Gran Tierra Energy Announces 2006 Year-End Financial Results



    
    First Year of Operations Marked by Completion of Land Acquisitions and
    Initiation of Drilling Programs
    

    CALGARY, Alberta, March 29 /CNW/ -- Gran Tierra Energy Inc. (OTC Bulletin
Board: GTRE.OB), a company focused on oil exploration and production in South
America, today announced financial results of operations for the quarter and
year ended December 31, 2006.
    Total revenue for 2006 was $12.1 million as compared to $1.1 million for
2005.  Net loss for the year amounted to $5.8 million or ($0.08) per diluted
share as compared to a loss of $2.2 million or ($0.16) per diluted share in
2005.
    In comparison to 2005, the 2006 year-end results include a $3.8 million
increase in operating costs as well as a $4.5 million increase in general and
administrative (G&A) expenses resulting primarily from a full year of the
company's Argentina operations and approximately six months of its Colombia
operations.  Other cost increases in 2006 include $3.6 million in depletion,
depreciation, and accretion (DD&A) costs from the company's acquisition
activity and capital expenditures, approximately $0.4 million in foreign
exchange costs, and $1.5 million in liquidated damages due to the delay in
having the company's registration statements for the resale of the shares of
the company's common stock issued in the 2005 and 2006 financings declared
effective by the U.S. Securities and Exchange Commission (SEC).
    Revenue for the fourth quarter ended December 31, 2006 increased 395% to
$3.5 million as compared to $0.7 million for the same period of 2005.  Net
loss for the quarter was $4.0 million or ($0.04) per diluted share as compared
to net loss of $1.7 million, or ($0.04) per diluted share for the same period
in 2005.
    Included in the fourth quarter 2006 results are $1.5 million in operating
costs, $2.7 million in G&A expenses related to the company's Argentina and
Colombia operations, $1.8 million of DD&A and $1.5 million of liquidated
damages discussed above.  No liquidated damages were incurred in 2005.
    Year over year, the company reported a 985% increase in cash and
equivalents and short-term investments to $24.1 million at December 31, 2006.
Working capital increased by 416% in 2006 to $14.3 million at year end.
Shareholders' equity increased from $11 million at December 31, 2005 to $76.2
million at December 31, 2006, and the company reported no outstanding long-
term debt as of year end.
    Externally audited oil reserves net after royalty to Gran Tierra Energy
as of December 31, 2006 were 3.0 million barrels proved, 1.2 million barrels
probable, and 2.9 million barrels possible. Average oil production for the
fourth quarter of 2006, net after royalty, was approximately 1,050 barrels per
day.
    Dana Coffield, President and Chief Executive Officer of Gran Tierra
Energy Inc., commented, "2006 was an extremely successful year in executing
the first stage of our growth strategy.  We have established a base of proved
reserves, commenced production, began cash flow, and acquired undeveloped land
for future development in countries that we believe have proven petroleum
systems,

    stable legal environments, and offer attractive fiscal policies that
encourage exploration by companies such as Gran Tierra."
    Coffield continued, "2006 was also a challenging year for the company. 
As expected, acquisition and related start-up costs resulted in a net loss for
the year.  Regulatory approvals for certain acquisitions in 2006 caused delays
in our work program during the year and industry shortages in rig contracting
created additional challenges for us. "
    "We believe that we are now well positioned to move forward by growing
the company through drilling. Our business plan is based on petroleum industry
fundamentals with a portfolio of drilling opportunities for this year and
future years.  Most importantly, we have a team that is capable of, and
committed to, executing the opportunities in front of us.  We look forward to
an exciting 2007," Coffield concluded.

    
    Conference Call Information:
    
    Gran Tierra Energy Inc. will hold a conference call to review its fourth
quarter and full year 2006 results on Thursday, March 29, 2007 at 11:00 a.m.
Eastern Daylight Time.  The call will be hosted by Dana Coffield, President
and Chief Executive Officer. Interested parties may access the conference call
by dialing (866) 831-6272 (domestic) or (617)213-8859 (international), pass
code # 16264446.  The call will also be available via web cast at
www.grantierra.com, http://www.streetevents.com, http://www.fulldisclosure.com
    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 April 5, 2007, by dialing (888) 286-8010 (domestic) or (617) 801-6888
(international) using confirmation pass code 39227504

    
    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 is available at
www.grantierra.com. Investor inquiries may be directed to info@grantierra.com
or 1-800-916-GTRE (4873).

    
    Forward Looking Statements:
    
    Estimates of total remaining recoverable hydrocarbon liquid, gas, and
plant product quantities at December 31, 2006 have been prepared in accordance
with the definitions for Proved reserves set out in Rule 4-10 of Regulation S-
X of the U.S. Securities and Exchange Commission.  Probable and Possible
reserves have been prepared in accordance with the generally accepted
petroleum engineering principles provided for in the document entitled
Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves
Information, promulgated by the Society of Petroleum Engineers (SPE).  Reserve
definitions utilized are those approved by the SPE and the World Petroleum
Congress in March of 1997.
    This news release includes "forward-looking statements" that are subject
to risks, uncertainties and other factors that could cause actual results or
outcomes to differ materially from those contemplated by the forward-looking
statements.  Forward-looking statements in this release are generally
identified by words, such as "believes," "anticipates," "plans," "expects,"
"will," "would," "guidance," "projects" and similar expressions which are
intended to identify forward-looking statements.  There are a number of
important factors that could cause the results or outcomes discussed herein to
differ materially from those indicated by these forward-looking statements,
including, among others, whether Gran Tierra will have adequate funds to pay
the liquidated damages incurred due to the delay in the effectiveness of Gran
Tierra's registration statements, whether Gran Tierra will be successful in
its drilling efforts and whether Gran Tierra's estimates for its reserves are
accurate.  Further information on potential factors that could affect Gran
Tierra are included in risks detailed from time to time in Gran Tierra's
Securities and Exchange Commission filings, including, without limitation,
Gran Tierra's Annual Report on Form 10-KSB for the period ended December 31,
2005.  These filings are available on a Web site maintained by the Securities
and Exchange Commission at http://www.sec.gov.  Gran Tierra does not undertake
an obligation to update forward-looking or other statements in this release.

    Contacts:

    
    Dana Coffield                                 Al Palombo
    Gran Tierra Energy, Inc.                      Cameron Associates
    President & Chief Executive Officer           Investor Relations
    (800) 916-4873                                (212) 245-8800 Ext. 209
    info@grantierra.com                           al@cameronassoc.com

    Financial Tables to Follow:

    Gran Tierra Energy Inc.
    Consolidated Statement of Operations and Accumulated Deficit
    For the Year ended December 31, 2006 and
    For the Period from Incorporation on January 26, 2005 to December 31, 2005

                                                Period Ended December 31,
                                              2006                    2005
                                              (Expressed in U.S. dollars)

    REVENUE AND OTHER INCOME
      Oil sales                             $11,645,553              $946,098
      Natural gas sales                          75,488               113,199
      Interest                                  351,872                     -
                                             12,072,913             1,059,297
    EXPENSES
      Operating                               4,233,470               395,287
      Depletion, depreciation and
       accretion                              4,088,437               462,119
      General and administrative              6,998,805             2,482,070
      Liquidated damages                      1,527,988                     -
      Foreign exchange loss                     370,538               (31,271)
                                             17,219,237             3,308,205

    LOSS BEFORE INCOME TAX                   (5,146,324)           (2,248,908)
      Income tax                               (677,380)               29,228
    NET LOSS                                $(5,823,704)          $(2,219,680)

    ACCUMULATED DEFICIT, beginning
     of period                               (2,219,680)                    -
    ACCUMULATED DEFICIT, end of year        $(8,043,384)          $(2,219,680)
    NET LOSS PER COMMON SHARE -
     BASIC & DILUTED                              (0.08)                (0.16)

    Weighted average common shares
     outstanding basic & diluted             72,443,501            13,538,149



    Gran Tierra Energy Inc.
    Consolidated Balance Sheet

                                              Period Ended December 31,
                                            2006                    2005
                                            (Expressed in U.S. dollars)
    ASSETS
    Current assets
       Cash and cash equivalents          $24,100,780             $2,221,456
       Restricted cash                      2,291,360                400,427
       Accounts receivable                  5,089,561                808,960
       Inventory                              811,991                447,012
       Taxes receivable                       404,120                108,139
       Prepaids                               676,524                 42,701
    Total Current Assets                   33,374,336              4,028,695
    Oil and gas properties, using the
     full cost method of accounting
      Proved                               37,760,231              7,886,914
      Unproved                             18,333,054                      -
    Total Oil and Gas Properties           56,093,285              7,886,914
    Other assets                              614,104                426,294
    Total Property, Plant and
     Equipment                             56,707,389              8,313,208
    Long term assets
      Deferred tax asset                      444,324                 29,228
      Long term investment                    379,678                      -
    Goodwill                               15,005,083                      -
    Total Long Term Assets                 15,829,085                 29,228
    Total Assets                         $105,910,809            $12,371,131

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
       Accounts payable                    $6,729,839             $1,142,930
       Accrued liabilities                  9,199,820                121,122
       Liquidated damages                   1,527,988                      -
       Current taxes payable                1,642,045                      -
    Total Current Liabilities              19,099,692              1,264,052
       Long term liabilities                  412,929                      -
       Deferred tax liability               7,153,112                      -
       Deferred remittance taxes            2,722,545                      -
       Asset retirement obligation            327,752                 67,732
    Total Long Term Liabilities            10,616,338                 67,732
    Shareholders' equity
       Common shares                           95,455                 43,285
      (78,789,104 common shares and
       16,666,661 exchangeable shares, par
       value, $0.001 per share,
       issued and outstanding)
       Additional paid in capital          71,311,155             11,807,313
       Warrants                            12,831,553              1,408,429
       Accumulated deficit                 (8,043,384)            (2,219,680)
    Total Shareholders' Equity             76,194,779             11,039,347
    Total Liabilities and
     Shareholders' Equity                $105,910,809            $12,371,131

    




For further information:

For further information: Dana Coffield, President & Chief Executive 
Officer of Gran Tierra Energy, Inc., +1-800-916-4873, info@grantierra.com; Al 
Palombo, Investor Relations of Cameron Associates, +1-212-245-8800, ext. 209, 
al@cameronassoc.com Web Site: http://www.grantierra.com

Organization Profile

Gran Tierra Energy Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890