- Sixth Consecutive Year of 1P Total Reserves Growth Resulting in Highest Total Reserves in Company History
- Delivered 702% 1P and 1,249% 2P Reserves Replacement Including Recent Acquisition
- Total Liquids 1P and 2P Reserves Increased to 128 and 217 Million Barrels of Oil Equivalent with 1P and 2P Reserve Life Index increasing to 10 and 17 Years, Respectively
- Added Total Reserves of 89 MMBOE 1P, 159 MMBOE 2P and 191 MMBOE 3P
- Net Present Value Before Tax Discounted at 10% of $2.0 Billion (1P), $3.2 Billion (2P), and $4.5 Billion (3P)
- Net Asset Value per Share of $35.24 Before Tax and $19.53 After Tax (1P), and $71.16 Before Tax and $41.05 After Tax (2P)
- Strong Finding, Development & Acquisition Costs of $4.49 (1P), $2.52 (2P) and $2.10 (3P), Excluding Changes in Future Development Costs
All dollar amounts are in United States ("U.S.”) dollars and all reserves and production volumes are on a working interest before royalties ("WI”) basis (net). Reserves are expressed in barrels ("bbl”), bbl of oil equivalent ("boe”) or million boe ("MMBOE”), while production is expressed in boe per day ("BOEPD”), unless otherwise indicated. The following reserves categories are discussed in this press release: Proved Developed Producing ("PDP”), Proved ("1P”), 1P plus Probable ("2P”) and 2P plus Possible ("3P”).
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: "2024 was another strong year underpinned by multiple exploration discoveries in Ecuador, continued success in managing our Colombian assets, and our new country entry into Canada. The organic and inorganic portfolio growth creates a future runway of highly economic development opportunities in proven plays with access to infrastructure. Gran Tierra's entry into Canada fits our corporate strategy of focusing on proven hydrocarbon basins which have access to established infrastructure and competitive fiscal regimes. Furthermore, with the addition of Canada, Gran Tierra is well positioned for long-term commodity cycles with approximately 20% of its production, 23% 1P reserves and 26% 2P reserves now attributed to conventional natural gas and shale gas.
We continue to generate shareholder value through focusing on portfolio longevity and executing on our mandate of growing cash flow and reserves, while maintaining low decline rates through production, development and enhanced oil recovery techniques. Gran Tierra has assembled a diversified, high-quality asset base across multiple attractive jurisdictions and combined with our management team's strong track record of accretive acquisitions and value creation, we look forward to a successful 2025.
The success of 2024 is reflected in yet another year of over 100% reserve replacement on a Proved basis. Gran Tierra achieved strong 702% (1P), 1,249% (2P) and 1,500% (3P) reserves replacement through exploration success in Colombia and Ecuador and our entry into Canada. This success resulted in record highs for the Company's year-end 1P, 2P and 3P oil and gas reserves.”
*See the below tables for the definitions of net asset values per share.
Highlights
2024 Year-End Reserves and Values
| Before Tax (as of December 31, 2024) | Units | 1P | 2P | 3P | |||
| Reserves | MMBOE | 167 | 293 | 385 | |||
| Net Present Value at 10% Discount ("NPV10”) | $ million | 1,950 | 3,242 | 4,517 | |||
| Net Debt1 | $ million | (682 | ) | (682 | ) | (682 | ) |
| Net Asset Value (NPV10 less Net Debt) ("NAV”) | $ million | 1,268 | 2,560 | 3,835 | |||
| Outstanding Shares | million | 35.97 | 35.97 | 35.97 | |||
| NAV per Share | $/share | 35.24 | 71.16 | 106.62 | |||
| After Tax (as of December 31, 2024) | Units | 1P | 2P | 3P | |||
| Reserves | MMBOE | 167 | 293 | 385 | |||
| NPV10 | $ million | 1,385 | 2,159 | 2,930 | |||
| Net Debt1 | $ million | (682 | ) | (682 | ) | (682 | ) |
| NAV | $ million | 703 | 1,477 | 2,248 | |||
| Outstanding Shares | million | 35.97 | 35.97 | 35.97 | |||
| NAV per Share | $/share | 19.53 | 41.05 | 62.48 | |||
- As of December 31, 2024, Gran Tierra achieved:
- Before Tax NAV of $1.3 billion (1P), $2.6 billion (2P), and $3.8 billion (3P)
- After Tax NAV of $0.7 billion (1P), $1.5 billion (2P), and $2.2 billion (3P)
- Strong reserves replacement ratios* of:
- 702% 1P, with 1P reserves additions of 89 MMBOE
- 1,249% 2P, with 2P reserves additions of 159 MMBOE
- 1,500% 3P, with 3P reserves additions of 191 MMBOE
- Finding, development and acquisition costs ("FD&A”), including change in future development costs ("FDC”), on a per boe basis of $9.74 (1P), $8.11 (2P) and $6.92 (3P).
- FD&A costs excluding change in FDC, on a per boe basis of $4.49 (1P), $2.52 (2P) and $2.10 (3P).
- Canada now represents 46% of 1P and 51% of 2P reserves compared to Gran Tierra's total reserves.
- FDC are forecast by McDaniel to be $1,029 million for 1P reserves and $1,809 million for 2P reserves. Gran Tierra's 2025 base case mid-point guidance for cash flow** of $280 million is equivalent to 27% of such 1P FDC and 15% of 2P FDC, which highlights the Company's potential ability to fund future development capital. Increases in FDC relative to 2023 year-end reflect that the GTE McDaniel Reserves Report now assigns Gran Tierra 227 Proved Undeveloped future drilling locations (up from 95 at 2023 year-end) and 441 Proved plus Probable Undeveloped future drilling locations (up from 147 at 2023 year-end).
** "Cash flow” refers to GAAP line item "net cash provided by operating activities”. Gran Tierra's 2025 base case guidance is based on a forecast 2025 average Brent oil price of $75/bbl. See Gran Tierra's press release dated January 23, 2025 for additional information regarding cash flow guidance referred to herein. This forecast price used in Gran Tierra's forecast is lower than the 2025 McDaniel Brent price forecast.
GTE McDaniel Reserves Report
All reserves values, future net revenue and ancillary information contained in this press release have been prepared by McDaniel and calculated in compliance with Canadian National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook ("COGEH”) and derived from the GTE McDaniel Reserves Report, unless otherwise expressly stated.
Future Net Revenue
Future net revenue reflects McDaniel's forecast of revenue estimated using forecast prices and costs, arising from the anticipated development and production of reserves, after the deduction of royalties, operating costs, development costs and abandonment and reclamation costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses. The estimate of future net revenue below does not necessarily represent fair market value.
| Consolidated Properties at December 31, 2024 | |||||||||||||
| Proved (1P) Total Future Net Revenue ($ million) | |||||||||||||
| Forecast Prices and Costs | |||||||||||||
| Sales Revenue | Total Royalties | Operating Costs | Future Development Capital | Abandonment and Reclamation Costs | Future Net Revenue Before Future Taxes | Future Taxes | Future Net Revenue After Future Taxes* | ||||||
| 2025-2029 (5 Years) | 5,139 | (981 | ) | (1,385 | ) | (1,025 | ) | (27 | ) | 1,721 | (491 | ) | 1,230 |
| Remainder | 3,617 | (578 | ) | (1,549 | ) | (4 | ) | (377 | ) | 1,109 | (370 | ) | 739 |
| Total (Undiscounted) | 8,756 | (1,559 | ) | (2,934 | ) | (1,029 | ) | (404 | ) | 2,830 | (861 | ) | 1,969 |
| Total (Discounted @ 10%) | 1,950 | (565 | ) | 1,385 | |||||||||
| Consolidated Properties at December 31, 2024 | |||||||||||||
| Proved Plus Probable (2P) Total Future Net Revenue ($ million) | |||||||||||||
| Forecast Prices and Costs | |||||||||||||
| Years | Sales Revenue | Total Royalties | Operating Costs | Future Development Capital | Abandonment and Reclamation Costs | Future Net Revenue Before Future Taxes | Future Taxes | Future Net Revenue After Future Taxes* | |||||
| 2025-2029 (5 Years) | 6,620 | (1,297 | ) | (1,583 | ) | (1,438 | ) | (25 | ) | 2,277 | (791 | ) | 1,486 |
| Remainder | 8,685 | (1,529 | ) | (2,967 | ) | (371 | ) | (420 | ) | 3,398 | (1,082 | ) | 2,316 |
| Total (Undiscounted) | 15,305 | (2,826 | ) | (4,550 | ) | (1,809 | ) | (445 | ) | 5,675 | (1,873 | ) | 3,802 |
| Total (Discounted @ 10%) | 3,242 | (1,083 | ) | 2,159 | |||||||||
| Consolidated Properties at December 31, 2024 | |||||||||||||
| Proved Plus Probable Plus Possible (3P) Total Future Net Revenue ($ million) | |||||||||||||
| Forecast Prices and Costs | |||||||||||||
| Years | Sales Revenue | Total Royalties | Operating Costs | Future Development Capital | Abandonment and Reclamation Costs | Future Net Revenue Before Future Taxes | Future Taxes | Future Net Revenue After Future Taxes* | |||||
| 2025-2029 (5 Years) | 7,490 | (1,467 | ) | (1,672 | ) | (1,563 | ) | (25 | ) | 2,763 | (1,015 | ) | 1,748 |
| Remainder | 13,422 | (2,598 | ) | (4,106 | ) | (519 | ) | (439 | ) | 5,760 | (1,907 | ) | 3,853 |
| Total (Undiscounted) | 20,912 | (4,065 | ) | (5,778 | ) | (2,082 | ) | (464 | ) | 8,523 | (2,922 | ) | 5,601 |
| Total (Discounted @ 10%) | 4,517 | (1,587 | ) | 2,930 | |||||||||
Total Company WI Reserves
The following table summarizes Gran Tierra's NI 51-101 and COGEH compliant reserves in aggregate for Colombia, Ecuador and Canada derived from the GTE McDaniel Reserves Report calculated using forecast oil and gas prices and costs.
| Light and Medium Crude Oil | Heavy Crude Oil | Tight Oil | Conventional Natural Gas | Shale Gas | Natural Gas Liquids | 2024 Year-End | |
| Reserves Category | Mbbl* | Mbbl* | Mbbl* | MMcf** | MMcf** | Mbbl* | Mboe*** |
| Proved Developed Producing | 25,539 | 20,631 | 329 | 123,192 | 2,302 | 14,464 | 81,877 |
| Proved Developed Non-Producing | 1,864 | 1,256 | 18 | 5,769 | 47 | 746 | 4,852 |
| Proved Undeveloped | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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