Gran Tierra Energy Announces 2014 Year-End Reserves; Terminates CEO

GTEGran Tierra (NYSE:GTE) released its 2014 reserves which excluded material revisions relating to data acquired in Peru after December 31, 2014. By the end of Q1/15, the company intends to release a new reserve report incorporating updated technical information from its Bretana field. At that time, the company will likely eliminate 3P reserves for Peru and reduce its 2P reserves. For year-end 2014, the company generated a slight addition in reserves (including the replacement of its production) after adjusting for the sale of its Argentine assets. The company reported 1P and 2P net-after-royalty (NAR) reserves of ~37 and 108 MMboe, respectively, versus 2013 reserves of ~40 and 109 MMboe, respectively. The updated reserves included adjustments of 4 MMboe of 1P and 6 MMboe of 2P reserves associated with the sale of Gran Tierra’s Argentine business unit.

In addition, Gran Tierra unexpectedly announced the termination of employment of Dana Coffield, its former President and CEO, while appointing Duncan Nightingale as Chief Operating Officer and Interim President and Chief Executive Officer. As Executive Chair, Jeffrey Scott will take on a more involved role in the day-to-day operations of the company.

Shares of Gran Tierra closed yesterday at $2.28 . GTE has a 1-year high of $8.18 and a 1-year low of $2.06. The stock’s 50-day moving average is $3.18 and its 200-day moving average is $4.90.

On the ratings front, Gran Tierra has been the subject of a number of recent research reports. In a report issued on January 26, Credit Suisse analyst David Phung downgraded GTE to Neutral with a price target of $3, which reflects a potential upside of 31.58% from last closing price. Separately, on November 14, J.P. Morgan’s Caio Carvalhal maintained a buy rating on the stock with a price target of $4.59.


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