Colombia

Gran Tierra Energy is delivering on our focused strategy of growing the Company's Colombian reserves, production and exploration potential while diversifying our asset base. After completing three acquisitions during 2016, we have successfully transformed our Colombian portfolio of development, appraisal and exploration projects.

Over the next three years, we now expect both visible organic production growth and to drill a total of 30 to 35 exploration wells, with all of this activity expected to be funded from cash flows from operations.

In November 2016, Gran Tierra Energy participated in an electronic live auction and acquired the Santana and Nancy-Burdine-Maxine Blocks, which are located in the Putumayo Basin.

Santana and Nancy-Burdine-Maxine Blocks (100% WI)

  • Gross WI 2016 average production before royalties of approximately 600 barrels of oil per day1 ("bopd") and estimated 300 bopd behind-pipe1
  • Gran Tierra has identified potential upside with enhanced oil recovery ("EOR") waterflooding techniques, and prospective resources on the new lands from "N" sands and "A" Limestone exploration plays, with mapped prospects based on existing Company 2D and 3D seismic data
  • Approximately 27,400 gross WI acres1
  • Establishes a centralized transportation and production hub in the Putumayo Basin with strategic, operated, pipeline infrastructure and gathering facilities which include:
    • 26,000 bopd of pipeline capacity, 25,000 barrels of oil storage and capacity to load and unload 11,500 and 13,500 bopd by truck, respectively1
    • the O.M.U and O.U.S pipelines which connect Costayaco, Moqueta and Guayuyaco oil fields with Santana Station
    • transportation and commercialization flexibility, which is expected to further strengthen the Company's competitive advantage in the Putumayo Basin

1As reported in Ecopetrol's Bid Round Summary Flyer - published December 2015

Other Operations

Peru — Gran Tierra holds 100% working interest operatorship in five blocks in the Marañon and Ucayali basins of Peru. All blocks in Peru are subject to a license agreement with PeruPetro. The Company is currently developing a plan to maximize value on these blocks.

Brazil — Gran Tierra has interests in seven blocks in Brazil and is the operator in all of these blocks. Our Brazilian properties are located in the Recôncavo Basin in Eastern Brazil in the State of Bahia. Block 155 in the Recôncavo Basin has two producing oil wells.  All of our blocks in Brazil are subject to an 11% royalty, which consists of a 10% crown royalty and a 1% landowner royalty. The Company is currently developing a plan to maximize value on these blocks.