Gran Tierra Energy announces first quarter 2009 results
Record Average Quarterly Production of 10,390 BOPD Attained; Positioning for Renewed Exploration in Late 2009 and 2010
CALGARY, May 7 - Gran Tierra Energy Inc. (NYSE Amex: GTE, TSX: GTE), a company focused on oil exploration and production in South America, today announced financial and operating results for the quarter ended March 31, 2009. All dollar amounts are in United States dollars unless otherwise indicated.
Selected highlights comparing the quarters ended March 31, 2009 and 2008:
- 265% increase in production to 10,390 barrels of oil per day (BOPD),
net after royalty (NAR), compared with 2,843 BOPD NAR, for the same
period in 2008;
- 61% increase in revenue and interest to $33.6 million compared with
$20.8 million for the same period in 2008;
- 202% increase in net income to $14.1 million compared with
$4.7 million for the same period in 2008. On a per share basis, net
income increased to $0.06 per share basic and diluted, compared with
$0.05 per share basic and $0.04 per share diluted for the first
quarter of 2008;
- Cash and cash equivalents of $147.7 million at March 31, 2009; and
- Gran Tierra Energy continues to be debt free.
"The first quarter 2009 results reflect our continued focus on operating performance in Colombia, Peru and Argentina, and continuing development of the Costayaco Field," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "The company is currently evaluating the optimum production plateau for the Costayaco field taking into consideration reserves, reservoir performance, good operating practice, and net present value of the project. Accordingly, we are revising the planned production plateau for Costayaco to 19,000 BOPD gross, and extending the plateau period to approximately four years. Economic modeling shows no material reduction in value in producing reserves at this new plateau, and at the same time, we believe operating performance will be enhanced long-term. We are now expecting to maintain an average consolidated company production rate between 14,000 to 16,000 BOPD NAR for the balance of 2009. In addition, our capital expenditure plans have been revised to focus on the highest impact investment opportunities in our portfolio as Gran Tierra Energy strives to deliver the best value to its shareholders.
Cannacord has a buy rating on this.