Mr. Gary Guidry reports

GRAN TIERRA ENERGY INC. ANNOUNCES THIRD QUARTER 2023 RESULTS INCLUDING THE HIGHEST PRODUCTION SINCE THE SECOND QUARTER OF 2019, NET INCOME OF $7 MILLION AND $36 MILLION OF FREE CASH FLOW

Gran Tierra Energy Inc. has released the company's financial and operating results for the quarter ended Sept. 30, 2023. All dollar amounts are in U.S. dollars, and production amounts are on an average-working-interest-(WI)-before-royalties basis unless otherwise indicated. Per-barrel (bbl) and bbl per day (bopd) amounts are based on WI sales before royalties. For per bbl amounts based on net after-royalty (NAR) production, see Gran Tierra's quarterly report on Form 10-Q filed Oct. 31, 2023.

Message to Shareholders

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: "Gran Tierra had a solid Quarter, our financial position remains robust, and we continue to focus on maximizing operational efficiency and managing costs effectively to ensure sustainable growth and profitability.

We are very pleased with the successful completion of our bond exchanges subsequent to the Quarter which we believe are highly beneficial for both Gran Tierra and our stakeholders. The Company's balance sheet is now stronger due to an improved amortization schedule, less restrictive conditions, and overall reduced leverage. The bond exchanges, in tandem with our solid operating cash flow, provide additional financial flexibility and a stronger platform, as we execute our strategy of delivering profitable production growth, free cash flow generation and value creation for stakeholders. We intend to continue to high-grade our portfolio through our integrated strategy of acquiring, exploring, developing, producing, and enhancing high-quality oil and gas assets.

In terms of upcoming activity, following our successful 2023 development campaigns at Acordionero and the northern extension of the Costayaco field, we are accelerating our development program and plan to commence drilling at both of these fields in December 2023. The waterfloods across our four core assets continue to be effective at increasing ultimate oil recoveries and we are excited to resume drilling by the end of this year. We are delighted that we closed the extension of the Suroriente block agreement during the Quarter as we believe this block will be a key growth area for the Company over the coming years. As seen in our mid-year reserve update, the success in our waterflood and the extension of the Suroriente block agreement resulted in record highs in the Company's Proved and Proven plus Probable oil reserves. We added Proved reserves of 16 million bbl and Proven plus Probable of 26 million bbl since the end of the 2022."

Key Highlights of the Quarter:

• Production: Gran Tierra's total average WI production was 33,940 BOPD, an increase of 1% compared to second quarter 2023 ("the Prior Quarter") and up 12% from third quarter 2022 ("one year ago"). Gran Tierra's production in the Quarter was the Company's highest quarterly average total production since second quarter 2019.
• Net Income: Gran Tierra achieved net income of $7 million, compared to a net loss of $11 million in the Prior Quarter and net income of $39 million one year ago. The Company's net income over the last 12 months was $19 million.
• Basic (Diluted) Earnings Per Share: Gran Tierra generated net earnings of $0.20 per share basic and diluted, compared to a net loss of $0.33 per share basic and diluted in the Prior Quarter and net earnings of $1.05 per share basic and $1.04 per share diluted one year ago.
• Adjusted EBITDA (2) : Adjusted EBITDA(2) was $119 million compared to $97 million in the Prior Quarter and $116 million one year ago. Twelve month trailing Net Debt(2) to Adjusted EBITDA(2) was 1.2 times.
• Funds Flow from Operations (2) : Funds flow from operations(2) was $79 million ($2.37 basic per share), up 49% from the Prior Quarter and down 16% from one year ago.
• Free Cash Flow (2) : During the Quarter, the Company generated free cash flow of approximately $36 million. Given the Company's front-end loaded 2023 development program, the majority of the Company's capital expenditures were incurred in the first half of 2023.
• Return on Average Capital Employed (2) : Achieved return on average capital employed(2) of 25% during the Quarter and 18% over the last trailing twelve months.
• Cash and Debt: As of September 30, 2023, the Company had a cash balance of $123 million and net debt(2) of $499 million.
• Credit Facility: Gran Tierra amended and restated the Company's credit facility with a market leader in the global commodities industry. As part of the restatement, the initial commitment was adjusted from $100 million to $50 million (maintaining the potential option of up to an additional $50 million, subject to approval by the lender). During the Quarter, the Company drew $50 million on the credit facility for settlement of the bond exchanges. The Company expects to pay back this amount fully by August 2024.
• Oil Price Hedges: Subsequent to the end of the Quarter, the Company entered into 15,000 BOPD put options from October 1, 2023 to March 31, 2024 with a floor price of $80.00 per bbl Brent and no ceiling for a premium of $3.10 per BOPD.
• Additional Key Financial Metrics:
  • Capital Expenditures: Capital expenditures of $43 million were lower than the Prior Quarter's level of $66 million and down from $57 million compared to one year ago as a result of no wells being drilled during the Quarter.
  • Oil Sales: Gran Tierra generated oil sales of $180 million, up 14% from the Prior Quarter and up 7% from one year ago. Compared to one year ago, oil sales increased as a result of lower Castilla and Vasconia differentials to the Brent oil price. Oil sales increased compared to the Prior Quarter primarily due to an 11% increase in the Brent oil price, partially offset by a 3% decrease in sales volumes.
  • Operating Netback (2)(3) : The Company's operating netback(2)(3) was $40.87 per bbl, an increase of 18% from the Prior Quarter and down 8% from one year ago. Similar to oil sales, changes in operating netback relative to the Prior Quarter were driven by an increase in the Brent oil price and were partially offset by higher operating costs. Compared to one year ago the change in operating netback was largely driven by a 12% decrease in Brent and higher operating expenses.
  • Operating Expenses: Gran Tierra's operating expenses remained consistent at $15.92 per bbl, compared to $15.86 per bbl in the Prior Quarter. Compared to one year ago, operating expenses increased by 7% on a per bbl basis, due to higher lifting costs associated with road and pipeline maintenance, power generation due to increased compressed natural gas purchases and higher diesel tariffs, and equipment rental associated with testing exploratory wells. As a result of an El-Nino-induced drought, power costs have increased across Colombia, which relies on hydroelectricity for more than two-thirds of its installed power capacity. In addition, operating costs increased due to the appreciation of the Colombian peso versus the U.S. dollar.
  • Quality and Transportation Discounts: The Company's quality and transportation discount narrowed to $11.83 per bbl, down from $14.10 per bbl in the Prior Quarter and down from $13.37 per bbl one year ago. The Castilla oil differential narrowed to $6.64 per bbl, down from $9.41 per bbl in the Prior Quarter and down from $9.15 per bbl one year ago (Castilla is the benchmark for the Company's Middle Magdalena Valley Basin oil production). The Vasconia differential narrowed to $3.59 per bbl, down from $5.53 per bbl in the Prior Quarter and down from $3.77 per bbl one year ago (Vasconia is the benchmark for the Company's Putumayo Basin oil production). The current(1) Castilla differential is approximately $7.11 per bbl and the Vasconia differential is approximately $3.45 per bbl.
  • General and Administrative ("G&A") Expenses: G&A expenses before stock-based compensation were $2.68 per bbl, down from $3.12 per bbl in the Prior Quarter and down from $2.95 when compared to one year ago due to higher sales volumes in the Quarter.
  • Cash Netback (2) : Cash netback per bbl was $25.48, compared to $17.37 in the Prior Quarter as a result of an increase in Brent price of $8.19 per bbl and a lower quality and transportation discount. Compared to one year ago, cash netback per bbl decreased by $7.94 from $33.42, despite a $11.78 per bbl decrease in the Brent oil price over the same period.

Development Campaign: Following Gran Tierra's successful 2023 development drilling campaigns at Acordionero and the northern extension of the Costayaco field, the Company plans to accelerate its development program and expects to commence drilling at both fields in December 2023. Upon completion of the development drilling program in Costayaco (expected in March 2024), the Company plans to move the drilling rig to Ecuador to begin the exploration drilling program.

Conference Call Information:

Gran Tierra will host its third quarter 2023 results conference call on Wednesday, November 1, 2023, at 9:00 a.m. Mountain Time, 11:00 a.m. Eastern Time. Interested parties may access the conference call by registering on-line. The call will also be available via webcast.

Corporate Presentation:

Gran Tierra's Corporate Presentation has been updated and is available on the Company website.

About Gran Tierra Energy Inc.

Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company currently focused on oil and natural gas exploration and production in Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company's portfolio. The Company's common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE.

We seek Safe Harbor.