Gran Tierra Energy Inc., a company focused on oil exploration and production in Colombia, ahas entered into agreements with private companies to acquire:

• Working interest ("WI") in and operatorship of the Suroriente Block ("Suroriente"), which would increase Gran Tierra's WI in Suroriente from 15.83% to 52%
• 50% WI in and operatorship of the Putumayo-8 Block ("PUT-8"), which is contiguous with Suroriente and Gran Tierra's PUT-31 Block (100% WI)
• 100% WI in the Llanos-5 Block ("LLA-5"), which is contiguous with Gran Tierra's LLA-1, -10 and -70 Blocks, representing a new core area for the Company

Gran Tierra's Updated Land Position in Putumayo Basin

The purchase price for this acquisition is $104.2 million, subject to certain adjustments and the satisfaction of certain customary conditions. 

All reserves, future net revenue and production are on a WI before royalties basis unless otherwise indicated. Transfer of operatorship is subject to regulatory recognition and the terms of any applicable joint operating agreements.

Gran Tierra's Updated Land Position in Llanos Basin

Key Acquisition Highlights

• Highly strategic acquisition further strengthens and consolidates Gran Tierra's position as the premier operator and top landholder in the Putumayo Basin, and makes the Company the operator of 100% of its Putumayo Blocks
• Consistent with Gran Tierra's focused strategy to grow the Company's exploration, development and production opportunity portfolio within Colombia
• As of December 31, 2018, the Vendors' Suroriente WI had:(1)
• Proved plus probable ("2P") reserves of 6.1 million barrels of oil ("MMbbls")
• $175 million of 2P before tax free cash flow(2) forecasted over the next 5 years
• 2P before tax net present value discounted at 10% ("NPV10") of $140 million
• 2P plus possible ("3P") reserves of 8.1 MMbbls
• 3P NPV10 of $202 million
• Current production of approximately 2,200 barrels ("bbl") of oil per day ("bopd")
• By securing operatorship of Suroriente, Gran Tierra expects to accelerate waterflooding on the Block, which is forecasted to further increase value
• Gran Tierra believes PUT-8 contains at least two exciting drill-ready exploration prospects, which could potentially be drilled in 2019 using existing pads. The addition of the LLA-5 Block compliments Gran Tierra's existing acreage in the Llanos Basin and creates a contiguous land base of 620,000 gross acres (525,000 net acres) located near the prolific Cano Limon production complex and the Capachos block The acquisition is expected to be funded from cash on hand and existing credit facilities with no need for external financing
• In order to maintain the Company's currently strong balance sheet, Gran Tierra intends to reduce its 2019 capital program by approximately $30 million to $50 million, with an immaterial expected impact on the Company's 2019 average production

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented 
"This highly strategic acquisition further consolidates our dominant position in the Putumayo Basin, with assets that are highly complementary to our existing land base, and adds a new core area in the Llanos Basin. A major US independent has also acquired a material position in the Putumayo and Llanos basins, offsetting Gran Tierra.

The acquisition immediately adds production, reserves, cash flow and drill-ready exploration prospects to our portfolio. We are excited by the opportunity to accelerate Suroriente's already successful waterflood in the Cohembi N Sand field and to apply technical knowledge from this field to our N Sand plays across the Putumayo Basin.

This acquisition fits perfectly with Gran Tierra's focused strategy by further expanding our portfolio in the proven, underexplored Putumayo Basin, with access to established infrastructure. We will also become the operator of 100% of our Putumayo asset base and have complete flexibility and control over the allocation of our capital in the Putumayo."

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