Message #1 From:
Stock News Bot Date: November 8, 2007 10:13:48 AM
Gran Tierra Energy Reports Third Quarter 2007 Results of Operations
Company Delivers 49% Increase in Revenues Over Prior Year Quarter
and Achieves Profitability
Gran Tierra Energy Inc. (OTCBB: GTRE.OB) a company focused on oil
exploration and production in South America, today announced the
financial results of operations for the third quarter ended September
30, 2007.
Total revenue for the quarter was $8.0 million as compared to $5.4
million for same quarter of 2006. Net income for the quarter amounted to
$1.1 million or $0.01 per share as compared to a net loss of $0.07
million or $(0.00) per share for the comparable quarter of 2006.
For the nine month period ended September 30, 2007 the company reported
total revenue of $16.3 million as compared to $8.6 million for same
period in 2006. Net loss for the period amounted to $10.6 million or
$(0.11) per share as compared to a net loss of $1.9 million or $(0.03)
per share for the comparable period of 2006.
The company reported cash and cash equivalents of $8.0 million at the
end of the third quarter of 2007 as compared to $24.1 million at
December 31, 2006. Total working capital reported at the end of the
quarter increased 30% over the previous quarter to $9.3 million and
compares to $14.3 million at December 31, 2006. Shareholders’
equity was reported at $74 million as compared to $76.2 million at
December 31, 2006. The company reported no outstanding long-term debt.
Commenting on the results of the quarter, Dana Coffield, President and
Chief Executive Officer of Gran Tierra Energy Inc., stated, “We
are extremely delighted with the results of this quarter. Gran Tierra
Energy is beginning to see the impact of our exploration successes in
the first half of 2007. Production from our recent oil discovery at
Costayaco-1 in Colombia has been initiated and is now being reflected in
our earnings. Plans for 2008 are now being made to increase our
production capacity for both the Costayaco and Juanambu oil discoveries
in Colombia. We expect the contribution from these discoveries to
positively impact our results going forward.”
For the third quarter of 2007, the company reported oil and condensate
production of 1,526 barrels per day, net after royalty, as compared to
1,043 for the same quarter of 2006. For the nine month period ended
September 30, 2007 the company reported oil and condensate production of
1,270 barrels per day, net after royalty, as compared to 570 barrels per
day for the comparable period of 2006.
The company has working interests in 19 exploration and production
contracts in Argentina, Colombia, and Peru, encompassing approximately
6.5 million acres of land. Gran Tierra Energy operates 18 of these
blocks, bringing its net acreage position to approximately 5.8 million
acres.
Conference Call Information:
Gran Tierra Energy Inc. will hold a conference call to review its third
quarter results on Thursday, November 8, 2007 at 11:00 a.m. Eastern
Time. The call will be hosted by Dana Coffield, President and Chief
Executive Officer. Interested parties may access the conference call by
dialing (800) 561-2813 (domestic) or (617) 614-3529 (international),
pass code # 48159097.
The call will also be available via web cast at www.grantierra.com,
http://www.streetevents.com, http://www.fulldisclosure.com
and will be available on the Gran Tierra website until the next earnings
conference call.
If you are unable to participate, an audio replay of the call will be
available beginning two hours after the call and will be available until
11:59 p.m. on November 15, 2007, by dialing (888) 286-8010 (domestic) or
(617) 801-6888 (international) using confirmation pass code 88448496. An
audio replay of the call will also be available on Gran Tierra Energy’s
web site, www.grantierra.com,
until the next earnings call.
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. is an international oil and gas exploration and
production company, headquartered in Calgary, Canada, incorporated and
traded in the United States and operating in South America. The company
holds interests in producing and prospective properties in Argentina,
Colombia and Peru. To date, the company has pursued a strategy that
focuses on establishing a portfolio of producing properties, development
and exploration opportunities, through selective acquisitions, to
provide a base for future growth. Additional information concerning Gran
Tierra Energy is available at www.grantierra.com.
Investor inquiries may be directed to info@grantierra.com
or 1-800-916-GTRE (4873).
Forward Looking Statements
The statements in this press release regarding Gran Tierra Energy’s
intention to increase its production capacity for the Costayaco and
Juanambu oil discoveries in Colombia and its expectation that the
contribution from these discoveries will positively impact its results
going forward are “forward-looking statements”
within the meaning of Section 27A of the United States Securities Act of
1933, as amended, and Section 21E of the United States Securities
Exchange Act of 1934. Although these forward-looking statements reflects
the good faith judgment of management, forward-looking statements are
inherently subject to known and unknown risks and uncertainties that may
cause actual results to be materially different from those discussed in
these forward-looking statements including, but not limited to, in the
case of these forward-looking statements: unexpected delays in
production due to equipment failure or other unforeseen reasons;
unforeseen events, such as unexpected difficulties in drilling or
unexpected discoveries, may cause Gran Tierra Energy to reallocate
resources, which may delay production and/or alter the mix of
development drilling and exploration drilling in Gran Tierra Energy’s
portfolio; and unexpected costs may decrease funds available to carry
out drilling and production plans, which could delay or prevent
production and/or development. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as of the
date of this release. Gran Tierra Energy assumes no obligation to update
these forward-looking statements to reflect any event or circumstance
that may arise after the date of this release, other than as may be
required by applicable law or regulation. Readers are urged to carefully
review and consider the various disclosures, including the risk factors,
made by Gran Tierra Energy in its reports filed with the Securities and
Exchange Commission, in particular its quarterly report on Form 10-Q
filed on August 14, 2007, which attempt to advise interested parties of
the risks and factors that may affect Gran Tierra Energy's business. If
one or more of these risks or uncertainties materialize, or if the
underlying assumptions prove incorrect, Gran Tierra Energy's actual
results may vary materially from those expected or projected.
Financial Tables to Follow
Gran Tierra Energy Inc.
Condensed Consolidated Statement of Operations and Accumulated
Deficit (unaudited)
Stated in US dollars
Three Months Ended
September 30,
Nine Months ended
September 30,
2007
2006
2007
2006
REVENUE AND OTHER INCOME
Oil sales
$ 7,992,648
$ 5,221,226
$ 15,892,368
$ 8,293,620
Natural gas sales
-
(1,918)
35,494
65,301
Interest and other
46,082
175,641
377,432
195,816
8,038,730
5,394,949
16,305,294
8,554,737
EXPENSES
Operating
2,613,474
1,259,888
6,719,453
2,702,507
Depletion, depreciation and accretion
1,848,954
1,449,694
6,549,852
2,324,158
General and administrative
2,964,865
1,506,439
7,583,721
3,998,196
Liquidated damages
-
261,182
7,366,949
261,182
Derivative financial instruments
116,596
-
793,580
-
Foreign exchange (gain) loss
(85,637)
273,684
(91,772)
277,526
7,458,252
4,750,887
28,921,783
9,563,569
INCOME(LOSS) BEFORE INCOME TAX
580,478
644,062
(12,616,489)
(1,008,832)
Income tax expense (recovery)
(511,219)
710,417
(1,985,918)
848,200
NET INCOME (LOSS)
$1,091,697
$ (66,355)
$(10,630,571)
$(1,857,032)
ACCUMULATED DEFICIT, beginning of period
(19,765,652)
(4,010,357)
(8,043,384)
(2,219,680)
ACCUMULATED DEFICIT, end of period
$(18,673,955)
$(4,076,712)
$ (18,673,955)
$(4,076,712)
NET INCOME (LOSS) PER COMMON SHARE – BASIC
AND DILUTED
$ 0.01
$ (0.00)
$ (0.11)
$ (0.03)
Weighted average common shares outstanding - basic
94,683,878
95,455,759
95,112,226
63,043,998
Weighted average common shares outstanding - diluted
107,597,185
95,455,759
95,112,226
63,043,998
Gran Tierra Energy Inc.
Condensed Consolidated Balance Sheet (Unaudited)
Stated in US dollars
September 30, 2007
December 31, 2006
ASSETS
Current assets
Cash and cash equivalents
$ 8,048,401
$ 24,100,780
Restricted cash
-
2,291,360
Accounts receivable
11,562,103
5,089,561
Taxes receivable
3,048,850
404,120
Inventory
605,092
811,991
Prepaids
204,703
676,524
Total Current Assets
23,469,149
33,374,336
Oil and gas properties, using the full cost method of accounting
