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REG-Gran Tierra Energy Inc. Reports First Quarter 2025 Results, Record Production and Continued Exploration Success

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* Achieved Record Total Company Average Quarterly Production of 46,647 boepd
* Ecuador Exploration Success Continues with Additional Oil Discoveries in
Iguana Block 
* Solid Balance Sheet, Exited the Quarter with $77 Million in Cash Following
Active Capital Campaign, Paid Down $27 Million of Debt
* Additional Liquidity Secured with Signing of New $75 Million Credit Facility
CALGARY, Alberta, May 01, 2025 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc.
(“Gran Tierra” or the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE)
announced the Company’s financial and operating results for the quarter
ended March 31, 2025 (“the Quarter”) and provided an operational
update. All dollar amounts are in United States (“U.S.”) 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 equivalent (“boe”) per day (“boepd” or
“boe/d”) and are based on WI sales before royalties. For per boe amounts
based on net after royalty (“NAR”) production, see Gran Tierra’s
Quarterly Report on Form 10-Q filed May 1, 2025.

Message to Shareholders

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented:
“Our first quarter performance reflects strong operational execution and
disciplined financial management. Our front-loaded 2025 capital program, which
had up to five rigs active during the quarter, delivered record drilling times
and cost efficiencies across our key assets. We continue to generate returns
through our share buyback program and ongoing debt reduction. Lowering
leverage remains a key priority as we focus on projects which deliver quick
cycle returns and maintain flexibility to invest in high-return opportunities
across our portfolio. Our focused exploration efforts also continue to deliver
successful results, reinforcing the quality of our assets and long-term
strategy to create value. With current production of approximately 48,400((2))
boe/d and a strong hedge position for the remainder of the year we are well
positioned to generate value while remaining resilient amid commodity price
volatility.”

Operational Update:
* Ecuador * Gran Tierra has successfully drilled two additional oil
discoveries in Ecuador, the Iguana B1 and Iguana B2 wells on the Iguana Block.
The combined wells have an average oil production rate over 30 days of ~1,684
bopd from the U-Sand formation (with a less than 1% watercut), an average API
of 28° and 520 standard cubic foot per stock tank barrel of gas-to-oil ratio.
The Iguana B1 well was drilled and completed in record time and under budget,
establishing a new pace-setting well in Gran Tierra’s Ecuador exploration
campaign.
* The drilling rig has been stacked on the Iguana pad, pending mobilization to
the new Conejo pad on the Charapa Block, to resume exploration drilling during
the third quarter of 2025.
 
* Colombia * Gran Tierra successfully drilled the first three of five wells
from the Cohembi North Pad during the Quarter. All wells were under budget and
drilled 60% faster than the previous operator. These wells represent the
Company’s first drilling operations as operator, with the remaining two
wells expected to be drilled during the second quarter of 2025. Upon
completion of the program, the rig will move to the Costayaco Pad to commence
a three well development program during the second quarter of 2025.
* By the end of the Quarter, the civil, electrical and mechanical field works
at Cohembi reached 100% mechanical completion. This project was initiated to
facilitate the processing of new production from the Cohembi North Pad at the
Cohembi Central Processing Facility.
* Optimization of the Acordionero field is ongoing through waterflood
expansion, which includes facility enhancements, electrical submersible pump
upsizing, injector conversions and upgrades to gas-to-power generation. These
initiatives are focused on reducing unit costs, offsetting natural declines
and improving overall recovery factors. The field continues to perform
strongly, with average production of 13,824 boepd in the Quarter. This
represents a two percent increase from the fourth quarter of 2024, despite no
wells being drilled since the first quarter of 2024. Current production (April
1 - 30, 2025) is approximately 14,500 boepd, a 5% increase from the first
quarter of 2025 average, reflecting the strong reservoir response to the
execution of our first quarter waterflood management optimization program. The
Company continues to see significant development potential at Acordionero and
is planning another drilling program of eight to ten wells in 2026 targeting
high oil saturation, unswept infill locations.
 
* Canada * Gran Tierra and its joint venture partner, Logan Energy Corp.,
successfully drilled and completed two Lower Montney wells at Simonette. These
two wells were brought on stream from the 16-13-61-1W6 (“16-13”) pad and
completed with a similar optimized Lower Montney completion design as the
13-13-61-1W6 offset well drilled in 2022. After 21 days since being placed on
production, the average gross production per well was 674 bbl/d oil, 13 bbl/d
NGLs and 767 Mcf/d of gas (814 boe/d at 84% liquids), Gran Tierra has a 50%
Working Interest and the wells continue to clean-up. This early production
performance surpasses the prior offset well by 80% for the same time period
and are exceeding their budgeted type curves. After 21 days since being placed
on production, the average gross production per well was 674 bbl/d oil, 13
bbl/d NGLs and 767 Mcf/d of gas (814 boe/d at 84% liquids). Gran Tierra has a
50% Working Interest and the wells continue to clean-up. This early production
performance surpasses the prior offset well by 80% for the same time period
and are exceeding their budgeted type curves.
* Gran Tierra successfully acquired 21 sections of prospective land in Central
Alberta along the Nisku fairway in March 2025, which adds over 50 potential
drilling opportunities to its drilling inventory.
* At Clearwater, Gran Tierra participated in the successful drilling of two
gross (0.5 net) wells during the Quarter, and both wells are estimated to be
on stream imminently. The first well drilled was a 4-legged injector to
support a water flood pilot in the Marten Hills block, potentially increasing
reserves based off nearby analogue waterflood results. The second well
(non-op), with 14 legs, was drilled in the Seal block to test the productivity
of heavy oil in the Bluesky formation.
Key Highlights of the Quarter:
* Production: Gran Tierra’s total average WI production was 46,647 boepd,
which was 14% higher than fourth quarter 2024 (“the Prior Quarter”) and
45% higher than the first quarter of 2024. Higher production during the
Quarter was due to the Company recognizing three full months of production
from Canada and positive exploration well results in Ecuador.
* Net Income: Gran Tierra incurred a net loss of $19 million, compared to a
net loss of $34 million in the Prior Quarter and a net loss of nil in the
first quarter of 2024.
* Adjusted EBITDA((1)): Adjusted EBITDA((1)) was $85 million compared to $76
million in the Prior Quarter and $95 million in the first quarter of 2024.
Twelve-month trailing Net Debt((1)) to Adjusted EBITDA((1)) was 1.9 times
(only accounts for five months of Canadian operations Adjusted EBITDA) and the
Company continues to have a long-term target ratio of 1.0 times.
* Net Cash Provided by Operating Activities: Net Cash Provided by Operating
Activities was $73 million ($2.05 per share), up 175% from the Prior Quarter
and up 20% from the first quarter of 2024.
* Funds Flow from Operations((1)): Funds flow from operations((1)) was $55
million ($1.55 per share), up 25% from the Prior Quarter and down 26% from the
first quarter of 2024 as a result of lower oil prices.
* Cash and Debt: As of March 31, 2025, the Company had a cash balance of $77
million, total debt of $760 million and net debt((1)) of $683 million. During
the Quarter, the Company repaid at maturity the remaining principal of its
6.25% Senior Notes due in 2025 in an amount of $25 million and repurchased $2
million of its 9.5% Senior Notes due in 2029.
* Liquidity: In addition to the $77 million cash on hand as of March 31,
2025, the Company currently has approximately $110 million in undrawn credit
and lending facilities. The Company has a revolving credit facility agreement
in Canada with a borrowing base of C$100.0 million with available commitment
of C$50.0 million and is available until October 31, 2025 with a repayment
date of October 31, 2026, which may be extended by further periods of up to
364 days, subject to lender approval. On April 16, 2025, the Company announced
an additional $75 million reserve-based lending facility in Colombia with a
final maturity date in 36 months from the closing date.
* Share Buybacks: Gran Tierra repurchased 453,050 shares of common stock
during the Quarter. From January 1, 2023, to April 29, 2025, the Company
repurchased approximately 5.2 million shares, or 15% of shares issued and
outstanding on January 1, 2023.
Additional Key Financial Metrics:
* Capital Expenditures: Capital expenditures of $95 million were higher than
the $79 million in the Prior Quarter and higher than $55 million in the first
quarter of 2024 as a result of the addition of the Canadian development
program, an active Ecuador exploration program and development activities in
the Cohembi field in Colombia during the Quarter. During the Quarter, the
Company had three rigs active in Canada, one in Ecuador and one in Colombia.
Currently, the Company has one rig active in Colombia.
* Oil Sales: Gran Tierra generated oil sales of $171 million, up 8% from the
first quarter of 2024 as a result of 45% higher sales volumes due to higher
production and the tightening of the Castilla, Vasconia and Oriente oil
differentials which offset lower Brent pricing. Oil sales increased 16% from
the Prior Quarter primarily due to 17% higher sales volumes, a 1% increase in
Brent price and lower Castilla, Oriente, and Vasconia oil differentials.
* South American Quality and Transportation Discounts: The Company’s quality
and transportation discounts in South America per bbl were lower during the
Quarter at $11.58, compared to $13.94 in the Prior Quarter and $15.36 in the
first quarter of 2024. The Castilla oil differential per bbl tightened to
$5.34, down from $8.33 in the Prior Quarter and $8.82 in the first quarter of
2024 (Castilla is the benchmark for the Company’s Middle Magdalena Valley
Basin oil production). The Vasconia differential per bbl tightened to $2.27,
down from $5.02 in the Prior Quarter, and $5.05 in the first quarter of 2024.
The Ecuadorian benchmark, Oriente, per bbl was $7.65, down from $9.40 in the
Prior Quarter and $8.02 one year ago. The current((2)) differentials are
approximately $4.94 per bbl for Castilla, $1.87 per bbl for Vasconia, and
$7.26 per bbl for Oriente.
* Operating Expenses: On a per boe basis, operating expenses decreased by 3%
when compared to the first quarter of 2024 and the Prior Quarter. Operating
expenses increased by 11% to $67 million, compared to the Prior Quarter and
increased by 39% from $48 million compared to the first quarter of 2024,
primarily due to new Canadian operations and increases in production volumes
in Ecuador. The increase in total operating costs is commensurate with the 45%
increase in production.
* Transportation Expenses: The Company’s transportation expenses increased
by 62% to $7 million, compared to the Prior Quarter’s transportation
expenses of $4 million, and increased by 51% compared to the first quarter of
2024. Transportation expenses were higher due to new Canadian operations and
higher sales volumes transported in Ecuador during the Quarter.
* Operating Netback((1)(3)): The Company’s operating netback((1)(3)) was
$22.70 per boe, up 2% from the Prior Quarter and down 36% from the first
quarter of 2024 because of of the addition of the Canadian assets and
approximately 50 of Canadian production tied to AECO gas pricing.
* General and Administrative (“G&A”) Expenses: G&A expenses before
stock-based compensation were $2.86 per boe, up from $2.75 per boe in the
Prior Quarter due to increased audit fees relating to the acquisition of the
Canadian assets, a full quarter of Canadian salaries and increased IT
expenses. G&A expenses before stock-based compensation were down from $3.65
per boe, compared to the first quarter of 2024 as a result of higher sales
volumes in the Quarter.
* Cash Netback((1)): Cash netback((1)) per boe increased to $13.04, compared
to $11.90 in the Prior Quarter primarily as a result of transaction costs of
$1.20 per boe incurred in the Prior Quarter as a result of the acquisition of
the Canadian operations. Compared to one year ago, cash netback((1)) per boe
decreased by $12.09 from $25.13 per boe as a result of lower operating netback
primarily due to lower realized price.
Gran Tierra Reconfirms Previously Disclosed 2025 Consolidated Guidance and
Provides Country Breakdown:

 2025 Budget                                        Low Case       Base Case      High Case      
 Brent Oil Price ($/bbl)                            65.00          75.00          85.00          
 WTI Oil Price ($/bbl)                              61.00          71.00          81.00          
 AECO Natural Gas Price ($CAD/thousand cubic feet)  2.00           2.50           3.50           
 Production (boepd)                                 47,000-53,000  47,000-53,000  47,000-53,000  
 Operating Netback (1,3)($ million)                 330-370        430-470        510-550        
 EBITDA (1)($ million)                              300-340        380-420        460-500        
 Cash Flow (1)($ million)                           200-240        260-300        300-340        
 Capital Expenditures ($ million)                   200-240        240-280        240-280        
 Free Cash Flow (1)($ million)                      -              20             60             
 Number of Development Wells (gross)                8-12           10-14          10-14          
 Number of Exploration Wells (gross)                6              6-8            6-8            



 Budgeted Costs              Costs per boe ($/boe)  
 Lifting                     12.00-14.00            
 Workovers                   1.50-2.50              
 Transportation              1.00-2.00              
 General and Administration  2.00-3.00              
 Interest                    4.00-4.50              
 Current Tax                 2.00-3.00              



 2025 Budget by Country - Base Case    Canada       Colombia  Ecuador  
 Production (kboepd)                   18 - 19 (*)  25 - 27   4 - 7    
                                                                       
 Per Barrel ($/boe)                                                    
 Realized Price                        22 - 24      51 - 53   43 - 45  
 Operating and Transportation Expense  10 - 12      19 - 21   12 - 14  
 Operating Netback                     10 - 14      30 - 34   29 - 33  

(*Canada’s production is comprised of approximately 50% natural gas, 21% oil
and 29% natural gas liquids (“NGL”))

Financial and Operational Highlights (all amounts in $000s, except per share
and boe amounts)

 Consolidated Financial Data                                                        Three Months Ended March 31,        Three Months   
                                                                                                                        Ended          
                                                                                                                        December 31,   
                                                                                    2025             2024               2024           
                                                                                                                                       
 Net Income (Loss)                                                                  $ (19,280 )      $(78)              $(34,210)      
 Per Share - Basic and Diluted                                                      $ (0.54 )        $—                 $(1.00)        
                                                                                                                                       
 Oil, Natural Gas and NGL Sales                                                     $ 170,533        $157,577           $147,290       
 Operating Expenses                                                                 (67,354 )        (48,466)           (60,770)       
 Transportation Expenses                                                            (6,911 )         (4,584)            (4,279)        
 Operating Netback ((1)(3))                                                         $ 96,268         $104,527           $82,241        
                                                                                                                                       
 G&A Expenses Before Stock-Based Compensation                                       $ 12,143         $10,782            $10,191        
 G&A Stock-Based Compensation (Recovery) Expense                                    (517 )           3,361              3,331          
 G&A Expenses, Including Stock Based Compensation                                   $ 11,626         $14,143            $13,522        
                                                                                                                                       
 Adjusted EBITDA ((1))                                                              $ 85,162         $94,792            $76,168        
                                                                                                                                       
 EBITDA ((1))                                                                       $ 79,710         $91,891            $65,247        
                                                                                                                                       
 Net Cash Provided by Operating Activities                                          $ 73,230         $60,827            $26,607        
                                                                                                                                       
 Funds Flow from Operations ((1))                                                   $ 55,344         $74,307            $44,129        
                                                                                                                                       
 Capital Expenditures                                                               $ 94,727         $55,331            $78,579        
                                                                                                                                       
 Free Cash Flow ((1))                                                               $ (39,383 )      $18,976            $(34,450)      
                                                                                                                                       
 Average Daily Production (boe/d)                                                                                                      
 WI Production Before Royalties                                                     46,647           32,242             41,009         
 Royalties                                                                          (8,084 )         (6,397)            (7,327)        
 Production NAR                                                                     38,563           25,845             33,682         
 Decrease (Increase) in Inventory                                                   461              235                (712)          
 Sales                                                                              39,024           26,080             32,970         
 Royalties, % of WI Production Before Royalties                                     17 %             20%                18%            
                                                                                                                                       
 Cash Netback ($/boe) ((1))                                                                                                            
 Average Realized Price before Royalties                                            48.55            66.40              48.56          
 Royalties                                                                          (8.33 )          (13.08)            (8.83)         
 Average Realized Price                                                             40.22            53.32              39.73          
 Transportation Expenses                                                            (1.63 )          (1.55)             (1.15)         
 Average Realized Price Net of Transportation Expenses                              38.59            51.77              38.58          
 Operating Expenses                                                                 (15.89 )         (16.40)            (16.39)        
 Operating Netback ((1)(3))                                                         22.70            35.37              22.19          
 G&A Expenses Before Stock-Based Compensation                                       (2.86 )          (3.65)             (2.75)         
 Transaction Costs                                                                  —                —                  (1.20)         
 Realized Foreign Exchange Gain (Loss)                                              (0.51 )          (0.49)             0.07           
 Cash settlement on derivative instruments                                          0.10             —                  0.30           
 Interest Expense, Excluding Amortization of Debt Issuance Costs                    (4.58 )          (5.12)             (5.40)         
 Interest Income                                                                    0.10             0.23               0.34           
 Other Gain                                                                         —                —                  0.40           
 Net Lease Payments                                                                 0.04             0.12               0.07           
 Current Income Tax Expense                                                         (1.95 )          (1.33)             (2.12)         
 Cash Netback ((1))                                                                 $ 13.04          $25.13             $11.90         
                                                                                                                                       
 Share Information (000s)                                                                                                              
 Common Stock Outstanding, End of Period                                            35,524           31,401             35,972         
 Weighted Average Number of Shares of Common Stock Outstanding - Basic and Diluted  35,777           31,813             34,333         



 South American Operational Information                 Three Months Ended March 31,        Three Months   
                                                                                            Ended          
                                                                                            December 31,   
                                                        2025             2024               2024           
 Operating Netback ((1)(3))                                                                                
 Oil Sales                                              $ 138,671        $157,577           $128,335       
 Operating Expenses                                     (50,827 )        (48,466)           (51,121)       
 Transportation Expenses                                (4,304 )         (4,584)            (3,607)        
 Operating Netback ((1)(3))                             $ 83,540         $104,527           $73,607        
                                                                                                           
 Average Daily Production (boe/d)                                                                          
 WI Production Before Royalties                         29,686           32,242             29,695         
 Royalties                                              (5,844 )         (6,397)            (5,761)        
 Production NAR                                         23,842           25,845             23,934         
 Decrease (Increase) in Inventory                       461              235                (712)          
 Sales                                                  24,303           26,080             23,222         
 Royalties, % of WI Production Before Royalties         20 %             20%                19%            
                                                                                                           
 Operating Netback ($/boe) ((1)(3))                                                                        
 Brent                                                  $ 74.98          $81.76             $74.01         
 Quality and Transportation Discount                    (11.58 )         (15.36)            (13.94)        
 Royalties                                              (12.29 )         (13.08)            (11.94)        
 Average Realized Price                                 51.11            53.32              48.13          
 Transportation Expenses                                (1.59 )          (1.55)             (1.35)         
 Average Realized Price Net of Transportation Expenses  49.52            51.77              46.78          
 Operating Expenses                                     (18.73 )         (16.40)            (19.17)        
 Operating Netback ((1)(3))                             $ 30.79          $35.37             $27.61         



 Canadian Operational Information ((4))          Three Months Ended March 31,        Three Months   
                                                                                     Ended          
                                                                                     December 31,   
                                                 2025             2024               2024           
 Operating Netback ((1)(3))                                                                         
 Oil Sales                                       $ 21,269         $—                 $14,832        
 Natural Gas Sales                               7,561            —                  3,546          
 NGL Sales                                       7,997            —                  4,193          
 Royalties                                       (4,966 )         —                  (3,616)        
 Oil, Natural Gas and NGL Sales After Royalties  $ 31,862         $—                 $18,955        
 Operating Expenses                              (16,527 )        —                  (9,649)        
 Transportation Expenses                         (2,607 )         —                  (672)          
 Operating Netback ((1)(3))                      $ 12,728         $—                 $8,634         
                                                                                                    
 Average Daily Production                                                                           
 Crude Oil (bbl/d)                               3,623            —                  2,461          
 Natural Gas (mcf/d)                             49,860           —                  32,814         
 NGLs (bbl/d)                                    5,029            —                  3,383          
 WI Production Before Royalties (boe/d)          16,961           —                  11,314         
 Royalties (boe/d)                               (2,240 )         —                  (1,566)        
 Production NAR (boe/d)                          14,721           —                  9,748          
 Sales (boe/d)                                   14,721           —                  9,748          
 Royalties, % of WI Production Before Royalties  13 %             —%                 14%            
                                                                                                    
 Benchmark Prices                                                                                   
 West Texas Intermediate ($/bbl)                 71.47            77.01              70.42          
 AECO Natural Gas Price (C$/GJ)                  2.05             1.70               1.56           
                                                                                                    
 Average Realized Price                                                                             
 Crude Oil ($/bbl)                               65.23            —                  65.50          
 Natural Gas ($/mcf)                             1.69             —                  1.17           
 NGLs ($/bbl)                                    17.67            —                  13.47          
                                                                                                    
 Operating Netback ($/boe) ((1)(3))                                                                 
 Average Realized Price                          $ 24.12          $—                 $21.69         
 Royalties                                       (3.25 )          —                  (3.47)         
 Transportation Expenses                         (1.71 )          —                  (0.65)         
 Operating Expenses                              (10.83 )         —                  (9.27)         
 Operating Netback ((1)(3))                      $ 8.33           $—                 $8.30          

((1))( Funds flow from operations, operating netback, net debt, cash netback,
earnings before interest, taxes and depletion, depreciation and accretion
(“DD&A”) (“EBITDA”) and EBITDA adjusted for non-cash lease expense,
lease payments, foreign exchange gains or losses, stock-based compensation
expense, other gains or losses, transaction costs and financial instruments
gains or losses (“Adjusted EBITDA”), cash flow and free cash flow are
non-GAAP measures and do not have standardized meanings under generally
accepted accounting principles in the United States of America (“GAAP”).
Cash flow refers to funds flow from operations. Free cash flow refers to funds
flow from operations less capital expenditures. Refer to “Non-GAAP
Measures” in this press release for descriptions of these non-GAAP measures
and, where applicable, reconciliations to the most directly comparable
measures calculated and presented in accordance with GAAP. )
( (2) Gran Tierra’s second quarter-to-date 2025 total average differentials
and average production are for the period from April 1 to April 30, 2025. )
( (3) Operating netback as presented is defined as oil sales less operating
and transportation expenses. See the table titled Financial and Operational
Highlights above for the components of consolidated operating netback and
corresponding reconciliation. )
( (4) Gran Tierra entered Canada with the acquisition of i3 Energy which
closed October 31, 2024, therefore no comparative data is provided for the
corresponding period of 2024.)



Conference Call Information:

Gran Tierra will host its first quarter 2025 results conference call on
Friday, May 2, 2025, at 9:00 a.m. Mountain Time, 11:00 a.m. Eastern Time.
Interested parties may access the conference call by registering at the
following link:
https://register-conf.media-server.com/register/BI0f6a1e0b01bd474992543eb3e6d51c71.
The call will also be available via webcast at www.grantierra.com.

2024 Sustainability Report:

Gran Tierra has published its 2024 Sustainability Report and is available on
the Company website at www.grantierra.com/esg.

Corporate Presentation:

Gran Tierra’s Corporate Presentation has been updated and is available on
the Company website at www.grantierra.com.

Contact Information

For investor and media inquiries please contact:

Gary Guidry 
 President & Chief Executive Officer

Ryan Ellson 
 Executive Vice President & Chief Financial Officer

+1-403-265-3221

info@grantierra.com

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 Canada, Colombia and Ecuador. The Company is
currently developing its existing portfolio of assets in Canada, 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. Additional information concerning
Gran Tierra is available at www.grantierra.com. Except to the extent expressly
stated otherwise, information on the Company’s website or accessible from
our website or any other website is not incorporated by reference into and
should not be considered part of this press release. Investor inquiries may be
directed to info@grantierra.com or (403) 265-3221.

Gran Tierra’s Securities and Exchange Commission (the “SEC”) filings are
available on the SEC website at http://www.sec.gov. The Company’s Canadian
securities regulatory filings are available on SEDAR+ at
http://www.sedarplus.ca and UK regulatory filings are available on the
National Storage Mechanism website at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

Forward Looking Statements and Legal Advisories: 
 This press release contains opinions, forecasts, projections, and other
statements about future events or results that constitute forward-looking
statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
and financial outlook and forward looking information within the meaning of
applicable Canadian securities laws (collectively, “forward-looking
statements”). All statements other than statements of historical facts
included in this press release regarding our business strategy, plans and
objectives of our management for future operations, capital spending plans and
benefits of the changes in our capital program or expenditures, our liquidity
and financial condition, and those statements preceded by, followed by or that
otherwise include the words “expect,” “plan,” “can,” “will,”
“should,” “guidance,” “forecast,” “budget,” “estimate,”
“signal,” “progress” and “believes,” derivations thereof and
similar terms identify forward-looking statements. In particular, but without
limiting the foregoing, this press release contains forward-looking statements
regarding: the Company’s leverage ratio target, the Company’s plans
regarding strategic investments, acquisitions, including the anticipated
benefits and operating synergies expected from the acquisition of i3 Energy,
and growth, the Company’s drilling program and capital expenditures and the
Company’s expectations of commodity prices, including future gas pricing in
Canada, exploration and production trends and its positioning for 2024. The
forward-looking statements contained in this press release reflect several
material factors and expectations and assumptions of Gran Tierra including,
without limitation, that Gran Tierra will continue to conduct its operations
in a manner consistent with its current expectations, pricing and cost
estimates (including with respect to commodity pricing and exchange rates),
the ability of Gran Tierra to successfully integrate the assets and operations
of i3 Energy or realize the anticipated benefits and operating synergies
expected from the acquisition of i3 Energy, the general continuance of assumed
operational, regulatory and industry conditions in Canada, Colombia and
Ecuador, and the ability of Gran Tierra to execute its business and
operational plans in the manner currently planned.

Among the important factors that could cause our actual results to differ
materially from the forward-looking statements in this press release include,
but are not limited to: certain of our operations are located in South America
and unexpected problems can arise due to guerilla activity, strikes, local
blockades or protests; technical difficulties and operational difficulties may
arise which impact the production, transport or sale of our products; other
disruptions to local operations; global health events; global and regional
changes in the demand, supply, prices, differentials or other market
conditions affecting oil and gas, including inflation and changes resulting
from actual or anticipated tariffs and trade policies, global health crises,
geopolitical events, including the conflicts in Ukraine and the Gaza region,
or from the imposition or lifting of crude oil production quotas or other
actions that might be imposed by OPEC and other producing countries and the
resulting company or third-party actions in response to such changes; changes
in commodity prices, including volatility or a prolonged decline in these
prices relative to historical or future expected levels; the risk that current
global economic and credit conditions may impact oil prices and oil
consumption more than we currently predict, which could cause further
modification of our strategy and capital spending program; prices and markets
for oil and natural gas are unpredictable and volatile; the effect of hedges;
the accuracy of productive capacity of any particular field; geographic,
political and weather conditions can impact the production, transport or sale
of our products; our ability to execute our business plan, which may include
acquisitions, and realize expected benefits from current or future
initiatives; the risk that unexpected delays and difficulties in developing
currently owned properties may occur; the ability to replace reserves and
production and develop and manage reserves on an economically viable basis;
the accuracy of testing and production results and seismic data, pricing and
cost estimates (including with respect to commodity pricing and exchange
rates); the risk profile of planned exploration activities; the effects of
drilling down-dip; the effects of waterflood and multi-stage fracture
stimulation operations; the extent and effect of delivery disruptions,
equipment performance and costs; actions by third parties; the timely receipt
of regulatory or other required approvals for our operating activities; the
failure of exploratory drilling to result in commercial wells; unexpected
delays due to the limited availability of drilling equipment and personnel;
volatility or declines in the trading price of our common stock or bonds; the
risk that we do not receive the anticipated benefits of government programs,
including government tax refunds; our ability to access debt or equity capital
markets from time to time to raise additional capital, increase liquidity,
fund acquisitions or refinance debt; our ability to comply with financial
covenants in our indentures and make borrowings under our credit agreements;
and the risk factors detailed from time to time in Gran Tierra’s periodic
reports filed with the Securities and Exchange Commission, including, without
limitation, under the caption “Risk Factors” in Gran Tierra’s Annual
Report on Form 10-K for the year ended December 31, 2024 filed February 20,
2024 and its other filings with the SEC. These filings are available on the
SEC website at http://www.sec.gov and on SEDAR+ at www.sedarplus.ca.

The forward-looking statements contained in this press release are based on
certain assumptions made by Gran Tierra based on management’s experience and
other factors believed to be appropriate. Gran Tierra believes these
assumptions to be reasonable at this time, but the forward-looking statements
are subject to risk and uncertainties, many of which are beyond Gran
Tierra’s control, which may cause actual results to differ materially from
those implied or expressed by the forward looking statements. The risk that
the assumptions on which the 2024 outlook are based prove incorrect may
increase the later the period to which the outlook relates. All
forward-looking statements are made as of the date of this press release and
the fact that this press release remains available does not constitute a
representation by Gran Tierra that Gran Tierra believes these forward-looking
statements continue to be true as of any subsequent date. Actual results may
vary materially from the expected results expressed in forward-looking
statements. Gran Tierra disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by applicable law. In
addition, historical, current and forward-looking sustainability-related
statements may be based on standards for measuring progress that are still
developing, internal controls and processes that continue to evolve, and
assumptions that are subject to change in the future.

The estimates of future production (aggregate and per country), EBITDA, net
cash provided by operating activities (described in this press release as
“cash flow”), free cash flow, certain prices and expenses (aggregate and
per country) and operating netback (aggregate and per country) may be
considered to be future-oriented financial information or a financial outlook
for the purposes of applicable Canadian securities laws. Financial outlook and
future-oriented financial information contained in this press release about
prospective financial performance, financial position or cash flows are
provided to give the reader a better understanding of the potential future
performance of the Company in certain areas and are based on assumptions about
future events, including economic conditions and proposed courses of action,
based on management’s assessment of the relevant information currently
available, and to become available in the future. In particular, this press
release contains projected operational and financial information for 2025.
These projections contain forward-looking statements and are based on a number
of material assumptions and factors set out above. Actual results may differ
significantly from the projections presented herein. The actual results of
Gran Tierra’s operations for any period could vary from the amounts set
forth in these projections, and such variations may be material. See above for
a discussion of the risks that could cause actual results to vary. The
future-oriented financial information and financial outlooks contained in this
press release have been approved by management as of the date of this press
release. Readers are cautioned that any such financial outlook and
future-oriented financial information contained herein should not be used for
purposes other than those for which it is disclosed herein. The Company and
its management believe that the prospective financial information has been
prepared on a reasonable basis, reflecting management’s best estimates and
judgments, and represent, to the best of management’s knowledge and opinion,
the Company’s expected course of action. However, because this information
is highly subjective, it should not be relied on as necessarily indicative of
future results.

Non-GAAP Measures

This press release includes non-GAAP financial measures as further described
herein. These non-GAAP measures do not have a standardized meaning under GAAP.
Investors are cautioned that these measures should not be construed as
alternatives to net income or loss, cash flow from operating activities or
other measures of financial performance as determined in accordance with GAAP.
Gran Tierra’s method of calculating these measures may differ from other
companies and, accordingly, they may not be comparable to similar measures
used by other companies. Each non-GAAP financial measure is presented along
with the corresponding GAAP measure so as to not imply that more emphasis
should be placed on the non-GAAP measure.

Operating netback, as presented, is defined as oil sales less operating and
transportation expenses. See the table entitled Financial and Operational
Highlights above for the components of consolidated operating netback and
corresponding reconciliation.

Cash netback as presented is defined as net income or loss adjusted for DD&A
expenses, deferred tax expense or recovery, stock-based compensation expense
or recovery, amortization of debt issuance costs, non-cash lease expense,
lease payments, unrealized foreign exchange gain or loss, other gain or loss
and unrealized derivative instruments loss. Management believes that operating
netback and cash netback are useful supplemental measures for investors to
analyze financial performance and provide an indication of the results
generated by Gran Tierra’s principal business activities prior to the
consideration of other income and expenses. A reconciliation from net income
or loss to cash netback is as follows:

                                                    Three Months Ended March 31,                   Three Months           
                                                                                                   Ended                  
                                                                                                   December 31,           
 Cash Netback - (Non-GAAP) Measure ($000s)                 2025                   2024                    2024            
 Net Loss                                           $      (19,280  )      $      (78     )        $      (34,210  )      
 Adjustments to reconcile net loss to cash netback                                                                        
 DD&A expenses                                             72,202                 56,150                  63,406          
 Deferred tax (recovery) expense                           (4,712   )             13,479                  4,444           
 Stock-based compensation (recovery) expense               (517     )             3,361                   3,331           
 Amortization of debt issuance costs                       3,833                  3,306                   3,743           
 Non-cash lease expense                                    1,736                  1,413                   1,759           
 Lease payments                                            (1,567   )             (1,058  )               (1,495   )      
 Unrealized foreign exchange loss (gain)                   1,687                  (2,266  )               (223     )      
 Other loss                                                52                     —                       —               
 Unrealized derivative instrument loss                     1,910                  —                       3,374           
 Cash netback                                       $      55,344          $      74,307           $      44,129          

EBITDA, as presented, is defined as net income or loss adjusted for DD&A
expenses, interest expense and income tax expense or recovery. Adjusted
EBITDA, as presented, is defined as EBITDA adjusted for non-cash lease
expense, lease payments, foreign exchange gain or loss, stock-based
compensation expense, transaction costs, other gain or loss and unrealized
derivative instruments loss. Management uses this supplemental measure to
analyze performance and income generated by our principal business activities
prior to the consideration of how non-cash items affect that income, and
believes that this financial measure is useful supplemental information for
investors to analyze our performance and our financial results. A
reconciliation from net income or loss to EBITDA and adjusted EBITDA is as
follows:

                                                                  Three Months Ended March 31,                   Three Months           
                                                                                                                 Ended                  
                                                                                                                 December 31,           
 EBITDA - (Non-GAAP) Measure ($000s)                                     2025                   2024                    2024            
 Net Loss                                                         $      (19,280  )      $      (78     )        $      (34,210  )      
 Adjustments to reconcile net loss to EBITDA and Adjusted EBITDA                                                                        
 DD&A expenses                                                           72,202                 56,150                  63,406          
 Interest expense                                                        23,235                 18,424                  23,752          
 Income tax expense                                                      3,553                  17,395                  12,299          
 EBITDA                                                           $      79,710          $      91,891           $      65,247          
 Non-cash lease expense                                                  1,736                  1,413                   1,759           
 Lease payments                                                          (1,567   )             (1,058  )               (1,495   )      
 Foreign exchange loss (gain)                                            3,838                  (815    )               (496     )      
 Stock-based compensation expense                                        (517     )             3,361                   3,331           
 Transaction costs                                                       —                      —                       4,448           
 Other loss                                                              52                     —                       —               
 Unrealized derivative instrument loss                                   1,910                  —                       3,374           
 Adjusted EBITDA                                                  $      85,162          $      94,792           $      76,168          

Funds flow from operations, as presented, is defined as net income or loss
adjusted for DD&A expenses, deferred tax expense or recovery, stock-based
compensation expense, amortization of debt issuance costs, non-cash lease
expense, lease payments, unrealized foreign exchange gain, other gain or loss
and unrealized gain or loss on derivative instruments. Management uses this
financial measure to analyze performance and income or loss generated by our
principal business activities prior to the consideration of how non-cash items
affect that income or loss, and believes that this financial measure is also
useful supplemental information for investors to analyze performance and our
financial results. Free cash flow, as presented, is defined as funds flow from
operations adjusted for capital expenditures. Management uses this financial
measure to analyze cash flow generated by our principal business activities
after capital requirements and believes that this financial measure is also
useful supplemental information for investors to analyze performance and our
financial results. A reconciliation from net income or loss to both funds flow
from operations and free cash flow is as follows:

                                                                  Three Months Ended March 31,                   Three Months           
                                                                                                                 Ended                  
                                                                                                                 December 31,           
 Funds Flow From Operations -  (Non-GAAP) Measure ($000s)                2025                   2024                    2024            
 Net Loss                                                         $      (19,280  )      $      (78     )        $      (34,210  )      
 Adjustments to reconcile net loss to funds flow from operations                                                                        
 DD&A expenses                                                           72,202                 56,150                  63,406          
 Deferred tax (recovery) expense                                         (4,712   )             13,479                  4,444           
 Stock-based compensation (recovery) expense                             (517     )             3,361                   3,331           
 Amortization of debt issuance costs                                     3,833                  3,306                   3,743           
 Non-cash lease expense                                                  1,736                  1,413                   1,759           
 Lease payments                                                          (1,567   )             (1,058  )               (1,495   )      
 Unrealized foreign exchange loss (gain)                                 1,687                  (2,266  )               (223     )      
 Other loss                                                              52                     —                       —               
 Unrealized derivative instrument loss                                   1,910                  —                       3,374           
 Funds flow from operations                                       $      55,344          $      74,307           $      44,129          
 Capital expenditures                                             $      94,727          $      55,331           $      78,579          
 Free cash flow                                                   $      (39,383  )      $      18,976           $      (34,450  )      

Net debt as of March 31, 2025, was $683 million, calculated using the sum of
the aggregate principal amount of 7.75% Senior Notes, and 9.50% Senior Notes
outstanding, excluding deferred financing fees, totaling $760 million, less
cash and cash equivalents of $77 million.

Presentation of Oil and Gas Information

Boes have been converted on the basis of six thousand cubic feet (“Mcf”)
natural gas to 1 boe of oil. Boes may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf: 1 boe is based on an energy
equivalency conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. In addition, given that the
value ratio based on the current price of oil as compared with natural gas is
significantly different from the energy equivalent of six to one, utilizing a
boe conversion ratio of 6 Mcf: 1 boe would be misleading as an indication of
value.

References to a formation where evidence of hydrocarbons has been encountered
is not necessarily an indicator that hydrocarbons will be recoverable in
commercial quantities or in any estimated volume. Gran Tierra’s reported
production is a mix of light crude oil and medium heavy crude oil, tight oil,
conventional natural gas, shale gas and natural gas liquids for which there is
no precise breakdown since the Company’s sales volumes typically represent
blends of more than one product type. Well test results should be considered
as preliminary and not necessarily indicative of long-term performance or of
ultimate recovery. Well log interpretations indicating oil and gas
accumulations are not necessarily indicative of future production or ultimate
recovery. If it is indicated that a pressure transient analysis or well-test
interpretation has not been carried out, any data disclosed in that respect
should be considered preliminary until such analysis has been completed.
References to thickness of “oil pay” or of a formation where evidence of
hydrocarbons has been encountered is not necessarily an indicator that
hydrocarbons will be recoverable in commercial quantities or in any estimated
volume.

This press release contains certain oil and gas metrics, including operating
netback and cash netback, which do not have standardized meanings or standard
methods of calculation and therefore such measures may not be comparable to
similar measures used by other companies and should not be used to make
comparisons. These metrics are calculated as described in this press release
and management believes that they are useful supplemental measures for the
reasons described in this press release.

Such metrics have been included herein to provide readers with additional
measures to evaluate the Company’s performance; however, such measures are
not reliable indicators of the future performance of the Company and future
performance may not compare to the performance in previous periods.

References in this press release to “potential drilling opportunities” are
references to unbooked locations for which there are no reserves or resources
attributed by any of the Company’s qualified reserves auditors or evaluators
but which the Company internally estimates can be drilled based on current
land holdings, industry practice regarding well density, and internal review
of geologic, geophysical, seismic, engineering, production and resources
information. There is no certainty that the Company will drill any particular
locations, or that drilling activity on any locations will result in
additional reserves, resources or production. Locations on which the Company
in fact drills wells will ultimately depend upon the availability of capital,
regulatory approvals, seasonal restrictions, commodity prices, costs, actual
drilling results, additional reservoir information and other factors. There is
a higher level of risk associated with locations that are potential drilling
opportunities and not “booked” locations to which any qualified reserves
evaluator or auditor may have attributed reserves or resources. The Company
generally has less information about reservoir characteristics associated with
locations that are potential drilling opportunities and, accordingly, there is
greater uncertainty whether wells will ultimately be drilled in such locations
and, if drilled, whether they will result in additional reserves, resources or
production

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