Mr. Gary Guidry reports

GRAN TIERRA ENERGY INC. ANNOUNCES 2023 FOURTH QUARTER & YEAR-END RESULTS, INCLUDING SUCCESSFULLY MEETING 2023 GUIDANCE FOR ANNUAL PRODUCTION, FUNDS FLOW FROM OPERATIONS1 AND FREE CASH FLOW1

Gran Tierra Energy Inc. has released its financial and operating results for the fourth quarter and year ended Dec. 31, 2023. All dollar amounts are in United States dollars, and all reserves and production volumes are on an average working interest before royalties (WI) basis, unless otherwise indicated. Production is expressed in barrels (bbl) of oil per day (bopd), while reserves are expressed in bbl, bbl of oil equivalent (boe) or million boe (MMBOE), unless otherwise indicated. Gran Tierra's 2023 year-end reserves were evaluated by the company's independent qualified reserves evaluator McDaniel & Associates Consultants Ltd. in a report with an effective date of Dec. 31, 2023. 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 and the Canadian Oil and Gas Evaluation Handbook (COGEH), and derived from the company's McDaniel reserves report, unless otherwise expressly stated. 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).

Fourth quarter and full-year 2023 operational and financial highlights

Message to shareholders

Gary Guidry, president and chief executive officer of Gran Tierra, commented: "We are pleased to announce that Gran Tierra has successfully met its guidance targets for 2023 in terms of annual average production, funds flow from operations and free cash flow. These achievements are a testament to our world-class assets, while also showcasing our commitment to operational excellence. Our focus on the development of our assets has resulted in solid performance across several key metrics. Furthermore, in 2023, Gran Tierra demonstrated its confidence in the company's future prospects by repurchasing 6.8 per cent of our outstanding shares through our normal course issuer bid (NCIB) program, showing our dedication to long-term shareholder value creation. We are currently trading at a discount to our PDP net asset value per share, so we believe repurchasing shares is a prudent way to return capital to shareholders.

"We are particularly excited about the prospects of our 2024 exploration initiatives in Ecuador and Colombia, where we are set to drill between six to nine low-risk, high-impact exploration wells. These prospects are potentially significant catalysts in our commitment to unlock new reserves and drive sustainable growth. With a robust and diverse portfolio of assets, Gran Tierra is poised to capitalize on emerging opportunities and deliver value to all our stakeholders."

Operational:

• Production:
  • Gran Tierra achieved 2023 average WI production of 32,647 bopd (100 per cent oil), a 6-per-cent increase from 2022, as a result of the company's successful 2023 development drilling campaigns in Acordionero, Costayaco and Moqueta, in addition to continuing optimization of the company's waterfloods in these three fields and the Suroriente block.
  • Building on the company's successful development drilling in 2023, Gran Tierra expects 2024 production of 32,000 bopd to 35,000 bopd, as previously forecast. This projected 2024 production increase is expected to result from the company's previously forecast 2024 development drilling program of six to eight wells in Acordionero and three to five wells in Costayaco, as well as the startup of development drilling in the Suroriente block later in the second half of 2024. Gran Tierra also plans to drill six to nine exploration wells in 2024.
  • The company's total current average production for 2024 year-to-date is approximately 32,200 bopd. The current average production for February, 2024, month-to-date is approximately 33,600 bopd and is expected to increase during March, 2024, as additional wells are brought on production.
• 2023 year-end reserves and values:
  • As of Dec. 31, 2023, Gran Tierra achieved:
    • Before-tax net asset value (NAV) of $1.4-billion (1P), $2.6-billion (2P) and $3.8-billion (3P);
    • After-tax NAV of $800-million (1P), $1.4-billion (2P) and $2-billion (3P);
    • Strong reserves replacement ratios of:
      • 154 per cent 1P, with 1P reserves additions of 18 MMBOE;
      • 242 per cent 2P, with 2P reserves additions of 29 MMBOE;
      • 303 per cent 3P, with 3P reserves additions of 36 MMBOE.
    • NAV per share of $18.79 before tax and $10.46 after tax (PDP), $44.48 before tax and $24.06 after tax (1P), and $79.13 before tax and $42.71 after tax (2P). Gran Tierra's current share price trades at significant discounts across all of the company's NAV per share categories.
      • Meaningful 1P, 2P and 3P reserves additions, largely driven by success with development drilling and waterflooding results in the Chaza block (which contains the Costayaco and Moqueta fields), and the Suroriente continuation agreement.

• Financial:
  • 2023 net loss: Gran Tierra realized a net loss of $6.3-million, or 19 cents per share (basic and diluted), compared with net income of $139-million, or $3.81 per share (basic) and $3.76 per share (diluted) in 2022.
  • Return on average capital employed: The company achieved a return on average capital employed of 15 per cent during 2023.
  • 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): The company realized adjusted EBITDA of $399.4-million, a decrease of 17 per cent from $481.9-million in 2022, commensurate with the decrease in the Brent oil price.
  • 2023 net cash provided by operating activities: The company generated net cash provided by operating activities of $228-million, a decrease of 47 per cent from $427.7-million in 2022, primarily as a result of $112.7-million in cash outflow relating to changes in working capital that can be primarily attributed to taxes.
  • 2023 funds flow from operations: Gran Tierra realized funds flow from operations of $276.8-million, compared with $366-million in 2022.
  • 2023 capital expenditures and free cash flow: Gran Tierra's capital expenditures of $218.9-million came in at the low end of 2023 guidance and were more than fully financed by the company's 2023 funds flow from operations of $276.8-million, which allowed Gran Tierra to generate free cash flow of $57.9-million.
  • Key metrics during the quarter: The company realized net income of $7.7-million, adjusted EBITDA of $93-million and funds flow from operations of $84.7-million, compared with $6.5-million, $119.2-million and $79-million, respectively, in third quarter 2023.
  • Reduction of debt and cash balance: In 2023, Gran Tierra reduced debt by $6.9-million. The company had $62.1-million in cash and cash equivalents as at Dec. 31, 2023.
  • Bond exchange: During the quarter, the company issued $487.6-million of new 9.5 per cent senior secured amortizing notes due 2029, in exchange for certain of its existing notes, to improve the balance sheet, reduce overall leverage and provide additional financial flexibility.
  • Bond issuance subsequent to year-end: Gran Tierra issued an additional $100-million aggregate principal amount of its 9.5 per cent senior secured amortizing notes due 2029, a portion of the proceeds of which the company used to repay $36.4-million of borrowings outstanding under its credit facility, which was subsequently terminated.
  • Share buybacks: Gran Tierra purchased approximately 2.4 million shares during 2023, representing about 6.8 per cent of shares outstanding as of Dec. 31, 2022, reflective of the company's one-for-10 reverse stock split that became effective May, 2023.
  • 2023 operating costs:
    • Operating expenses per bbl were $15.75, 8 per cent higher when compared with 2022. This increase in 2023 was primarily due to road and pipeline maintenance, power generation attributed to higher compressed natural gas purchases, and higher diesel tariffs and equipment rental associated with testing exploratory wells, and was partially offset by lower workover costs.
    • Total operating expenses were $186.9-million, compared with $162.4-million in 2022, representing a 15-per-cent increase. The increase was due to the factors mentioned above.
  • 2023 cash general and administrative (G&A) costs: The company's gross cash general and administrative costs increased to $3.38 per bbl from $2.87 per bbl in 2022. Total cash G&A costs were $40.1-million, an increase of 26 per cent from $31.9-million in 2022, which was the result of costs attributed to higher salaries due to increased headcount in Ecuador to support ramp-up of operations during 2023, and the strengthening of the Colombian peso.
  • Oil sales:
    • 2023: Gran Tierra's net oil sales decreased 10 per cent to $637-million, compared with $711.4-million in 2022. This decrease was primarily driven by a 17-per-cent decrease in Brent price, and higher Castilla and Vasconia differentials, partially offset by 7 per cent higher sales volumes and lower transportation discounts in 2023.
    • The quarter: Gran Tierra generated oil sales of $154.9-million, a decrease of 14 per cent, or $25-million from the prior quarter, primarily driven by a 4-per-cent decrease in the Brent oil price and an 8-per-cent decrease in production. Oil sales were $54.04 per bbl, a 7-per-cent decrease from the prior quarter.
  • Operating netback:
    • 2023: Gran Tierra's operating netback of $36.72 per bbl was down 24 per cent from $48.43 in 2022.
    • The quarter: The company's operating netback of $36.05 per bbl was lower by 7 per cent from the fourth quarter 2022, and a decrease of 12 per cent from the prior quarter.

Operational update

• Colombia development:
  • Costayaco development campaign (Putumayo basin):
    • Since December, 2023, Gran Tierra has drilled four oil wells in the Costayaco field:
      • The first well, CYC-56, has been on production with jet pump since early January, 2024. During the period of Jan. 6 to Feb. 16, 2024, CYC-56 produced on jet pump at a stable average rate of 1,896 bopd (30-degree API gravity) with a water cut of 2 per cent and a gas-oil ratio of 157 standard cubic feet per stock tank barrel (scf/stb).
      • The second well, CYC-57, was spudded on Jan. 6, 2024, and reached final total depth on Jan. 13, 2024. It was completed in the Villeta and Caballos formations, and started production testing on Jan. 22, 2024. During the period of Jan. 22 to Feb. 16, 2024, CYC-57 produced on jet pump at a stable average rate of 1,057 bopd (29-degree API gravity) with a water cut of 10 per cent and a gas-oil ratio of 120 scf/bbl.
      • The third well, CYC-58, was spudded on Jan. 23, 2024, and reached final total depth on Jan. 29, 2024. It was completed in the Villeta and Caballos formations, and started production testing on Feb. 8, 2024. During the period of Feb. 8 to Feb. 16, 2024, CYC-58 produced on jet pump at a stable average rate of 2,142 bopd (29-degree API gravity) with a water cut of 5 per cent and a gas-oil ratio of 176 scf/bbl.
      • The fourth well, CYC-59, was spudded on Feb. 8, 2024.
  • Acordionero development campaign (Middle Magdalena basin):
    • A 10-to-11-well development drilling program was started in December, 2023:
      • Nine wells have been drilled to date, including eight producers and one water injection well. Seven of these wells are on production and one on water injection.
      • The ninth well, Acordionero-124, is currently being completed for production. The 10th well, Acordionero-127i, is being drilled and will be followed by the final well for this program, Acordionero-128.
      • All wells are expected to be drilled, completed and on production before the end of the first quarter 2024.

Gran Tierra's commitment to go beyond compliance in environmental, social and governance (ESG):

• 2023 was the company's safest year on record, with a total of 16.3 million person-hours without a lost time injury (LTI) and a total recordable case frequency (TRCF) of 0.04, which places Gran Tierra within the region's and the industry's top quartile in terms of safety performance.
• Gran Tierra is pleased to announce that the company has been accepted by the Voluntary Principles Initiative (VPI) as an official member of the Voluntary Principles for Security and Human Rights world-wide initiative. This appointment strengthens the company's commitment to the responsible implementation of human rights policies and practices in all its operations.
• In 2023, Gran Tierra signed a four-year extension with the prominent environmental NGO (non-governmental organization) Conservation International to continue and expand upon the company's highly successful NaturAmazonas program, the largest reforestation program of its nature in Colombia. This extension continues to harmonize economic development and conservation in the Piedmont region of the Putumayo department in southern Colombia.

Corporate presentation:

• Gran Tierra's corporate presentation has been updated and is available at the company's website.

Conference call information

Gran Tierra will host its fourth quarter and full year 2023 results conference call on Tuesday, Feb. 20, 2024, at 9 a.m. MT (11 a.m. ET). Interested parties may register for the conference call on-line. Please note that there is no longer a general dial-in number to participate and each individual party must register on-line. Once parties have registered, they will be provided a unique PIN (personal identification number) and call-in details. There is also a feature that allows parties to elect to be called back through the "Call me" function on the platform. Interested parties can also continue to access the live webcast from their mobile or desktop devices at Gran Tierra's website.

About Gran Tierra Energy Inc.

Gran Tierra Energy, together with its subsidiaries, is an independent international energy company currently focused on international oil and natural gas exploration and production with assets currently in Colombia and Ecuador. The company is currently developing its existing portfolio of assets in Colombia and Ecuador, and will continue to pursue additional growth opportunities that would further strengthen the company's portfolio.

We seek Safe Harbor.