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 and on SEDAR at  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 and on SEDAR at 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  
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