Gran Tierra Energy Inc.

The stable outlook reflects our view that GTE will continue focusing on increasing its oil production and reserves. The outlook also reflects our expectation that the company's leverage metric will remain at about 2.0x and liquidity to stay strong in the next 12-18 months. We could lower the rating if GTE's exploration efforts are unsuccessful, resulting in a production decline that could erode revenue and EBITDA, raising debt to EBITDA above 3.0x for a sustained period. A downgrade is also likely if the Brent oil prices drop sharply below our expectations. We don't believe a positive rating could occur during the next 12-18 months. However, we could raise the rating if the company increases its reserves and production base to

...Production is still concentrated in Colombia, and reserves remain below those of '##' rated peers.Gran Tierra Energy Inc.'s (GTE's) output mostly comes from Colombia, at its Acordionero, Costayaco, Moqueta, and Suroriente fields, which represent approximately 81% of total production. As of Dec. 31, 2019, GTE's 1P reserves reached 79 million barrels of oil equivalent (boe) and its 2P reserves 142 million boe, which remain below of industry peers such as Whiting Petroleum Corp. (##-/Stable/--) with 1P reserves of 520 million boe. We don't expect GTE to diminish its geographic concentration in the next 24 months. However, in the long term, the company could increase its reserves from the expansion of output at the Acordionero field and the drilling activities in Ecuador in 2020 and beyond....

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