High Impact Exploration Program Continues to Deliver Exciting Catalysts for Growth with the Completion of the Charapa 3D Seismic Program Along with Drilling of the Bocachico Norte-J1 and Charapa B6 Wells Arawana-J1 and Bocachico-J1 Wells Continue to Yield Strong Production Results and Continued Positive Exploration Results with Bocachico Norte-J1 Second Quarter 2024 Total Average WI Production of 32,776 BOPD, a 4% Increase in Production per Share from Second Quarter 2023 Since January 1, 2023, Gran Tierra has Re-purchased Approximately 3.9 million or 11% of Its Outstanding Shares Achieved Second Quarter 2024 Net Income of $36 Million Operating Netback of $113 Million and Adjusted EBITDA of $103 Million(1)(3) Exited the Quarter with $115 Million in Cash CALGARY, Alberta, July 31, 2024 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE:GTE)(TSX:GTE)(LSE:GTE) announced the Company's financial and operating results for the quarter ended June 30, 2024 ("the Quarter"). All dollar amounts are in United States dollars, and production amounts are on an average working interest ("WI") before royalties basis unless otherwise indicated. Per barrel ("bbl") and bbl per day ("BOPD") amounts are based on WI sales before royalties. For per bbl amounts based on net after royalty ("NAR") production, see Gran Tierra's Quarterly Report on Form 10-Q filed July 31, 2024. Message to Shareholders Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: "During the second quarter of 2024, Gran Tierra systematically stimulated and added electrical submersible pumps into each of our Costayaco 56, 57, 58, and 59 wells, which were drilled as part of the 2024 development campaign. While the temporary offline status of these wells for the planned completions did impact second-quarter production, the improvements have resulted in enhanced production and all wells are back online. We continue to be excited about these development wells demonstrating further potential to enhance recovery and optimize value from further development drilling and waterflood optimization. In Ecuador, we have drilled a second successful well in the Bocachico field to the west of the recent Arawana discovery which we have completed, and testing is underway. More recently, we are seeing very encouraging results in the Charapa-B6 well which has been cored with excellent oil shows in the targeted Hollin formation and is now being completed for testing. Importantly, we are constructing two new drilling pads at the exciting Arawana field area with the first expected to be completed by early September. We are encouraged by the preliminary results of Bocachico Norte-J1 which confirmed our geological interpretation of the Bocachico discovery with potential pay in the T-Sand, B-Limestone and the Basal Tena and we look forward to testing each zone in the third quarter. We are looking forward to the second half of the year where we plan to drill the remainder of our high impact near field exploration wells in Ecuador including drilling two wells to further assess the Arawana discovery. From a development perspective, we are completing the civil works associated with building infrastructure and pads in the Suroriente Block in the southern Putumayo. We expect to begin drilling wells in the fourth quarter of 2024. We are very pleased about our first half results and there are still many more catalysts we are looking forward to in the second half of 2024." Ecuador Exploration Update: Chanangue Block During the Quarter the Bocachico Norte-J1 well was spud and drilled. Log data and core data is positive and testing in multiple zones including the Basal Tena sand, the T-sand and B-limestone is planned during the third quarter of 2024. Based on logs there is reservoir and net pay in the Basal Tena, T-sand and the B-Limestone. The B-Limestone was not a primary target but had positive shows while drilling, which indicates it may be connected to a fracture network. The completion will allow for multi-zone commingling when finished. The preliminary data confirms Gran Tierra's geological understanding of the Bocachico field and provides further data of the fault mechanism between the Bocachico and Arawana fields. The Arawana-J1 and Bocachico-J1 wells continue to yield strong production results with a combined 1,600 to 1,800 BOPD. Gran Tierra plans to convert both wells from jet pump to electrical submersible pumping systems in the second half of 2024. Charapa Block Upon completion of the Bocachico Norte-J1 well, the rig was moved from the Chanangue Block to the Charapa Block. On July 14th, 2024, the Charapa B6 well was spud with the primary target being the Hollin formation. 60 feet of core was recovered and analyzed from the Hollin structure and the core was saturated with oil from the top to base, further corroborating the expected hydrocarbon column in our geological model of the Charapa field. Drilling is expected to be completed this week followed by casing and testing. Following the drilling of the Charapa B6 well, the rig will begin drilling the Charapa B7 well from the same pad and then move to appraise the Arawana discovery. The 3D seismic program of the Charapa Block has been completed, and the data is currently being processed. Preliminary interpretations of the high-quality 3D data confirms potential prospectivity and additional areas of interest identified on seismic including better definition over the Charapa structure. The 3D data will further delineate reserves, underpin future drilling locations scheduled for 2025 and support future development planning. Key Highlights of the Quarter: Production: Gran Tierra's total average WI production was 32,776 BOPD, an increase of 2% compared to the first quarter 2024 ("the Prior Quarter") and up 4% on a per share basis since the second quarter 2023. During the Quarter the Company systematically stimulated and installed electrical submersible pumps on four of the high producing Costayaco wells that were drilled as part of the 2024 development campaign. The process required that each well be taken offline for a period of time, which negatively impacted second quarter 2024 production by approximately 700 BOPD. All four wells are now back online with positive production results and Gran Tierra anticipates these positive trends will continue through the remainder of the year. Net Income: Gran Tierra incurred net income of $36 million, compared to a net loss of $0.1 million in the Prior Quarter and a net loss of $11 million in the second quarter of 2023. Adjusted EBITDA(1): Adjusted EBITDA(1) was $103 million compared to $95 million in the Prior Quarter and $97 million in the second quarter of 2023. Twelve month trailing Net Debt(1) to Adjusted EBITDA(1) was 1.3 times and is expected to be less than 1.0x by year end 2024, which is consistent with the Company's previous guidance. Funds Flow from Operations(1): Funds flow from operations(1) was $46 million ($1.48 per share), down 38% from the Prior Quarter and down 13% from the second quarter of 2023. The main driver of the decrease in funds flow is the result of tax planning that resulted in the immediate increase of current taxes by $28 million. The company strategically revised its 2022 tax return to use its long-term tax receivables balance to offset current tax liabilities, rather than applying net operating loss carryforwards. This decision was driven by higher current and future tax rates and increased profitability in Colombia. As a result, the current tax expense increased by approximately $28 million, but this was offset by long-term tax receivables, resulting in no cash outflow. However, the increased tax expense did negatively impact our funds flow from operations(1). Nonetheless, this approach preserved our net operating loss carryforwards of approximately $85 million for future periods, providing greater tax benefit in 2024 and in the future. This tax initiative also allowed us to recover $18 million of taxes receivable in 2024 and accelerate the recovery of an estimated $65 million of taxes receivable over the next three years. Cash and Debt: As of June 30, 2024, the Company had a cash balance of $115 million, total debt of $637 million and net debt(1) of $521 million. Share Buybacks: Gran Tierra purchased approximately 0.4 million shares during the Quarter. From January 1, 2023 to July 29, 2024, the Company has repurchased approximately 3.9 million shares, or 11% of shares issued and outstanding at January 1, 2023, from free cash flow(1). Return on Average Capital Employed(1): Achieved return on average capital employed(1) of 18% during the Quarter and 17% over the trailing 12 months. Additional Key Financial Metrics: Capital Expenditures: Capital expenditures of $61 million were higher than the $55 million in the Prior Quarter due to the launch of a 2024 exploration 3D seismic and drilling campaign, in addition to completions of the Costayaco development wells during the Quarter and down from $66 million compared to the second quarter of 2023. Oil Sales: Gran Tierra generated oil sales of $166 million, up 5% from the second quarter of 2023 as a result of stronger Brent pricing and lower Vasconia, Castilla and Oriente oil differentials offset by 5% lower sales volumes as a result of an increased build in inventory due to timing of sales. Oil sales increased 5% from the Prior Quarter primarily due to a 4% increase in Brent price and narrower Castilla and Vasconia oil differentials offset by a slightly higher Oriente oil differential and 2% lower sales volumes. Quality and Transportation Discounts: The Company's quality and transportation discounts per bbl were down during the Quarter at $12.79, compared to $15.36 in the Prior Quarter and $14.10 in the second quarter of 2023. The Castilla oil differential per bbl narrowed to $8.21 from $8.82 in the Prior Quarter and from $9.41 in the second quarter of 2023 (Castilla is the benchmark for the Company's Middle Magdalena Valley Basin oil production). The Vasconia differential per bbl narrowed to $4.00 from $5.05 in the Prior Quarter, and from $5.53 in the second quarter of 2023. Finally, the Ecuadorian benchmark, Oriente, per bbl was $8.38, up from $8.02 in the Prior Quarter, and down from $11.43 one year ago. The current(2) Castilla differential is approximately $9.40 per bbl, the Vasconia differential is approximately $4.60 per bbl and the Oriente differential is approximately $9.00 per bbl. Operating Expenses: Gran Tierra's operating expenses decreased by 3% to $47 million, compared to the Prior Quarter primarily due to lower workover activities. Compared to the second quarter of 2023, operating expenses decreased by 3% from $48.5 million, primarily due to lower lifting costs, partially offset by higher workover activities. On a per bbl basis operating expense increased by 2% when compared to the second quarter of 2023 and decreased by 1% when compared to the Prior Quarter. Transportation Expenses: The Company's transportation expenses increased by 24% to $6 million, compared to the Prior Quarter of $5 million and increased by 54% from $4 million in the second quarter of 2023. Transportation expenses in the Quarter were higher as a result of Gran Tierra utilizing longer distance delivery points due to low water levels in the Magdalena river. Operating Netback(1)(3): The Company's operating netback(1)(3) was $38.80 per bbl, up 10% from the Prior Quarter and up 12% from the second quarter of 2023. General and Administrative ("G&A") Expenses: Commensurate with increased activity, G&A expenses before stock-based compensation were $3.69 per bbl, up from $3.22 per bbl in the Prior Quarter due to increased activity, consultant and information technology expenses and up from $3.12 per bbl, when compared to the second quarter of 2023 due to increased activity and information technology expense, general office expense and bank fees. Cash Netback(1): Cash netback(1) per bbl was $15.85, compared to $25.13 in the Prior Quarter primarily as a result of higher current tax expenses of $14.54 per bbl compared to a current tax expense of $1.33 per bbl in the Prior Quarter (see explanation above in funds flow from operations section). Compared to one year ago, cash netback(1) per bbl decreased by $1.52 from $17.37 per bbl as a result of higher current taxes in the Quarter mentioned above and offset by stronger realized pricing. Financial and Operational Highlights (all amounts in $000s, except per share and bbl amounts)   Three Months Ended June 30,   Three Months Ended March 31,   Six Months Ended June 30,   2024 2023   2024   2024 2023                 Net Income (Loss) $36,371 $(10,825)   $(78)   $36,293 $(20,525) Per Share - Basic and Diluted(4) $1.16 $(0.33)   $—   $1.15 $(0.61)                 Oil Sales $165,609 $157,902   $157,577   $323,186 $302,092 Operating Expenses (47,035) (48,491)   (48,466)   (95,501) (89,860) Transportation Expenses (5,690) (3,691)   (4,584)   (10,274) (6,757) Operating Netback(1)(3) $112,884 $105,720   $104,527   $217,411 $205,475                 G&A Expenses Before Stock-Based Compensation $10,737 $9,549   $9,516   $20,253 $20,745 G&A Stock-Based Compensation Expense 6,160 317   3,361   9,521 1,817 G&A Expenses, Including Stock Based Compensation $16,897 $9,866   $12,877   $29,774 $22,562                 Adjusted EBITDA(1) $103,004 $97,291   $94,792   $197,796 $187,156                 EBITDA(1) $101,187 $91,794   $91,891   $193,078 $179,009                 Net Cash Provided by Operating Activities $73,233 $37,877   $60,827   $134,060 $87,130                 Funds Flow from Operations(1) $46,167 $53,106   $74,307   $120,474 $113,122                 Capital Expenditures $61,273 $65,565   $55,331   $116,604 $136,627                 Free Cash Flow(1) $(15,106) $(12,459)   $18,976   $3,870 $(23,505)                 Average Daily Volumes (BOPD)               WI Production Before Royalties 32,776 33,719   32,242   32,509 32,671 Royalties (6,774) (6,515)   (6,397)   (6,586) (6,301) Production NAR 26,002 27,204   25,845   25,923 26,370 (Increase) Decrease in Inventory (811) 67   235   (288) (143) Sales 25,191 27,271   26,080   25,635 26,227 Royalties, % of WI Production Before Royalties 21% 19%   20%   20% 19%                 Per bbl               Brent $85.03 $77.73   $81.76   $83.42 $79.91 Quality and Transportation Discount (12.79) (14.10)   (15.36)   (14.15) (16.27) Royalties (15.31) (11.98)   (13.08)   (14.16) (12.38) Average Realized Price 56.93 51.65