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Gran Tierra Energy Announces Fourth Quarter and 2008 Year-End Financial Results.

Article Excerpt
Company Reports Record Increase in Year over Year Reserves, Production Volumes, and Revenues - Cash Balance Grows to $177 Million

CALGARY, Alberta, Feb. 26 /PRNewswire-FirstCall/ -- Gran Tierra Energy Inc. (NYSE Alternext: GTE, TSX: GTE), a company focused on oil exploration and production in South America, today announced financial and operating results for the quarter and year ended December 31, 2008. Highlights for the year include:

* 145% increase in average daily oil production over the prior year with a current production rate of approximately 12,000 barrels of oil per day (BOPD), net after royalty. * Record revenue and other income for the year of $114.0 million, an increase of 253% from $32.3 million for 2007. * Net income of $23.5 million or $0.19 per share basic and $0.16 per share diluted, compared to a net loss of $8.5 million or ($0.09) per share basic and diluted in 2007. * Cash and cash equivalents of $176.8 million compared to $57.8 million at September 30, 2008 and $18.2 million at December 31, 2007. Gran Tierra Energy continues to be debt free. Full Year 2008 Financial Highlights:

The company recognized revenue and other income of $114.0 million, an increase of 253% from $32.3 million for 2007. Net income for 2008 was $23.5 million or $0.19 per share basic and $0.16 per share diluted, compared to a net loss of $8.5 million or ($0.09) per share in 2007 basic and diluted. The 2008 results reflect increased production from the successful exploration and development programs in both Colombia and Argentina, higher oil prices based on a higher average West Texas Intermediate (WTI) oil price and the results of Solana Resources Limited from the November 14, 2008 acquisition date.

The average price received per barrel of oil in 2008 increased 44% to $84.89 per barrel from $58.79 per barrel in 2007.

Cash provided by operations for 2008 was $109.7 million compared to $8.8 million in 2007.

Fourth Quarter 2008 Financial Highlights:

Revenue and other income for the fourth quarter ended December 31, 2008 was $19.7 million, a 24% increase from $16.0 million for the same period of 2007. The company reported a net loss for the quarter of $12.7 million or $(0.07) per share diluted as compared to net income of $2.2 million, or $0.02 per share for the same period in 2007.

Included in the 2008 fourth quarter results are non-cash expenses resulting from the inclusion of Solana, comprised of a $7.3 million unrealized foreign exchange loss related to translation of a deferred tax liability, and additional depletion expense of $6.9 million.

A general strike in Colombia, which caused the suspension...

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