Gran Tierra Energy Announces Year-End 2008 Reserves



    
    Proved Reserves Increase To 19.2 MMBO Net After Royalty; A 200% Increase
    From Year-End 2007

    
    CALGARY, Alberta, Feb. 9 /CNW/ -- Gran Tierra Energy Inc. (NYSE
Alternext: GTE; TSX: GTE), a company focused on oil exploration and production
in South America, today announced the results of an independent reserve
evaluation of the company's reserves by GLJ Petroleum Consultants Ltd.
effective December 31, 2008.
    Proved Reserves Reported in Accordance with United States Reporting
Requirements
    The following reserves are reported consistent with United States
Securities and Exchange Commission rules.
    The following table summarizes Gran Tierra Energy's year-end 2008 working
interest reserves and net after royalty reserves (with constant December 31,
2008 oil price and cost). Also shown in the following table are Gran Tierra
Energy's net after royalty reserves for year-end 2007 (with constant December
31, 2007 oil price and cost).



    
    Total
    

    
    Total company             2008 Year-End     2008 Year-End    2007 Year-End
    Light and Medium Oil       Gran Tierra        Gran Tierra     Gran Tierra
    (SEC Compliant)              Energy             Energy          Energy
                             Working Interest    NAR Reserves     NAR Reserves
                                 Reserves
    

    
    Reserves Category             MMBO (*)           MMBO (*)          MMBO (*)
    Proved
      Developed Producing         11.053            8.967           3.121
      Developed Nonproducing       1.489            1.299           2.142
      Undeveloped                 11.687            8.972           1.155
    Total Proved                  24.229           19.238           6.418
    

    
    (*) MMBO (million barrels of oil).
      NAR (net after royalty).
    
    -- Proved light and medium oil reserves are 19.238 MMBO NAR at year-end
2008 compared to 6.418 MMBO NAR at year-end 2007, an increase of 200%. In
addition to the above proved light and medium oil reserves, Gran Tierra Energy
also has year-end 2008 NAR proved gas reserves of approximately 1.2 BCF
(billion cubic feet). Gran Tierra Energy had no proved gas reserves at year-
end 2007.
    
    Colombia
    
    Gran Tierra Energy's Colombia year-end 2008 working interest and net
after royalty reserves are shown in the following table (with constant
December 31, 2008 oil price and cost). Also shown in the following table are
Gran Tierra Energy's Colombian net after royalty reserves for year-end 2007
(with constant December 31, 2007 oil price and cost).



    
    Colombia                  2008 Year-End    2008 Year-End    2007 Year-End
    Light and Medium Oil       Gran Tierra      Gran Tierra     Gran Tierra
    (SEC Compliant)              Energy           Energy          Energy
                             Working Interest  NAR Reserves     NAR Reserves
                                 Reserves
    

    
    Reserves Category               MMBO            MMBO            MMBO
    Proved
      Developed Producing          9.752           7.833           2.145
      Developed Nonproducing       1.215           1.060           1.299
      Undeveloped                 11.476           8.788           0.939
    Total Proved                  22.443          17.681           4.383
    
    -- The increase in proved reserves in Colombia is mainly associated with
the acquisition of Solana Resources Limited and new appraisal drilling in the
Costayaco Field.
    -- In addition to the above proved light and medium oil reserves, Gran
Tierra Energy also has year-end 2008 NAR proved gas reserves of approximately
1.2 BCF in Colombia. Gran Tierra Energy had no proved gas reserves in Colombia
at year-end 2007.



    The Costayaco Field 2008 year-end net after royalty reserves are shown in
the following table (with constant December 31, 2008 oil price and cost). Also
shown in the following table is a comparison of the Costayaco Field 2008 year-
end gross lease reserves (with constant December 31, 2008 oil price and cost)
to the gross lease reserves estimated in July 1, 2008 (with constant June 30,
2008 oil price and cost).



    
    Costayaco                 2008 Year-End   2008 Year-End    July 1, 2008
    Light and Medium Oil        Costayaco     Costayaco Gross  Costayaco Gross
    (SEC Compliant)           Gran Tierra     Lease Reserves   Lease Reserves
                                Energy
                              NAR Reserves
    

    
    Reserves Category             MMBO            MMBO             MMBO
    Proved
      Developed Producing        6.506           8.172            9.637
    Total Proved                15.294          19.649           20.542
    Argentina
    
    Gran Tierra Energy's Argentina working interest and net after royalty
reserves are shown in the following table (with constant December 31, 2008 oil
price and cost). Also shown in the following table is Gran Tierra Energy's
Argentina net after royalty reserves for year-end 2007 (with constant December
31, 2007 oil price and cost).



    
    Argentina                 2008 Year-End     2008 Year-End    2007 Year-End
    Light and Medium Oil       Gran Tierra       Gran Tierra      Gran Tierra
    (SEC Compliant)              Energy            Energy            Energy
                             Working Interest   NAR Reserves     NAR Reserves
                                 Reserves
    

    
    Reserves Category               MMBO            MMBO            MMBO
    Proved
      Developed Producing           1.301           1.134           0.976
      Developed Nonproducing        0.274           0.239           0.843
      Undeveloped                   0.211           0.184           0.216
    Total Proved                    1.786           1.557           2.035
    
    -- Gran Tierra Energy had no proved gas reserves in Argentina at year-end
2008 or 2007.
    
    Reserves Reported in Accordance with Canadian Reporting Requirements
    
    The following reserves are compliant with Canadian National Instrument
51- 101 (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (COGEH)
(with escalated oil price and costs):



    
    Total
    

    
    Total company             2008 Year-End     2008 Year-End   2007 Year-End
    Light and Medium Oil       Gran Tierra       Gran Tierra     Gran Tierra
    (NI 51-101 compliant)         Energy           Energy          Energy
                             Working Interest   NAR Reserves    NAR Reserves
                                 Reserves
    

    
    Reserves Category             MMBO (*)           MMBO (*)          MMBO (*)
    Proved
      Developed Producing         11.877            9.194           3.095
      Developed Nonproducing       1.526            1.328           2.132
      Undeveloped                 11.621            8.289           1.178
    Total Proved                  25.024           18.811           6.405
    Total Probable                12.512            8.676           5.024
    Total Proved plus Probable    37.536           27.487          11.429
    Total Possible                26.233           18.599           4.863
    Total PPP                     63.769           46.086          16.292
    


    
    (*) MMBO (million barrels of oil).
      NAR (net after royalty).
    
    Gran Tierra Energy's year-end 2008 NAR reserves compared to year-end 2007
NAR reserves (compliant with NI 51-101 and COGEH) are as follows:
    -- Proved light and medium oil reserves are 18.811 MMBO compared to 6.405
MMBO at year-end 2007, an increase of 194%. In addition to the above proved
light and medium oil reserves, Gran Tierra Energy also has year-end 2008 NAR
proved gas reserves of approximately 1.2 BCF (billion cubic feet). Gran Tierra
Energy had no proved gas reserves at year-end 2007.
    -- Probable light and medium oil reserves are 8.676 MMBO compared to
5.024 MMBO at year-end 2007, an increase of 73%. In addition to the above
probable light and medium oil reserves, Gran Tierra Energy also has year-end
2008 NAR probable gas reserves of approximately 1.8 BCF. Gran Tierra Energy
had year- end 2007 NAR probable gas reserves of approximately 1.2 BCF.
    -- Possible light and medium oil reserves are 18.599 MMBO compared to
4.863 MMBO at year-end 2007, an increase of 282%. In addition to the above
possible light and medium oil reserves, Gran Tierra Energy also has year-end
2008 NAR possible gas reserves of approximately 16.6 BCF. Gran Tierra Energy
had year-end 2007 NAR possible gas reserves of approximately 27.3 BCF.
    
    Colombia
    
    Gran Tierra Energy's year-end 2008 Colombia working interest and net
after royalty reserves are shown in the following table (NI 51-101 compliant
with escalated oil price and cost). Also shown in the following table are Gran
Tierra Energy's Colombian net after royalty reserves for year-end 2007 (NI 51-
101 compliant with escalated oil price and cost).



    
    Colombia                  2008 Year-End    2008 Year-End     2007 Year-End
    Light and Medium Oil       Gran Tierra      Gran Tierra       Gran Tierra
    (NI 51-101 compliant)        Energy           Energy            Energy
                              Working Interest   NAR Reserves     NAR Reserves
                                 Reserves
    

    
    Reserves Category                MMBO            MMBO            MMBO
    Proved
      Developed Producing          10.564           8.050           2.119
      Developed Nonproducing        1.240           1.079           1.290
      Undeveloped                  11.414           8.108           0.961
    Total Proved                   23.218          17.237           4.370
    Total Probable                 11.401           7.706           3.933
    Total Proved plus Probable     34.619          24.943           8.303
    Total Possible                 23.038          15.806           3.527
    Total PPP                      57.657          40.749          11.830
    
    -- The increases in proved, probable, and possible reserves in Colombia
are mainly associated with the acquisition of Solana Resources Limited and new
appraisal drilling in the Costayaco Field;
    -- In addition to the above proved light and medium oil reserves, Gran
Tierra Energy also has year-end 2008 NAR proved gas reserves of approximately
1.2 BCF in Colombia. Gran Tierra Energy had no proved gas reserves at year-end
2007 in Colombia;
    -- In addition to the above probable light and medium oil reserves, Gran
Tierra Energy also has year-end 2008 NAR probable gas reserves of
approximately 0.7 BCF in Colombia. Gran Tierra Energy had no proved gas
reserves at year-end 2007 in Colombia;
    -- In addition to the above possible light and medium oil reserves, Gran
Tierra Energy also has year-end 2008 NAR possible gas reserves of
approximately 1.9 BCF in Colombia. Gran Tierra Energy had no possible gas
reserves at year-end 2007 in Colombia;
    The Costayaco Field 2008 year-end net after royalty reserves are shown in
the following table (with escalated oil price and cost). Also shown in the
following table is a comparison of the Costayaco Field 2008 year-end gross
lease reserves (with escalated oil price and cost) to the gross lease reserves
estimated in July 1, 2008 (with escalated oil price and cost).



    
    Costayaco                2008 Year-End  2008 Year-End     July 1, 2008
    Light and Medium Oil      Costayaco      Costayaco Gross   Costayaco Gross
    (NI 51-101 compliant)    Gran Tierra    Lease Reserves    Lease Reserves
                               Energy
                             NAR Reserves
    

    
    Reserves Category             MMBO           MMBO             MMBO
    Proved
      Developed Producing         6.639          8.888           9.637
    Total Proved                 14.747         20.302          20.382
    Total Probable                6.744         10.293          14.528
    Total Proved plus Probable   21.491         30.595          34.910
    Total Possible               14.757         21.823          26.330
    Total PPP                    36.248         52.418          61.240
    
    Approximately 1.09 MMBO was produced from July 1, 2008 to December 31,
2008. Taking the production volume into account, there is a small increase in
proved reserves along with reductions in probable and possible reserves. The
reductions in probable and possible reserves are mainly associated with short
well test results from Costayaco-6 in December, 2008, that produced 100%
water. Gran Tierra Energy plans to perform further testing at Costayaco-6 with
a jet pump in early February 2009 to confirm whether oil is present or not.
    The drilling of Costayaco-7 is scheduled to commence in February, 2009.
Costayaco-7 will be located with the intent of converting probable and
possible reserves at the north end of the field into proved reserves.
Costayaco-8 is scheduled to be drilled after Costayaco-7. Costayaco-8 will be
located with the intent of converting probable and possible reserves at the
south end of the field into proved reserves. These two wells are intended to
add significant production capacity and contribute to Gran Tierra Energy's
expected 2009 exit rate of 19,000 barrels of oil/day (BOPD) net after royalty
from Colombia.
    
    Argentina
    
    Gran Tierra Energy's Argentina year-end 2008 working interest and net
after royalty reserves are shown in the following table (NI 51-101 compliant
with escalated oil price and cost). Also shown in the following table is Gran
Tierra Energy's Argentina net after royalty reserves for year-end 2007 (NI 51-
101 compliant with escalated oil price and cost).



    
    Argentina               2008 Year-End    2008 Year-End    2007 Year-End
    Light and Medium Oil     Gran Tierra      Gran Tierra      Gran Tierra
    (NI 51-101 compliant)       Energy           Energy           Energy
                           Working Interest  NAR Reserves     NAR Reserves
                              Reserves
    

    
    Reserves Category             MMBO            MMBO             MMBO
    Proved
      Developed Producing        1.313           1.144            0.976
      Developed Ponproducing     0.286           0.249            0.842
      Undeveloped                0.207           0.181            0.217
    Total Proved                 1.806           1.574            2.035
    Total Probable               1.111           0.970            1.091
    Total Proved plus Probable   2.917           2.544            3.126
    Total Possible               3.195           2.793            1.336
    Total PPP                    6.112           5.337            4.462
    
    -- The additions in probable and possible reserves associated with the
Proa-1 oil discovery made in 2008 is offset by the write down of reserves at
La Reina Field and Nacatimbay Field;
    -- Gran Tierra Energy had no proved gas reserves in Argentina at year-end
2008 or year-end 2007;
    -- In addition to the above probable light and medium oil reserves, Gran
Tierra Energy also has year-end 2008 NAR probable gas reserves of
approximately 1.2 BCF in Argentina. Gran Tierra Energy had year-end 2007 NAR
probable gas reserves of approximately 1.2 BCF;
    -- In addition to the above possible light and medium oil reserves, Gran
Tierra Energy also has year-end 2008 NAR possible gas reserves of
approximately 14.7 BCF in Argentina. Gran Tierra Energy had year-end 2007 NAR
possible gas reserves of approximately 27.3 BCF.
    
    Current Production
    
    Gran Tierra Energy is currently producing approximately 12,000 BOPD net
after royalty. About 11,000 BOPD net after royalty production is from Colombia
and approximately 1,000 BOPD net after royalty production is from Argentina.
    With the spare production capacity available from existing wells, Gran
Tierra Energy plans to increase its net after royalty production in Colombia
from 11,000 BOPD to 14,000 BOPD in the first quarter of 2009. This rate is
expected to be maintained until the third quarter of 2009. With the planned
development drilling in Costayaco and Juanambu, Gran Tierra Energy's net after
royalty production in Colombia is expected to increase to 19,000 BOPD in the
third quarter of 2009. This rate is expected to remain relatively constant
throughout the remainder of 2009.
    Gran Tierra Energy's net after royalty production rate for Argentina is
expected to remain constant at approximately 1,000 BOPD throughout 2009.
    Dana Coffield, President and CEO commented "2008 has proven to be another
outstanding year in the growth of Gran Tierra Energy's reserve base, fueled in
large part by our acquisition of Solana. The tripling of the company's proved
reserves during the year provides a strong foundation for growth in 2009. The
development drilling program scheduled for 2009 is expected to continue adding
to our production growth, and should convert more of the company's probable
and possible reserves to the proved category. We continue to expect attaining
net after royalty production of 15,000 BOPD in the first quarter, and 20,000
BOPD in the third quarter, of this year. This activity, in addition to our
planned 2009 exploration program, is expected to be funded out of available
cash and cashflow from operations, allowing the company to remain debt free."
    
    About Gran Tierra Energy Inc.
    
    Gran Tierra Energy Inc. is an international oil and gas exploration and
production company operating in South America, headquartered in Calgary,
Canada, incorporated in the United States, and trading on the NYSE Alternext
(GTE) and the Toronto Stock Exchange (GTE). The company holds interests in
producing and prospective properties in Colombia, Argentina, and Peru. The
company has a strategy that focuses on growing a portfolio of producing
properties, plus production enhancement and exploration opportunities to
provide a base for future growth. Additional information concerning Gran
Tierra Energy is available at http://www.grantierra.com. Investor inquiries
may be directed to info@grantierra.com or 1-800-916-GTRE (4873).
    
    Cautionary Statement
    
    Possible reserves are those additional reserves that are less certain to
be recovered than probable reserves. There is a 10% probability that the
quantities actually recovered will equal or exceed the sum of proved plus
probable plus possible reserves. The estimate of reserves for individual
properties may not reflect the same confidence level as estimates of reserves
for all properties, due to the effects of aggregation.
    
    Forward Looking Statements
    
    The statements in this news release regarding Gran Tierra Energy's
timing, plans and expectations for testing, drilling, production, reserve
growth, funding of operations, are forward looking information, forward
looking statements or financial outlooks (collectively, "forward-looking
statements") under the meaning of applicable securities laws, including
Canadian Securities Administrators' National Instrument 51-102 Continuous
Disclosure Obligations and the United States Private Securities Litigation
Reform Act of 1995. These forward-looking statements 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.
Although, Gran Tierra Energy believes that the assumptions underlying, and
expectations reflected in, these forward-looking statements are reasonable, it
can give no assurance that these assumptions and expectations will prove to be
correct. Important factors that could cause the results or outcomes discussed
herein to differ materially from those indicated by these forward-looking
statements, include, among other things:  Gran Tierra Energy's operations are
located in South America, and unexpected problems can arise due to guerilla
activity, technical difficulties, operational difficulties and geographic,
political and weather conditions which can impact the production, transport or
sale of its products. Further information on potential factors that could
affect Gran Tierra Energy are included in risks detailed from time to time in
Gran Tierra Energy's Securities and Exchange Commission filings, including,
without limitation, under the caption "Item 1A - Risk Factors" in Part II of
Gran Tierra Energy's Quarterly Report on Form 10-Q, filed with the Securities
and Exchange Commission on November 6, 2008. These filings are available on a
Web site maintained by the Securities and Exchange Commission at
http://www.sec.gov and on SEDAR at http://www.sedar.com. The forward-looking
statements contained herein are made as at the date of this press release.
Gran Tierra Energy does not undertake an obligation to update forward-looking
or other statements in this release except as may be required by law. Gran
Tierra Energy's forward- looking statements are expressly qualified in their
entirety by this cautionary statement.

    
     Contacts:
    

    
     Dana Coffield                          Al Palombo
     Gran Tierra Energy Inc.                Cameron Associates
     President & Chief Executive Officer    Investor Relations
     (866) 973-4873                         (212) 245-8800 Ext. 209
     info@grantierra.com                    al@cameronassoc.com

    




For further information:

For further information: Dana Coffield, President & Chief Executive
Officer of Gran Tierra Energy Inc., 1-866-973-4873, info@grantierra.com; or Al
Palombo, Investor Relations of Cameron Associates, +1-212-245-8800, ext. 209,
al@cameronassoc.com, for Gran Tierra Energy Inc. Web Site:
http://www.grantierra.com

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