Gran Tierra Energy (GTE) Announces 2021 Year-End Reserves

Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE American: GTE)(NYSE MKT: GTE)(TSX: GTE)(LSE: GTE), a company focused on international oil exploration and production with assets currently in Colombia and Ecuador, today announced the Company's 2021 year-end reserves as evaluated by the Company's independent qualified reserves evaluator McDaniel & Associates Consultants Ltd. ("McDaniel") in a report with an effective date of December 31, 2021 (the "GTE McDaniel Reserves Report").

All dollar amounts are in United States ("U.S.") dollars and all reserves and production volumes are on a working interest before royalties ("WI") basis. Production is expressed in barrels ("bbl") of oil per day ("bopd"), while reserves are expressed in bbl, bbl of oil equivalent ("boe") or million boe ("MMBOE"), unless otherwise indicated. All reserves values, future net revenue and ancillary information contained in this press release have been prepared by McDaniel and calculated in compliance with Canadian National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and the Canadian Oil and Gas Evaluation Handbook ("COGEH") and derived from the GTE McDaniel Reserves Report, unless otherwise expressly stated. The following reserves categories are discussed in this press release: Proved Developed Producing ("PDP"), Proved ("1P"), 1P plus Probable ("2P") and 2P plus Possible ("3P").

Highlights

2021 Year-End Reserves and Values

• During 2021, Gran Tierra achieved:
  • Material growth in its 2021 year-end 1P NPV10 before tax valuation, which increased by 36% compared to 2020 year-end and 2P NPV10 before tax valuation, which increased by 22% over the same time period, driven by a successful development program and a strong recovery in oil prices. The Company's 2021 year-end 1P NPV10 and 2P NPV10 after tax valuations increased 21% and 9% respectively, compared to 2020 year-end.
  • Strong PDP reserves replacement of 148%, with PDP reserves additions of 14.3 MMBOE.
  • Strong 1P reserves replacement of 123%, with 1P reserves additions of 11.9 MMBOE.
  • The material PDP and 1P reserve additions were largely driven by successful development drilling results at Acordionero and Costayaco, where the Company achieved on-budget development drilling costs and ongoing successful waterflooding operations.
  • Finding and development costs ("F&D") including future development costs ("FDC") of $9.51/boe on a PDP basis and $18.44/boe on a 1P basis.
  • Three-year average F&D including FDC of $17.08/boe on a 1P basis.
  • Strong F&D recycle ratios including FDC of 4.0 times (PDP) and 2.0 times (1P).
  • Significant reserves additions at Acordionero: 7.4 MMBOE (PDP) and 7.5 MMBOE (1P).
• Gran Tierra's four major oil assets, Acordionero, Costayaco, Moqueta and Suroriente (all on waterflood) represent 84% of the Company's 1P reserves and 78% of its 2P reserves.
• The Company is benefiting from ongoing material cost reductions for development drilling, completions and workovers in the Acordionero oil field, Gran Tierra's largest oil asset:
  • The Company drilled 20 development wells in Acordionero during 2021
  • These new wells were drilled for an average cost of approximately $1.1 million per well, a 27% reduction from the 2020 average and a 42% reduction from the 2019 average
  • These new wells' completion costs averaged approximately $0.7 million per well, down 14% from the 2020 average and down 41% from the 2019 average
  • The average 2021 workover cost of an existing well was $0.4 million per well, down 53% from the 2019 average
• PDP reserves account for 59% of 1P reserves and 1P reserves account for 65% of 2P reserves, demonstrating the strength of the Company's reserves base and the potential future conversion of Probable reserves into 1P reserves and Proved Undeveloped reserves into PDP reserves.
• Gran Tierra's mature waterflood assets, Costayaco and Moqueta, continued to grow and deliver value, with total reserves additions of 4.6 MMBOE (PDP) and 4.8 MMBOE (1P), respectively.
• FDC are forecast to be $382 million for 1P reserves and $578 million for 2P reserves; increases in FDC relative to 2020 reflect that McDaniel has now recognized 61 Proved Undeveloped future drilling locations (up from 48 in 2020) and 94 Proved plus Probable Undeveloped future drilling locations (up from 81 in 2020).

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “During 2021, Gran Tierra achieved strong 148% PDP and 123% 1P reserves replacement through our successful results from our development drilling, waterflooding programs and field performance. We completed our 2021 development plan on-budget including waterflooding efforts and development drilling in the Acordionero and Costayaco oil fields, as well as workover activities in the Moqueta oil field. The success the Company achieved in 2021 also reflects our ongoing conversion of reserves from the Probable to the Proved category. With 94 Proved plus Probable Undeveloped future drilling locations, Gran Tierra is well positioned to continue to grow the Company's production in 2022 and beyond.

During 2021, a combination of our ongoing reductions in per well drilling, completion and workover costs, our focus on maintaining low operating costs and the strong rebound in oil prices drove significant increases in our NAV per share after tax values to $1.59 per share (1P), up 124% from 2020, and $2.92 per share (2P), up 31% from 2020. With this significant growth in our NAV per share values in 2021, we believe Gran Tierra is well positioned to potentially offer exceptional long-term stakeholder value."

Future Net Revenue

Future net revenue reflects McDaniel’s forecast of revenue estimated using forecast prices and costs, arising from the anticipated development and production of reserves, after the deduction of royalties, operating costs, development costs and abandonment and reclamation costs but before consideration of indirect costs such as administrative, overhead and other miscellaneous expenses. The estimate of future net revenue below does not necessarily represent fair market value.

*The after-tax net present value of the Company's oil and gas properties reflects the tax burden on the properties on a stand-alone basis. It does not consider the corporate tax situation, or tax planning. It does not provide an estimate of the value at the Company level which may be significantly different. The Company's financial statements, when available for the year ended December 31, 2021, should be consulted for information at the Company level.

Total Company WI Reserves

The following table summarizes Gran Tierra’s NI 51-101 and COGEH compliant reserves in Colombia and Ecuador derived from the GTE McDaniel Reserves Report calculated using forecast oil and gas prices and costs. Gran Tierra has determined that Ecuador reserves, included in Total Probable and Total Possible reserve categories for Light and Medium Crude Oil, are not material to present separately on a country basis. Therefore all amounts are presented on a consolidated basis.

*Mbbl (thousand barrels of oil). **MMcf (million cubic feet).***MBOE (thousand boe).

Net Present Value Summary

Gran Tierra's reserves were evaluated using McDaniel's commodity price forecasts at January 1, 2022. It should not be assumed that the net present value of cash flow estimated by McDaniel represents the fair market value of the reserves.

Total Company WI Reserves Reconciliation

Reserve Life Index

* Calculated using average fourth quarter 2021 WI production of 29,493 bopd.

Future Development Costs

FDC reflects McDaniel's best estimate of what it will cost to bring the Proved Undeveloped and Probable reserves on production. Changes in forecast FDC occur annually as a result of development activities, acquisition and disposition activities, and changes in capital cost estimates based on improvements in well design and performance, as well as changes in service costs. FDC for 2P reserves increased to $578 million at year-end 2021 from $565 million at year-end 2020. The increase in FDC in 2021 was predominantly attributed to the increase in the numbers of future development well locations identified by McDaniel in the Acordionero field.

Finding and Development Costs

*Operating Netback is a Non-GAAP measure and does not have a standardized meaning under GAAP. Operating netback as presented is defined as oil sales less operating and transportation expenses. See "Non-GAAP Measures" in this press release.

Finding and Development Costs, Excluding FDC*

Finding and Development Costs, Including FDC*

Finding and Development Costs , Excluding FDC*

Finding and Development Costs , Including FDC*

*In all cases, the F&D number is calculated by dividing the identified capital expenditures by the applicable reserves additions both before and after changes in FDC costs. Both F&D costs take into account reserves revisions during the year on a per BOE basis. F&D recycle ratio is defined as fourth quarter operating netback per working interest sales volume BOE divided by the appropriate F&D costs on a per BOE basis. The aggregate of the exploration and development costs incurred in the financial year and the changes during that year in estimated future development costs may not reflect the total F&D costs related to reserves additions for that year.

Forecast prices

The pricing assumptions used in estimating NI 51-101 and COGEH compliant reserves data disclosed above with respect to net present values of future net revenue are set forth below. The price forecasts are based on McDaniel’s standard price forecast effective January 1, 2022. McDaniel is an independent qualified reserves evaluator and auditor pursuant to NI 51-101.

About Gran Tierra Energy Inc.

Gran Tierra Energy Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated in the United States, trading on the NYSE American (GTE), the Toronto Stock Exchange (GTE) and the London Stock Exchange (GTE), with assets currently in Colombia and Ecuador. Gran Tierra holds interests in producing and prospective properties in Colombia and prospective properties in Ecuador. Gran Tierra has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a base for future growth.

Gran Tierra's Securities and Exchange Commission filings are available on the SEC website at www.sec.gov and on SEDAR at www.sedar.com.

Contact Information

For investor and media inquiries please contact:

Gary Guidry, Chief Executive Officer

Ryan Ellson, Executive Vice President & Chief Financial Officer

Rodger Trimble, Vice President, Investor RelationsTel: +1.403.265.3221For more information on Gran Tierra please go to: www.grantierra.com.

1 Based on estimated year-end 2021 debt of $668 million comprised of Senior Notes of $600 million (gross) and $68 million under our credit facility, prepared in accordance with GAAP.

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