GTE

[dan_s]

Gran Tierra Energy, Inc. (GTE): An updated profile has been posted under the Watch List Tab.

This small-cap is not for everyone because 100% of their operations are in South America. They sell their oil at approximately $5/bbl below Brent. 99% of current production is crude oil.

I'm going to drop it from the Small-Cap Growth Portfolio just due to lack of interest by EPG members and I need to make room for Diamondback Energy (FANG). However, I really like GTE and own it myself. It is hard to find small-caps with this much exploration upside. Plus, they have the strongest balance sheet of any of the companies I follow. They have over $300 million of cash in the bank today and no long-term debt.

Read carefully the update on their Bretana Prospect in Peru. It is a potential "Game Changer". GTE will put the first well on production by year-end. If it comes on at over 2,000 bopd as expected, the share price should go up. They believe the Bretana Field could ramp up to over 40,000 bopd, which is double the current production of the entire company.

[cviller]

Dan,
Just because we're quiet doesn't mean we're not interested. I hope you will continue to comment on GTE from time to time.
Thanks for the recent posts. I think your comments and analysis are most valuable during times like this.

[mingya]

Yes, I would also comment that I continue to show interest in this one. Hopefully it can still remain in the Watch List zone.

[rick]

I also own this one and since you own it I hope you keep us in the loop.

[davidc257]

Hope you continue to report on this one.

[dan_s]

I own GTE and I think it has incredible upside. I will keep it on the Watch List and update the profile as needed.

IMO investors get too caught up in historical results. Companies are not worth what they have done in the past, but what they have coming up. At any point in time, an E&P company is worth the value of its assets less liabilities. An E&P company's primary assets are its proven + probable + possible reserves (3P) in the ground and its land position. GTE has HUGE 3P reserves. It also controls over 10 million acres with concessions in Columbia, Peru and Brazil. I still cannot believe the market's reaction to GTE's Bretana discovery. It is a HUGE discover with an estimated 62 million barrels of recoverable oil. Their 3D seismic shows the potential for a lot more oil than that. The also are continuing to build reserves at Moqueta (see page 3 of the profile).

GTE is an extremely well funded company with strong cash flows from operations today and incredible exploration upside.

For those of you that do not own it, I highly recommend you read the profile we just sent out.

[mdcsubs]

ScotiaBank out with report (9-25) rating GTE as Sector Outperform - TP $12.50 (canadian $). Link to report (see page 24)

www.investorvillage.com/uploads/57919/files/sde26.pdf