Gran Tierra Energy Successfully Closes the Sale of its Argentina Business

  Gran Tierra Energy Successfully Closes the Sale of its Argentina Business

PR Newswire

CALGARY, June 25, 2014

Operations in Second Half of 2014 to Focus on Exploration in the Putumayo
Basin of Colombia and Further Development of the Bretaña Field in Peru

CALGARY, June 25, 2014  /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 announces  it has closed  the sale of  its 
Argentina business and provides a corporate update.

"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") (TSX-V: MVN) 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.

Colombia

Chaza Block, Putumayo Basin (100% Working Interest ("WI") and Operator)

The Eslabón  Sur  Shallow-1  and  Eslabón Sur  Deep-1  exploration  wells  are 
targeting the  same Cretaceous  Sandstones encountered  in the  Costayaco  and 
Moqueta discoveries and are expected to begin drilling in the third and fourth
quarters respectively of 2014.

The Corunta-1A exploration well  is expected to spud  in the third quarter  of 
2014 and will be drilled in  a northeast direction from the Costayaco-17  well 
pad targeting a downthrown fault block west of the Moqueta field.

The Moqueta-13 development well was spud on May 25, 2014, and is drilling in a
southeast direction from the  Moqueta-1 well pad.  Moqueta-13 is intended  to 
add to the production of the Moqueta field.

Putumayo-1 Block, Putumayo Basin  (55% WI and  Operator, Compania Espanola  de 
Petroleos Colombia, S.A.U. 45% working interest)

The Cabañas-1 exploration well is expected to be drilled in the fourth quarter
of 2014 in the Putumayo-1 Block. This block is immediately south of the Chaza
Block in  the Putumayo  basin where  Gran Tierra  Energy encountered  multiple 
explorations successes. The  Cabañas-1 well is  targeting the same  Cretaceous 
Sandstones encountered in the Costayaco and Moqueta discoveries.

Peru

Block 95, Bretaña Field(Gran Tierra Energy 100% WI and Operator)

Planning and construction is underway to initiate drilling of the Bretaña  Sur 
delineation well in the fourth quarter of 2014 to gather additional  reservoir 
data and further substantiate oil reserves in the field.

Work also continues towards starting long term test production at the  Bretaña 
field at approximately 2,500 barrels of  oil per day, which is anticipated  to 
start in the fourth quarter of this year.

Corporate Update

Production for the  months of April  and May was  consistent with Gran  Tierra 
Energy's internal  budget and  averaged approximately  21,466 barrels  of  oil 
equivalent per day ("BOEPD") net after royalty ("NAR") before adjustments  for 
inventory  changes  despite  not  having  access  to  the   Ecopetrol-operated 
Trans-Andean oil pipeline in Colombia  (the "OTA pipeline") for  approximately 
28 days  during this  time period.  A recent  landslide has  damaged the  OTA 
pipeline, with repairs expected  to be completed in  July. During this  time, 
Gran Tierra Energy plans to transport its oil by truck to continue sales.

With the transaction to sell its Argentina business closed, Gran Tierra Energy
estimates the  Argentina  business  unit  contributed  average  production  of 
approximately 1,365 BOEPD NAR to its full-year 2014 production estimate. Gran
Tierra Energy plans to reduce its  2014 corporate capital spending program  by 
an amount  comparable  to  the  planned Argentina  capital  program  of  US$48 
million, less the amount spent up to the closing date of the transaction.

About Gran Tierra Energy Inc.

Gran Tierra Energy is an international oil and gas exploration and  production 
company, headquartered in Calgary, Canada, incorporated in the United  States, 
trading on  the NYSE  MKT (GTE)  and  the Toronto  Stock Exchange  (GTE),  and 
operating in South America.  Gran Tierra Energy  holds interests in  producing 
and prospective properties in Colombia,  Peru, and Brazil. Gran Tierra  Energy 
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 Energy's Securities and Exchange Commission filings are  available 
on a  web  site  maintained  by the  Securities  and  Exchange  Commission  at 
http://www.sec.gov and on SEDAR at http://www.sedar.com.

Forward Looking Statements and Advisories

This  news   release   contains  certain   forward-looking   information   and 
forward-looking statements (collectively, "forward-lookingstatements")  under 
the meaning  of  applicable  securities laws,  including  Canadian  Securities 
Administrators' National Instrument 51-102 - Continuous Disclosure Obligations
and the United States  Private Securities Litigation Reform  Act of 1995.  The 
use  of  the  words  "will",  "should",  "planning",  "intended",  "continue", 
"anticipated"  and  "expected"  and  derivations  thereof  and  similar  terms 
identify forward-looking statements. In  particular, but without limiting  the 
foregoing, this news  release contains  forward-looking statements  regarding: 
Gran Tierra Energy's drilling, testing and production expectations,  including 
without limitation, the  timing of  operations, the  oil-bearing potential  of 
certain reservoirs and  expectations with  respect to  drilling locations  and 
depth, the results of drilling, testing and exploration activities; the timing
of  repairs  to  the  OTA  pipeline;  Gran  Tierra  Energy's  2014  production 
expectations and  projections; and  changes to  Gran Tierra  Energy's  planned 
capital program for 2014.

The forward-looking statements contained in this news release reflect  several 
material factors  and  expectations  and assumptions  of  Gran  Tierra  Energy 
including, without  limitation:  that  Gran Tierra  Energy  will  continue  to 
conduct its  operations  in a  manner  consistent with  past  operations;  the 
accuracy of testing and  production results and seismic  data; the effects  of 
certain drilling  techniques;  cost  and  price  estimates;  and  the  general 
continuance of current or,  where applicable, assumed operational,  regulatory 
and industry conditions.  Gran Tierra  Energy believes  the material  factors, 
expectations and assumptions reflected  in the forward-looking statements  are 
reasonable at this  time but  no assurance can  be given  that these  factors, 
expectations and assumptions will prove to be correct.

The forward-looking statements contained in  this news release are subject  to 
risks, uncertainties  and other  factors that  could cause  actual results  or 
outcomes to differ materially from  those contemplated by the  forward-looking 
statements, including,  among  others:  Gran Tierra  Energy's  operations  are 
located in South America where unexpected  problems can arise due to  guerilla 
activity and labour disruptions; the  OTA pipeline may continue to  experience 
disruptions and if further disruptions occur, service at the OTA pipeline  may 
not continue on the time lines or to the capacity expected by or favorable  to 
Gran Tierra Energy; attempts to mitigate the effect of disruptions of the  OTA 
pipeline may not have the impact currently anticipated by Gran Tierra  Energy; 
unexpected technical  difficulties  and operational  difficulties  may  occur, 
which could  impact  or delay  the  completion or  continuation  of  drilling; 
geographic, political  and weather  conditions can  interrupt drilling,  which 
could impact or delay the commencement  or continuation of drilling; the  risk 
that current  global economic  and  credit market  conditions may  impact  oil 
prices and oil consumption  more than Gran  Tierra Energy currently  predicts, 
which  could  cause  Gran  Tierra  Energy  to  change  its  current  drilling, 
production and  testing  plans;  and  production  data  should  be  considered 
preliminary until  a full  well  test interpretation  has been  done.  Further 
information on  potential factors  that could  affect Gran  Tierra Energy  are 
included in  risks  detailed  from  time  to  time  in  Gran  Tierra  Energy's 
Securities and  Exchange Commission  filings, including,  without  limitation, 
under the caption "Risk Factors" in  Gran Tierra Energy's Quarterly Report  on 
Form 10-Q  filed May  7,  2014. These  filings are  available  on a  Web  site 
maintained by the Securities and Exchange Commission at http://www.sec.gov and
on SEDAR at  www.sedar.com.The forward-looking  statements contained  herein 
are expressly qualified in  their entirety by  this cautionary statement.  The 
forward-looking statements included in this press  release are made as of  the 
date of this press release and  Gran Tierra Energy disclaims any intention  or 
obligation to update or  revise any forward-looking  statements, whether as  a 
result of new  information, future  events or otherwise,  except as  expressly 
required by applicable securities legislation.

BOE's may be misleading, particularly if  used in isolation. A BOE  conversion 
ratio of 6  Mcf: 1 bbl  is based  on an energy  equivalency conversion  method 
primarily applicable  at  the  burner  tip and  does  not  represent  a  value 
equivalency at the wellhead. In addition, given that the value ratio based  on 
the current  price  of oil  as  compared  with natural  gas  is  significantly 
different from the energy equivalent of six to one, utilizing a BOE conversion
ratio of 6 Mcf: 1 bbl would be misleading as an indication of value.

SOURCE Gran Tierra Energy Inc.

Contact:

For investor and media inquiries please contact:
Jason Crumley
Director, Investor Relations
403-265-3221
info@grantierra.com
www.grantierra.com
 
Press spacebar to pause and continue. Press esc to stop.