Gran Tierra Energy Reports Third Quarter 2007 Results of Operations



    Company Delivers 49% Increase in Revenues Over Prior Year Quarter and
Achieves Profitability

    CALGARY, ALBERTA, November 8 /CNW/ - Gran Tierra Energy Inc. (OTCBB:
GTRE.OB) a company focused on oil exploration and production in South America,
today announced the financial results of operations for the third quarter
ended September 30, 2007.

    Total revenue for the quarter was $8.0 million as compared to $5.4
million for same quarter of 2006. Net income for the quarter amounted to $1.1
million or $0.01 per share as compared to a net loss of $0.07 million or
$(0.00) per share for the comparable quarter of 2006.

    For the nine month period ended September 30, 2007 the company reported
total revenue of $16.3 million as compared to $8.6 million for same period in
2006. Net loss for the period amounted to $10.6 million or $(0.11) per share
as compared to a net loss of $1.9 million or $(0.03) per share for the
comparable period of 2006.

    The company reported cash and cash equivalents of $8.0 million at the end
of the third quarter of 2007 as compared to $24.1 million at December 31,
2006. Total working capital reported at the end of the quarter increased 30%
over the previous quarter to $9.3 million and compares to $14.3 million at
December 31, 2006. Shareholders' equity was reported at $74 million as
compared to $76.2 million at December 31, 2006. The company reported no
outstanding long-term debt.

    Commenting on the results of the quarter, Dana Coffield, President and
Chief Executive Officer of Gran Tierra Energy Inc., stated, "We are extremely
delighted with the results of this quarter. Gran Tierra Energy is beginning to
see the impact of our exploration successes in the first half of 2007.
Production from our recent oil discovery at Costayaco-1 in Colombia has been
initiated and is now being reflected in our earnings. Plans for 2008 are now
being made to increase our production capacity for both the Costayaco and
Juanambu oil discoveries in Colombia. We expect the contribution from these
discoveries to positively impact our results going forward."

    For the third quarter of 2007, the company reported oil and condensate
production of 1,526 barrels per day, net after royalty, as compared to 1,043
for the same quarter of 2006. For the nine month period ended September 30,
2007 the company reported oil and condensate production of 1,270 barrels per
day, net after royalty, as compared to 570 barrels per day for the comparable
period of 2006.

    The company has working interests in 19 exploration and production
contracts in Argentina, Colombia, and Peru, encompassing approximately 6.5
million acres of land. Gran Tierra Energy operates 18 of these blocks,
bringing its net acreage position to approximately 5.8 million acres.

    Conference Call Information:

    Gran Tierra Energy Inc. will hold a conference call to review its third
quarter results on Thursday, November 8, 2007 at 11:00 a.m. Eastern Time. The
call will be hosted by Dana Coffield, President and Chief Executive Officer.
Interested parties may access the conference call by dialing (800) 561-2813
(domestic) or (617) 614-3529 (international), pass code # 48159097.

    The call will also be available via web cast at www.grantierra.com,
http://www.streetevents.com, http://www.fulldisclosure.com and will be
available on the Gran Tierra website until the next earnings conference call.

    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 November 15, 2007, by dialing (888) 286-8010 (domestic) or (617)
801-6888 (international) using confirmation pass code 88448496. An audio
replay of the call will also be available on Gran Tierra Energy's web site,
www.grantierra.com, until the next earnings call.

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

    Forward Looking Statements

    The statements in this press release regarding Gran Tierra Energy's
intention to increase its production capacity for the Costayaco and Juanambu
oil discoveries in Colombia and its expectation that the contribution from
these discoveries will positively impact its results going forward are
"forward-looking statements" within the meaning of Section 27A of the United
States Securities Act of 1933, as amended, and Section 21E of the United
States Securities Exchange Act of 1934. Although these forward-looking
statements reflects the good faith judgment of management, forward-looking
statements are inherently subject to known and unknown risks and uncertainties
that may cause actual results to be materially different from those discussed
in these forward-looking statements including, but not limited to, in the case
of these forward-looking statements: unexpected delays in production due to
equipment failure or other unforeseen reasons; unforeseen events, such as
unexpected difficulties in drilling or unexpected discoveries, may cause Gran
Tierra Energy to reallocate resources, which may delay production and/or alter
the mix of development drilling and exploration drilling in Gran Tierra
Energy's portfolio; and unexpected costs may decrease funds available to carry
out drilling and production plans, which could delay or prevent production
and/or development. Readers are urged not to place undue reliance on these
forward-looking statements, which speak only as of the date of this release.
Gran Tierra Energy assumes no obligation to update these forward-looking
statements to reflect any event or circumstance that may arise after the date
of this release, other than as may be required by applicable law or
regulation. Readers are urged to carefully review and consider the various
disclosures, including the risk factors, made by Gran Tierra Energy in its
reports filed with the Securities and Exchange Commission, in particular its
quarterly report on Form 10-Q filed on August 14, 2007, which attempt to
advise interested parties of the risks and factors that may affect Gran Tierra
Energy's business. If one or more of these risks or uncertainties materialize,
or if the underlying assumptions prove incorrect, Gran Tierra Energy's actual
results may vary materially from those expected or projected.

    Financial Tables to Follow

    
    Gran Tierra Energy Inc.
    ----------------------------------------------------------------------
    Condensed Consolidated Statement of Operations and Accumulated Deficit
     (unaudited)
    ----------------------------------------------------------------------
    Stated in US dollars
    ----------------------------------------------------------------------

    ----------------------------------------------------------------------
                         Three Months Ended         Nine Months ended
                           September 30,              September 30,
    ----------------------------------------------------------------------
                         2007          2006         2007          2006
    ----------------------------------------------------------------------

    ----------------------------------------------------------------------
    REVENUE AND
     OTHER INCOME
    ----------------------------------------------------------------------
     Oil sales          $7,992,648   $5,221,226   $15,892,368   $8,293,620
    ----------------------------------------------------------------------
     Natural gas
      sales                      -      (1,918)        35,494       65,301
    ----------------------------------------------------------------------
     Interest and
      other                 46,082      175,641       377,432      195,816
    ----------------------------------------------------------------------
                         8,038,730    5,394,949    16,305,294    8,554,737
    ----------------------------------------------------------------------
    EXPENSES
    ----------------------------------------------------------------------
     Operating           2,613,474    1,259,888     6,719,453    2,702,507
    ----------------------------------------------------------------------
     Depletion,
      depreciation
      and accretion      1,848,954    1,449,694     6,549,852    2,324,158
    ----------------------------------------------------------------------
     General and
      administrative     2,964,865    1,506,439     7,583,721    3,998,196
    ----------------------------------------------------------------------
     Liquidated
      damages                    -      261,182     7,366,949      261,182
    ----------------------------------------------------------------------
     Derivative
      financial
      instruments          116,596            -       793,580            -
    ----------------------------------------------------------------------
     Foreign
      exchange
      (gain) loss         (85,637)      273,684      (91,772)      277,526
    ----------------------------------------------------------------------
                         7,458,252    4,750,887    28,921,783    9,563,569
    ----------------------------------------------------------------------

    ----------------------------------------------------------------------
    INCOME(LOSS)
     BEFORE INCOME
     TAX                   580,478      644,062  (12,616,489)  (1,008,832)
    ----------------------------------------------------------------------
     Income tax
      expense
      (recovery)         (511,219)      710,417   (1,985,918)      848,200
    ----------------------------------------------------------------------
    NET INCOME
     (LOSS)             $1,091,697    $(66,355) $(10,630,571) $(1,857,032)
    ----------------------------------------------------------------------

    ----------------------------------------------------------------------
    ACCUMULATED
     DEFICIT,
     beginning of
     period           (19,765,652)  (4,010,357)   (8,043,384)  (2,219,680)
    ----------------------------------------------------------------------
    ACCUMULATED
     DEFICIT, end of
     period          $(18,673,955) $(4,076,712) $(18,673,955) $(4,076,712)
    ----------------------------------------------------------------------

    ----------------------------------------------------------------------
    NET INCOME
     (LOSS) PER
     COMMON SHARE -
     BASIC AND
     DILUTED                 $0.01      $(0.00)       $(0.11)      $(0.03)
    ----------------------------------------------------------------------
    Weighted average
     common shares
     outstanding -
     basic              94,683,878   95,455,759    95,112,226   63,043,998
    ----------------------------------------------------------------------
    Weighted average
     common shares
     outstanding -
     diluted           107,597,185   95,455,759    95,112,226   63,043,998
    ----------------------------------------------------------------------
    

    
    Gran Tierra Energy Inc.
    ----------------------------------------------------------------------
    Condensed Consolidated Balance Sheet (Unaudited)
    ----------------------------------------------------------------------
    Stated in US dollars
    ----------------------------------------------------------------------
                                     September 30, 2007  December 31, 2006
    ----------------------------------------------------------------------
    ASSETS
    ----------------------------------------------------------------------
    Current assets
    ----------------------------------------------------------------------
         Cash and cash equivalents           $8,048,401        $24,100,780
    ----------------------------------------------------------------------
         Restricted cash                              -          2,291,360
    ----------------------------------------------------------------------
         Accounts receivable                 11,562,103          5,089,561
    ----------------------------------------------------------------------
         Taxes receivable                     3,048,850            404,120
    ----------------------------------------------------------------------
         Inventory                              605,092            811,991
    ----------------------------------------------------------------------
         Prepaids                               204,703            676,524
    ----------------------------------------------------------------------
    Total Current Assets                     23,469,149         33,374,336
    ----------------------------------------------------------------------
    Oil and gas properties, using
     the full cost method of
     accounting
    ----------------------------------------------------------------------
        Proved                               41,510,680         37,760,230
    ----------------------------------------------------------------------
        Unproved                             18,130,875         18,333,054
    ----------------------------------------------------------------------
    Total Oil and Gas Properties             59,641,555         56,093,284
    ----------------------------------------------------------------------
      Other assets                              649,450            614,104
    ----------------------------------------------------------------------
    Total Property, Plant and
     Equipment                               60,291,005         56,707,388
    ----------------------------------------------------------------------
    Long term assets
    ----------------------------------------------------------------------
         Deferred tax asset                   1,557,138            444,324
    ----------------------------------------------------------------------
         Long term investment and
          other                               1,554,053            379,678
    ----------------------------------------------------------------------
      Goodwill                               15,005,083         15,005,083
    ----------------------------------------------------------------------
    Total Long Term Assets                   18,116,274         15,829,085
    ----------------------------------------------------------------------
    Total Assets                           $101,876,428       $105,910,809
    ----------------------------------------------------------------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    ----------------------------------------------------------------------
    Current liabilities
    ----------------------------------------------------------------------
         Accounts payable                    $8,852,043         $6,729,839
    ----------------------------------------------------------------------
         Accrued liabilities                  3,856,998          9,199,820
    ----------------------------------------------------------------------
         Liquidated damages                           -          1,527,988
    ----------------------------------------------------------------------
         Current taxes payable                1,446,928          1,642,045
    ----------------------------------------------------------------------
    Total Current Liabilities                14,155,969         19,099,692
    ----------------------------------------------------------------------
         Long term liabilities                2,066,081            412,929
    ----------------------------------------------------------------------
         Deferred tax liability              10,500,817          9,875,657
    ----------------------------------------------------------------------
         Derivative financial
          instruments                           793,580                  -
    ----------------------------------------------------------------------
         Asset retirement obligation            388,108            327,752
    ----------------------------------------------------------------------
    Total Long Term Liabilities              13,748,586         10,616,338
    ----------------------------------------------------------------------
    Shareholders' equity
    ----------------------------------------------------------------------
         Common shares                           94,898             95,455
    ----------------------------------------------------------------------
    (80,111,276 common shares and 14,787,303 exchangeable shares, par
     value $0.001 per share, issued and outstanding)
    ----------------------------------------------------------------------
    (2006 common and exchangeable shares respectively
     78,789,104 and 16,666,661)
    ----------------------------------------------------------------------
         Additional paid in capital          71,805,151         71,311,155
    ----------------------------------------------------------------------
         Warrants                            20,745,779         12,831,553
    ----------------------------------------------------------------------
         Accumulated deficit               (18,673,955)        (8,043,384)
    ----------------------------------------------------------------------
    Total Shareholders' Equity               73,971,873         76,194,779
    ----------------------------------------------------------------------
    Total Liabilities and
     Shareholders' Equity                  $101,876,428       $105,910,809
    ----------------------------------------------------------------------
    




For further information:

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

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Gran Tierra Energy Inc.

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