GTE Break Out

[dan_s]

I think GTE has a lot of upside for us, which is why I moved it to the Small-Cap Growth Portfolio. First Call's price target is $10.28/share. - dan

Read: http://finance.yahoo.com/news/gran-tier ... 00071.html

"With the successful sale of the Argentina business, Gran Tierra Energy increases its focus on its exciting exploration and development drilling campaign in Colombia and Peru in the second half of 2014. We are currently drilling ahead on the Moqueta-13 development well, intended to be completed as a production well in the Moqueta field. In addition, planning is underway to drill four exploration wells in the second half of 2014 in the Putumayo Basin of Colombia" said Dana Coffield, Gran Tierra Energy President and Chief Executive Officer. "We continue to work towards starting long term test production at the Bretaña field in Peru, anticipated to start in the fourth quarter of this year, in addition to drilling an appraisal well in the field before year-end" concluded Coffield.

Argentina

Gran Tierra Energy successfully closed the sale of its Argentina business to Madalena Energy Inc. ("Madalena") (MVN.V) for an aggregate consideration of approximately US$69 million, comprising US$49 million in cash, US$14 million in Madalena shares, and expected working capital adjustments of approximately US$6 million. The effective date of this transaction is April 30, 2014.

[dan_s]

An updated Net Income & Cash Flow Forecast model for GTE has been posted under the Watch List Tab. My Fair Value Estimate has been increased to $12.00/share.

GTE trades at a discount because investors are afraid of Columbia, but this company has been operating down there for a long time and they have shown an ability to mitigate the risks. Their oil sells for about a $5/bbl discount to Brent. The lower realized price for oil used in my forecast model is net of transportation costs.