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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Gran Tierra Energy Inc | AMEX:GTE | AMEX | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.02 | 0.24% | 8.37 | 8.425 | 8.21 | 8.25 | 211,603 | 00:59:00 |
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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Nevada
|
|
98-0479924
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(State or other jurisdiction of incorporation or organization)
|
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(I.R.S. Employer Identification No.)
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|
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200, 150 13 Avenue S.W.
Calgary, Alberta, Canada T2R 0V2
|
||
(Address of principal executive offices, including zip code)
|
Large accelerated filer
x
|
Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
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Page
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PART I
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Financial Information
|
|
Item 1.
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Financial Statements
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|
Item 2.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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|
Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 4.
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Controls and Procedures
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|
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PART II
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Other Information
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Item 1.
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Legal Proceedings
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Item 1A.
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Risk Factors
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Item 6.
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Exhibits
|
|
SIGNATURES
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||
EXHIBIT INDEX
|
bbl
|
barrel
|
BOE
|
barrels of oil equivalent
|
Mbbl
|
thousand barrels
|
BOEPD
|
barrels of oil equivalent per day
|
MMbbl
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million barrels
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bopd
|
barrels of oil per day
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NAR
|
net after royalty
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Mcf
|
thousand cubic feet
|
|
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Three Months Ended June 30,
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|
Six Months Ended June 30,
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||||||||||||
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|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
OIL AND NATURAL GAS SALES (NOTE 4)
|
|
$
|
71,713
|
|
|
$
|
69,350
|
|
|
$
|
129,116
|
|
|
$
|
145,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
EXPENSES
|
|
|
|
|
|
|
|
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||||||||
Operating
|
|
17,748
|
|
|
17,758
|
|
|
36,815
|
|
|
40,419
|
|
||||
Transportation
|
|
6,217
|
|
|
6,375
|
|
|
18,545
|
|
|
15,148
|
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||||
Depletion, depreciation and accretion (Note 4)
|
|
31,884
|
|
|
39,188
|
|
|
68,796
|
|
|
88,328
|
|
||||
Asset impairment (Notes 4 and 5)
|
|
92,843
|
|
|
30,285
|
|
|
149,741
|
|
|
67,299
|
|
||||
General and administrative (Note 4)
|
|
7,975
|
|
|
10,298
|
|
|
16,261
|
|
|
17,592
|
|
||||
Severance
|
|
281
|
|
|
1,988
|
|
|
1,299
|
|
|
6,366
|
|
||||
Equity tax (Note 9)
|
|
—
|
|
|
—
|
|
|
3,051
|
|
|
3,769
|
|
||||
Foreign exchange loss (gain)
|
|
781
|
|
|
2,969
|
|
|
1,566
|
|
|
(8,569
|
)
|
||||
Financial instruments gain (Note 12)
|
|
(1,072
|
)
|
|
(1,366
|
)
|
|
(227
|
)
|
|
(1,408
|
)
|
||||
|
|
156,657
|
|
|
107,495
|
|
|
295,847
|
|
|
228,944
|
|
||||
|
|
|
|
|
|
|
|
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||||||||
GAIN ON ACQUISITION (NOTE 3)
|
|
—
|
|
|
—
|
|
|
11,712
|
|
|
—
|
|
||||
INTEREST EXPENSE (NOTE 6)
|
|
(2,201
|
)
|
|
—
|
|
|
(2,720
|
)
|
|
—
|
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||||
INTEREST INCOME
|
|
749
|
|
|
382
|
|
|
1,198
|
|
|
803
|
|
||||
LOSS BEFORE INCOME TAXES (NOTE 4)
|
|
(86,396
|
)
|
|
(37,763
|
)
|
|
(156,541
|
)
|
|
(82,560
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
INCOME TAX (EXPENSE) RECOVERY
|
|
|
|
|
|
|
|
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||||||||
Current
|
|
(5,778
|
)
|
|
(5,684
|
)
|
|
(7,801
|
)
|
|
(8,109
|
)
|
||||
Deferred
|
|
28,615
|
|
|
4,883
|
|
|
55,751
|
|
|
7,239
|
|
||||
|
|
22,837
|
|
|
(801
|
)
|
|
47,950
|
|
|
(870
|
)
|
||||
NET LOSS AND COMPREHENSIVE LOSS
|
|
$
|
(63,559
|
)
|
|
$
|
(38,564
|
)
|
|
$
|
(108,591
|
)
|
|
$
|
(83,430
|
)
|
|
|
|
|
|
|
|
|
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||||||||
NET LOSS PER SHARE - BASIC AND DILUTED
|
|
$
|
(0.21
|
)
|
|
$
|
(0.13
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
(0.29
|
)
|
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED (Note 7)
|
|
296,565,530
|
|
|
286,393,772
|
|
|
295,188,878
|
|
|
286,294,595
|
|
|
June 30,
|
|
December 31,
|
||||
|
2016
|
|
2015
|
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
171,470
|
|
|
$
|
145,342
|
|
Restricted cash (Notes 3 and 5)
|
9,716
|
|
|
92
|
|
||
Accounts receivable
|
43,733
|
|
|
29,217
|
|
||
Marketable securities (Note 12)
|
3,979
|
|
|
6,250
|
|
||
Derivatives (Note 12)
|
7,014
|
|
|
—
|
|
||
Inventory (Note 5)
|
9,339
|
|
|
19,056
|
|
||
Taxes receivable
|
30,387
|
|
|
28,635
|
|
||
Other current assets
|
5,112
|
|
|
5,848
|
|
||
Total Current Assets
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280,750
|
|
|
234,440
|
|
||
|
|
|
|
||||
Oil and Gas Properties
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|
|
|
|
|
||
Proved
|
372,752
|
|
|
469,589
|
|
||
Unproved
|
366,079
|
|
|
310,771
|
|
||
Total Oil and Gas Properties
|
738,831
|
|
|
780,360
|
|
||
Other capital assets
|
8,432
|
|
|
8,633
|
|
||
Total Property, Plant and Equipment (Notes 4 and 5)
|
747,263
|
|
|
788,993
|
|
||
|
|
|
|
||||
Other Long-Term Assets
|
|
|
|
|
|
||
Restricted cash
|
6,750
|
|
|
3,317
|
|
||
Taxes receivable
|
9,497
|
|
|
8,276
|
|
||
Other long-term assets
|
15,578
|
|
|
8,511
|
|
||
Goodwill (Note 4)
|
102,581
|
|
|
102,581
|
|
||
Total Other Long-Term Assets
|
134,406
|
|
|
122,685
|
|
||
Total Assets (Note 4)
|
$
|
1,162,419
|
|
|
$
|
1,146,118
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
65,850
|
|
|
$
|
70,778
|
|
Taxes payable
|
1,115
|
|
|
1,067
|
|
||
Asset retirement obligation (Note 8)
|
2,970
|
|
|
2,146
|
|
||
Total Current Liabilities
|
69,935
|
|
|
73,991
|
|
||
|
|
|
|
||||
Long-Term Liabilities
|
|
|
|
|
|
||
Convertible senior notes (Notes 6 and 12)
|
109,145
|
|
|
—
|
|
||
Deferred tax liabilities
|
5,552
|
|
|
34,592
|
|
||
Asset retirement obligation (Note 8)
|
40,870
|
|
|
31,078
|
|
||
Other long-term liabilities
|
10,921
|
|
|
4,815
|
|
||
Total Long-Term Liabilities
|
166,488
|
|
|
70,485
|
|
||
|
|
|
|
||||
Contingencies (Note 11)
|
|
|
|
|
|
||
Subsequent Events (Note 14)
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
|
|
||
Common Stock (Note 7) (289,322,888 and 273,442,799 shares of Common Stock and 8,514,066 and 8,572,066 exchangeable shares, par value $0.001 per share, issued and outstanding as at June 30, 2016, and December 31, 2015, respectively)
|
10,202
|
|
|
10,186
|
|
||
Additional paid in capital
|
1,052,792
|
|
|
1,019,863
|
|
||
Deficit
|
(136,998
|
)
|
|
(28,407
|
)
|
||
Total Shareholders’ Equity
|
925,996
|
|
|
1,001,642
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
1,162,419
|
|
|
$
|
1,146,118
|
|
|
Six Months Ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Operating Activities
|
|
|
|
||||
Net loss
|
$
|
(108,591
|
)
|
|
$
|
(83,430
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
|
|||
Depletion, depreciation and accretion (Note 4)
|
68,796
|
|
|
88,328
|
|
||
Asset impairment (Notes 4 and 5)
|
149,741
|
|
|
67,299
|
|
||
Deferred tax recovery
|
(55,751
|
)
|
|
(7,239
|
)
|
||
Stock-based compensation expense (Note 7)
|
3,522
|
|
|
1,113
|
|
||
Amortization of debt issuance costs (Note 6)
|
629
|
|
|
—
|
|
||
Cash settlement of restricted share units
|
(1,186
|
)
|
|
(1,314
|
)
|
||
Unrealized foreign exchange loss (gain)
|
50
|
|
|
(5,564
|
)
|
||
Financial instruments gain (Note 12)
|
(227
|
)
|
|
(1,408
|
)
|
||
Cash settlement of financial instruments
|
47
|
|
|
(3,749
|
)
|
||
Cash settlement of asset retirement obligation (Note 8)
|
(464
|
)
|
|
(1,964
|
)
|
||
Gain on acquisition (Note 3)
|
(11,712
|
)
|
|
—
|
|
||
Net change in assets and liabilities from operating activities (Note 13)
|
(6,630
|
)
|
|
(46,504
|
)
|
||
Net cash provided by operating activities
|
38,224
|
|
|
5,568
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
|
|
||
Increase in restricted cash
|
(2,349
|
)
|
|
(320
|
)
|
||
Additions to property, plant and equipment, excluding Corporate acquisition (Note 4)
|
(44,587
|
)
|
|
(91,318
|
)
|
||
Additions to property, plant and equipment - acquisition of PetroGranada Colombia Limited (Note 5)
|
(19,388
|
)
|
|
—
|
|
||
Changes in non-cash investing working capital
|
(11,059
|
)
|
|
(77,109
|
)
|
||
Cash paid for business combination, net of cash acquired (Note 3)
|
(50,909
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(128,292
|
)
|
|
(168,747
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
|
|
||
Proceeds from issuance of the Notes, net of issuance costs (Note 6)
|
108,900
|
|
|
—
|
|
||
Proceeds from issuance of shares of Common Stock (Note 7)
|
5,350
|
|
|
602
|
|
||
Net cash provided by financing activities
|
114,250
|
|
|
602
|
|
||
|
|
|
|
||||
Foreign exchange gain (loss) on cash and cash equivalents
|
1,946
|
|
|
(2,872
|
)
|
||
|
|
|
|
||||
Net increase (decrease) in cash and cash equivalents
|
26,128
|
|
|
(165,449
|
)
|
||
Cash and cash equivalents, beginning of period
|
145,342
|
|
|
331,848
|
|
||
Cash and cash equivalents, end of period
|
$
|
171,470
|
|
|
$
|
166,399
|
|
|
|
|
|
||||
Supplemental cash flow disclosures (Note 13)
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Year Ended December 31,
|
||||
|
2016
|
|
2015
|
||||
Share Capital
|
|
|
|
||||
Balance, beginning of period
|
$
|
10,186
|
|
|
$
|
10,190
|
|
Issuance of Common Stock (Note 7)
|
16
|
|
|
—
|
|
||
Repurchase of Common Stock
|
—
|
|
|
(4
|
)
|
||
Balance, end of period
|
10,202
|
|
|
10,186
|
|
||
|
|
|
|
||||
Additional Paid in Capital
|
|
|
|
|
|
||
Balance, beginning of period
|
1,019,863
|
|
|
1,026,873
|
|
||
Issuance of Common Stock (Note 7)
|
25,798
|
|
|
—
|
|
||
Exercise of stock options (Note 7)
|
5,347
|
|
|
722
|
|
||
Stock-based compensation (Note 7)
|
1,784
|
|
|
2,263
|
|
||
Repurchase of Common Stock
|
—
|
|
|
(9,995
|
)
|
||
Balance, end of period
|
1,052,792
|
|
|
1,019,863
|
|
||
|
|
|
|
||||
Retained Earnings (Deficit)
|
|
|
|
|
|
||
Balance, beginning of period
|
(28,407
|
)
|
|
239,622
|
|
||
Net loss
|
(108,591
|
)
|
|
(268,029
|
)
|
||
Balance, end of period
|
(136,998
|
)
|
|
(28,407
|
)
|
||
|
|
|
|
||||
Total Shareholders’ Equity
|
$
|
925,996
|
|
|
$
|
1,001,642
|
|
(Thousands of U.S. Dollars)
|
|
||
Consideration Transferred:
|
|
||
Cash
|
$
|
70,625
|
|
Shares of Common Stock issued net of share issue costs
|
25,811
|
|
|
|
$
|
96,436
|
|
|
|
||
Allocation of Consideration Transferred
(1)
:
|
|
||
Oil and gas properties
|
|
||
Proved
|
$
|
48,595
|
|
Unproved
|
50,054
|
|
|
Net working capital (including cash acquired of $19.7 million, restricted cash of $2.5 million and accounts receivable of $5.0 million)
|
24,202
|
|
|
Long-term restricted cash
|
8,167
|
|
|
Other long-term assets
|
1,570
|
|
|
Long-term deferred tax liability
|
(10,105
|
)
|
|
Long-term portion of asset retirement obligation
|
(11,556
|
)
|
|
Other long-term liabilities
|
(2,779
|
)
|
|
Gain on acquisition
|
(11,712
|
)
|
|
|
$
|
96,436
|
|
|
Six Months Ended June 30,
|
|||||
(Unaudited, thousands of U.S. Dollars, except per share amounts)
|
2016
|
2015
|
||||
Oil and gas sales
|
$
|
129,587
|
|
$
|
178,509
|
|
Net loss
|
$
|
(120,317
|
)
|
$
|
(138,535
|
)
|
Net loss per share - basic and diluted
|
$
|
(0.41
|
)
|
$
|
(0.48
|
)
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Oil and natural gas sales
|
$
|
69,271
|
|
|
$
|
—
|
|
|
$
|
2,442
|
|
|
$
|
—
|
|
|
$
|
71,713
|
|
Depletion, depreciation and accretion
|
30,458
|
|
|
71
|
|
|
1,024
|
|
|
331
|
|
|
31,884
|
|
|||||
Asset impairment
|
78,208
|
|
|
483
|
|
|
14,152
|
|
|
—
|
|
|
92,843
|
|
|||||
General and administrative expenses
|
4,430
|
|
|
387
|
|
|
241
|
|
|
2,917
|
|
|
7,975
|
|
|||||
Loss before income taxes
|
(64,836
|
)
|
|
(744
|
)
|
|
(14,037
|
)
|
|
(6,779
|
)
|
|
(86,396
|
)
|
|||||
Segment capital expenditures
|
14,535
|
|
|
1,102
|
|
|
2,160
|
|
|
610
|
|
|
18,407
|
|
|||||
|
Three Months Ended June 30, 2015
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Oil and natural gas sales
|
$
|
67,627
|
|
|
$
|
—
|
|
|
$
|
1,723
|
|
|
$
|
—
|
|
|
$
|
69,350
|
|
Depletion, depreciation and accretion
|
37,061
|
|
|
147
|
|
|
1,575
|
|
|
405
|
|
|
39,188
|
|
|||||
Asset impairment
|
—
|
|
|
5,285
|
|
|
25,000
|
|
|
—
|
|
|
30,285
|
|
|||||
General and administrative expenses
|
3,035
|
|
|
1,273
|
|
|
965
|
|
|
5,025
|
|
|
10,298
|
|
|||||
Income (loss) before income taxes
|
3,197
|
|
|
(8,261
|
)
|
|
(28,211
|
)
|
|
(4,488
|
)
|
|
(37,763
|
)
|
|||||
Segment capital expenditures
|
8,173
|
|
|
6,878
|
|
|
2,505
|
|
|
316
|
|
|
17,872
|
|
|||||
|
Six Months Ended June 30, 2016
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Oil and natural gas sales
|
$
|
125,571
|
|
|
$
|
—
|
|
|
$
|
3,545
|
|
|
$
|
—
|
|
|
$
|
129,116
|
|
Depletion, depreciation and accretion
|
66,194
|
|
|
212
|
|
|
1,742
|
|
|
648
|
|
|
68,796
|
|
|||||
Asset impairment
|
133,440
|
|
|
899
|
|
|
15,402
|
|
|
—
|
|
|
149,741
|
|
|||||
General and administrative expenses
|
7,695
|
|
|
796
|
|
|
533
|
|
|
7,237
|
|
|
16,261
|
|
|||||
Loss before income taxes
|
(137,557
|
)
|
|
(1,456
|
)
|
|
(15,546
|
)
|
|
(1,982
|
)
|
|
(156,541
|
)
|
|||||
Segment capital expenditures
(1)
|
36,522
|
|
|
2,369
|
|
|
4,880
|
|
|
816
|
|
|
44,587
|
|
|||||
|
Six Months Ended June 30, 2015
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Oil and natural gas sales
|
$
|
141,694
|
|
|
$
|
—
|
|
|
$
|
3,887
|
|
|
$
|
—
|
|
|
$
|
145,581
|
|
Depletion, depreciation and accretion
|
83,316
|
|
|
414
|
|
|
3,836
|
|
|
762
|
|
|
88,328
|
|
|||||
Asset impairment
|
—
|
|
|
37,966
|
|
|
29,333
|
|
|
—
|
|
|
67,299
|
|
|||||
General and administrative expenses
|
5,751
|
|
|
2,313
|
|
|
1,592
|
|
|
7,936
|
|
|
17,592
|
|
|||||
Income (loss) before income taxes
|
6,125
|
|
|
(43,703
|
)
|
|
(35,092
|
)
|
|
(9,890
|
)
|
|
(82,560
|
)
|
|||||
Segment capital expenditures
|
29,295
|
|
|
44,577
|
|
|
16,411
|
|
|
1,035
|
|
|
91,318
|
|
|
As at June 30, 2016
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Property, plant and equipment
|
$
|
543,273
|
|
|
$
|
96,433
|
|
|
$
|
103,368
|
|
|
$
|
4,189
|
|
|
$
|
747,263
|
|
Goodwill
|
102,581
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,581
|
|
|||||
All other assets
|
146,191
|
|
|
16,404
|
|
|
3,211
|
|
|
146,769
|
|
|
312,575
|
|
|||||
Total Assets
|
$
|
792,045
|
|
|
$
|
112,837
|
|
|
$
|
106,579
|
|
|
$
|
150,958
|
|
|
$
|
1,162,419
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As at December 31, 2015
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Property, plant and equipment
|
$
|
574,351
|
|
|
$
|
95,069
|
|
|
$
|
115,552
|
|
|
$
|
4,021
|
|
|
$
|
788,993
|
|
Goodwill
|
102,581
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,581
|
|
|||||
All other assets
|
93,479
|
|
|
21,111
|
|
|
2,236
|
|
|
137,718
|
|
|
254,544
|
|
|||||
Total Assets
|
$
|
770,411
|
|
|
$
|
116,180
|
|
|
$
|
117,788
|
|
|
$
|
141,739
|
|
|
$
|
1,146,118
|
|
(Thousands of U.S. Dollars)
|
As at June 30, 2016
|
|
As at December 31, 2015
|
||||
Oil and natural gas properties
|
|
|
|
|
|||
Proved
|
$
|
2,111,268
|
|
|
$
|
1,998,330
|
|
Unproved
|
366,079
|
|
|
310,771
|
|
||
|
2,477,347
|
|
|
2,309,101
|
|
||
Other
|
28,597
|
|
|
28,342
|
|
||
|
2,505,944
|
|
|
2,337,443
|
|
||
Accumulated depletion, depreciation and impairment
|
(1,758,681
|
)
|
|
(1,548,450
|
)
|
||
|
$
|
747,263
|
|
|
$
|
788,993
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Impairment of oil and gas properties
|
$
|
92,843
|
|
|
$
|
30,285
|
|
|
$
|
149,077
|
|
|
$
|
67,299
|
|
Impairment of inventory
|
—
|
|
|
—
|
|
|
664
|
|
|
—
|
|
||||
|
$
|
92,843
|
|
|
$
|
30,285
|
|
|
$
|
149,741
|
|
|
$
|
67,299
|
|
(Thousands of U.S. Dollars)
|
|
||
Cost of asset acquisition:
|
|
||
Cash
|
$
|
37,727
|
|
|
|
||
Allocation of Consideration Transferred:
|
|
||
Oil and gas properties
|
|
||
Proved
|
$
|
12,228
|
|
Unproved
|
15,563
|
|
|
|
27,791
|
|
|
Net working capital (including cash acquired of $0.2 million and restricted cash of $18.6 million)
|
18,339
|
|
|
Long-term deferred tax liability
|
(8,403
|
)
|
|
|
$
|
37,727
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Contractual interest and other financing expenses
|
$
|
1,712
|
|
|
$
|
—
|
|
|
$
|
2,091
|
|
|
$
|
—
|
|
Amortization of debt issuance costs
|
489
|
|
|
—
|
|
|
629
|
|
|
—
|
|
||||
|
$
|
2,201
|
|
|
$
|
—
|
|
|
$
|
2,720
|
|
|
$
|
—
|
|
|
Shares of Common Stock
|
Exchangeable Shares of Gran Tierra Exchangeco Inc.
|
Exchangeable Shares of Gran Tierra Goldstrike Inc.
|
|||
Balance, December 31, 2015
|
273,442,799
|
|
4,933,177
|
|
3,638,889
|
|
Shares issued for acquisition (Note 3)
|
13,656,719
|
|
—
|
|
—
|
|
Options exercised
|
2,165,370
|
|
—
|
|
—
|
|
Exchange of exchangeable shares
|
58,000
|
|
(58,000
|
)
|
—
|
|
Balance, June 30, 2016
|
289,322,888
|
|
4,875,177
|
|
3,638,889
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Weighted average number of common and exchangeable shares outstanding
|
|
296,565,530
|
|
|
286,393,772
|
|
|
295,188,878
|
|
|
286,294,595
|
|
Weighted average shares issuable pursuant to stock options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Weighted average shares assumed to be purchased from proceeds of stock options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Weighted average number of diluted common and exchangeable shares outstanding
|
|
296,565,530
|
|
|
286,393,772
|
|
|
295,188,878
|
|
|
286,294,595
|
|
|
PSUs
|
DSUs
|
RSUs
|
|
Stock Options
|
|||||||
|
Number of Outstanding Share Units
|
Number of Outstanding Share Units
|
Number of Outstanding Share Units
|
|
Number of Outstanding Stock Options
|
|
Weighted Average Exercise Price/Stock Option ($)
|
|||||
Balance, December 31, 2015
|
—
|
|
—
|
|
1,015,457
|
|
|
12,851,557
|
|
|
4.60
|
|
Granted
|
2,297,700
|
|
117,621
|
|
—
|
|
|
1,302,350
|
|
|
2.65
|
|
Exercised
|
—
|
|
—
|
|
(460,614
|
)
|
|
(2,165,370
|
)
|
|
2.47
|
|
Forfeited
|
—
|
|
—
|
|
(173,830
|
)
|
|
(1,563,903
|
)
|
|
(6.07
|
)
|
Expired
|
—
|
|
—
|
|
—
|
|
|
(1,517,500
|
)
|
|
(6.41
|
)
|
Balance, June 30, 2016
|
2,297,700
|
|
117,621
|
|
381,013
|
|
|
8,907,134
|
|
|
4.27
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Compensation costs for PSUs
|
|
$
|
707
|
|
|
$
|
—
|
|
|
$
|
871
|
|
|
$
|
—
|
|
Compensation costs for stock options
|
|
813
|
|
|
1,109
|
|
|
1,784
|
|
|
687
|
|
||||
Compensation costs for DSUs
|
|
404
|
|
|
—
|
|
|
550
|
|
|
—
|
|
||||
Compensation costs for RSUs
|
|
341
|
|
|
597
|
|
|
705
|
|
|
537
|
|
||||
|
|
2,265
|
|
|
1,706
|
|
|
3,910
|
|
|
1,224
|
|
||||
Less: Stock-based compensation costs capitalized
|
|
(203
|
)
|
|
(80
|
)
|
|
(388
|
)
|
|
(111
|
)
|
||||
Stock-based compensation expense
|
|
$
|
2,062
|
|
|
$
|
1,626
|
|
|
$
|
3,522
|
|
|
$
|
1,113
|
|
|
Six Months Ended
|
|
Year Ended
|
||||
(Thousands of U.S. Dollars)
|
June 30, 2016
|
|
December 31, 2015
|
||||
Balance, beginning of period
|
$
|
33,224
|
|
|
$
|
35,812
|
|
Settlements
|
(681
|
)
|
|
(6,317
|
)
|
||
Liability incurred
|
1,208
|
|
|
1,556
|
|
||
Liabilities assumed in acquisition (Note 3)
|
11,852
|
|
|
—
|
|
||
Accretion
|
1,273
|
|
|
1,313
|
|
||
Revisions in estimated liability
|
(3,036
|
)
|
|
860
|
|
||
Balance, end of period
|
$
|
43,840
|
|
|
$
|
33,224
|
|
|
|
|
|
||||
Asset retirement obligation - current
|
$
|
2,970
|
|
|
$
|
2,146
|
|
Asset retirement obligation - long-term
|
40,870
|
|
|
31,078
|
|
||
|
$
|
43,840
|
|
|
$
|
33,224
|
|
(Thousands of U.S. Dollars)
|
|
As at June 30, 2016
|
|
As at December 31, 2015
|
||||
Trading securities
|
|
$
|
3,979
|
|
|
$
|
6,250
|
|
Commodity price derivative asset
|
|
5,896
|
|
|
—
|
|
||
Foreign currency derivative asset
|
|
1,118
|
|
|
—
|
|
||
|
|
$
|
10,993
|
|
|
$
|
6,250
|
|
|
|
|
|
|
||||
RSU and PSU liability
|
|
$
|
2,129
|
|
|
$
|
1,189
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Trading securities loss (gain)
|
$
|
1,380
|
|
|
$
|
(1,688
|
)
|
|
$
|
2,225
|
|
|
$
|
(2,100
|
)
|
Commodity price derivative gain
|
(1,334
|
)
|
|
—
|
|
|
(1,334
|
)
|
|
—
|
|
||||
Foreign currency derivatives (gain) loss
|
(1,118
|
)
|
|
322
|
|
|
(1,118
|
)
|
|
692
|
|
||||
Financial instruments gain
|
$
|
(1,072
|
)
|
|
$
|
(1,366
|
)
|
|
$
|
(227
|
)
|
|
$
|
(1,408
|
)
|
Period and type of instrument
|
Volume,
bopd
|
Reference
|
Sold Put
|
Purchased Put
|
Sold Call
|
|||||||
Collar: June 1, 2016 to May 31, 2017
|
10,000
|
|
ICE Brent
|
$
|
35
|
|
$
|
45
|
|
$
|
65
|
|
Period and type of instrument
|
Amount hedged
(COP)
|
Reference
|
Purchased Call
(COP)
|
Sold Put
(COP)
|
Sold Put
(COP)
|
||||
Collar: June 1, 2016 to June 30, 2016
|
9,794.6
|
|
COP
|
3,000
|
|
3,265
|
|
3,310
|
|
Collar: July 1, 2016 to September 30, 2016
|
25,064.6
|
|
COP
|
3,000
|
|
3,275
|
|
3,320
|
|
Collar: October 1, 2016 to December 31, 2016
|
20,930.0
|
|
COP
|
3,000
|
|
3,285
|
|
3,330
|
|
Collar: January 1, 2017 to March 31, 2017
|
31,597.6
|
|
COP
|
3,100
|
|
3,300
|
|
3,345
|
|
Collar: April 1, 2017 to May 31, 2017
|
22,697.2
|
|
COP
|
3,100
|
|
3,310
|
|
3,370
|
|
|
110,084.0
|
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
(Thousands of U.S. Dollars)
|
2016
|
|
2015
|
||||
Accounts receivable and other long-term assets
|
$
|
(9,156
|
)
|
|
$
|
23,652
|
|
Derivatives
|
(4,562
|
)
|
|
—
|
|
||
Inventory
|
4,365
|
|
|
(7,697
|
)
|
||
Prepaids
|
1,102
|
|
|
2,133
|
|
||
Accounts payable and accrued and other long-term liabilities
|
(5,628
|
)
|
|
(20,319
|
)
|
||
Taxes receivable and payable
|
7,249
|
|
|
(44,273
|
)
|
||
Net changes in assets and liabilities from operating activities
|
$
|
(6,630
|
)
|
|
$
|
(46,504
|
)
|
|
Six Months Ended June 30,
|
||||||
(Thousands of U.S. Dollars)
|
2016
|
|
2015
|
||||
Non-cash investing activities:
|
|
|
|
||||
Net liabilities related to property, plant and equipment, end of period
|
$
|
24,497
|
|
|
$
|
33,658
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
2016
|
|
2016
|
2015
|
% Change
|
|
2016
|
2015
|
% Change
|
||||||||||||
Volumes (BOE)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Working Interest Production Before Royalties
|
2,330,539
|
|
|
2,342,681
|
|
2,101,499
|
|
11
|
|
|
4,673,221
|
|
4,262,831
|
|
10
|
|
|||||
Royalties
|
(256,803
|
)
|
|
(368,384
|
)
|
(418,508
|
)
|
(12
|
)
|
|
(625,188
|
)
|
(767,283
|
)
|
(19
|
)
|
|||||
Production NAR
|
2,073,736
|
|
|
1,974,297
|
|
1,682,991
|
|
17
|
|
|
4,048,033
|
|
3,495,548
|
|
16
|
|
|||||
Decrease (Increase) in Inventory
|
240,424
|
|
|
65,753
|
|
(320,768
|
)
|
(120
|
)
|
|
306,175
|
|
(387,422
|
)
|
(179
|
)
|
|||||
Sales
(1)
|
2,314,160
|
|
|
2,040,050
|
|
1,362,223
|
|
50
|
|
|
4,354,208
|
|
3,108,126
|
|
40
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average Daily Volumes (BOEPD)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Working Interest Production Before Royalties
|
25,610
|
|
|
25,744
|
|
23,094
|
|
11
|
|
|
25,677
|
|
23,552
|
|
9
|
|
|||||
Royalties
|
(2,822
|
)
|
|
(4,049
|
)
|
(4,600
|
)
|
(12
|
)
|
|
(3,435
|
)
|
(4,240
|
)
|
(19
|
)
|
|||||
Production NAR
|
22,788
|
|
|
21,695
|
|
18,494
|
|
17
|
|
|
22,242
|
|
19,312
|
|
15
|
|
|||||
Decrease (Increase) in Inventory
|
2,642
|
|
|
723
|
|
(3,524
|
)
|
(121
|
)
|
|
1,682
|
|
(2,140
|
)
|
(179
|
)
|
|||||
Sales
(1)
|
25,430
|
|
|
22,418
|
|
14,970
|
|
50
|
|
|
23,924
|
|
17,172
|
|
39
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Netback ($000s)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Natural Gas Sales
|
$
|
57,403
|
|
|
$
|
71,713
|
|
$
|
69,350
|
|
3
|
|
|
$
|
129,116
|
|
$
|
145,581
|
|
(11
|
)
|
Operating Expenses
|
(19,067
|
)
|
|
(17,748
|
)
|
(17,758
|
)
|
—
|
|
|
(36,815
|
)
|
(40,419
|
)
|
(9
|
)
|
|||||
Transportation Expenses
|
(12,328
|
)
|
|
(6,217
|
)
|
(6,375
|
)
|
(2
|
)
|
|
(18,545
|
)
|
(15,148
|
)
|
22
|
|
|||||
Operating Netback
(2)
|
$
|
26,008
|
|
|
$
|
47,748
|
|
$
|
45,217
|
|
6
|
|
|
$
|
73,756
|
|
$
|
90,014
|
|
(18
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
General and Administrative Expenses ("G&A") ($000s)
|
$
|
8,286
|
|
|
$
|
7,975
|
|
$
|
10,298
|
|
(23
|
)
|
|
$
|
16,261
|
|
$
|
17,592
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net Loss ($000s)
|
$
|
(45,032
|
)
|
|
$
|
(63,559
|
)
|
(38,564
|
)
|
65
|
|
|
$
|
(108,591
|
)
|
$
|
(83,430
|
)
|
30
|
|
|
EBITDA ($000s)
(3)
|
$
|
24,184
|
|
|
$
|
40,532
|
|
$
|
31,710
|
|
28
|
|
|
$
|
64,716
|
|
$
|
73,067
|
|
(11
|
)
|
Adjusted EBITDA ($000s)
(3)
|
$
|
13,257
|
|
|
$
|
41,313
|
|
$
|
34,679
|
|
19
|
|
|
$
|
54,570
|
|
$
|
64,498
|
|
(15
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities ($000s)
|
$
|
10,812
|
|
|
$
|
27,412
|
|
$
|
3,223
|
|
751
|
|
|
$
|
38,224
|
|
$
|
5,568
|
|
586
|
|
Funds Flow From Operations ($000s)
(4)
|
$
|
11,563
|
|
|
$
|
33,755
|
|
$
|
25,040
|
|
35
|
|
|
$
|
45,318
|
|
$
|
54,036
|
|
(16
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital Expenditures ($000s)
|
$
|
26,180
|
|
|
$
|
18,407
|
|
$
|
17,872
|
|
3
|
|
|
$
|
44,587
|
|
$
|
91,318
|
|
(51
|
)
|
|
As at
|
||||||
|
June 30, 2016
|
December 31, 2015
|
% Change
|
||||
Cash, Cash Equivalents and Current Restricted Cash ($000s)
|
$
|
181,186
|
|
$
|
145,434
|
|
25
|
|
|
|
|
||||
Working Capital ($000s)
|
$
|
210,815
|
|
$
|
160,449
|
|
31
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
EBITDA - Non-GAAP Measure ($000s)
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
Net loss
|
$
|
(45,032
|
)
|
|
$
|
(63,559
|
)
|
|
$
|
(38,564
|
)
|
|
$
|
(108,591
|
)
|
|
$
|
(83,430
|
)
|
Adjustments to reconcile net loss to EBITDA
|
|
|
|
|
|
|
|
|
|
||||||||||
DD&A expenses
|
36,912
|
|
|
31,884
|
|
|
39,188
|
|
|
68,796
|
|
|
88,328
|
|
|||||
Asset impairment
|
56,898
|
|
|
92,843
|
|
|
30,285
|
|
|
149,741
|
|
|
67,299
|
|
|||||
Income tax (recovery) expense
|
(25,113
|
)
|
|
(22,837
|
)
|
|
801
|
|
|
(47,950
|
)
|
|
870
|
|
|||||
Interest expense
|
519
|
|
|
2,201
|
|
|
—
|
|
|
2,720
|
|
|
—
|
|
|||||
EBITDA
|
24,184
|
|
|
$
|
40,532
|
|
|
$
|
31,710
|
|
|
64,716
|
|
|
73,067
|
|
|||
Gain on acquisition
|
(11,712
|
)
|
|
—
|
|
|
—
|
|
|
(11,712
|
)
|
|
—
|
|
|||||
Foreign exchange loss (gain)
|
785
|
|
|
781
|
|
|
2,969
|
|
|
1,566
|
|
|
(8,569
|
)
|
|||||
Adjusted EBITDA
|
$
|
13,257
|
|
|
$
|
41,313
|
|
|
$
|
34,679
|
|
|
$
|
54,570
|
|
|
$
|
64,498
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
Funds Flow From Operations - Non-GAAP Measure ($000s)
|
2016
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||
Net cash provided by operating activities
|
$
|
10,812
|
|
|
$
|
27,412
|
|
|
$
|
3,223
|
|
|
38,224
|
|
|
$
|
5,568
|
|
|
Adjustments to reconcile net cash provided by operating activities to funds flow from operations
|
|
|
|
|
|
|
|
|
|
||||||||||
Net change in assets and liabilities from operating activities
|
647
|
|
|
5,983
|
|
|
21,278
|
|
|
6,630
|
|
|
46,504
|
|
|||||
Cash settlement of asset retirement obligation
|
104
|
|
|
360
|
|
|
539
|
|
|
464
|
|
|
1,964
|
|
|||||
Funds flow from operations
|
$
|
11,563
|
|
|
$
|
33,755
|
|
|
$
|
25,040
|
|
|
$
|
45,318
|
|
|
$
|
54,036
|
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2016
|
|
2016
|
|
2015
|
|
% Change
|
|
2016
|
|
2015
|
|
% Change
|
||||||||||||
(Thousands of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and natural gas sales
|
|
$
|
57,403
|
|
|
$
|
71,713
|
|
|
$
|
69,350
|
|
|
3
|
|
|
$
|
129,116
|
|
|
$
|
145,581
|
|
|
(11
|
)
|
Operating expenses
|
|
19,067
|
|
|
17,748
|
|
|
17,758
|
|
|
—
|
|
|
36,815
|
|
|
40,419
|
|
|
(9
|
)
|
|||||
Transportation expenses
|
|
12,328
|
|
|
6,217
|
|
|
6,375
|
|
|
(2
|
)
|
|
18,545
|
|
|
15,148
|
|
|
22
|
|
|||||
Operating netback
(1)
|
|
26,008
|
|
|
47,748
|
|
|
45,217
|
|
|
6
|
|
|
73,756
|
|
|
90,014
|
|
|
(18
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
DD&A expenses
|
|
36,912
|
|
|
31,884
|
|
|
39,188
|
|
|
(19
|
)
|
|
68,796
|
|
|
88,328
|
|
|
(22
|
)
|
|||||
Asset impairment
|
|
56,898
|
|
|
92,843
|
|
|
30,285
|
|
|
207
|
|
|
149,741
|
|
|
67,299
|
|
|
123
|
|
|||||
G&A expenses
|
|
8,286
|
|
|
7,975
|
|
|
10,298
|
|
|
(23
|
)
|
|
16,261
|
|
|
17,592
|
|
|
(8
|
)
|
|||||
Severance expenses
|
|
1,018
|
|
|
281
|
|
|
1,988
|
|
|
(86
|
)
|
|
1,299
|
|
|
6,366
|
|
|
(80
|
)
|
|||||
Equity tax
|
|
3,051
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,051
|
|
|
3,769
|
|
|
(19
|
)
|
|||||
Foreign exchange loss (gain)
|
|
785
|
|
|
781
|
|
|
2,969
|
|
|
(74
|
)
|
|
1,566
|
|
|
(8,569
|
)
|
|
118
|
|
|||||
Financial instruments loss (gain)
|
|
845
|
|
|
(1,072
|
)
|
|
(1,366
|
)
|
|
(22
|
)
|
|
(227
|
)
|
|
(1,408
|
)
|
|
84
|
|
|||||
|
|
107,795
|
|
|
132,692
|
|
|
83,362
|
|
|
59
|
|
|
240,487
|
|
|
173,377
|
|
|
39
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on acquisition
|
|
11,712
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,712
|
|
|
—
|
|
|
—
|
|
|||||
Interest expense
|
|
(519
|
)
|
|
(2,201
|
)
|
|
—
|
|
|
—
|
|
|
(2,720
|
)
|
|
—
|
|
|
—
|
|
|||||
Interest income
|
|
449
|
|
|
749
|
|
|
382
|
|
|
96
|
|
|
1,198
|
|
|
803
|
|
|
49
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss before income taxes
|
|
(70,145
|
)
|
|
(86,396
|
)
|
|
(37,763
|
)
|
|
129
|
|
|
(156,541
|
)
|
|
(82,560
|
)
|
|
90
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current income tax expense
|
|
(2,023
|
)
|
|
(5,778
|
)
|
|
(5,684
|
)
|
|
2
|
|
|
(7,801
|
)
|
|
(8,109
|
)
|
|
(4
|
)
|
|||||
Deferred income tax recovery
|
|
27,136
|
|
|
28,615
|
|
|
4,883
|
|
|
486
|
|
|
55,751
|
|
|
7,239
|
|
|
670
|
|
|||||
|
|
25,113
|
|
|
22,837
|
|
|
(801
|
)
|
|
—
|
|
|
47,950
|
|
|
(870
|
)
|
|
—
|
|
|||||
Net loss
|
|
$
|
(45,032
|
)
|
|
$
|
(63,559
|
)
|
|
$
|
(38,564
|
)
|
|
65
|
|
|
$
|
(108,591
|
)
|
|
$
|
(83,430
|
)
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales Volumes
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and NGL's, bbl
|
|
2,292,116
|
|
|
2,020,722
|
|
|
1,349,127
|
|
|
50
|
|
|
4,312,836
|
|
|
3,084,025
|
|
|
40
|
|
|||||
Natural gas, Mcf
|
|
132,265
|
|
|
115,968
|
|
|
78,578
|
|
|
48
|
|
|
248,233
|
|
|
144,605
|
|
|
72
|
|
|||||
Total sales volumes, BOE
|
|
2,314,160
|
|
2,040,050
|
|
1,362,223
|
|
50
|
|
|
4,354,208
|
|
3,108,126
|
|
40
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total sales volumes, BOEPD
|
|
25,430
|
|
|
22,418
|
|
|
14,970
|
|
|
50
|
|
|
23,924
|
|
|
17,172
|
|
|
39
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average Prices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and NGL's per bbl
|
|
$
|
24.88
|
|
|
$
|
35.31
|
|
|
$
|
51.18
|
|
|
(31
|
)
|
|
$
|
29.77
|
|
|
$
|
47.03
|
|
|
(37
|
)
|
Natural gas per Mcf
|
|
$
|
2.83
|
|
|
$
|
3.06
|
|
|
$
|
3.78
|
|
|
(19
|
)
|
|
$
|
2.94
|
|
|
$
|
3.82
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Brent Price per bbl
|
|
$
|
33.70
|
|
|
$
|
45.52
|
|
|
$
|
61.70
|
|
|
(26
|
)
|
|
$
|
39.61
|
|
|
$
|
57.81
|
|
|
(31
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated Results of Operations per BOE sales volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Oil and natural gas sales
|
|
$
|
24.81
|
|
|
$
|
35.15
|
|
|
$
|
50.91
|
|
|
(31
|
)
|
|
$
|
29.65
|
|
|
$
|
46.84
|
|
|
(37
|
)
|
Operating expenses
|
|
8.24
|
|
|
8.70
|
|
|
13.04
|
|
|
(33
|
)
|
|
8.46
|
|
|
13.00
|
|
|
(35
|
)
|
|||||
Transportation expenses
|
|
5.33
|
|
|
3.05
|
|
|
4.68
|
|
|
(35
|
)
|
|
4.26
|
|
|
4.88
|
|
|
(13
|
)
|
|||||
Operating netback
(1)
|
|
11.24
|
|
|
23.40
|
|
|
33.19
|
|
|
(29
|
)
|
|
16.93
|
|
|
28.96
|
|
|
(42
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
DD&A expenses
|
|
15.95
|
|
|
15.63
|
|
|
28.77
|
|
|
(46
|
)
|
|
15.80
|
|
|
28.42
|
|
|
(44
|
)
|
|||||
Asset impairment
|
|
24.59
|
|
|
45.51
|
|
|
22.23
|
|
|
105
|
|
|
34.39
|
|
|
21.65
|
|
|
59
|
|
|||||
G&A expenses
|
|
3.58
|
|
|
3.91
|
|
|
7.56
|
|
|
(48
|
)
|
|
3.73
|
|
|
5.66
|
|
|
(34
|
)
|
|||||
Severance expenses
|
|
0.44
|
|
|
0.14
|
|
|
1.46
|
|
|
(90
|
)
|
|
0.30
|
|
|
2.05
|
|
|
(85
|
)
|
|||||
Equity tax
|
|
1.32
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.70
|
|
|
1.21
|
|
|
(42
|
)
|
|||||
Foreign exchange loss (gain)
|
|
0.34
|
|
|
0.38
|
|
|
2.18
|
|
|
83
|
|
|
0.36
|
|
|
(2.76
|
)
|
|
113
|
|
|||||
Financial instruments loss (gain)
|
|
0.37
|
|
|
(0.53
|
)
|
|
(1.00
|
)
|
|
(47
|
)
|
|
(0.05
|
)
|
|
(0.45
|
)
|
|
89
|
|
|||||
|
|
46.59
|
|
65.04
|
|
61.20
|
|
6
|
|
|
55.23
|
|
55.78
|
|
(1
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain on acquisition
|
|
5.06
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.69
|
|
|
—
|
|
|
—
|
|
|||||
Interest expense
|
|
(0.22
|
)
|
|
(1.08
|
)
|
|
—
|
|
|
—
|
|
|
(0.62
|
)
|
|
—
|
|
|
—
|
|
|||||
Interest income
|
|
0.19
|
|
|
0.37
|
|
|
0.28
|
|
|
32
|
|
|
0.28
|
|
|
0.26
|
|
|
8
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss before income taxes
|
|
(30.32
|
)
|
|
(42.35
|
)
|
|
(27.73
|
)
|
|
53
|
|
|
(35.95
|
)
|
|
(26.56
|
)
|
|
35
|
|
|||||
Current income tax expense
|
|
(0.87
|
)
|
|
(2.83
|
)
|
|
(4.17
|
)
|
|
(32
|
)
|
|
(1.79
|
)
|
|
(2.61
|
)
|
|
(31
|
)
|
|||||
Deferred income tax recovery
|
|
11.73
|
|
|
14.03
|
|
|
3.58
|
|
|
292
|
|
|
12.80
|
|
|
2.33
|
|
|
449
|
|
|||||
|
|
10.86
|
|
|
11.20
|
|
|
(0.59
|
)
|
|
—
|
|
|
11.01
|
|
|
(0.28
|
)
|
|
—
|
|
|||||
Net loss
|
|
$
|
(19.46
|
)
|
|
$
|
(31.15
|
)
|
|
$
|
(28.32
|
)
|
|
10
|
|
|
$
|
(24.94
|
)
|
|
$
|
(26.84
|
)
|
|
(7
|
)
|
|
Three Months Ended June 30, 2016
|
|
Three Months Ended June 30, 2015
|
||||||||||
Average Daily Volumes (BOEPD)
|
Colombia
|
Brazil
|
Total
|
|
Colombia
|
Brazil
|
Total
|
||||||
Working Interest Production Before Royalties
|
24,818
|
|
926
|
|
25,744
|
|
|
22,601
|
|
493
|
|
23,094
|
|
Royalties
|
(3,921
|
)
|
(128
|
)
|
(4,049
|
)
|
|
(4,531
|
)
|
(69
|
)
|
(4,600
|
)
|
Production NAR
|
20,897
|
|
798
|
|
21,695
|
|
|
18,070
|
|
424
|
|
18,494
|
|
Decrease (Increase) in Inventory
|
713
|
|
10
|
|
723
|
|
|
(3,503
|
)
|
(21
|
)
|
(3,524
|
)
|
Sales
|
21,610
|
|
808
|
|
22,418
|
|
|
14,567
|
|
403
|
|
14,970
|
|
|
|
|
|
|
|
|
|
||||||
Royalties, % of Working Interest Production Before Royalties
|
16
|
%
|
14
|
%
|
16
|
%
|
|
20
|
%
|
14
|
%
|
20
|
%
|
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2015
|
||||||||||
Average Daily Volumes (BOEPD)
|
Colombia
|
Brazil
|
Total
|
|
Colombia
|
Brazil
|
Total
|
||||||
Working Interest Production Before Royalties
|
24,852
|
|
825
|
|
25,677
|
|
|
22,947
|
|
605
|
|
23,552
|
|
Royalties
|
(3,298
|
)
|
(137
|
)
|
(3,435
|
)
|
|
(4,157
|
)
|
(83
|
)
|
(4,240
|
)
|
Production NAR
|
21,554
|
|
688
|
|
22,242
|
|
|
18,790
|
|
522
|
|
19,312
|
|
Decrease (Increase) in Inventory
|
1,680
|
|
2
|
|
1,682
|
|
|
(2,145
|
)
|
5
|
|
(2,140
|
)
|
Sales
|
23,234
|
|
690
|
|
23,924
|
|
|
16,645
|
|
527
|
|
17,172
|
|
|
|
|
|
|
|
|
|
||||||
Royalties, % of Working Interest Production Before Royalties
|
13
|
%
|
17
|
%
|
13
|
%
|
|
18
|
%
|
14
|
%
|
18
|
%
|
|
Three Months Ended June 30, 2016
|
|
Three Months Ended June 30, 2015
|
||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
Brazil
|
Total
|
|
Colombia
|
Brazil
|
Total
|
||||||||||||
Oil and Gas Sales
|
$
|
69,271
|
|
$
|
2,442
|
|
$
|
71,713
|
|
|
$
|
67,627
|
|
$
|
1,723
|
|
$
|
69,350
|
|
Transportation Expenses
|
(6,105
|
)
|
(112
|
)
|
(6,217
|
)
|
|
(6,348
|
)
|
(27
|
)
|
(6,375
|
)
|
||||||
|
63,166
|
|
2,330
|
|
65,496
|
|
|
61,279
|
|
1,696
|
|
62,975
|
|
||||||
Operating Expenses
|
(16,994
|
)
|
(754
|
)
|
(17,748
|
)
|
|
(14,921
|
)
|
(2,837
|
)
|
(17,758
|
)
|
||||||
Operating Netback
(1)
|
$
|
46,172
|
|
$
|
1,576
|
|
$
|
47,748
|
|
|
$
|
46,358
|
|
$
|
(1,141
|
)
|
$
|
45,217
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Dollars Per BOE
|
|
|
|
|
|
|
|
||||||||||||
Brent
|
|
|
$
|
45.52
|
|
|
|
|
$
|
61.70
|
|
||||||||
WTI
|
|
|
$
|
45.59
|
|
|
|
|
$
|
57.87
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||
Oil and Gas Sales
|
$
|
35.23
|
|
$
|
33.20
|
|
$
|
35.15
|
|
|
$
|
51.02
|
|
$
|
46.92
|
|
$
|
50.91
|
|
Transportation Expenses
|
(3.10
|
)
|
(1.52
|
)
|
(3.05
|
)
|
|
(4.79
|
)
|
(0.74
|
)
|
(4.68
|
)
|
||||||
|
32.13
|
|
31.68
|
|
32.1
|
|
|
46.23
|
|
46.18
|
|
46.23
|
|
||||||
Operating Expenses
|
(8.64
|
)
|
(10.25
|
)
|
(8.70
|
)
|
|
(11.26
|
)
|
(77.26
|
)
|
(13.04
|
)
|
||||||
Operating Netback
(1)
|
$
|
23.49
|
|
$
|
21.43
|
|
$
|
23.40
|
|
|
$
|
34.97
|
|
$
|
(31.08
|
)
|
$
|
33.19
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2015
|
||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
Brazil
|
Total
|
|
Colombia
|
Brazil
|
Total
|
||||||||||||
Oil and Natural Gas Sales
|
$
|
125,571
|
|
$
|
3,545
|
|
$
|
129,116
|
|
|
$
|
141,694
|
|
$
|
3,887
|
|
$
|
145,581
|
|
Transportation Expenses
|
(18,361
|
)
|
(184
|
)
|
(18,545
|
)
|
|
(15,030
|
)
|
(118
|
)
|
(15,148
|
)
|
||||||
|
107,210
|
|
3,361
|
|
110,571
|
|
|
126,664
|
|
3,769
|
|
130,433
|
|
||||||
Operating Expenses
|
(36,158
|
)
|
(657
|
)
|
(36,815
|
)
|
|
(36,213
|
)
|
(4,206
|
)
|
(40,419
|
)
|
||||||
Operating Netback
(1)
|
$
|
71,052
|
|
$
|
2,704
|
|
$
|
73,756
|
|
|
$
|
90,451
|
|
$
|
(437
|
)
|
$
|
90,014
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Dollars Per bbl
|
|
|
|
|
|
|
|
||||||||||||
Brent
|
|
|
$
|
39.61
|
|
|
|
|
$
|
57.81
|
|
||||||||
WTI
|
|
|
$
|
39.52
|
|
|
|
|
$
|
53.25
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||
U.S. Dollars Per BOE
|
|
|
|
|
|
|
|
||||||||||||
Oil and Natural Gas Sales
|
$
|
29.70
|
|
$
|
28.19
|
|
$
|
29.65
|
|
|
$
|
47.03
|
|
$
|
40.77
|
|
$
|
46.84
|
|
Transportation Expenses
|
(4.34
|
)
|
(1.46
|
)
|
(4.26
|
)
|
|
(4.99
|
)
|
(1.24
|
)
|
(4.88
|
)
|
||||||
|
25.36
|
|
26.73
|
|
25.39
|
|
|
42.04
|
|
39.53
|
|
41.96
|
|
||||||
Operating Expenses
|
(8.55
|
)
|
(5.22
|
)
|
(8.46
|
)
|
|
(12.02
|
)
|
(44.12
|
)
|
(13.00
|
)
|
||||||
Operating Netback
(1)
|
$
|
16.81
|
|
$
|
21.51
|
|
$
|
16.93
|
|
|
$
|
30.02
|
|
$
|
(4.59
|
)
|
$
|
28.96
|
|
|
Three Months Ended June 30, 2016
|
|
Three Months Ended June 30, 2015
|
||||||||||
|
DD&A expenses, thousands of U.S. Dollars
|
DD&A expenses, U.S. Dollars Per BOE
|
|
DD&A expenses, thousands of U.S. Dollars
|
DD&A expenses, U.S. Dollars Per BOE
|
||||||||
Colombia
|
$
|
30,458
|
|
$
|
15.49
|
|
|
$
|
37,061
|
|
$
|
27.96
|
|
Brazil
|
1,024
|
|
13.92
|
|
|
1,575
|
|
42.89
|
|
||||
Peru
|
71
|
|
—
|
|
|
147
|
|
—
|
|
||||
Corporate
|
331
|
|
—
|
|
|
405
|
|
—
|
|
||||
|
$
|
31,884
|
|
$
|
15.63
|
|
|
$
|
39,188
|
|
$
|
28.77
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2016
|
|
Six Months Ended June 30, 2015
|
||||||||||
|
DD&A expenses, thousands of U.S. Dollars
|
DD&A expenses, U.S. Dollars Per BOE
|
|
DD&A expenses, thousands of U.S. Dollars
|
DD&A expenses, U.S. Dollars Per BOE
|
||||||||
Colombia
|
$
|
66,194
|
|
$
|
15.65
|
|
|
$
|
83,316
|
|
$
|
27.65
|
|
Brazil
|
1,742
|
|
13.85
|
|
|
3,836
|
|
40.24
|
|
||||
Peru
|
212
|
|
—
|
|
|
414
|
|
—
|
|
||||
Corporate
|
648
|
|
—
|
|
|
762
|
|
—
|
|
||||
|
$
|
68,796
|
|
$
|
15.80
|
|
|
$
|
88,328
|
|
$
|
28.42
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||
(Thousands of U.S. Dollars)
|
|
2016
|
2015
|
|
2016
|
2015
|
||||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
||||||||
Colombia
|
|
$
|
78,208
|
|
$
|
—
|
|
|
$
|
132,776
|
|
$
|
—
|
|
Brazil
|
|
14,152
|
|
25,000
|
|
|
15,402
|
|
29,333
|
|
||||
Peru
|
|
483
|
|
5,285
|
|
|
899
|
|
37,966
|
|
||||
|
|
$
|
92,843
|
|
$
|
30,285
|
|
|
$
|
149,077
|
|
$
|
67,299
|
|
Impairment of inventory
|
|
—
|
|
—
|
|
|
664
|
|
—
|
|
||||
|
|
$
|
92,843
|
|
$
|
30,285
|
|
|
$
|
149,741
|
|
$
|
67,299
|
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
(Thousands of U.S. Dollars)
|
|
2016
|
|
2016
|
2015
|
% Change
|
|
2016
|
2015
|
% Change
|
||||||||||||
G&A Expenses
|
|
$
|
8,286
|
|
|
$
|
7,975
|
|
$
|
10,298
|
|
(23
|
)
|
|
$
|
16,261
|
|
$
|
17,592
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Dollars Per BOE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
G&A Expenses
|
|
$
|
3.58
|
|
|
$
|
3.91
|
|
$
|
7.56
|
|
(48
|
)
|
|
$
|
3.73
|
|
$
|
5.66
|
|
(34
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Change in the U.S. dollar against the Colombian peso
|
weakened by
|
|
strengthened by
|
|
weakened by
|
|
strengthened by
|
4%
|
|
0.4%
|
|
7%
|
|
8%
|
•
|
On the Chaza Block (100% working interest ("WI"), operated), we drilled and completed the Moqueta 22 development well, which was completed as an oil producer. We also commenced civil works for the Cumplidor-1 well on the Putumayo-7 Block (100% WI, operated).
|
•
|
We continued facilities work at the Moqueta Field on the Chaza Block.
|
Date: August 5, 2016
|
|
/s/ Gary Guidry
|
|
|
By: Gary Guidry
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: August 5, 2016
|
|
/s/ Ryan Ellson
|
|
|
By: Ryan Ellson
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial and Accounting Officer)
|
Exhibit No.
|
Description
|
|
Reference
|
2.1
|
Arrangement Agreement, dated November 12, 2015, between Gran Tierra Energy Inc. and Petroamerica Oil Corp.
|
|
Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, filed with the SEC on November 18, 2015 (SEC File No. 001-34018).
|
|
|
|
|
3.1
|
Amended and Restated Articles of Incorporation.
|
|
Incorporated by reference to Exhibit 3.1 to the Annual Report on Form 10-K, filed with the SEC on February 26, 2014 (SEC File No. 001-34018).
|
|
|
|
|
3.2
|
Amended and Restated Bylaws of Gran Tierra Energy Inc.
|
|
Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K, filed with the SEC on March 3, 2016 (SEC File No. 001-34018).
|
|
|
|
|
4.1
|
Indenture related to the 5.00% Convertible Senior Notes due 2021, dated as of April 6, 2016, between Gran Tierra Energy Inc. and U.S. Bank National Association
|
|
Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed with the SEC on April 6, 2016 (SEC File No. 001-34018).
|
|
|
|
|
4.2
|
Form of 5.00% Convertible Senior Notes due 2021.
|
|
Included as Exhibit A to Exhibit 4.1.
|
|
|
|
|
4.3
|
Subscription Receipt Agreement, dated July 8, 2016, by and between Gran Tierra Energy Inc. and Computershare Trust Company of Canada.
|
|
Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed with the SEC on July 14, 2016 (SEC File No. 001-34018).
|
|
|
|
|
4.4
|
Form of Registration Rights Agreement.
|
|
Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed with the SEC on July 14, 2016 (SEC File No. 001-34018).
|
|
|
|
|
10.1
|
Severance Agreement and Release dated April 6, 2016, between Gran Tierra Energy Canada ULC, Gran Tierra Energy Inc. and Duncan Nightingale.
|
|
Incorporated by reference to Exhibit 10.6 to the Quarterly Report on Form 10-Q, filed with the SEC on May 3, 2016 (SEC File No. 001-34018).
|
|
|
|
|
10.2
|
Share Purchase Agreement dated as of June 30, 2016, among Gran Tierra Energy International Holdings Ltd., Tribeca Oil & Gas Inc., Macquarie Bank Limited, Rorick Ventures Group Inc., as vendors, and PetroLatina Energy Limited.
|
|
Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, filed with the SEC on July 7, 2016 (SEC File No. 001-34018).
|
|
|
|
|
10.3
|
Second Amendment to Credit Agreement, dated as of June 2, 2016, by and among Gran Tierra Energy International Holdings Ltd., Gran Tierra Energy Inc., The Bank of Nova Scotia, and the lenders party thereto.
|
|
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed with the SEC on June 3, 2016 (SEC File No. 34018).
|
|
|
|
|
10.4
|
Executive Employment Agreement effective June 24, 2016, between Gran Tierra Energy Canada ULC, Gran Tierra Energy Inc. and Ed Caldwell
|
|
Filed herewith.
|
|
|
|
|
10.5
|
Executive Employment Agreement effective June 24, 2016, between Gran Tierra Energy Canada ULC, Gran Tierra Energy Inc. and Susan Mawdsley
|
|
Filed herewith.
|
|
|
|
|
10.6
|
Executive Employment Agreement effective June 24, 2016, between Gran Tierra Energy Canada ULC, Gran Tierra Energy Inc. and Glen Mah
|
|
Filed herewith.
|
|
|
|
|
10.7
|
Executive Employment Agreement effective June 24, 2016, between Gran Tierra Energy Canada ULC, Gran Tierra Energy Inc. and Rodger Trimble
|
|
Filed herewith.
|
|
|
|
|
12.1
|
Statement re: Computation of Ratio of Earnings to Fixed Charges
|
|
Filed herewith.
|
|
|
|
|
31.1
|
Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith.
|
|
|
|
|
31.2
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith.
|
|
|
|
|
32.1
|
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Furnished herewith.
|
1 Year Gran Tierra Energy Chart |
1 Month Gran Tierra Energy Chart |
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