Gran Tierra Energy Successfully Closes the Sale of its Argentina Business

 Gran Tierra Energy Successfully Closes the Sale of its Argentina Business  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 /CNW/ - 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-looking statements") 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.  For investor and media inquiries please contact: Jason Crumley Director,  Investor Relations 403-265-3221 info@grantierra.com www.grantierra.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/June2014/25/c8803.html  CO: Gran Tierra Energy Inc. ST: Alberta NI: OIL MNA  
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