Good morning ladies and gentlemen, and welcome to the Gran Tierra Energy’s result conference call for the three and six months ended June 30, 2009. My name is Melissa and I’ll be the coordinator for today. At this time all participants are in a listen-only mode. Following the presentation, we will conduct the question-and-answer session for securities, analysts and institutions. Instructions will be provided at that time for you to queue up for questions. (Operator Instructions). I would like to remind everyone that this conference call is being webcast and recorded today, Monday August 10, 2009, at 10 AM Eastern Day Light Time. Please be advised that in addition to historical information, certain comments made during this conference call, particularly those anticipating future financial performance, business prospect and overall operating strategies constitute forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements might be identified by words such as anticipate, believe, estimate, expect, intent, predict and hope or similar expressions. Such statements which include estimate or forward-looking prediction and financial information or results are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described in the forward-looking statements. Listeners are urged to carefully review and consider the various disclosures made by Gran Tierra in its report filed with the Securities and Exchange Commission including those risks set forth in Gran Tierra Energy’s quarterly report on Form 10-Q for the quarter ended March 31, 2009, filed with Securities and Exchange Commission on May 9, 2009. If one or more of these risks or uncertainties materialized or if the underlining assumptions prove incorrect, Gran Tierra Energy’s actual results may vary materially from those expected or projected. Listeners are urged not to place undue reliance on forward-looking statements made in today’s conference calls. Gran Tierra assumes no obligation to update those forward-looking statements other than as may be required by applicable law or regulations. Today’s conference call also includes the non-GAAP measured funds flow from operations. The press release disseminated by Gran Tierra Energy early today includes a reconciliation of this non-GAAP item with the company’s GAAP net income loss as well as information about why management believes this material is useful in evaluating the company’s performance. All dollar amounts mentioned in today’s conference call is in the US dollars unless otherwise stated. Finally, this earnings conference is the property of Gran Tierra Energy Inc., any copying or rebroadcasting of this call is expressly forbidden without the written consent of Gran Tierra Energy. I will now turn the conference over to Dana Coffield, President and Chief Executive Officer of Gran Tierra. Mr. Coffield, you may go ahead.

Good morning, and thank you for joining us for Gran Tierra Energy’s second quarter 2009 results conference call. With me today is Martin Eden our Chief Financial Officer, and Shane O’Leary Gran Tierra Energy’s Chief Operating Officer. Earlier this morning we disseminated a press release that included detailed financial information about the quarter. In addition, Gran Tierra Energy’s 2009 second quarter report on Form 10-Q for the three and six months ended June 30th, 2009, has been filed on EDGAR and will be available on our website today at www.grantierra.com. I’m going to begin today by talking about Gran Tierra Energy’s substantial progress over the quarter, and then provide a brief overview of our plans going forward. Martin will then take a few minutes to discuss key aspects of this quarter’s financial results followed by a review of Gran Tierra Energy’s operations with Shane O’Leary. Finally, I will return with a few closing remarks. We continue to successfully grow our production, attaining a record average production level in the second quarter of 12,611 barrels of oil per day net after royalty. This includes record levels of production in both Colombia and Argentina. Our revenue and interest grew to $58.5 million for the second quarter. Earnings were impacted by non-cash depletion, depreciation and accretion expenses of $32.7 million and foreign exchange losses of $33.7 million leading to a net loss of $28.2 million. With that said, our ability to generate cash remains strong, with fund flow from operations for the second quarter of $36 million. Our balance sheet also remains very strong, with cash and cash equivalents of $146.5 million at June 30th, 2009 and we continue to remain debt free. Our operations in the quarter included a combination of development and exploration activities with intend to grow our production and…

Thanks Dana and good morning. As most of you have had an opportunity to review our press release this morning, I would just like to highlight a few important items. Revenue and other income increased 77% to $58.5 million. The second quarter of 2009 compared with $33.1 million for the same period last year. This increase was the result of a 271% increase in crude oil production, partially upset by lower oil prices. The increase in production for the second quarter was partly due to the acquisition of Solana resources. The average realized price for the quarter decreased to $50.79 per barrel from a $106.80 per barrels for the same period last year, reflecting lower taxes intermediate oil prices. Our operating expenses increased by 138% this quarter, compared with the same period last year, we continue to see economies of scale resulting from increased production with overall operating expenses per barrel declining by 36% to $7.74 per barrel compared with $12.04 per barrel at the same period in 2008. We continue to realize economies of scale within our general and administrative expenses. On a per barrel basis, general and administrative costs in the second quarter of 2009 decreased by 59% to $6.12 per barrel compared with $15 per barrel in the second quarter of 2008. Depletion, depreciation and accretion expenses for the three months ended June 30th. 2009 increased to $32.7 million from $5.4 million for the same quarter in 2008, due to higher production levels as well as amortization of $24.6 million related to the fair value of property plant and equipment recorded on the acquisition and Solana resources on November 14, 2008. On a per barrel basis, the DD&A rates has increased to $28.49 per barrel from $17.45 per barrel, reflecting the significant increase in the depleteble cost…

All right. Thank you Shane. Now, despite some challenges, Gran Tierra Energy remains on track to attain a plateau of production capability of 19,000 barrels a day gross from the Costayaco Field in the fourth quarter of 2009. Combined with our other producing assets in Colombia and Argentina, we believe Gran Tierra Energy will have a capability to attain 14,000 to 16,000 barrels a day net after royalty production this year barring interruptions to infrastructure outside of our control. We believe we have successfully positioned ourselves to generate the cash necessary to fund future growth and to allow us to find our ongoing development and exploration program including 14 exploration wells in Colombia and Peru, beginning in late 2009 and continuing through 2010. Our balance sheet remains very strong and we expect that our cash flow and cash on hand will be more than sufficient to fully fund our capital expenditure program for the coming year. Gran Tierra Energy has a track record of value creation through the drill business with our vast land position, extensive drilling opportunity portfolio, experienced management, on the ground operating teams and strong balance sheet, we are positioned to continue creating value through the drill business for our shareholders. That concludes our prepared comments for this morning. We would now be pleased to answer any questions you might have. Melissa.

(Operator Instructions) Your first question comes from Neal Dingmann - Wunderlich Securities.

A couple of questions; what do you see as far as ramping back the pipeline, what does that look like now, and is that just sort of temporary damage, what are we looking at today?

Yes, it is temporary, but I don’t have any specific schedule for when it will be repaired. In fact I had thought it would be repaired before this point in time. All I can say is that a comptroller is working very diligently to get it back online, but I don’t have a specific schedule.

Okay, and may be I haven’t seen it yet Dana, any outline, you have now outlined kind of the exploration program for most of next year, any idea on CapEx ‘10 versus ‘09?

I don’t have a specific number for next year; we’ll do our 2010 budget in November. So, I’ll have a real number then, but I would assume our CapEx budget next year will be lower than this year, assuming no exploration success because we did have a lot of development capital this year in the Costayaco Field which we will not be seeing next year unless we make a discovery and then of course we will revise a budget accordingly.

That’s I guess where I was going with that CapEx, you don’t anticipate as many or I guess as much sort of on the infrastructure and some of the cost that you incurred this year, you don’t see as many of those next year would be more just on pure exploration side.

Correct.

Okay, and then just kind of a question, just wondering, it seems now you’ve matched obviously between Colombia and Peru, and even have done Argentina, obviously a pretty divers and large block, just wondering the rationale, I know in the past I have heard you comment about Brazil, wondering, what are the plans there, and I guess number two, why look there, I guess any time near term given everything you have.

We are looking new venture opportunities all the time, and that includes Colombia, Peru, Argentina and other parts of the world, although to be fair we are focusing on Latin America. If you look at the different countries in Latin America, if we were to do a new country entry, Brazil is the only one that makes sense and that it has stable regulatory environment, stable government, attractive fiscal terms and such.

But it isn’t fair to say, I guess if you didn’t add anything there, you’ve got enough on your plate for the next couple of years just in Colombia and Peru alone?

Correct. Now, we are confident we can continue growing this company on our existing land base.

Okay, and then wondering, just sort of cost basis, I guess here in the States, we are pretty aware of sort of what’s going on, rig costs, service cost, etc., the way they’ve come down, give us an idea. I mean you continue to see cost come down, are they stabilizing, what do you see in sort of your regions over there?

I guess I would have to say that in general, we are seeing costs coming down and availability of services increasing. It varies depending on regionally within any one country as well as country wise, but we have seen cost down by say at least 10% this year.

Are you seeing improvement in the services in rigs too as well Dana?

In the availability of services in rigs, yes.

What about the quality?

It’s a mix bag, some good quality, some not so good.

Your next question comes from David Dudlyke - Thomas Weisel Partners.

I would like to follow up with a question on the infrastructure in the pipeline. If you go back to February ‘08, I think since that date we’ve had three disruptions to the trends, and then of course we have that long lasting strike over the year end. You are currently talking about 6,000 barrels a day. Is that limited in terms of your availability of trucks? Originally, at year end, you were describing an outcome whereby you foresee a trucking of about 10,000 barrels outside of the existing pipeline. I’m just wondering why you are limiting yourself to 6,000, is it just because you expect this pipeline to be reinstated in the short term?

No, normally it’s limited by truck off loading of facility, availability at Neiva.

At Neiva, okay.

There are second options, but they are not economic at this time.

These disruptions, as you described, it’s a temporary disruption. As I said, we’ve had three temporary disruptions, and working on the basis, but your exploration anchorage in Piedmonte area proved successful. You are going to have a lot more oil to evacuate through the Trans Andean. Do you and your board give some thought as to alternative groups? I mean you are very much beholden to that particular export, I just wonder if you’ve got any broad comments on that.

No, we are very much beholding that to that line, as is by all the other producers in Ecopetrol in the basin. So, I think it’s just going to require a control that provides enhanced maintenance and security for that pipeline to keep it open on a continuous basis in terms of building a new pipeline north to Neiva or another part of Colombia, I think for the most part that would be uneconomic proposition.

Yes, you need a lot of oil to just find that.

Yes, South into Ecuador which can be used on a short intermittent basis that’s optically viable, but if it’s required on long-term basis that maybe another option.

Okay. If I may, just moving to Peru, I just like you to clarify; you’ve got four wells in your plans for next year.

Yes.

Well, I know it in your press release they are described as, I’m presuming these are the same wells, perhaps they are not, stratographic test drilling on up to four prospects as expected to take, but are these the same wells.

Yes.

And if they are, can you perhaps define what is the stratographic test drilling as opposed to a regular exploration well?

The stratographic test well will not be used as a producer in the event that is a discovery, which is, either here nor there given that there won’t be any infrastructure at that time. So the well will be designed to run conventional logs; we’ll get a full log suite designed to test the wells, so we will get a full long test of the different reservoirs.

Okay, but it’s…

Completed as a producer.

Fair enough. Okay, and then lastly, if I may just follow up on Neal’s last point on service cost, I presume given your well program for next year, you are out there looking for an additional rig at least? Would that be correct?

In Colombia probably two additional rigs at least, and one for the Catatumbo, one for the Putumayo for the exploration drilling. And another rig for Peru of course that will be three rigs.

Okay. I guess just to clarify, what are you seeing in terms of the tenders from various players, the cost have come down for high quality rigs?

We’ve negotiated a reduced cost for our existing rig that we are using on the cost circle of drilling. We are tendering right now for the rig in the Putumayo for exploration drilling for two of the wells. But I can’t quantify any cost reductions in that regard.

And your next question come from the line Christina Lopez from Tristone Capital. Please proceed.

Good morning gentlemen, most of my questions were asked by David, but just to follow up on the rig situations. On the Chaza Block with the wells being drilled there, are you going to use the same rig that you are using in Costyaco?

No, for exploration drilling, no.

You will be bringing in a separate rig?

Yes.

And for Peru what’s your expected timing on EIA approvals?

The fourth quarter, in the fourth quarter this year sorry.

And when would you expect to have your seismic processed and then elect the locations on drilling Peru?

We’re already in the process of permitting locations based on the gravity data we have, so we’re expecting to get approval, both for the locations and the seismic in the fourth quarter.

What’s your anticipated cost per well in Peru at this point?

We expect $3.5 million per well, approximately, we haven’t actually gone up to 10, that’s our current estimate.

And that includes mobilizing the rig?

I don’t think it does, no.

Can you give any more color around the CapEx deferral and rational behind deferring some of the exploration drilling in Colombia this year?

There was no one big thing, there’s a variety of small things, one of our exploration wells we drilled was on the blocks that we sold to our Louis Energy. Two of the exploration prospects were in the Catatumbo basin, which we changed the prospects we are going to drill based on new mapping. So we are actually going to drill two different prospects, which require new environmental permits, that environmental permit processes caused the two process to be delayed. I think those were probably the three biggest items, but it’s actually a variety of smaller things in place that as well.

Sorry, in the Catatumbo basin, the two locations, the changes in those two locations, has that been since the Q1 conference call you have changed those locations?

That’s about the time of the Q1 conference call I believe.

And what’s the rational behind the changing in the location?

We were or the previous targets were for carbonate reservoirs, because they are high kind of a risk, the carbonate reservoirs are very high or very low chances in terms of finding good porosity. We’ve identified new targets, but we’re looking at Tertiary Sandstone Reservoirs, so there’s a higher chance of success. These reservoirs are the same reservoirs that are producing in nearby fields like the [Tibu] field.

Your next question comes from Melanie Van den - Paradigm capital.

Dana, I just wanted to ask about some, it looks like the exploration well at the Rio Mocoa has been deferred about a quarter, and whether or not you can talk about the general security situation whether or not about to change in Putumayo?

No, the Rio Mocoa and Magdalena are still on track for fourth quarter this year and first quarter next year. The general security environment in the Putumayo, is I would say the same, unchanged, in some areas it’s good and then along the borders it’s not good, and of course the instability along the borders is part of the problem with this recurring or extended pipeline repairs experienced by Ecopetrol. But in general, I would say the security environment remains unchanged in the area of our operations in other words, it’s reasonably good.

So everything is ready to go in terms of the EIA and everything is all set up to go forward the fourth quarter drill?

Yes, well we are waiting on the permit, but it’s in process.

Your next question comes from David Dudlyke - Thomas Weisel Partners.

Just to follow up to Chritina’s question. Cost of the wells improve, I think you said 3.5 million and you said that may well at that level probably not include the mobile costs. Would I presume that that also doesn’t include testing costs or that’s just the dry well?

That would include testing.

That would include, okay. Then I guess.

The estimate for the mobile was around $1 million, which is spread out between the four wells.

I guess, I just need to recalibrate, because the sorts of costs for wells and that had been intimated by other players is markedly higher. Am I missing something, is it something to do with the fact that these stratographic, basically are they much smaller diameters, so you are basically using smaller casings all the way down, so you are just basically drilling them large enough to get a lock drill down?

There’s two things. One we are extraordinarily efficient, and the other is that the wells to be shallower, then most of the wells you see drilled into basin. So, looking at 2,000 to 3,000 to 4,000 foot drill depth versus 12,000 and 16,000 we are seeing in the basin.

Your next question comes from David Beddis - Cormark Securities.

Two quick questions for you. One, assuming repairs are completed on the pipeline, what is your productive capability today and then number two, for Martin, just quickly how long do you expect the DDN&A rates to be as high and what will they look like going forward?

Production capacity today in Colombia net after royalty would be approximately 14,000 barrels a day, but that will be changing soon though with the tying of Costayaco-8. So we are closed to that plateau production.

With 8?

Yes.

On the question on DD&A rates, we’re expecting them to remain high as we amortize our Solana assets and our Gran Tierra assets. The thing that would reduce them is if we increase our proved reserves, but I’m not expecting a huge change over the next little while.

(Operator Instructions) Mr. Coffield there are no further question at this time, please continue.

All right, thank you. Once again I would like to thank everyone for joining us today. We look forward to sticking with you next quarter and update you on our progress. Thank you very much.

Ladies and Gentlemen this concludes the Gran Tierra Energy’s Conference Call for today. Thank you for participating, please disconnect. Have a great day.