Signing of the 11 contracts of the first auction of 2019 concludes

ANH SIGNS TWO NEW EXPLORATION AND PRODUCTION CONTRACTS FOR CONTINENTAL HYDROCARBONS WITH GRAN TIERRA ENERGY FOR BLOCKS VMM 24 AND LLA 85, WITH INVESTMENT COMMITMENTS OF NEARLY 32 MILLION DOLLARS. THE BLOCKS ARE LOCATED IN META AND SANTANDER

The cycle of allocation and subscription of contracts for oil blocks corresponding to the first window of the Permanent Area Allocation Process (PPAA), launched by the National Hydrocarbons Agency – ANH in February of this year, concludes with the signing of the last two contracts, out of the 11 blocks allocated, for blocks VMM 24 and LLA 85. These contracts, which cover a combined area of approximately 79,437 hectares, will be operated by Gran Tierra Energy, which also holds a 100% participation. The ANH estimates investment commitments close to 32 million dollars if the contracts are fully developed.

Block VMM 24 is located in the Middle Magdalena Valley basin and has an approximate area of 10,872 hectares. Block LLA 85, located in the Eastern Llanos basin, has an approximate area of 68,565 hectares.

Luis Miguel Morelli, president of the ANH, stated: «With the signing of these two contracts with Gran Tierra Energy, we close the allocation cycle of the 11 blocks offered in the first auction of the Permanent Area Allocation Process of this year. It is very satisfying that blocks VMM 24 and LLA 85 are taken on by Gran Tierra Energy, an efficient and responsible operator that has made a significant investment commitment in Colombia. For these contracts, the estimated investment commitments are close to 32 million dollars, an amount that, added to the nearly 400 million dollars from the nine contracts already signed, allows us to close the balance of the first half of the Permanent Area Allocation Process, and that of the five offshore E&P contracts, with an estimated investment of 1.5 billion dollars. The commitment to reactivate the oil sector, led by President Duque, is progressing steadily and with evident results, which encourages us to strive for more for the benefit of all Colombians.».

Gary Guidry, president and CEO of Gran Tierra Energy, commented: «Gran Tierra is very pleased to have signed the contracts for blocks VMM-24 and LLA-85. Block VMM-24 is located adjacent to the company's main assets in the Middle Magdalena Valley basin and is trending with our prolific Acordionero oil field. Block LLA-85 is also trending with existing fields that produce from the Mirador, Une, and Gachetá formations. Both blocks are close to existing infrastructure and have access to the international crude market. We believe these blocks have significant exploratory potential and fit perfectly into the company's diverse portfolio of reserves and resources in Colombia.»

The characteristics of the signed contracts and the estimated investment amounts are shown in the following chart: