Gran Tierra Energy Ord Shs T.GTE

Alternate Symbol(s): GTE

Energy Oil & Gas E&P

Gran Tierra Energy Inc. is an independent international energy company. The Company is focused on international oil and natural gas exploration and production with assets in Colombia and Ecuador. The Company has interests in approximately 22 blocks in Colombia, three blocks in Ecuador, and is the operator of 24 of these blocks. Its assets in Colombia represent approximately 97% of its production with oil reserves and production located in the Middle Magdalena Valley (MMV) and Putumayo Basin. In MMV, the Company’s field is the Acordionero field, where it produces approximately 17-degree American Petroleum Institute (API) oil, which represents 52% of total company production. The Putumayo production is approximately 27-degree API for Chaza Block and 18-degree API for Suoriente Block, representing 25% and 13% respectively, of total company production. It also has production base in Canada's hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea.

TSX:GTE - Post by User

Gran Tierra Energy Ord Shs

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Post by ModelT1on Dec 21, 2010 11:42am

623 Views

Post# 17876130

From TD Waterhouse today...sorry, no link.

Investment Conclusion

Gran Tierra’s 2011 capital budget announcement of $299 million was essentially in line with our expectations (after accounting for deferral of spending from the 2010 budget and a recently announced farm-in deal inPeru). Production guidance for 16-18 mBOE/d in 2011 was also in line with our expectations. The fact that the Pacayaco-1 exploration well failed to find its target reservoir is slightly negative, but not material to our outlook for the company.

Gran Tierra is trading in line with its peers based on NAV metrics, but at a premium to its peers on 2011E EV/DACF, and offers a return to our unchanged C$9.00 target of just 13%. As a result, we are maintaining our HOLD recommendation. However, Gran Tierra is arguably the most catalyst-rich stock in our coverage of International E&Ps through H1/11 (due to its high impact exploration campaign in Colombia and Peru).

As a result, we recommend existing investors wait for positive news, and others may want to consider buying on weakness.

GTLA...the best news is yet to come, IMHO.

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