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To: LoneClone who wrote (210601)	2/7/2012 11:18:09 PM
From: Veteran98	Read Replies (1) \| Respond to of 313059

GTE... Raymond James comments........ $10.00 target Gran Tierra Energy February 7, 2012 GTE-TSX \| GTE-AMEX Company Comment Rafi Khouri B.Sc, MBA \| 403.509.0560 \| rafi.khouri@raymondjames.ca Cynthia Yee (Associate) \| 403.221.0355 \| cynthia.yee@raymondjames.ca Ana Wessel (Associate) \| 403.509.0541 \| ana.wessel@raymondjames.ca International Oil & Gas Reports 2011 Year-End Reserves Event Gran Tierra reported 2011 year-end 2P reserves of 61.4 mmboe, up from 60.1 mmboe (combined Gran Tierra and Petrolifera reserves) at the end of 2010. While this represents a y/y increase, we note it was slightly below our risked reserve projection of 63.5 mmboe. The company also reported 4Q11 production of 18,600 boed which was in-line with our estimate of 18,568 boed. Action We maintain our Strong Buy rating but have lowered our target price to C$10.00/share, from C$10.50/share previously. Analysis The company replaced ~8.5 mmboe of production in 2011, as well as adding new reserves. We have adjusted our model to reflect reported 2011 reserves using a 2012 year-end calculation. This results in a new 2P reserve value of C$5.47/share, down from C$6.18/share prior. Other notable changes include lowering our risk factor associated with Colombia exploration (to 15% from 20% previously) to reflect our view that capital markets may wait for material Colombian exploration success prior to fully acknowledging the value associated with Gran Tierra's highly prospective land base. Furthermore, we have lowered our Peru exploration upside resource estimate, to reflect the company’s submission of documentation for the relinquishment of 3 blocks in late-2011. A caveat we would like to note is that our new valuation is based on partial disclosure and we will revisit our model once the company releases its NI 51-101 at the end of February. We believe investors are looking for material discoveries this year. Gran Tierra has an extensive drilling program planned for 2012, with 10 exploration wells and 18 delineation/development wells. Moreover, Moqueta still has the potential to grow in reserves/production – the delineation wells drilled have not yet found oil/water contact – and we anticipate material production adds from the field in 2013. Valuation Our valuation reflects our contingent risked NAV of C$10.25/share, compared to $10.38/share previously, due to the abovementioned changes. Please refer to Exhibit 1 for details.