Energy Prospectus

October 16
Gran Tierra Energy raises production guidance • 8:52 AM

> Gran Tierra Energy (GTE) says Q3 production of ~22.5K boe/day exceeded expectations, due to the continued strong reservoir performance from the Costayaco field and successful execution of transportation strategies.
> Anticipates 2013 average production of 21.5K-22.5K boe/day, above prior guidance of 21K-22K; ~96% is expected to consist of light oil, with the balance consisting of natural gas.
> GTE says successful testing of the Moqueta-11 well and the addition of three appraisal wells in the Moqueta field in Colombia helped continue operational momentum in the quarter.

When they start ramping up production at the Moqueta Field this stock should take off. Moqueta will be the big story in 2014 and Peru will be a HUGE story in 2015. - Dan

CALGARY, Oct. 16, 2013 /PRNewswire/ - Gran Tierra Energy Inc. ("Gran Tierra Energy") (NYSE MKT: GTE, TSX: GTE), a company focused on oil exploration and production in South America, today provided a production and operations update for its 2013 work program.

"Gran Tierra Energy continues its operational momentum with strong corporate wide production in the third quarter, the successful testing of Moqueta-11 and the addition of three appraisal wells to this year's program to further define new reserve potential in the Moqueta field in the Putumayo Basin, Colombia," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "The Moqueta-11 well tested two zones separately at a combined rate of almost 1,600 barrels of oil per day which should contribute to the growing production profile at the Moqueta field expected in 2014. Continued strong production and transportation performance throughout our portfolio has now led to another increase to Gran Tierra Energy's full-year production expectations," concluded Coffield.

Gran Tierra Energy Inc. (GTE): The company has released 3rd quarter actual production and increased their production guidance. An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

7 Reasons To Buy Gran Tierra Energy For $7 A Share

Disclosure: I am long TPLM. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)
As I look over my portfolio's holdings and performance as we start to near the end of the year, I am amazed at how many small E & P concerns have performed so well for me in 2013. To list just one example, Bakken producer Triangle Petroleum (TPLM) has more than doubled since I profiled it in June.

One $7 E & P concern that I should have hung on to was Gran Tierra Energy (GTE). I profiled this energy play late last year at when it was selling at $5 a share. I think I am going to correct that mistake the next time we get a pullback in the overall market as I believe there is still upside for this energy producer.

Gran Tierra Energy is an independent energy company with oil and gas properties in Colombia, Argentina, Peru, and Brazil.

7 reasons to buy GTE at ~$7 a share:

1.The company has beat earnings estimates on the bottom line for four straight quarters. The average beat over the consensus estimate during that time span is more than 25% per quarter.
2.The consensus analysts' earnings estimate for Both FY2013 & FY2014 have ticked up over the past three months.
3.Gran Tierra recently exceeded its Q3 production guidance and revised higher its overall 2013 production projections.
4.Over 95% of its projected 2013 production will consist of light oil. Only 4% will be from natural gas.
5.The company has a solid balance sheet with almost $300mm of net cash on the books which is unusual for a small E & P concern.
6.Revenue growth is tracking to better than a 30% gain this fiscal year and analysts see another ~10% gain in FY2014. Despite this growth and a history of beating bottom line earning expectations, the stock sells right at 11x forward earnings. This is a discount to its five year average (13.4).
7.The 14 analysts that cover the stock have an $8.80 a share price target on GTE. In the latest analyst action, Mizuho initiated the shares as a "Buy" in Mid-September.

http://seekingalpha.com/article/1749292 ... -7-a-share

Interesting that he mentions TPLM. I think it will top my Fair Value Estimate with a good Q3 report.

GTE looks like a Screaming Buy to me, BUT Columbia does scare many investors. Moqueta Field in Columbia is MUCH LARGER than their pre-drill estimates. GTE may have a VERY LARGE new discovery in Peru that could double the company's proven reserves. Read our profile.