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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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98-0479924
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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900, 520 - 3 Avenue SW
Calgary, Alberta Canada T2P 0R3 |
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(Address of principal executive offices, including zip code)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging growth company
o
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Page
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PART I
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Financial Information
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Item 1.
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Financial Statements
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Item 2.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 4.
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Controls and Procedures
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PART II
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Other Information
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Item 1.
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Legal Proceedings
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Item 1A.
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Risk Factors
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Item 2
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Unregistered Sales of Equity Securities and Use of Proceeds
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Item 6.
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Exhibits
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SIGNATURES
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||
EXHIBIT INDEX
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bbl
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barrel
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BOE
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barrels of oil equivalent
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Mbbl
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thousand barrels
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BOEPD
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barrels of oil equivalent per day
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Mcf
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thousand cubic feet
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bopd
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barrels of oil per day
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NAR
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net after royalty
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June 30,
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December 31,
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||||
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2017
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|
2016
|
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents (Note 11)
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$
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53,310
|
|
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$
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25,175
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Restricted cash and cash equivalents (Notes 7 and 11)
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5,844
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|
|
8,322
|
|
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Accounts receivable
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35,086
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|
|
45,698
|
|
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Derivatives (Note 10)
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2,424
|
|
|
578
|
|
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Inventory (Note 4)
|
7,170
|
|
|
7,766
|
|
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Taxes receivable
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24,934
|
|
|
26,393
|
|
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Prepaid taxes (Note 2)
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—
|
|
|
12,271
|
|
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Other prepaids
|
3,084
|
|
|
5,482
|
|
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Total Current Assets
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131,852
|
|
|
131,685
|
|
||
|
|
|
|
||||
Oil and Gas Properties (using the full cost method of accounting)
|
|
|
|
|
|
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Proved
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473,044
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|
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412,319
|
|
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Unproved
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610,211
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|
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647,774
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|
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Total Oil and Gas Properties
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1,083,255
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1,060,093
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|
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Other capital assets
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5,485
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|
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6,516
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|
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Total Property, Plant and Equipment (Notes 3 and 4)
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1,088,740
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1,066,609
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|
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|
|
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||||
Other Long-Term Assets
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|
|
|
|
|
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Deferred tax assets (Note 2)
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82,671
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|
|
1,611
|
|
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Prepaid taxes (Note 2)
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—
|
|
|
41,784
|
|
||
Restricted cash and cash equivalents (Notes 7 and 11)
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9,897
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|
|
9,770
|
|
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Other long-term assets
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13,894
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13,856
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|
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Goodwill (Note 3)
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102,581
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102,581
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|
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Total Other Long-Term Assets
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209,043
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169,602
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|
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Total Assets (Note 3)
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$
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1,429,635
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|
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$
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1,367,896
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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|
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|
|
|
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Current Liabilities
|
|
|
|
|
|
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Accounts payable and accrued liabilities
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$
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95,937
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|
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$
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107,051
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Derivatives (Note 10)
|
—
|
|
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3,824
|
|
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Taxes payable (Note 2)
|
2,419
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|
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38,939
|
|
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Asset retirement obligation (Note 7)
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541
|
|
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5,215
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|
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Total Current Liabilities
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98,897
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|
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155,029
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|
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|
|
|
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Long-Term Liabilities
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|
|
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|
|
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Long-term debt (Notes 5 and 10)
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263,613
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197,083
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|
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Deferred tax liabilities (Note 2)
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32,883
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|
|
107,230
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|
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Asset retirement obligation (Note 7)
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41,896
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38,142
|
|
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Other long-term liabilities
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11,565
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|
|
11,425
|
|
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Total Long-Term Liabilities
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349,957
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353,880
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|
||
|
|
|
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||||
Contingencies (Note 9)
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|
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|
|
|
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|
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||||
Shareholders’ Equity
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|
|
|
|
|
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Common Stock (Note 6) (386,741,630 and 390,807,194 shares of Common Stock and 8,029,564 and 8,199,894 exchangeable shares, par value $0.001 per share, issued and outstanding as at June 30, 2017, and December 31, 2016, respectively)
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10,299
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|
|
10,303
|
|
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Additional paid in capital
|
1,334,014
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|
|
1,342,656
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|
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Deficit
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(363,532
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)
|
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(493,972
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)
|
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Total Shareholders’ Equity
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980,781
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|
|
858,987
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|
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Total Liabilities and Shareholders’ Equity
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$
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1,429,635
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|
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$
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1,367,896
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|
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Six Months Ended June 30,
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||||||
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2017
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2016
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Operating Activities
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|
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Net income (loss)
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$
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5,964
|
|
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$
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(108,591
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)
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Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|||
Depletion, depreciation and accretion (Note 3)
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58,237
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|
|
68,796
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|
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Asset impairment (Notes 3 and 4)
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452
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149,741
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|
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Deferred tax expense (recovery)
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22,904
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(55,751
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)
|
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Stock-based compensation (Note 6)
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3,183
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|
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3,522
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|
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Amortization of debt issuance costs (Note 5)
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1,225
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|
629
|
|
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Cash settlement of restricted share units
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(501
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)
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(1,186
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)
|
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Unrealized foreign exchange loss
|
1,076
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50
|
|
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Financial instruments gain (Note 10)
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(6,886
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)
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(227
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)
|
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Cash settlement of financial instruments (Note 10)
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1,216
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|
|
47
|
|
||
Cash settlement of asset retirement obligation (Note 7)
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(298
|
)
|
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(464
|
)
|
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Loss on sale of Brazil business unit (Note 4)
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9,076
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|
|
—
|
|
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Gain on acquisition
|
—
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|
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(11,712
|
)
|
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Net change in assets and liabilities from operating activities (Note 11)
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(28,112
|
)
|
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(6,630
|
)
|
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Net cash provided by operating activities
|
67,536
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|
|
38,224
|
|
||
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|
|
|
||||
Investing Activities
|
|
|
|
|
|
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Additions to property, plant and equipment (Note 3)
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(104,025
|
)
|
|
(44,587
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)
|
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Additions to property, plant and equipment - property acquisitions (Note 4)
|
(30,410
|
)
|
|
(19,388
|
)
|
||
Net proceeds from sale of Brazil business unit (Note 4)
|
34,481
|
|
|
—
|
|
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Cash deposit received for letter of credit arrangements upon sale of Brazil business unit (Note 4)
|
4,700
|
|
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—
|
|
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Cash paid for business combinations, net of cash acquired
|
—
|
|
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(40,201
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)
|
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Changes in non-cash investing working capital
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(627
|
)
|
|
(11,059
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)
|
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Net cash used in investing activities
|
(95,881
|
)
|
|
(115,235
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
|
|
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Proceeds from bank debt, net of issuance costs (Note 5)
|
98,304
|
|
|
—
|
|
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Repayment of bank debt (Note 5)
|
(33,000
|
)
|
|
—
|
|
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Proceeds from issuance of shares of Common Stock, net of issuance costs
|
—
|
|
|
5,350
|
|
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Repurchase of shares of Common Stock (Note 6)
|
(10,000
|
)
|
|
—
|
|
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Proceeds from issuance of Convertible Senior Notes, net of issuance costs (Note 5)
|
—
|
|
|
108,900
|
|
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Net cash provided by financing activities
|
55,304
|
|
|
114,250
|
|
||
|
|
|
|
||||
Foreign exchange (loss) gain on cash, cash equivalents and restricted cash and cash equivalents
|
(1,175
|
)
|
|
1,946
|
|
||
|
|
|
|
||||
Net increase in cash, cash equivalents and restricted cash and cash equivalents
|
25,784
|
|
|
39,185
|
|
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Cash, cash equivalents and restricted cash and cash equivalents, beginning of period (Note 11)
|
43,267
|
|
|
148,751
|
|
||
Cash, cash equivalents and restricted cash and cash equivalents, end of period (Note 11)
|
$
|
69,051
|
|
|
$
|
187,936
|
|
|
|
|
|
||||
Supplemental cash flow disclosures (Note 11)
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
Year Ended December 31,
|
||||
|
2017
|
|
2016
|
||||
Share Capital
|
|
|
|
||||
Balance, beginning of period
|
$
|
10,303
|
|
|
$
|
10,186
|
|
Issuance of Common Stock
|
—
|
|
|
117
|
|
||
Repurchase of Common Stock (Note 6)
|
(4
|
)
|
|
—
|
|
||
Balance, end of period
|
10,299
|
|
|
10,303
|
|
||
|
|
|
|
||||
Additional Paid in Capital
|
|
|
|
|
|
||
Balance, beginning of period
|
1,342,656
|
|
|
1,019,863
|
|
||
Issuance of Common Stock, net of share issuance costs
|
—
|
|
|
314,425
|
|
||
Exercise of stock options
|
—
|
|
|
5,347
|
|
||
Stock-based compensation (Note 6)
|
1,354
|
|
|
3,021
|
|
||
Repurchase of Common Stock (Note 6)
|
(9,996
|
)
|
|
—
|
|
||
Balance, end of period
|
1,334,014
|
|
|
1,342,656
|
|
||
|
|
|
|
||||
Deficit
|
|
|
|
|
|
||
Balance, beginning of period
|
(493,972
|
)
|
|
(28,407
|
)
|
||
Net income (loss)
|
5,964
|
|
|
(465,565
|
)
|
||
Cumulative adjustment for accounting change related to tax reorganizations
(Note 2)
|
124,476
|
|
|
—
|
|
||
Balance, end of period
|
(363,532
|
)
|
|
(493,972
|
)
|
||
|
|
|
|
||||
Total Shareholders’ Equity
|
$
|
980,781
|
|
|
$
|
858,987
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Oil and natural gas sales
|
$
|
91,905
|
|
|
$
|
—
|
|
|
$
|
4,223
|
|
|
$
|
—
|
|
|
$
|
96,128
|
|
Depletion, depreciation and accretion
|
30,130
|
|
|
243
|
|
|
1,050
|
|
|
221
|
|
|
31,644
|
|
|||||
Asset impairment
|
—
|
|
|
169
|
|
|
—
|
|
|
—
|
|
|
169
|
|
|||||
General and administrative expenses
|
5,229
|
|
|
318
|
|
|
438
|
|
|
3,528
|
|
|
9,513
|
|
|||||
Income (loss) before income taxes
|
21,598
|
|
|
(767
|
)
|
|
1,849
|
|
|
(16,190
|
)
|
|
6,490
|
|
|||||
Segment capital expenditures
|
55,436
|
|
|
1,002
|
|
|
1,062
|
|
|
365
|
|
|
57,865
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended June 30, 2016
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Oil and natural gas sales
|
$
|
69,271
|
|
|
$
|
—
|
|
|
$
|
2,442
|
|
|
$
|
—
|
|
|
$
|
71,713
|
|
Depletion, depreciation and accretion
|
30,458
|
|
|
71
|
|
|
1,024
|
|
|
331
|
|
|
31,884
|
|
|||||
Asset impairment
|
78,208
|
|
|
483
|
|
|
14,152
|
|
|
—
|
|
|
92,843
|
|
|||||
General and administrative expenses
|
4,430
|
|
|
387
|
|
|
241
|
|
|
2,917
|
|
|
7,975
|
|
|||||
Loss before income taxes
|
(64,836
|
)
|
|
(744
|
)
|
|
(14,037
|
)
|
|
(6,779
|
)
|
|
(86,396
|
)
|
|||||
Segment capital expenditures
|
14,535
|
|
|
1,102
|
|
|
2,160
|
|
|
610
|
|
|
18,407
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Oil and natural gas sales
|
$
|
182,369
|
|
|
$
|
—
|
|
|
$
|
8,418
|
|
|
$
|
—
|
|
|
$
|
190,787
|
|
Depletion, depreciation and accretion
|
55,065
|
|
|
469
|
|
|
2,263
|
|
|
440
|
|
|
58,237
|
|
|||||
Asset impairment
|
—
|
|
|
452
|
|
|
—
|
|
|
—
|
|
|
452
|
|
|||||
General and administrative expenses
|
10,061
|
|
|
673
|
|
|
743
|
|
|
6,748
|
|
|
18,225
|
|
|||||
Income (loss) before income taxes
|
58,742
|
|
|
(1,280
|
)
|
|
3,369
|
|
|
(22,774
|
)
|
|
38,057
|
|
|||||
Segment capital expenditures
|
98,276
|
|
|
2,209
|
|
|
2,811
|
|
|
729
|
|
|
104,025
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Six Months Ended June 30, 2016
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Oil and natural gas sales
|
$
|
125,571
|
|
|
$
|
—
|
|
|
$
|
3,545
|
|
|
$
|
—
|
|
|
$
|
129,116
|
|
Depletion, depreciation and accretion
|
66,194
|
|
|
212
|
|
|
1,742
|
|
|
648
|
|
|
68,796
|
|
|||||
Asset impairment
|
133,440
|
|
|
899
|
|
|
15,402
|
|
|
—
|
|
|
149,741
|
|
|||||
General and administrative expenses
|
7,695
|
|
|
796
|
|
|
533
|
|
|
6,000
|
|
|
15,024
|
|
|||||
Loss before income taxes
|
(137,557
|
)
|
|
(1,456
|
)
|
|
(15,546
|
)
|
|
(1,982
|
)
|
|
(156,541
|
)
|
|||||
Segment capital expenditures
|
36,522
|
|
|
2,369
|
|
|
4,880
|
|
|
816
|
|
|
44,587
|
|
|
As at June 30, 2017
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Property, plant and equipment
|
$
|
1,015,295
|
|
|
$
|
70,116
|
|
|
$
|
—
|
|
|
$
|
3,329
|
|
|
$
|
1,088,740
|
|
Goodwill
|
102,581
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,581
|
|
|||||
All other assets
|
182,723
|
|
|
11,290
|
|
|
—
|
|
|
44,301
|
|
|
238,314
|
|
|||||
Total Assets
|
$
|
1,300,599
|
|
|
$
|
81,406
|
|
|
$
|
—
|
|
|
$
|
47,630
|
|
|
$
|
1,429,635
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
As at December 31, 2016
|
||||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
|
Peru
|
|
Brazil
|
|
All Other
|
|
Total
|
||||||||||
Property, plant and equipment
|
$
|
939,947
|
|
|
$
|
68,428
|
|
|
$
|
55,196
|
|
|
$
|
3,038
|
|
|
$
|
1,066,609
|
|
Goodwill
|
102,581
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
102,581
|
|
|||||
All other assets
|
177,393
|
|
|
10,848
|
|
|
1,619
|
|
|
8,846
|
|
|
198,706
|
|
|||||
Total Assets
|
$
|
1,219,921
|
|
|
$
|
79,276
|
|
|
$
|
56,815
|
|
|
$
|
11,884
|
|
|
$
|
1,367,896
|
|
(Thousands of U.S. Dollars)
|
As at June 30, 2017
|
|
As at December 31, 2016
|
||||
Oil and natural gas properties
|
|
|
|
|
|||
Proved
|
$
|
2,767,842
|
|
|
$
|
2,652,171
|
|
Unproved
|
610,211
|
|
|
647,774
|
|
||
|
3,378,053
|
|
|
3,299,945
|
|
||
Other
|
29,832
|
|
|
29,445
|
|
||
|
3,407,885
|
|
|
3,329,390
|
|
||
Accumulated depletion, depreciation and impairment
|
(2,319,145
|
)
|
|
(2,262,781
|
)
|
||
|
$
|
1,088,740
|
|
|
$
|
1,066,609
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Impairment of oil and gas properties
|
$
|
169
|
|
|
$
|
92,843
|
|
|
$
|
452
|
|
|
$
|
149,077
|
|
Impairment of inventory
|
—
|
|
|
—
|
|
|
—
|
|
|
664
|
|
||||
|
$
|
169
|
|
|
$
|
92,843
|
|
|
$
|
452
|
|
|
$
|
149,741
|
|
(Thousands of U.S. Dollars)
|
|
||
Cost of asset acquisition:
|
|
||
Cash
|
$
|
30,410
|
|
|
|
||
Allocation of Consideration Paid:
|
|
||
Oil and gas properties
|
|
||
Proved
|
$
|
24,405
|
|
Unproved
|
8,649
|
|
|
|
33,054
|
|
|
Inventory
|
869
|
|
|
Asset retirement obligation - long-term
|
(3,513
|
)
|
|
|
$
|
30,410
|
|
(Thousands of U.S. Dollars)
|
As at December 31, 2016
|
||
Current assets
|
$
|
1,634
|
|
Property, plant and equipment
|
55,376
|
|
|
|
$
|
57,010
|
|
|
|
||
Current liabilities
|
$
|
(11,590
|
)
|
Long-term liabilities
|
(2,297
|
)
|
|
|
$
|
(13,887
|
)
|
(Thousands of U.S. Dollars)
|
|
As at June 30, 2017
|
|
As at December 31, 2016
|
||||
Convertible senior notes
|
|
$
|
115,000
|
|
|
$
|
115,000
|
|
Revolving credit facility
|
|
155,000
|
|
|
90,000
|
|
||
Unamortized debt issuance costs
|
|
(6,387
|
)
|
|
(7,917
|
)
|
||
Long-term debt
|
|
$
|
263,613
|
|
|
$
|
197,083
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Contractual interest and other financing expenses
|
$
|
2,711
|
|
|
$
|
1,712
|
|
|
$
|
5,201
|
|
|
$
|
2,091
|
|
Amortization of debt issuance costs
|
620
|
|
|
489
|
|
|
1,225
|
|
|
629
|
|
||||
|
$
|
3,331
|
|
|
$
|
2,201
|
|
|
$
|
6,426
|
|
|
$
|
2,720
|
|
|
Shares of Common Stock
|
Exchangeable Shares of Gran Tierra Exchangeco Inc.
|
Exchangeable Shares of Gran Tierra Goldstrike Inc.
|
|||
Balance, December 31, 2016
|
390,807,194
|
|
4,812,592
|
|
3,387,302
|
|
Shares repurchased and canceled
|
(4,235,890
|
)
|
—
|
|
—
|
|
Exchange of exchangeable shares
|
170,330
|
|
(11,600
|
)
|
(158,730
|
)
|
Shares canceled
|
(4
|
)
|
—
|
|
—
|
|
Balance, June 30, 2017
|
386,741,630
|
|
4,800,992
|
|
3,228,572
|
|
|
PSUs
|
DSUs
|
RSUs
|
|
Stock Options
|
|||||||
|
Number of Outstanding Share Units
|
Number of Outstanding Share Units
|
Number of Outstanding Share Units
|
|
Number of Outstanding Stock Options
|
|
Weighted Average Exercise Price/Stock Option ($)
|
|||||
Balance, December 31, 2016
|
3,362,717
|
|
208,698
|
|
359,145
|
|
|
9,239,478
|
|
|
4.16
|
|
Granted
|
3,098,100
|
|
104,112
|
|
—
|
|
|
1,832,975
|
|
|
2.57
|
|
Exercised
|
—
|
|
—
|
|
(202,280
|
)
|
|
—
|
|
|
—
|
|
Forfeited
|
(274,228
|
)
|
—
|
|
(9,402
|
)
|
|
(208,438
|
)
|
|
(3.01
|
)
|
Expired
|
—
|
|
—
|
|
—
|
|
|
(1,396,667
|
)
|
|
(4.65
|
)
|
Balance, June 30, 2017
|
6,186,589
|
|
312,810
|
|
147,463
|
|
|
9,467,348
|
|
|
3.81
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||
Weighted average number of common and exchangeable shares outstanding
|
|
398,585,290
|
|
|
296,565,530
|
|
|
398,795,023
|
|
|
295,188,878
|
|
Shares issuable pursuant to stock options
|
|
—
|
|
|
—
|
|
|
625,631
|
|
|
—
|
|
Shares assumed to be purchased from proceeds of stock options
|
|
—
|
|
|
—
|
|
|
(604,563
|
)
|
|
—
|
|
Weighted average number of diluted common and exchangeable shares outstanding
|
|
398,585,290
|
|
|
296,565,530
|
|
|
398,816,091
|
|
|
295,188,878
|
|
|
Six Months Ended
|
|
Year Ended
|
||||
(Thousands of U.S. Dollars)
|
June 30, 2017
|
|
December 31, 2016
|
||||
Balance, beginning of period
|
$
|
43,357
|
|
|
$
|
33,224
|
|
Liability incurred
|
1,573
|
|
|
2,606
|
|
||
Liabilities assumed in acquisition
|
3,513
|
|
|
15,723
|
|
||
Accretion
|
1,686
|
|
|
2,789
|
|
||
Settlements
|
(466
|
)
|
|
(872
|
)
|
||
Liabilities associated with assets sold
|
(2,200
|
)
|
|
(3,257
|
)
|
||
Revisions in estimated liability
|
(5,026
|
)
|
|
(6,856
|
)
|
||
Balance, end of period
|
$
|
42,437
|
|
|
$
|
43,357
|
|
|
|
|
|
||||
Asset retirement obligation - current
|
$
|
541
|
|
|
$
|
5,215
|
|
Asset retirement obligation - long-term
|
41,896
|
|
|
38,142
|
|
||
|
$
|
42,437
|
|
|
$
|
43,357
|
|
(Thousands of U.S. Dollars)
|
|
As at June 30, 2017
|
|
As at December 31, 2016
|
||||
Commodity price derivative asset
|
|
$
|
2,424
|
|
|
$
|
—
|
|
Foreign currency derivative asset
|
|
—
|
|
|
578
|
|
||
|
|
$
|
2,424
|
|
|
$
|
578
|
|
|
|
|
|
|
||||
Commodity price derivative liability
|
|
$
|
—
|
|
|
$
|
3,824
|
|
RSU, PSU and DSU liability
|
|
5,528
|
|
|
3,907
|
|
||
|
|
$
|
5,528
|
|
|
$
|
7,731
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Commodity price derivative gain
|
$
|
(1,545
|
)
|
|
$
|
(1,334
|
)
|
|
$
|
(6,247
|
)
|
|
$
|
(1,334
|
)
|
Foreign currency derivatives loss (gain)
|
98
|
|
|
(1,118
|
)
|
|
(639
|
)
|
|
(1,118
|
)
|
||||
Trading securities loss
|
—
|
|
|
1,380
|
|
|
—
|
|
|
2,225
|
|
||||
Financial instruments gain
|
$
|
(1,447
|
)
|
|
$
|
(1,072
|
)
|
|
$
|
(6,886
|
)
|
|
$
|
(227
|
)
|
Period and type of instrument
|
Volume,
bopd |
Reference
|
Sold Put ($/bbl)
|
Purchased Put
($/bbl) |
Sold Call ($/bbl)
|
|||||||
Collar: October 1, 2016 to December 31, 2017
|
5,000
|
|
ICE Brent
|
$
|
35
|
|
$
|
45
|
|
$
|
65
|
|
Collar: June 1, 2017 to December 31, 2017
|
10,000
|
|
ICE Brent
|
$
|
35
|
|
$
|
45
|
|
$
|
65
|
|
Period and type of instrument
|
Amount Hedged
(Millions COP) |
U.S. Dollar Equivalent of Amount Hedged
(1)
(Thousands of U.S. Dollars)
|
Reference
|
Purchased Call
(COP) |
Sold Put
(COP, Weighted Average Rate) |
||||
Collar: July 1, 2017 to July 31, 2017
|
5,000
|
|
1,646
|
|
COP
|
3,000
|
|
3,138
|
|
Collar: August 1, 2017 to August 31, 2017
|
23,000
|
|
7,570
|
|
COP
|
3,000
|
|
3,116
|
|
Collar: September 1, 2017 to September 29, 2017
|
23,000
|
|
7,570
|
|
COP
|
3,000
|
|
3,105
|
|
Collar: October 1, 2017 to October 31, 2017
|
23,000
|
|
7,570
|
|
COP
|
3,000
|
|
3,117
|
|
Collar: November 1, 2017 to November 30, 2017
|
25,000
|
|
8,228
|
|
COP
|
3,000
|
|
3,139
|
|
Collar: December 1, 2017 to December 28, 2017
|
25,000
|
|
8,228
|
|
COP
|
3,000
|
|
3,142
|
|
|
124,000
|
|
40,812
|
|
|
|
|
(Thousands of U.S. Dollars)
|
|
As at June 30,
|
As at December 31
|
||||||||||
|
|
2017
|
2016
|
2016
|
2015
|
||||||||
Cash and cash equivalents
|
|
$
|
53,310
|
|
$
|
171,470
|
|
$
|
25,175
|
|
$
|
145,342
|
|
Restricted cash and cash equivalents - current
|
|
5,844
|
|
9,716
|
|
8,322
|
|
92
|
|
||||
Restricted cash and cash equivalents -
long-term
|
|
9,897
|
|
6,750
|
|
9,770
|
|
3,317
|
|
||||
|
|
$
|
69,051
|
|
$
|
187,936
|
|
$
|
43,267
|
|
$
|
148,751
|
|
|
Six Months Ended June 30,
|
||||||
(Thousands of U.S. Dollars)
|
2017
|
|
2016
|
||||
Accounts receivable and other long-term assets
|
$
|
11,024
|
|
|
$
|
(9,156
|
)
|
Derivatives
|
—
|
|
|
(4,562
|
)
|
||
Inventory
|
(47
|
)
|
|
4,365
|
|
||
Prepaids
|
2,190
|
|
|
1,102
|
|
||
Accounts payable and accrued and other long-term liabilities
|
(6,179
|
)
|
|
(5,628
|
)
|
||
Taxes receivable and payable
|
(35,100
|
)
|
|
7,249
|
|
||
Net changes in assets and liabilities from operating activities
|
$
|
(28,112
|
)
|
|
$
|
(6,630
|
)
|
|
Six Months Ended June 30,
|
||||||
(Thousands of U.S. Dollars)
|
2017
|
|
2016
|
||||
Non-cash investing activities:
|
|
|
|
||||
Net liabilities related to property, plant and equipment, end of period
|
$
|
56,044
|
|
|
$
|
24,497
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
|
2017
|
|
2017
|
2016
|
% Change
|
|
2017
|
2016
|
% Change
|
||||||||||||
Average Daily Volumes (BOEPD)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Working Interest Production Before Royalties
|
29,879
|
|
|
31,437
|
|
25,744
|
|
22
|
|
|
30,663
|
|
25,677
|
|
19
|
|
|||||
Royalties
|
(5,089
|
)
|
|
(5,014
|
)
|
(4,049
|
)
|
24
|
|
|
(5,051
|
)
|
(3,435
|
)
|
47
|
|
|||||
Production NAR
|
24,790
|
|
|
26,423
|
|
21,695
|
|
22
|
|
|
25,612
|
|
22,242
|
|
15
|
|
|||||
(Increase) Decrease in Inventory
|
18
|
|
|
(140
|
)
|
723
|
|
(119
|
)
|
|
(61
|
)
|
1,682
|
|
(104
|
)
|
|||||
Sales
(1)
|
24,808
|
|
|
26,283
|
|
22,418
|
|
17
|
|
|
25,551
|
|
23,924
|
|
7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Income (Loss) ($000s)
|
$
|
12,771
|
|
|
$
|
(6,807
|
)
|
$
|
(63,559
|
)
|
89
|
|
|
$
|
5,964
|
|
$
|
(108,591
|
)
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating Netback ($000s)
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and Natural Gas Sales
|
$
|
94,659
|
|
|
$
|
96,128
|
|
$
|
71,713
|
|
34
|
|
|
$
|
190,787
|
|
$
|
129,116
|
|
48
|
|
Operating Expenses
|
(23,937
|
)
|
|
(27,208
|
)
|
(17,748
|
)
|
53
|
|
|
(51,145
|
)
|
(36,815
|
)
|
39
|
|
|||||
Transportation Expenses
|
(6,942
|
)
|
|
(6,492
|
)
|
(6,217
|
)
|
4
|
|
|
(13,434
|
)
|
(18,545
|
)
|
(28
|
)
|
|||||
Operating Netback
(2)
|
$
|
63,780
|
|
|
$
|
62,428
|
|
$
|
47,748
|
|
31
|
|
|
$
|
126,208
|
|
$
|
73,756
|
|
71
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
General and Administrative Expenses ("G&A") ($000s)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
G&A Expenses Before Stock-Based Compensation, Gross
|
$
|
15,845
|
|
|
$
|
15,933
|
|
$
|
14,769
|
|
8
|
|
|
$
|
31,778
|
|
$
|
27,097
|
|
17
|
|
Stock-Based Compensation
|
1,149
|
|
|
1,903
|
|
1,988
|
|
(4
|
)
|
|
3,052
|
|
3,386
|
|
(10
|
)
|
|||||
Capitalized G&A and Overhead Recoveries
|
(8,282
|
)
|
|
(8,323
|
)
|
(8,782
|
)
|
(5
|
)
|
|
(16,605
|
)
|
(15,459
|
)
|
7
|
|
|||||
G&A Expenses, Including Stock-Based Compensation ($000s)
|
$
|
8,712
|
|
|
$
|
9,513
|
|
$
|
7,975
|
|
19
|
|
|
$
|
18,225
|
|
$
|
15,024
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
EBITDA ($000s)
(3)
|
$
|
61,538
|
|
|
$
|
41,634
|
|
$
|
40,532
|
|
3
|
|
|
$
|
103,172
|
|
$
|
64,716
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Funds Flow From Operations ($000s)
(4)
|
$
|
45,026
|
|
|
$
|
50,920
|
|
$
|
33,755
|
|
51
|
|
|
$
|
95,946
|
|
$
|
45,318
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital Expenditures ($000s)
|
$
|
46,160
|
|
|
$
|
57,865
|
|
$
|
18,407
|
|
214
|
|
|
$
|
104,025
|
|
$
|
44,587
|
|
133
|
|
|
As at
|
|||||||
(Thousands of U.S. Dollars)
|
June 30, 2017
|
December 31, 2016
|
% Change
|
|||||
Cash, Cash Equivalents and Current Restricted Cash and Cash Equivalents
|
$
|
59,154
|
|
$
|
33,497
|
|
77
|
|
|
|
|
|
|||||
Revolving Credit Facility
|
$
|
155,000
|
|
$
|
90,000
|
|
72
|
|
|
|
|
|
|||||
Convertible Senior Notes
|
$
|
115,000
|
|
$
|
115,000
|
|
—
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
EBITDA - Non-GAAP Measure ($000s)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||
Net income (loss)
|
$
|
12,771
|
|
|
$
|
(6,807
|
)
|
|
$
|
(63,559
|
)
|
|
$
|
5,964
|
|
|
$
|
(108,591
|
)
|
Adjustments to reconcile net income (loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
||||||||||
DD&A expenses
|
26,593
|
|
|
31,644
|
|
|
31,884
|
|
|
58,237
|
|
|
68,796
|
|
|||||
Asset impairment
|
283
|
|
|
169
|
|
|
92,843
|
|
|
452
|
|
|
149,741
|
|
|||||
Interest expense
|
3,095
|
|
|
3,331
|
|
|
2,201
|
|
|
6,426
|
|
|
2,720
|
|
|||||
Income tax expense (recovery)
|
18,796
|
|
|
13,297
|
|
|
(22,837
|
)
|
|
32,093
|
|
|
(47,950
|
)
|
|||||
EBITDA
|
$
|
61,538
|
|
|
$
|
41,634
|
|
|
$
|
40,532
|
|
|
$
|
103,172
|
|
|
$
|
64,716
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||
Funds Flow From Operations - Non-GAAP Measure ($000s)
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||
Net income (loss)
|
$
|
12,771
|
|
|
$
|
(6,807
|
)
|
|
$
|
(63,559
|
)
|
|
5,964
|
|
|
$
|
(108,591
|
)
|
|
Adjustments to reconcile net income (loss) to funds flow from operations
|
|
|
|
|
|
|
|
|
|
||||||||||
DD&A expenses
|
26,593
|
|
|
31,644
|
|
|
31,884
|
|
|
58,237
|
|
|
68,796
|
|
|||||
Asset impairment
|
283
|
|
|
169
|
|
|
92,843
|
|
|
452
|
|
|
149,741
|
|
|||||
Deferred tax expense (recovery)
|
11,379
|
|
|
11,525
|
|
|
(28,615
|
)
|
|
22,904
|
|
|
(55,751
|
)
|
|||||
Stock-based compensation expense
|
1,203
|
|
|
1,980
|
|
|
2,062
|
|
|
3,183
|
|
|
3,522
|
|
|||||
Amortization of debt issuance costs
|
605
|
|
|
620
|
|
|
489
|
|
|
1,225
|
|
|
629
|
|
|||||
Cash settlement of RSUs
|
(318
|
)
|
|
(183
|
)
|
|
(513
|
)
|
|
(501
|
)
|
|
(1,186
|
)
|
|||||
Unrealized foreign exchange (gain) loss
|
(2,819
|
)
|
|
3,895
|
|
|
233
|
|
|
1,076
|
|
|
50
|
|
|||||
Financial instruments gain
|
(5,439
|
)
|
|
(1,447
|
)
|
|
(1,072
|
)
|
|
(6,886
|
)
|
|
(227
|
)
|
|||||
Cash settlement of financial instruments
|
768
|
|
|
448
|
|
|
3
|
|
|
1,216
|
|
|
47
|
|
|||||
Loss on sale of Brazil business unit
|
—
|
|
|
9,076
|
|
|
—
|
|
|
9,076
|
|
|
—
|
|
|||||
Gain on acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,712
|
)
|
|||||
Funds flow from operations
|
$
|
45,026
|
|
|
$
|
50,920
|
|
|
$
|
33,755
|
|
|
$
|
95,946
|
|
|
$
|
45,318
|
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
|
2017
|
|
2017
|
|
2016
|
|
% Change
|
|
2017
|
|
2016
|
|
% Change
|
||||||||||||
(Thousands of U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and natural gas sales
|
|
$
|
94,659
|
|
|
$
|
96,128
|
|
|
$
|
71,713
|
|
|
34
|
|
|
$
|
190,787
|
|
|
$
|
129,116
|
|
|
48
|
|
Operating expenses
|
|
23,937
|
|
|
27,208
|
|
|
17,748
|
|
|
53
|
|
|
51,145
|
|
|
36,815
|
|
|
39
|
|
|||||
Transportation expenses
|
|
6,942
|
|
|
6,492
|
|
|
6,217
|
|
|
4
|
|
|
13,434
|
|
|
18,545
|
|
|
(28
|
)
|
|||||
Operating netback
(1)
|
|
63,780
|
|
|
62,428
|
|
|
47,748
|
|
|
31
|
|
|
126,208
|
|
|
73,756
|
|
|
71
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
DD&A expenses
|
|
26,593
|
|
|
31,644
|
|
|
31,884
|
|
|
(1
|
)
|
|
58,237
|
|
|
68,796
|
|
|
(15
|
)
|
|||||
Asset impairment
|
|
283
|
|
|
169
|
|
|
92,843
|
|
|
(100
|
)
|
|
452
|
|
|
149,741
|
|
|
(100
|
)
|
|||||
G&A expenses before stock-based compensation
|
|
7,563
|
|
|
7,610
|
|
|
5,987
|
|
|
27
|
|
|
15,173
|
|
|
11,638
|
|
|
30
|
|
|||||
Stock-based compensation expense
|
|
1,149
|
|
|
1,903
|
|
|
1,988
|
|
|
(4
|
)
|
|
3,052
|
|
|
3,386
|
|
|
(10
|
)
|
|||||
Transaction expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,237
|
|
|
(100
|
)
|
|||||
Severance expenses
|
|
—
|
|
|
—
|
|
|
281
|
|
|
(100
|
)
|
|
—
|
|
|
1,299
|
|
|
(100
|
)
|
|||||
Equity tax
|
|
1,224
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,224
|
|
|
3,051
|
|
|
(60
|
)
|
|||||
Foreign exchange (gain) loss
|
|
(1,847
|
)
|
|
3,897
|
|
|
781
|
|
|
399
|
|
|
2,050
|
|
|
1,566
|
|
|
31
|
|
|||||
Financial instruments gain
|
|
(5,439
|
)
|
|
(1,447
|
)
|
|
(1,072
|
)
|
|
(35
|
)
|
|
(6,886
|
)
|
|
(227
|
)
|
|
—
|
|
|||||
Interest expense
|
|
3,095
|
|
|
3,331
|
|
|
2,201
|
|
|
51
|
|
|
6,426
|
|
|
2,720
|
|
|
136
|
|
|||||
|
|
32,621
|
|
|
47,107
|
|
|
134,893
|
|
|
(65
|
)
|
|
79,728
|
|
|
243,207
|
|
|
(67
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss on sale of Brazil business unit
|
|
—
|
|
|
(9,076
|
)
|
|
—
|
|
|
—
|
|
|
(9,076
|
)
|
|
—
|
|
|
—
|
|
|||||
Gain on acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,712
|
|
|
(100
|
)
|
|||||
Interest income
|
|
408
|
|
|
245
|
|
|
749
|
|
|
(67
|
)
|
|
653
|
|
|
1,198
|
|
|
(45
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes
|
|
31,567
|
|
|
6,490
|
|
|
(86,396
|
)
|
|
108
|
|
|
38,057
|
|
|
(156,541
|
)
|
|
124
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current income tax expense
|
|
7,417
|
|
|
1,772
|
|
|
5,778
|
|
|
(69
|
)
|
|
9,189
|
|
|
7,801
|
|
|
18
|
|
|||||
Deferred income tax expense (recovery)
|
|
11,379
|
|
|
11,525
|
|
|
(28,615
|
)
|
|
140
|
|
|
22,904
|
|
|
(55,751
|
)
|
|
141
|
|
|||||
|
|
18,796
|
|
|
13,297
|
|
|
(22,837
|
)
|
|
158
|
|
|
32,093
|
|
|
(47,950
|
)
|
|
167
|
|
|||||
Net income (loss)
|
|
$
|
12,771
|
|
|
$
|
(6,807
|
)
|
|
$
|
(63,559
|
)
|
|
89
|
|
|
$
|
5,964
|
|
|
$
|
(108,591
|
)
|
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales Volumes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total sales volumes, BOEPD
|
|
24,808
|
|
|
26,283
|
|
|
22,418
|
|
|
17
|
|
|
25,551
|
|
|
23,924
|
|
|
7
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average Prices
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Oil and NGL's per bbl
|
|
$
|
42.96
|
|
|
$
|
40.44
|
|
|
$
|
35.31
|
|
|
15
|
|
|
$
|
41.65
|
|
|
$
|
29.77
|
|
|
40
|
|
Natural gas per Mcf
|
|
$
|
1.52
|
|
|
$
|
2.52
|
|
|
$
|
3.06
|
|
|
(18
|
)
|
|
$
|
1.91
|
|
|
$
|
2.94
|
|
|
(35
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Brent Price per bbl
|
|
$
|
54.66
|
|
|
$
|
50.92
|
|
|
$
|
45.52
|
|
|
12
|
|
|
$
|
52.79
|
|
|
$
|
39.61
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Results of Operations per BOE Sales Volumes NAR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Oil and natural gas sales
|
|
$
|
42.40
|
|
|
$
|
40.19
|
|
|
$
|
35.15
|
|
|
14
|
|
|
$
|
41.25
|
|
|
$
|
29.65
|
|
|
39
|
|
Operating expenses
|
|
10.72
|
|
|
11.38
|
|
|
8.70
|
|
|
31
|
|
|
11.06
|
|
|
8.46
|
|
|
31
|
|
|||||
Transportation expenses
|
|
3.11
|
|
|
2.71
|
|
|
3.05
|
|
|
(11
|
)
|
|
2.90
|
|
|
4.26
|
|
|
(32
|
)
|
|||||
Operating netback
(1)
|
|
28.57
|
|
|
26.10
|
|
|
23.40
|
|
|
12
|
|
|
27.29
|
|
|
16.93
|
|
|
61
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
DD&A expenses
|
|
11.91
|
|
|
13.23
|
|
|
15.63
|
|
|
(15
|
)
|
|
12.59
|
|
|
15.80
|
|
|
(20
|
)
|
|||||
Asset impairment
|
|
0.13
|
|
|
0.07
|
|
|
45.51
|
|
|
(100
|
)
|
|
0.10
|
|
|
34.39
|
|
|
(100
|
)
|
|||||
G&A expenses before stock-based compensation
|
|
3.39
|
|
|
3.18
|
|
|
2.94
|
|
|
8
|
|
|
3.28
|
|
|
2.67
|
|
|
23
|
|
|||||
Stock-based compensation expense
|
|
0.51
|
|
|
0.80
|
|
|
0.97
|
|
|
(18
|
)
|
|
0.66
|
|
|
0.78
|
|
|
(15
|
)
|
|||||
Transaction expenses
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.28
|
|
|
(100
|
)
|
|||||
Severance expenses
|
|
—
|
|
|
—
|
|
|
0.14
|
|
|
(100
|
)
|
|
—
|
|
|
0.30
|
|
|
(100
|
)
|
|||||
Equity tax
|
|
0.55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.26
|
|
|
0.70
|
|
|
(63
|
)
|
|||||
Foreign exchange (gain) loss
|
|
(0.83
|
)
|
|
1.63
|
|
|
0.38
|
|
|
(329
|
)
|
|
0.44
|
|
|
0.36
|
|
|
(22
|
)
|
|||||
Financial instruments gain
|
|
(2.44
|
)
|
|
(0.60
|
)
|
|
(0.53
|
)
|
|
(13
|
)
|
|
(1.49
|
)
|
|
(0.05
|
)
|
|
—
|
|
|||||
Interest expense
|
|
1.39
|
|
|
1.39
|
|
|
1.08
|
|
|
29
|
|
|
1.39
|
|
|
0.62
|
|
|
124
|
|
|||||
|
|
14.61
|
|
19.70
|
|
66.13
|
|
(70
|
)
|
|
17.23
|
|
55.85
|
|
(69
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss on sale of Brazil business unit
|
|
—
|
|
|
(3.79
|
)
|
|
—
|
|
|
—
|
|
|
(1.96
|
)
|
|
—
|
|
|
—
|
|
|||||
Gain on acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.69
|
|
|
(100
|
)
|
|||||
Interest income
|
|
0.18
|
|
|
0.10
|
|
|
0.37
|
|
|
(73
|
)
|
|
0.14
|
|
|
0.28
|
|
|
(50
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before income taxes
|
|
14.14
|
|
|
2.71
|
|
|
(42.36
|
)
|
|
106
|
|
|
8.24
|
|
|
(35.95
|
)
|
|
123
|
|
|||||
Current income tax expense
|
|
3.32
|
|
|
0.74
|
|
|
2.83
|
|
|
(74
|
)
|
|
1.99
|
|
|
1.79
|
|
|
11
|
|
|||||
Deferred income tax expense (recovery)
|
|
5.10
|
|
|
4.82
|
|
|
(14.03
|
)
|
|
134
|
|
|
4.95
|
|
|
(12.80
|
)
|
|
139
|
|
|||||
|
|
8.42
|
|
|
5.56
|
|
|
(11.20
|
)
|
|
150
|
|
|
6.94
|
|
|
(11.01
|
)
|
|
163
|
|
|||||
Net income (loss)
|
|
$
|
5.72
|
|
|
$
|
(2.85
|
)
|
|
$
|
(31.16
|
)
|
|
91
|
|
|
$
|
1.30
|
|
|
$
|
(24.94
|
)
|
|
105
|
|
|
Three Months Ended June 30, 2017
|
|
Three Months Ended June 30, 2016
|
||||||||||
Average Daily Volumes (BOEPD)
|
Colombia
|
Brazil
|
Total
|
|
Colombia
|
Brazil
|
Total
|
||||||
Working Interest Production Before Royalties
|
30,098
|
|
1,339
|
|
31,437
|
|
|
24,818
|
|
926
|
|
25,744
|
|
Royalties
|
(4,819
|
)
|
(195
|
)
|
(5,014
|
)
|
|
(3,921
|
)
|
(128
|
)
|
(4,049
|
)
|
Production NAR
|
25,279
|
|
1,144
|
|
26,423
|
|
|
20,897
|
|
798
|
|
21,695
|
|
(Increase) Decrease in Inventory
|
(147
|
)
|
7
|
|
(140
|
)
|
|
713
|
|
10
|
|
723
|
|
Sales
|
25,132
|
|
1,151
|
|
26,283
|
|
|
21,610
|
|
808
|
|
22,418
|
|
|
|
|
|
|
|
|
|
||||||
Royalties, % of Working Interest Production Before Royalties
|
16
|
%
|
15
|
%
|
16
|
%
|
|
16
|
%
|
14
|
%
|
16
|
%
|
|
|
|
|
|
|
|
|
||||||
|
Six Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2016
|
||||||||||
Average Daily Volumes (BOEPD)
|
Colombia
|
Brazil
|
Total
|
|
Colombia
|
Brazil
|
Total
|
||||||
Working Interest Production Before Royalties
|
29,294
|
|
1,369
|
|
30,663
|
|
|
24,852
|
|
825
|
|
25,677
|
|
Royalties
|
(4,843
|
)
|
(208
|
)
|
(5,051
|
)
|
|
(3,298
|
)
|
(137
|
)
|
(3,435
|
)
|
Production NAR
|
24,451
|
|
1,161
|
|
25,612
|
|
|
21,554
|
|
688
|
|
22,242
|
|
(Increase) Decrease in Inventory
|
(70
|
)
|
9
|
|
(61
|
)
|
|
1,680
|
|
2
|
|
1,682
|
|
Sales
|
24,381
|
|
1,170
|
|
25,551
|
|
|
23,234
|
|
690
|
|
23,924
|
|
|
|
|
|
|
|
|
|
||||||
Royalties, % of Working Interest Production Before Royalties
|
17
|
%
|
15
|
%
|
16
|
%
|
|
13
|
%
|
17
|
%
|
13
|
%
|
|
Three Months Ended June 30, 2017
|
|
Three Months Ended June 30, 2016
|
||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
Brazil
|
Total
|
|
Colombia
|
Brazil
|
Total
|
||||||||||||
Oil and Gas Sales
|
$
|
91,905
|
|
$
|
4,223
|
|
$
|
96,128
|
|
|
$
|
69,271
|
|
$
|
2,442
|
|
$
|
71,713
|
|
Transportation Expenses
|
(6,319
|
)
|
(173
|
)
|
(6,492
|
)
|
|
(6,105
|
)
|
(112
|
)
|
(6,217
|
)
|
||||||
|
85,586
|
|
4,050
|
|
89,636
|
|
|
63,166
|
|
2,330
|
|
65,496
|
|
||||||
Operating Expenses
|
(26,192
|
)
|
(1,016
|
)
|
(27,208
|
)
|
|
(16,994
|
)
|
(754
|
)
|
(17,748
|
)
|
||||||
Operating Netback
(1)
|
$
|
59,394
|
|
$
|
3,034
|
|
$
|
62,428
|
|
|
$
|
46,172
|
|
$
|
1,576
|
|
$
|
47,748
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Dollars Per BOE
|
|
|
|
|
|
|
|
||||||||||||
Brent
|
$
|
50.92
|
|
$
|
50.92
|
|
$
|
50.92
|
|
|
$
|
45.52
|
|
$
|
45.52
|
|
$
|
45.52
|
|
Quality and Transportation Discounts
|
(10.74
|
)
|
(10.62
|
)
|
(10.73
|
)
|
|
(10.29
|
)
|
(12.32
|
)
|
(10.37
|
)
|
||||||
Average Realized Price
|
$
|
40.18
|
|
$
|
40.30
|
|
$
|
40.19
|
|
|
$
|
35.23
|
|
$
|
33.20
|
|
$
|
35.15
|
|
Transportation Expenses
|
(2.76
|
)
|
(1.65
|
)
|
(2.71
|
)
|
|
(3.10
|
)
|
(1.52
|
)
|
(3.05
|
)
|
||||||
Average Realized Price Net of Transportation Expenses
|
37.42
|
|
38.65
|
|
37.48
|
|
|
32.13
|
|
31.68
|
|
32.10
|
|
||||||
Operating Expenses
|
(11.45
|
)
|
(9.69
|
)
|
(11.38
|
)
|
|
(8.64
|
)
|
(10.25
|
)
|
(8.70
|
)
|
||||||
Operating Netback
(1)
|
$
|
25.97
|
|
$
|
28.96
|
|
$
|
26.10
|
|
|
$
|
23.49
|
|
$
|
21.43
|
|
$
|
23.40
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2016
|
||||||||||||||||
(Thousands of U.S. Dollars)
|
Colombia
|
Brazil
|
Total
|
|
Colombia
|
Brazil
|
Total
|
||||||||||||
Oil and Natural Gas Sales
|
$
|
182,369
|
|
$
|
8,418
|
|
$
|
190,787
|
|
|
$
|
125,571
|
|
$
|
3,545
|
|
$
|
129,116
|
|
Transportation Expenses
|
(13,084
|
)
|
(350
|
)
|
(13,434
|
)
|
|
(18,361
|
)
|
(184
|
)
|
(18,545
|
)
|
||||||
|
169,285
|
|
8,068
|
|
177,353
|
|
|
107,210
|
|
3,361
|
|
110,571
|
|
||||||
Operating Expenses
|
(49,348
|
)
|
(1,797
|
)
|
(51,145
|
)
|
|
(36,158
|
)
|
(657
|
)
|
(36,815
|
)
|
||||||
Operating Netback
(1)
|
$
|
119,937
|
|
$
|
6,271
|
|
$
|
126,208
|
|
|
$
|
71,052
|
|
$
|
2,704
|
|
$
|
73,756
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Dollars Per BOE Sales Volumes NAR
|
|
|
|
|
|
|
|
||||||||||||
Brent
|
$
|
52.79
|
|
$
|
52.79
|
|
$
|
52.79
|
|
|
$
|
39.61
|
|
$
|
39.61
|
|
$
|
39.61
|
|
Quality and Transportation Discounts
|
(11.46
|
)
|
(13.03
|
)
|
(11.54
|
)
|
|
(9.91
|
)
|
(11.42
|
)
|
(9.96
|
)
|
||||||
Average Realized Price
|
41.33
|
|
39.76
|
|
41.25
|
|
|
29.70
|
|
28.19
|
|
29.65
|
|
||||||
Transportation Expenses
|
(2.96
|
)
|
(1.65
|
)
|
(2.90
|
)
|
|
(4.34
|
)
|
(1.46
|
)
|
(4.26
|
)
|
||||||
Average Realized Price Net of Transportation Expenses
|
38.37
|
|
38.11
|
|
38.35
|
|
|
25.36
|
|
26.73
|
|
25.39
|
|
||||||
Operating Expenses
|
(11.18
|
)
|
(8.49
|
)
|
(11.06
|
)
|
|
(8.55
|
)
|
(5.22
|
)
|
(8.46
|
)
|
||||||
Operating Netback
(1)
|
$
|
27.19
|
|
$
|
29.62
|
|
$
|
27.29
|
|
|
$
|
16.81
|
|
$
|
21.51
|
|
$
|
16.93
|
|
|
Second Quarter 2017 Compared with First Quarter 2017
|
Second Quarter 2017 Compared with Second Quarter 2016
|
|
Six Months Ended, June 30, 2017 Compared with Six Months Ended June 30, 2016
|
||||||
Oil and natural gas sales for the comparative period
|
$
|
94,659
|
|
$
|
71,713
|
|
|
$
|
129,116
|
|
Realized sales price (decrease) increase effect
|
(5,278
|
)
|
12,049
|
|
|
53,654
|
|
|||
Sales volume increase effect
|
6,747
|
|
12,366
|
|
|
8,017
|
|
|||
Oil and natural gas sales for period ended June 30, 2017
|
$
|
96,128
|
|
$
|
96,128
|
|
|
$
|
190,787
|
|
U.S. Dollars Per BOE Sales Volumes NAR
|
Second Quarter 2017 Compared with First Quarter 2017
|
Second Quarter 2017 Compared with Second Quarter 2016
|
Six Months Ended, June 30, 2017 Compared with Six Months Ended June 30, 2016
|
||||||
Average realized price net of transportation expenses for the comparative period
|
$
|
39.37
|
|
$
|
32.13
|
|
$
|
25.36
|
|
(Decrease) increase in benchmark prices
|
(3.74
|
)
|
$
|
5.40
|
|
13.18
|
|
||
Decrease (increase) in quality and transportation discounts
|
1.37
|
|
(0.45
|
)
|
(1.55
|
)
|
|||
Lower transportation expenses
|
0.42
|
|
0.34
|
|
1.38
|
|
|||
Average realized price net of transportation expenses for period ended June 30, 2017
|
$
|
37.42
|
|
$
|
37.42
|
|
$
|
38.37
|
|
|
Three Months Ended June 30, 2017
|
|
Three Months Ended June 30, 2016
|
||||||||||
|
DD&A expenses, thousands of U.S. Dollars
|
DD&A expenses, U.S. Dollars Per BOE
|
|
DD&A expenses, thousands of U.S. Dollars
|
DD&A expenses, U.S. Dollars Per BOE
|
||||||||
Colombia
|
$
|
30,130
|
|
$
|
13.17
|
|
|
$
|
30,458
|
|
$
|
15.49
|
|
Brazil
|
1,050
|
|
10.02
|
|
|
1,024
|
|
13.92
|
|
||||
Peru
|
243
|
|
—
|
|
|
71
|
|
—
|
|
||||
Corporate
|
221
|
|
—
|
|
|
331
|
|
—
|
|
||||
|
$
|
31,644
|
|
$
|
13.23
|
|
|
$
|
31,884
|
|
$
|
15.63
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2017
|
|
Six Months Ended June 30, 2016
|
||||||||||
|
DD&A expenses, thousands of U.S. Dollars
|
DD&A expenses, U.S. Dollars Per BOE
|
|
DD&A expenses, thousands of U.S. Dollars
|
DD&A expenses, U.S. Dollars Per BOE
|
||||||||
Colombia
|
$
|
55,065
|
|
$
|
12.48
|
|
|
$
|
66,194
|
|
$
|
15.65
|
|
Brazil
|
2,263
|
|
10.69
|
|
|
1,742
|
|
13.85
|
|
||||
Peru
|
469
|
|
—
|
|
|
212
|
|
—
|
|
||||
Corporate
|
440
|
|
—
|
|
|
648
|
|
—
|
|
||||
|
$
|
58,237
|
|
$
|
12.59
|
|
|
$
|
68,796
|
|
$
|
15.80
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||
(Thousands of U.S. Dollars)
|
|
2017
|
2016
|
|
2017
|
2016
|
||||||||
Impairment of oil and gas properties
|
|
|
|
|
|
|
||||||||
Colombia
|
|
$
|
—
|
|
$
|
78,208
|
|
|
$
|
—
|
|
$
|
132,776
|
|
Brazil
|
|
—
|
|
14,152
|
|
|
—
|
|
15,402
|
|
||||
Peru
|
|
169
|
|
483
|
|
|
452
|
|
899
|
|
||||
|
|
169
|
|
92,843
|
|
|
452
|
|
149,077
|
|
||||
Impairment of inventory
|
|
—
|
|
—
|
|
|
—
|
|
664
|
|
||||
|
|
$
|
169
|
|
$
|
92,843
|
|
|
$
|
452
|
|
$
|
149,741
|
|
|
|
Three Months Ended March 31,
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||
(Thousands of U.S. Dollars)
|
|
2017
|
|
2017
|
2016
|
% Change
|
|
2017
|
2016
|
% Change
|
||||||||||||
G&A Expenses Before Stock-Based Compensation
|
|
$
|
7,563
|
|
|
$
|
7,610
|
|
$
|
5,987
|
|
27
|
|
|
$
|
15,173
|
|
$
|
11,638
|
|
30
|
|
Stock-Based Compensation
|
|
1,149
|
|
|
1,903
|
|
1,988
|
|
(4
|
)
|
|
3,052
|
|
3,386
|
|
(10
|
)
|
|||||
G&A Expenses, Including Stock-Based Compensation
|
|
$
|
8,712
|
|
|
$
|
9,513
|
|
$
|
7,975
|
|
19
|
|
|
$
|
18,225
|
|
$
|
15,024
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Dollars Per BOE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
G&A Expenses Before Stock-Based Compensation
|
|
$
|
3.39
|
|
|
$
|
3.18
|
|
$
|
2.94
|
|
8
|
|
|
$
|
3.28
|
|
$
|
2.67
|
|
23
|
|
Stock-Based Compensation
|
|
0.51
|
|
|
0.80
|
|
0.97
|
|
(18
|
)
|
|
0.66
|
|
0.78
|
|
(15
|
)
|
|||||
G&A Expenses, Including Stock-Based Compensation
|
|
$
|
3.90
|
|
|
$
|
3.98
|
|
$
|
3.91
|
|
2
|
|
|
$
|
3.94
|
|
$
|
3.45
|
|
14
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Change in the U.S. dollar against the Colombian peso
|
strengthened by
|
|
weakened by
|
|
strengthened by
|
|
weakened by
|
6%
|
|
4%
|
|
1%
|
|
7%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Commodity price derivative gain
|
$
|
(1,545
|
)
|
|
$
|
(1,334
|
)
|
|
$
|
(6,247
|
)
|
|
$
|
(1,334
|
)
|
Foreign currency derivatives loss (gain)
|
98
|
|
|
(1,118
|
)
|
|
(639
|
)
|
|
(1,118
|
)
|
||||
Trading securities loss
|
—
|
|
|
1,380
|
|
|
—
|
|
|
2,225
|
|
||||
|
$
|
(1,447
|
)
|
|
$
|
(1,072
|
)
|
|
$
|
(6,886
|
)
|
|
$
|
(227
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
(Thousands of U.S. Dollars)
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Income (loss) before income tax
|
$
|
6,490
|
|
|
$
|
(86,396
|
)
|
|
$
|
38,057
|
|
|
$
|
(156,541
|
)
|
|
|
|
|
|
|
|
|
||||||||
Current income tax expense
|
$
|
1,772
|
|
|
$
|
5,778
|
|
|
$
|
9,189
|
|
|
$
|
7,801
|
|
Deferred income tax expense (recovery)
|
11,525
|
|
|
(28,615
|
)
|
|
22,904
|
|
|
(55,751
|
)
|
||||
Total income tax expense (recovery)
|
$
|
13,297
|
|
|
$
|
(22,837
|
)
|
|
$
|
32,093
|
|
|
$
|
(47,950
|
)
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
|
|
|
|
|
|
84
|
%
|
|
31
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Deferred income tax recovery related to Colombia ceiling test impairment
|
$
|
—
|
|
|
$
|
31,300
|
|
|
$
|
—
|
|
|
$
|
53,100
|
|
(Thousands of U.S. Dollars)
|
|
Second Quarter 2017 Compared with First Quarter 2017
|
% change
|
Second Quarter 2017 Compared with Second Quarter 2016
|
% change
|
Six Months Ended, June 30, 2017 Compared with Six Months Ended June 30, 2016
|
% change
|
|||||||||
Net income (loss) for the comparative period
|
|
$
|
12,771
|
|
|
$
|
(63,559
|
)
|
|
$
|
(108,591
|
)
|
|
|||
Increase (decrease) due to:
|
|
|
|
|
|
|
|
|||||||||
Prices
|
|
(5,278
|
)
|
|
12,049
|
|
|
53,654
|
|
|
||||||
Sales volumes
|
|
6,747
|
|
|
12,366
|
|
|
8,017
|
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|||||||||
Operating
|
|
(3,271
|
)
|
|
(9,460
|
)
|
|
(14,330
|
)
|
|
||||||
Transportation
|
|
450
|
|
|
(275
|
)
|
|
5,111
|
|
|
||||||
Cash G&A and RSU settlements, excluding stock-based compensation expense
|
|
111
|
|
|
(1,290
|
)
|
|
(2,855
|
)
|
|
||||||
Transaction
|
|
—
|
|
|
—
|
|
|
1,237
|
|
|
||||||
Severance
|
|
—
|
|
|
281
|
|
|
1,299
|
|
|
||||||
Interest, net of amortization of debt issuance costs
|
|
(221
|
)
|
|
(999
|
)
|
|
(3,110
|
)
|
|
||||||
Realized foreign exchange
|
|
968
|
|
|
545
|
|
|
542
|
|
|
||||||
Settlement of financial instruments
|
|
(320
|
)
|
|
445
|
|
|
1,169
|
|
|
||||||
Current taxes
|
|
5,645
|
|
|
4,006
|
|
|
(1,388
|
)
|
|
||||||
Equity tax
|
|
1,224
|
|
|
—
|
|
|
1,827
|
|
|
||||||
Other
|
|
(161
|
)
|
|
(503
|
)
|
|
(545
|
)
|
|
||||||
Net change in funds flow from comparative period
|
|
5,894
|
|
|
17,165
|
|
|
50,628
|
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|||||||||
Depletion, depreciation and accretion
|
|
(5,051
|
)
|
|
240
|
|
|
10,559
|
|
|
||||||
Asset impairment
|
|
114
|
|
|
92,674
|
|
|
149,289
|
|
|
||||||
Deferred tax
|
|
(146
|
)
|
|
(40,140
|
)
|
|
(78,655
|
)
|
|
||||||
Amortization of debt issuance costs
|
|
(15
|
)
|
|
(131
|
)
|
|
(596
|
)
|
|
||||||
Stock-based compensation, net of RSU settlement
|
|
(912
|
)
|
|
(248
|
)
|
|
(346
|
)
|
|
||||||
Financial instruments loss, net of financial instruments settlements
|
|
(3,672
|
)
|
|
(70
|
)
|
|
5,490
|
|
|
||||||
Unrealized foreign exchange
|
|
(6,714
|
)
|
|
(3,662
|
)
|
|
(1,026
|
)
|
|
||||||
Loss on sale of Brazil business unit
|
|
(9,076
|
)
|
|
(9,076
|
)
|
|
(9,076
|
)
|
|
||||||
Gain on acquisition
|
|
—
|
|
|
—
|
|
|
(11,712
|
)
|
|
||||||
Net change in net income or loss
|
|
(19,578
|
)
|
|
56,752
|
|
|
114,555
|
|
|
||||||
Net income (loss) for the current period
|
|
$
|
(6,807
|
)
|
(153
|
)%
|
$
|
(6,807
|
)
|
89
|
%
|
$
|
5,964
|
|
105
|
%
|
(Thousands of U.S. Dollars)
|
|
|
||
Colombia
|
|
$
|
55,436
|
|
Brazil
|
|
1,062
|
|
|
Peru
|
|
1,002
|
|
|
Corporate
|
|
365
|
|
|
|
|
$
|
57,865
|
|
•
|
On the Chaza Block (100% working interest ("WI"), operated), we completed the Costayaco-28 horizontal development well and successfully drilled and completed the second horizontal well, Costayaco-29. Preparations are underway for production testing at Costayaco-29. We also commenced a workover on the Moqueta-21 well.
|
•
|
On the Putumayo-7 Block (100% WI, operated), we drilled the Confianza-1 exploration well and successfully tested two new zones - U Sand and A Limestone and perforated the N Sand. We are currently executing two seismic programs. The first, the Cumplidor 3-D seismic program completed subsequent to the quarter. The second 3-D seismic survey is underway.
|
•
|
On the Midas Block (100% WI, operated), we completed the Acordionero-8i well as a planned water injector, continued drilling and completed the Acordionero-9 well and tested a new oil zone in the Lisama D, completed the Acordionero-10 well, drilled and completed the Acordionero-11 well, drilled the Acordionero-12 well and commenced drilling the Acordionero-13 well. We also performed a workover on the Acordionero-7 well.
|
•
|
On the Putumayo-1 Block (55% WI, operated), we drilled the Vonu-1 exploration well.
|
•
|
On the Suroriente Block (15.8% WI, non-operated), we drilled the Cohembi-20 development well.
|
•
|
We continued facilities work at the Moqueta and Acordionero Fields.
|
|
As at
|
|||||||||
(Thousands of U.S. Dollars)
|
June 30, 2017
|
|
% Change
|
|
December 31, 2016
|
|||||
Cash and Cash Equivalents
|
$
|
53,310
|
|
|
112
|
|
|
$
|
25,175
|
|
|
|
|
|
|
|
|||||
Current Restricted Cash and Cash Equivalents
|
$
|
5,844
|
|
|
(30
|
)
|
|
$
|
8,322
|
|
|
|
|
|
|
|
|||||
Revolving Credit Facility
|
$
|
155,000
|
|
|
72
|
|
|
$
|
90,000
|
|
|
|
|
|
|
|
|||||
Convertible Senior Notes
|
$
|
115,000
|
|
|
—
|
|
|
$
|
115,000
|
|
Period and type of instrument
|
Volume,
bopd |
Reference
|
Sold Put ($/bbl)
|
Purchased Put
($/bbl) |
Sold Call ($/bbl)
|
|||||||
Collar: October 1, 2016 to December 31, 2017
|
5,000
|
|
ICE Brent
|
$
|
35
|
|
$
|
45
|
|
$
|
65
|
|
Collar: June 1, 2017 to December 31, 2017
|
10,000
|
|
ICE Brent
|
$
|
35
|
|
$
|
45
|
|
$
|
65
|
|
Period and type of instrument
|
Amount Hedged
(Millions COP) |
U.S. Dollar Equivalent of Amount Hedged
(1)
(Thousands of U.S. Dollars)
|
Reference
|
Purchased Call
(COP) |
Sold Put
(COP, Weighted Average Rate) |
||||
Collar: July 1, 2017 to July 31, 2017
|
5,000
|
|
1,646
|
|
COP
|
3,000
|
|
3,138
|
|
Collar: August 1, 2017 to August 31, 2017
|
23,000
|
|
7,570
|
|
COP
|
3,000
|
|
3,116
|
|
Collar: September 1, 2017 to September 29, 2017
|
23,000
|
|
7,570
|
|
COP
|
3,000
|
|
3,105
|
|
Collar: October 1, 2017 to October 31, 2017
|
23,000
|
|
7,570
|
|
COP
|
3,000
|
|
3,117
|
|
Collar: November 1, 2017 to November 30, 2017
|
25,000
|
|
8,228
|
|
COP
|
3,000
|
|
3,139
|
|
Collar: December 1, 2017 to December 28, 2017
|
25,000
|
|
8,228
|
|
COP
|
3,000
|
|
3,142
|
|
|
124,000
|
|
40,812
|
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
2017
|
|
2016
|
||||
Sources of cash and cash equivalents:
|
|
|
|
||||
Funds flow from operations
|
$
|
95,946
|
|
|
$
|
45,318
|
|
Proceeds from bank debt, net of issuance costs
|
98,304
|
|
|
—
|
|
||
Proceeds from sale of Brazil business unit, net of cash sold
|
34,481
|
|
|
—
|
|
||
Cash deposit received for letter of credit arrangements upon sale of Brazil business unit
|
4,700
|
|
|
—
|
|
||
Proceeds from issuance of Notes, net of issuance costs
|
—
|
|
|
108,900
|
|
||
Foreign exchange gain on cash, cash equivalents and restricted cash and cash equivalents
|
—
|
|
|
1,946
|
|
||
Proceeds from issuance of shares
|
—
|
|
|
5,350
|
|
||
|
233,431
|
|
|
161,514
|
|
||
|
|
|
|
||||
Uses of cash and cash equivalents:
|
|
|
|
||||
Additions to property, plant and equipment
|
(104,025
|
)
|
|
(44,587
|
)
|
||
Additions to property, plant and equipment - property acquisitions
|
(30,410
|
)
|
|
(19,388
|
)
|
||
Repayment of debt
|
(33,000
|
)
|
|
—
|
|
||
Repurchase of shares of Common Stock
|
(10,000
|
)
|
|
—
|
|
||
Net changes in assets and liabilities from operating activities
|
(28,112
|
)
|
|
(6,630
|
)
|
||
Changes in non-cash investing working capital
|
(627
|
)
|
|
(11,059
|
)
|
||
Settlement of asset retirement obligations
|
(298
|
)
|
|
(464
|
)
|
||
Foreign exchange loss on cash, cash equivalents and restricted cash and cash equivalents
|
(1,175
|
)
|
|
—
|
|
||
Acquisition of PetroAmerica, net of cash acquired
|
—
|
|
|
(40,201
|
)
|
||
|
(207,647
|
)
|
|
(122,329
|
)
|
||
Net increase in cash and cash equivalents and restricted cash and cash equivalents
|
$
|
25,784
|
|
|
$
|
39,185
|
|
|
(a)
Total Number of Shares Purchased
(1)
|
(b)
Average Price Paid per Share
(2)
|
(c)
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
(d)
Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs
(3)
|
||||
Month #1 (April 1, 2017 - April 30, 2017)
|
—
|
|
—
|
|
—
|
|
19,540,359
|
|
Month #2 (May 1, 2017 - May 31, 2017)
|
1,138,246
|
|
2.44
|
|
1,138,246
|
|
18,402,113
|
|
Month #3 (June 1, 2017 - June 30, 2017)
|
3,097,644
|
|
2.33
|
|
3,097,644
|
|
15,304,469
|
|
Total
|
4,235,890
|
|
2.36
|
|
4,235,890
|
|
15,304,469
|
|
Date: August 3, 2017
|
|
/s/ Gary S. Guidry
|
|
|
By: Gary S. Guidry
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Date: August 3, 2017
|
|
/s/ Ryan Ellson
|
|
|
By: Ryan Ellson
|
|
|
Chief Financial Officer
|
|
|
(Principal Financial and Accounting Officer)
|
Exhibit No.
|
Description
|
|
Reference
|
2.1+
|
Arrangement Agreement, dated November 12, 2015, between Gran Tierra Energy Inc. and Petroamerica Oil Corp.
|
|
Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, filed with the SEC on November 18, 2015 (SEC File No. 001-34018).
|
|
|
|
|
2.2
|
Plan of Conversion, dated October 31, 2016.
|
|
Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, filed with the SEC on November 4, 2016 (SEC File No. 001-34018).
|
|
|
|
|
3.1
|
Certificate of Incorporation.
|
|
Incorporated by reference to Exhibit 3.3 to the Current Report on Form 8-K, filed with the SEC on November 4, 2016 (SEC File No. 001-34018).
|
|
|
|
|
3.2
|
Bylaws of Gran Tierra Energy Inc.
|
|
Incorporated by reference to Exhibit 3.4 to the Current Report on Form 8-K, filed with the SEC on November 4, 2016 (SEC File No. 001-34018).
|
|
|
|
|
4.1
|
Reference is made to Exhibits 3.1 to 3.2.
|
|
|
|
|
|
|
4.2
|
Details of the Goldstrike Special Voting Share.
|
|
Incorporated by reference to Exhibit 10.14 to the Annual Report on Form 10-KSB/A for the period ended December 31, 2005, and filed with the SEC on April 21, 2006 (SEC File No. 333-111656).
|
|
|
|
|
4.3
|
Goldstrike Exchangeable Share Provisions.
|
|
Incorporated by reference to Exhibit 10.15 to the Annual Report on Form 10-KSB/A for the period ended December 31, 2005 and filed with the SEC on April 21, 2006 (SEC File No. 333-111656).
|
|
|
|
|
4.4
|
Provisions Attaching to the GTE–Solana Exchangeable Shares.
|
|
Incorporated by reference to Annex E to the Proxy Statement on Schedule 14A filed with the SEC on October 14, 2008 (SEC File No. 001-34018).
|
|
|
|
|
4.5
|
Indenture related to the 5.00% Convertible Senior Notes due 2021, dated as of April 6, 2016, between Gran Tierra Energy Inc. and U.S. Bank National Association
|
|
Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed with the SEC on April 6, 2016 (SEC File No. 001-34018).
|
|
|
|
|
4.6
|
Form of 5.00% Convertible Senior Notes due 2021
|
|
Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed with the SEC on April 6, 2016 (SEC File No. 001-34018).
|
|
|
|
|
4.7
|
Subscription Receipt Agreement, dated July 8, 2016, by and between Gran Tierra Energy Inc. and Computershare Trust Company of Canada.
|
|
Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K, filed with the SEC on July 14, 2016 (SEC File No. 001-34018).
|
|
|
|
|
4.8
|
Form of Registration Rights Agreement.
|
|
Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K, filed with the SEC on July 14, 2016 (SEC File No. 001-34018).
|
|
|
|
|
10.1
|
Sixth Amendment to Credit Agreement, dated as of June 1, 2017, by and among Gran Tierra Energy International Holdings Ltd., Gran Tierra Energy Inc., the Bank of Nova Scotia and the lenders party thereto.
|
|
Incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K, filed with the SEC on May 18, 2017 (SEC File No. 001-34018).
|
|
|
|
|
10.2
|
Seventh Amendment to Credit Agreement, dated as of June 30, 2017, by and among Gran Tierra Energy International Holdings Ltd., Gran Tierra Energy Inc., the Bank of Nova Scotia and the lenders party thereto.
|
|
Filed herewith.
|
|
|
|
|
10.3
|
Share and Loan Purchase Agreement, dated February 5, 2017, by Gran Tierra Energy International Holdings Ltd., Gran Tierra Luxembourg Holdings S. Á. R.L. and Maha Energy AB
|
|
Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K, filed with the SEC on July 6, 2017 (SEC File No. 001-34018).
|
|
|
|
|
10.4
|
Amendment #1, dated May 30, 2017, to the Share and Loan Purchase Agreement dated February 5, 2017 between Gran Tierra Energy International Holdings Ltd., Gran Tierra Luxembourg Holdings S.Á.R.L. and Maha Energy AB.
|
|
Incorporated by reference to Exhibit 2.2 to the Current Report on Form 8-K, filed with the SEC on July 6, 2017 (SEC File No. 001-34018).
|
|
|
|
|
10.5
|
Amendment #2, dated June 22, 2017, to the Share and Loan Purchase Agreement dated February 5, 2017 between Gran Tierra Energy International Holdings Ltd., Gran Tierra Luxembourg Holdings S.Á.R.L. and Maha Energy AB.
|
|
Incorporated by reference to Exhibit 2.3 to the Current Report on Form 8-K, filed with the SEC on July 6, 2017 (SEC File No. 001-34018).
|
|
|
|
|
10.6
|
Amendment #3, dated June 26, 2017, to the Share and Loan Purchase Agreement dated February 5, 2017 between Gran Tierra Energy International Holdings Ltd., Gran Tierra Luxembourg Holdings S.Á.R.L. and Maha Energy AB.
|
|
Incorporated by reference to Exhibit 2.4 to the Current Report on Form 8-K, filed with the SEC on July 6, 2017 (SEC File No. 001-34018).
|
|
|
|
|
12.1
|
Statement re: Computation of Ratio of Earnings to Fixed Charges
|
|
Filed herewith.
|
|
|
|
|
31.1
|
Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith.
|
|
|
|
|
31.2
|
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
Filed herewith.
|
|
|
|
|
32.1
|
Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Furnished herewith.
|
|
Six Months Ended June 30,
|
Year Ended December 31,
|
||||||||||||||||
|
2017
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||
Fixed charges
|
|
|
|
|
|
|
||||||||||||
Contractual interest and other financing expenses
|
$
|
5,201
|
|
$
|
8,454
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Amortization of debt issuance costs
|
1,225
|
|
5,691
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Interest portion of rental expense
|
26
|
|
44
|
|
31
|
|
18
|
|
21
|
|
27
|
|
||||||
Total fixed charges
|
$
|
6,452
|
|
$
|
14,189
|
|
$
|
31
|
|
$
|
18
|
|
$
|
21
|
|
$
|
27
|
|
Earnings
|
|
|
|
|
|
|
||||||||||||
Income (loss) income from continuing operations before tax
|
$
|
38,057
|
|
$
|
(650,234
|
)
|
$
|
(368,088
|
)
|
$
|
(17,134
|
)
|
$
|
309,284
|
|
$
|
196,349
|
|
Fixed charges per above
|
6,452
|
|
14,189
|
|
31
|
|
18
|
|
21
|
|
27
|
|
||||||
|
$
|
44,509
|
|
$
|
(636,045
|
)
|
$
|
(368,057
|
)
|
$
|
(17,116
|
)
|
$
|
309,305
|
|
$
|
196,376
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of earnings to fixed charges
|
7
|
|
|
|
|
14,729
|
|
7,273
|
|
|||||||||
Deficiency of earnings available to cover fixed charges
|
|
$
|
(636,045
|
)
|
$
|
(368,057
|
)
|
$
|
(17,116
|
)
|
|
|
Date: August 3, 2017
|
/s/ Gary S. Guidry
|
|
By: Gary S. Guidry
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
Date: August 3, 2017
|
/s/ Ryan Ellson
|
|
By: Ryan Ellson
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
(1)
|
The Report, to which this Certification is attached as Exhibit 32.1, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Gary S. Guidry
|
|
/s/ Ryan Ellson
|
By: Gary S. Guidry
|
|
By: Ryan Ellson
|
President and Chief Executive Officer
|
|
Chief Financial Officer
|