benefited from Gran Tierra’s human rights initiatives in adherence to the UN Guiding Ideas for Enterprise and Human Rights framework.
• In 2022, Gran Tierra, in partnership with the World Ladies’s Company, carried out an anti-personnel de-mining investigation throughout roughly 4,300 hectares of land located inside 4 Indigenous communities all through the municipalities of Orito and Puerto Asis within the Putumayo Basin of Colombia. As a part of the Firm’s human rights dedication, Gran Tierra supplied 36 mine danger schooling workshops to native communities, which greater than 200 individuals attended in 2022. This challenge was developed in alliance with the Colombian nationwide authorities and the Colombian Marketing campaign In opposition to Mines. Humanitarian de-mining and the prevention of kid recruitment proceed to be a serious focus for the Firm, as a part of Gran Tierra’s due diligence course of in conflict-prone environments.

Operational Replace

• Colombia Improvement:
  • Moqueta Improvement Marketing campaign (Putumayo Basin):
    • Moqueta-25, the second improvement properly within the 2022-2023 Moqueta drilling marketing campaign, reached its deliberate complete depth ( “TD” ) on January 15, 2023. This properly has been accomplished and was placed on manufacturing on February 1, 2023. Producing on jet pump prematurely of an upcoming stimulation, from February 1 to 13, 2023, the properly has averaged 383 bopd (27.7-degree API gravity) and 53 bbl of water per day, with a gas-oil ratio of 1,301 customary cubic ft per inventory tank bbl. The third improvement properly was spud on February 9, 2023, and is predicted to achieve its deliberate TD earlier than the tip of February 2023.
    • The Firm plans to drill and full an extra 2 to three improvement wells in Moqueta over the following 4 to five months.
  • Costayaco Improvement Marketing campaign (Putumayo Basin):
    • The primary properly in Costayaco’s six properly 2023 improvement drilling program was spud on January 25, 2023, and reached its deliberate TD on February 2, 2023. Reservoir high quality was as anticipated on this deliberate down-dip water injection properly. The second properly was spud on February 7, 2023, has reached TD and will likely be introduced onto manufacturing earlier than the tip of February 2023. All wells on this drilling program are anticipated to be drilled by late second quarter 2023 and accomplished and placed on manufacturing or injection by the third quarter 2023.
  • Acordionero Improvement Marketing campaign (Center Magdalena Basin):
    • The primary properly in Acordionero’s 10-to-12-well 2023 improvement drilling program, Acordionero-111, was spud on January 27, 2023, and reached its deliberate TD on January 30, 2023. Properly logs acquired through the drilling of this properly point out that the reservoir pay zone got here in as anticipated. The Firm plans to finish this properly and put it on manufacturing earlier than the tip of February 2023. The second properly, a deliberate injector, was spud on February 5, 2023, and has reached TD. The third properly was spud on February 12, 2023.
    • All of the deliberate wells on this 12 months’s Acordionero improvement program are anticipated to have been drilled, accomplished and positioned on manufacturing or injection by the tip of second quarter 2023.
  • Suroriente Improvement (Putumayo Basin):
    • The Suroriente Block’s manufacturing averaged roughly 8,620 bopd gross (4,480 bopd WI) in January 2023, its second highest month-to-month manufacturing common because the second quarter of 2015.

Company Presentation:

• Gran Tierra’s Company Presentation has been up to date and is offered at www.grantierra.com.

Monetary and Operational Highlights (all quantities in $000s, besides per share and bbl quantities)

Extra data on 2022 bills:

• High quality and Transportation Low cost: elevated in 2022 to $16.79 per bbl in comparison with $10.86 per bbl in 2021; the rise was on account of larger Castilla and Vasconia oil value differentials in 2022 in comparison with 2021.
• Transportation Bills: decreased by 23% to $0.92 per bbl in 2022 from $1.20 per bbl in 2021.
• Royalties: elevated to $18.30 per bbl in 2022, up from $11.10 per bbl in 2021. This enhance was pushed by the 40% enhance within the Brent oil value in 2022 relative to 2021.

¹ Gran Tierra’s complete present common manufacturing is for the interval of January 1, 2023 to February 20, 2023
² Working netback, EBITDA, Adjusted EBITDA, return on common capital employed, funds movement from operations, web debt, free money movement, and money netback, are non-GAAP measures and should not have a standardized which means beneath GAAP. Money movement refers back to the GAAP line merchandise “web money supplied by working actions”. Consult with “Non-GAAP Measures” on this press launch for descriptions of those non-GAAP measures and reconciliations to probably the most instantly comparable measures calculated and introduced in accordance with GAAP.
³ All greenback quantities are in United States {dollars} and manufacturing and reserves quantities are on a mean WI earlier than royalties foundation, except in any other case indicated. Per boe quantities are based mostly on WI gross sales earlier than royalties. Manufacturing is expressed in bopd, whereas reserves are expressed in bbl, boe or MMBOE, except in any other case indicated. For per boe quantities based mostly on web after royalty (“NAR”) manufacturing, see Gran Tierra’s Annual Report on Type 10-Ok filed February 21, 2023
⁴ NAV per share is calculated as NPV10 (earlier than or after tax, as relevant) of the relevant reserves class minus estimated debt, divided by the variety of shares of Gran Tierra’s widespread inventory issued and excellent.
⁵ Per bbl quantities are based mostly on WI gross sales earlier than royalties. For per bbl quantities based mostly on NAR manufacturing, see Gran Tierra’s Annual Report on Type 10-Ok filed on February 21, 2023.
⁶ https://www.epa.gov/power/greenhouse-gases-equivalencies-calculator-calculations-and-references

Convention Name Info:
Gran Tierra will host its fourth quarter and full 12 months 2022 outcomes convention name on Wednesday, February 22, 2023, at 9:00 a.m. Mountain Time, 11:00 a.m. Jap Time. events might entry the convention name by dialing 1-844-348-3792 or 1-614-999-9309 (North America), 0800-028-8438 or 020-3107-0289 (United Kingdom) or 01-800-518-5094 (Colombia). The decision will even be obtainable through webcast at www.grantierra.com.

About Gran Tierra Vitality Inc.
Gran Tierra Vitality Inc. along with its subsidiaries is an impartial worldwide power firm at present targeted on oil and pure fuel exploration and manufacturing in Colombia and Ecuador. The Firm is at present growing its current portfolio of property in Colombia and Ecuador and can proceed to pursue extra new progress alternatives that might additional strengthen the Firm’s portfolio. The Firm’s widespread inventory trades on the NYSE American, the Toronto Inventory Change and the London Inventory Change beneath the ticker image GTE. Extra data regarding Gran Tierra is offered at www.grantierra.com. Besides to the extent expressly said in any other case, data on the Firm’s web site or accessible from our web site or every other web site shouldn’t be included by reference into and shouldn’t be thought of a part of this press launch. Investor inquiries could also be directed to [email protected] or (403) 265-3221.

Gran Tierra’s Securities and Change Fee (the “SEC” ) filings can be found on the SEC web site at http://www.sec.gov. The Firm’s Canadian securities regulatory filings can be found on SEDAR at http://www.sedar.com and UK regulatory filings can be found on the Nationwide Storage Mechanism web site at https://knowledge.fca.org.uk/#/nsm/nationalstoragemechanism.

Contact Info

For investor and media inquiries please contact:

Gary Guidry, President & Chief Govt Officer

Ryan Ellson, Govt Vice President & Chief Monetary Officer

Rodger Trimble, Vice President, Investor Relations

Tel: +1.403.265.3221

For extra data on Gran Tierra please go to: www.grantierra.com .

Ahead-Trying Statements and Authorized Advisories:
This press launch incorporates opinions, forecasts, projections, and different statements about future occasions or outcomes that represent forward-looking statements throughout the which means of the USA Non-public Securities Litigation Reform Act of 1995, Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended, and monetary outlook and forward-looking data throughout the which means of relevant Canadian securities legal guidelines (collectively, “forward-looking statements” ). All statements apart from statements of historic details included on this press launch concerning our monetary place, estimated portions and web current worth of reserves, enterprise technique, plans and goals for future operations, capital spending plans and people statements preceded by, adopted by or that in any other case embody the phrases “imagine,” “count on,” “anticipate,” “forecast,” “finances,” “will,” “estimate,” “goal,” “challenge,” “plan,” “ought to,” “steering”, “strives” or related expressions are forward-looking statements. Such forward-looking statements embody, however usually are not restricted to, the Firm’s expectations, capital program, value saving initiatives, future sources of funding for capital expenditures and steering, together with for sure future manufacturing estimates, forecast costs, five-year anticipated free money movement, anticipated future web money supplied by working actions, web debt, capital expenditures and sure related metrics, the Firm’s methods, the Firm’s plans to profit the surroundings or communities by which it operates and the Firm’s operations together with deliberate operations and oil manufacturing. Statements regarding “reserves” are additionally deemed to be forward-looking statements, as they contain the implied evaluation, based mostly on sure estimates and assumptions, together with that the reserves described could be profitably produced sooner or later.

The forward-looking statements contained on this press launch replicate a number of materials elements and expectations and assumptions of Gran Tierra together with, with out limitation, that Gran Tierra will proceed to conduct its operations in a way in step with its present expectations, the accuracy of testing and manufacturing outcomes and seismic knowledge, pricing and price estimates (together with with respect to commodity pricing and change charges), rig availability, the chance profile of deliberate exploration actions, the results of drilling down-dip, the 5-year weighted-average Brent forecast, the results of waterflood and multi-stage fracture stimulation operations, the extent and impact of supply disruptions, and the overall continuance of present or, the place relevant, assumed operational, regulatory and business circumstances together with in areas of potential growth, and the power of Gran Tierra to execute its present enterprise and operational plans within the method at present deliberate. Gran Tierra believes the fabric elements, expectations and assumptions mirrored within the forward-looking statements are cheap presently however no assurance could be on condition that these elements, expectations and assumptions will show to be appropriate.

Among the many essential elements that might trigger precise outcomes to vary materially from these indicated by the forward-looking statements on this press launch are: our operations are positioned in South America and sudden issues can come up on account of guerilla exercise, strikes, native blockades or protests; technical difficulties and operational difficulties might come up which influence the manufacturing, transport or sale of our merchandise; different disruptions to native operations; international well being occasions (together with the continuing COVID-19 pandemic); international and regional modifications within the demand, provide, costs, differentials or different market circumstances affecting oil and fuel, together with inflation and modifications ensuing from a worldwide well being disaster, the Russian invasion of Ukraine, or from the imposition or lifting of crude oil manufacturing quotas or different actions that is perhaps imposed by OPEC, similar to its latest resolution to chop manufacturing and different producing international locations and ensuing firm or third-party actions in response to such modifications; modifications in commodity costs, together with volatility or a chronic decline in these costs relative to historic or future anticipated ranges; the chance that present international financial and credit score circumstances might influence oil costs and oil consumption greater than we at present predict. which might trigger additional modification of our technique and capital spending program; costs and markets for oil and pure fuel are unpredictable and unstable; the impact of hedges; the accuracy of productive capability of any explicit area; geographic, political and climate circumstances can influence the manufacturing, transport or sale of our merchandise; our potential to execute its marketing strategy and understand anticipated advantages from present initiatives; the chance that sudden delays and difficulties in growing at present owned properties might happen; the power to interchange reserves and manufacturing and develop and handle reserves on an economically viable foundation; the accuracy of testing and manufacturing outcomes and seismic knowledge, pricing and price estimates (together with with respect to commodity pricing and change charges); the chance profile of deliberate exploration actions; the results of drilling down-dip; the results of waterflood and multi-stage fracture stimulation operations; the extent and impact of supply disruptions, gear efficiency and prices; actions by third events; the well timed receipt of regulatory or different required approvals for our working actions; the failure of exploratory drilling to end in industrial wells; sudden delays as a result of restricted availability of drilling gear and personnel; volatility or declines within the buying and selling value of our widespread inventory or bonds; the chance that we don’t obtain the anticipated advantages of presidency packages, together with authorities tax refunds; our potential to adjust to monetary covenants in its credit score settlement and indentures and make borrowings beneath any credit score settlement; and the chance elements detailed once in a while in Gran Tierra’s periodic reviews filed with the Securities and Change Fee, together with, with out limitation, beneath the caption “Danger Elements” in Gran Tierra’s Annual Report on Type 10-Ok for the 12 months ended December 31, 2022 filed February 21, 2023 and its different filings with the SEC. These filings can be found on the SEC web site at http://www.sec.gov and on SEDAR at www.sedar.com. Though the present steering, capital spending program and long run technique of Gran Tierra are based mostly upon the present expectations of the administration of Gran Tierra, ought to any one among a variety of points come up, Gran Tierra might discover it needed to change its enterprise technique and/or capital spending program and there could be no assurance as on the date of this press launch as to how these funds could also be reallocated or technique modified and the way that might influence Gran Tierra’s outcomes of operations and monetary place. Forecasts and expectations that cowl multi-year time horizons or are related to 2P reserves inherently contain elevated dangers and precise outcomes might differ materially.

The forward-looking statements contained on this press launch are based mostly on sure assumptions made by Gran Tierra based mostly on administration’s expertise and different elements believed to be acceptable. Gran Tierra believes these assumptions to be cheap presently, however the forward-looking statements are topic to danger and uncertainties, a lot of that are past Gran Tierra’s management, which can trigger precise outcomes to vary materially from these implied or expressed by the forward-looking statements. The danger that the assumptions on which the 2023 outlook are based mostly show incorrect might enhance the later the interval to which the outlook relates. Particularly, the unprecedented nature of the pandemic and business volatility might make it notably tough to determine dangers or predict the diploma to which recognized dangers will influence Gran Tierra’s enterprise and monetary situation. All forward-looking statements are made as of the date of this press launch and the truth that this press launch stays obtainable doesn’t represent a illustration by Gran Tierra that Gran Tierra believes these forward-looking statements proceed to be true as of any subsequent date. Precise outcomes might differ materially from the anticipated outcomes expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not because of new data, future occasions or in any other case, besides as expressly required by relevant legislation. As well as, historic, present and forward-looking sustainability-related statements could also be based mostly on requirements for measuring progress which are nonetheless growing, inner controls and processes that proceed to evolve, and assumptions which are topic to vary sooner or later.

The estimates of future manufacturing set forth on this press launch could also be thought of to be future-oriented monetary data or a monetary outlook for the needs of relevant Canadian securities legal guidelines. Monetary outlook and future-oriented monetary data contained on this press launch about potential monetary efficiency, monetary place or money flows are supplied to present the reader a greater understanding of the potential future efficiency of the Firm in sure areas and are based mostly on assumptions about future occasions, together with financial circumstances and proposed programs of motion, based mostly on administration’s evaluation of the related data at present obtainable, and to develop into obtainable sooner or later. Particularly, this press launch incorporates projected operational data for 2023. These projections comprise forward-looking statements and are based mostly on a variety of materials assumptions and elements set out above. Precise outcomes might differ considerably from the projections introduced herein. These projections may additionally be thought of to comprise future-oriented monetary data or a monetary outlook. The precise outcomes of Gran Tierra’s operations for any interval will possible differ from the quantities set forth in these projections, and such variations could also be materials. See above for a dialogue of the dangers that might trigger precise outcomes to differ. The long run-oriented monetary data and monetary outlooks contained on this press launch have been authorised by administration as of the date of this press launch. Readers are cautioned that any such monetary outlook and future-oriented monetary data contained herein shouldn’t be used for functions apart from these for which it’s disclosed herein. The Firm and its administration imagine that the possible operational and monetary data has been ready on an inexpensive foundation, reflecting administration’s greatest estimates and judgments, and symbolize, to the most effective of administration’s data and opinion, the Firm’s anticipated plan of action. Nonetheless, as a result of this data is very subjective, it shouldn’t be relied on as essentially indicative of future outcomes.

Non-GAAP Measures
This press launch consists of non-GAAP monetary measures as additional described herein. These non-GAAP measures should not have a standardized which means beneath GAAP. Traders are cautioned that these measures shouldn’t be construed as alternate options to web loss or different measures of economic efficiency as decided in accordance with GAAP. Gran Tierra’s technique of calculating these measures might differ from different firms and, accordingly, they will not be corresponding to related measures utilized by different firms. Every non-GAAP monetary measure is introduced together with the corresponding GAAP measure in order to not indicate that extra emphasis must be positioned on the non-GAAP measure.

Internet Debt as introduced as at December 31, 2022 is outlined as Senior Notes of $580 million (gross) much less money and money equivalents of $127 million, ready in accordance with GAAP. Administration believes that web debt is a helpful supplemental measure for administration and buyers to with a view to consider the monetary sustainability of the Firm’s enterprise and leverage. Probably the most instantly comparable GAAP measure is complete debt.

Return on capital employed is a measure of the profitability of Gran Tierra’s capital employed in its enterprise operations. Return on capital employed is calculated as a ratio, the numerator of which is web revenue earlier than curiosity expense and revenue tax, and the denominator of which is complete property much less present liabilities. The online revenue is adjusted for tax and curiosity expense, for the needs of measuring effectivity of debt capital utilized in operations. Administration believes return on capital employed is an effective indicator of the lengthy‐time period efficiency of the Firm because it pertains to capital effectivity.

Working netback as introduced is outlined as oil gross sales much less working and transportation bills. Working netback per bbl as introduced is outlined as common realized value per bbl much less working and transportation bills per bbl. Money netback, as introduced is outlined as web revenue or loss adjusted for depletion, depreciation and accretion (“DD&A”) bills, deferred tax expense or restoration, stock-based compensation expense, amortization of debt issuance prices, non-cash lease expense, lease funds, unrealized international change positive aspects or losses, unrealized spinoff devices positive aspects or losses, different monetary devices positive aspects or losses, and different non-cash positive aspects or losses. Money netback per bbl, as introduced is outlined as money netback over WI gross sales volumes. Administration believes that working netback and money netback are helpful supplemental measures for buyers to investigate monetary efficiency and supply a sign of the outcomes generated by Gran Tierra’s principal enterprise actions previous to the consideration of different revenue and bills. See the desk entitled Monetary and Operational Highlights, above for the elements of working netback and working netback per bbl. A reconciliation from web revenue or loss to money netback is as follows:

EBITDA, as introduced, is outlined as web revenue or loss adjusted for depletion, depreciation and accretion (“DD&A”) bills, curiosity expense, and revenue tax expense or restoration. Adjusted EBITDA, as introduced, is outlined as EBITDA adjusted for non-cash lease expense, lease funds, unrealized international change positive aspects or losses, unrealized spinoff devices positive aspects or losses, different monetary devices positive aspects or losses, different non-cash positive aspects or losses, and stock-based compensation expense or restoration. Administration makes use of this supplemental measure to investigate efficiency and revenue generated by our principal enterprise actions previous to the consideration of how non-cash objects have an effect on that revenue and believes that this monetary measure is a helpful supplemental data for buyers to investigate our efficiency and our monetary outcomes. A reconciliation from web revenue or loss to EBITDA and adjusted EBITDA is as follows:

Funds movement from operations, as introduced, is outlined as web revenue or loss adjusted for DD&A bills, deferred tax expense or restoration, stock-based compensation expense, amortization of debt issuance prices, non-cash lease expense, lease funds, unrealized international change positive aspects or losses, unrealized spinoff devices positive aspects or losses, different monetary devices positive aspects or losses, and different non-cash positive aspects or losses. Administration makes use of this monetary measure to investigate efficiency and revenue or loss generated by our principal enterprise actions previous to the consideration of how non-cash objects have an effect on that revenue or loss, and believes that this monetary measure can be helpful supplemental data for buyers to investigate efficiency and our monetary outcomes. Free money movement, as introduced, is outlined as funds movement much less capital expenditures. Administration makes use of this monetary measure to investigate money movement generated by our principal enterprise actions after capital necessities and believes that this monetary measure can be helpful supplemental data for buyers to investigate efficiency and our monetary outcomes. A reconciliation from web revenue or loss to funds movement from operations and free money movement is as follows:

DISCLOSURE OF OIL AND GAS INFORMATION
Gran Tierra’s Assertion of Reserves Information and Different Oil and Fuel Info on Type 51-101F1 dated efficient as at December 31, 2022, which incorporates disclosure of its oil and fuel reserves and different oil and fuel data in accordance with NI 51-101 and COGEH forming the premise of this press launch, is offered on SEDAR at www.sedar.com. All reserves values, future web income and ancillary data contained on this press launch as of December 31, 2022 are derived from the GTE McDaniel Reserves Report.

Estimates of web current worth and future web income contained herein don’t essentially symbolize honest market worth of reserves. Estimates of reserves, and future web income for particular person properties might not replicate the identical degree of confidence as estimates of reserves and future web income for all properties, as a result of impact of aggregation. There isn’t any assurance that the forecast value and price assumptions utilized by McDaniel in evaluating Gran Tierra’s reserves and future web income will likely be attained and variances may very well be materials. See Gran Tierra’s press launch dated January 24, 2023 for a abstract of the value forecasts employed by McDaniel within the GTE McDaniel Reserves Report and different data concerning the disclosed future web income.

All evaluations of future web income contained within the GTE McDaniel Reserves Report are after the deduction of royalties, working prices, improvement prices, manufacturing prices and abandonment and reclamation prices however earlier than consideration of oblique prices similar to administrative, overhead and different miscellaneous bills. It shouldn’t be assumed that the estimates of future web income introduced on this press launch symbolize the honest market worth of the reserves. There are quite a few uncertainties inherent in estimating portions of crude oil and pure fuel reserves and the longer term money flows attributed to such reserves. The reserve and related money movement data set forth within the GTE McDaniel Reserves Report are estimates solely and there’s no assure that the estimated reserves will likely be recovered. Precise reserves could also be better than or lower than the estimates supplied therein. All reserves assigned within the GTE McDaniel Reserves Report are positioned in Colombia and Ecuador and introduced on a consolidated foundation by international geographic space.

BOEs have been transformed on the premise of six thousand cubic ft (” Mcf “) pure fuel to 1 bbl of oil. BOEs could also be deceptive, notably if utilized in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is predicated on an power equivalency conversion technique primarily relevant on the burner tip and doesn’t symbolize a worth equivalency on the wellhead. As well as, on condition that the worth ratio based mostly on the present value of oil as in contrast with pure fuel is considerably completely different from the power equal of six to at least one, using a BOE conversion ratio of 6 Mcf: 1 bbl could be deceptive as a sign of worth.

References to a formation the place proof of hydrocarbons has been encountered shouldn’t be essentially an indicator that hydrocarbons will likely be recoverable in industrial portions or in any estimated quantity. Gran Tierra’s reported manufacturing is a mixture of mild crude oil and medium and heavy crude oil for which there’s not a exact breakdown because the Firm’s oil gross sales volumes usually symbolize blends of multiple kind of crude oil. Properly take a look at outcomes must be thought of as preliminary and never essentially indicative of long-term efficiency or of final restoration. Properly log interpretations indicating oil and fuel accumulations usually are not essentially indicative of future manufacturing or final restoration. Whether it is indicated {that a} stress transient evaluation or well-test interpretation has not been carried out, any knowledge disclosed in that respect must be thought of preliminary till such evaluation has been accomplished. References to thickness of “oil pay” or of a formation the place proof of hydrocarbons has been encountered shouldn’t be essentially an indicator that hydrocarbons will likely be recoverable in industrial portions or in any estimated quantity.

Future Internet Income
Future web income displays McDaniel’s forecast of income estimated utilizing forecast costs and prices, arising from the anticipated improvement and manufacturing of assets, after the deduction of royalties, working prices, improvement prices and abandonment and reclamation prices and taxes however earlier than consideration of oblique prices similar to administrative, overhead and different miscellaneous bills. The estimate of future web income under doesn’t essentially symbolize honest market worth.

*The after-tax web current worth of the Firm’s oil and fuel properties displays the tax burden on the properties on a stand-alone foundation. It doesn’t think about the company tax scenario, or tax planning. It doesn’t present an estimate of the worth on the Firm degree which can be considerably completely different. The Firm’s monetary statements must be consulted for data on the Firm degree.

Definitions
Proved reserves are these reserves that may be estimated with a excessive diploma of certainty to be recoverable. It’s possible that the precise remaining portions recovered will exceed the estimated proved reserves.

Possible reserves are these extra reserves which are much less sure to be recovered than proved reserves. It’s equally possible that the precise remaining portions recovered will likely be better or lower than the sum of the estimated proved plus possible reserves.

Attainable reserves are these extra reserves which are much less sure to be recovered than Possible reserves. There’s a 10% chance that the portions really recovered will equal or exceed the sum of Proved plus Possible plus Attainable reserves.

Developed producing reserves are these reserves which are anticipated to be recovered from completion intervals open on the time of the estimate. These reserves could also be at present producing or, if shut-in, they should have beforehand been on manufacturing, and the date of resumption of manufacturing should be identified with cheap certainty.

Undeveloped reserves are these reserves anticipated to be recovered from identified accumulations the place a big expenditure (e.g., when in comparison with the price of drilling a properly) is required to render them able to manufacturing. They need to absolutely meet the necessities of the reserves class (proved, possible, potential) to which they’re assigned.

Sure phrases used on this press launch however not outlined are outlined in NI 51-101, CSA Workers Discover 51-324 – Revised Glossary to NI 51-101 Requirements of Disclosure for Oil and Fuel Actions (” CSA Workers Discover 51-324 “) and/or the COGEH and, except the context in any other case requires, shall have the identical meanings herein as in NI 51-101, CSA Workers Discover 51-324 and the COGEH, because the case could also be.

Oil and Fuel Metrics
This press launch incorporates a variety of oil and fuel metrics, together with NAV per share, F&D prices, working netback, money netback, and reserves substitute which should not have standardized meanings or customary strategies of calculation and subsequently such measures will not be corresponding to related measures utilized by different firms and shouldn’t be used to make comparisons. Such metrics have been included herein to supply readers with extra measures to judge the Firm’s efficiency; nonetheless, such measures usually are not dependable indicators of the longer term efficiency of the Firm and future efficiency might not evaluate to the efficiency in earlier durations.

• NAV per share is calculated because the relevant NPV10 (earlier than or after-tax, as relevant) of the relevant reserves class minus estimated web debt, divided by the variety of shares of Gran Tierra’s widespread inventory issued and excellent. Administration makes use of NAV per share as a measure of the relative change of Gran Tierra’s web asset worth over its excellent widespread inventory over a time frame.
• F&D prices are calculated as estimated exploration and improvement capital expenditures, excluding acquisitions and tendencies, divided by the relevant reserves additions each earlier than and after modifications in future improvement prices. The calculation of F&D prices incorporates the change in future improvement prices required to convey proved undeveloped and developed reserves into manufacturing. The combination of the exploration and improvement prices incurred within the monetary 12 months and the modifications throughout that 12 months in estimated future improvement prices might not replicate the overall F&D prices associated to reserves additions for that 12 months. Administration makes use of F&D prices per boe as a measure of its potential to execute its capital program and of its asset high quality.
• Working netback and money netback are calculated as described on this press launch. Administration believes that working netback and money netback are helpful supplemental measures for the explanations described on this press launch.
• Reserves substitute is calculated as reserves within the referenced class divided by estimated referenced manufacturing. Administration makes use of this measure to find out the relative change of its reserves base over a time frame.

Disclosure of Reserve Info and Cautionary Notice to U.S. Traders
Except expressly said in any other case, all estimates of proved developed producing, proved, possible and potential reserves and associated future web income disclosed on this press launch have been ready in accordance with NI 51-101. Estimates of reserves and future web income made in accordance with NI 51-101 will differ from corresponding GAAP standardized measure ready in accordance with relevant SEC guidelines and disclosure necessities of the U.S. Monetary Accounting Requirements Board (“FASB”), and people variations could also be materials. NI 51-101, for instance, requires disclosure of reserves and associated future web income estimates based mostly on forecast costs and prices, whereas SEC and FASB requirements require that reserves and associated future web income be estimated utilizing common costs for the earlier 12 months and that the standardized measure replicate discounted future web revenue taxes associated to the Firm’s operations. As well as, NI 51-101 permits the presentation of reserves estimates on a “firm gross” foundation, representing Gran Tierra’s working curiosity share earlier than deduction of royalties, whereas SEC and FASB requirements require the presentation of web reserve estimates after the deduction of royalties and related funds. There are additionally variations within the technical reserves estimation requirements relevant beneath NI 51-101 and, pursuant thereto, the COGEH, and people relevant beneath SEC and FASB necessities.

Along with being a reporting issuer in sure Canadian jurisdictions, Gran Tierra is a registrant with the SEC and topic to home issuer reporting necessities beneath U.S. federal securities legislation, together with with respect to the disclosure of reserves and different oil and fuel data in accordance with U.S. federal securities legislation and relevant SEC guidelines and rules (collectively, “SEC necessities”). Disclosure of such data in accordance with SEC necessities is included within the Firm’s Annual Report on Type 10-Ok and in different reviews and supplies filed with or furnished to the SEC and, as relevant, Canadian securities regulatory authorities. The SEC permits oil and fuel firms which are topic to home issuer reporting necessities beneath U.S. federal securities legislation, of their filings with the SEC, to reveal solely estimated proved, possible and potential reserves that meet the SEC’s definitions of such phrases. Gran Tierra has disclosed estimated proved, possible and potential reserves in its filings with the SEC. As well as, Gran Tierra prepares its monetary statements in accordance with United States usually accepted accounting rules, which require that the notes to its annual monetary statements embody supplementary disclosure in respect of the Firm’s oil and fuel actions, together with estimates of its proved oil and fuel reserves and a standardized measure of discounted future web money flows regarding proved oil and fuel reserve portions. This supplementary monetary assertion disclosure is introduced in accordance with FASB necessities, which align with corresponding SEC necessities regarding reserves estimation and reporting.

The Firm believes that the presentation of NPV10 is helpful to buyers as a result of it presents (i) relative financial significance of its oil and pure fuel properties no matter tax construction and (ii) relative measurement and worth of its reserves to different firms. The Firm additionally makes use of this measure when assessing the potential return on funding associated to its oil and pure fuel properties. NPV10 and the standardized measure of discounted future web money flows don’t purport to current the honest worth of the Firm’s oil and fuel reserves. The Firm has not supplied a reconciliation of NPV10 to the standardized measure of discounted future web money flows as a result of it’s impracticable to take action.