Good day, ladies and gentlemen, and welcome to Gran Tierra Energy's Results Conference Call for the Fourth Quarter 2015. My name is Melanie and I will be your coordinator for today. At this time, all participants are in a listen-only mode. Following the initial remarks, we will conduct a 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, February 29, 2016 at 11:00 AM Eastern Standard Time. Please be advised that in addition to historical information, our discussion during this conference call will include Forward-Looking Statements. These forward-looking statements are based on management’s current expectations, a number of significant assumptions and are subject to a number of other factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The factors that could cause actual results to differ are discussed in Gran Tierra Energy’s Form 10-K, Form 10-Q and other reports and filings with the Securities and Exchange Commission. Gran Tierra Energy does not undertake any duty to update any forward-looking statements. Today’s conference call also includes certain financial measures that were not prepared in accordance with generally accepted accounting principles in the U.S., including operating netbacks, fund flows from continuing operations, EBITDA and adjusted EBITDA. The press release disseminated by Gran Tierra Energy this morning includes a reconciliation of these non-GAAP items and the company’s GAAP net income or loss, as well as information about why management believes these measures are useful in evaluating the company’s performance and is available on Gran Tierra Energy’s website at www.grantierra.com. All true dollar amounts mentioned in today’s conference call are in U.S. dollars unless otherwise stated. Finally, this earnings call 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 would now turn the conference over to Gary Guidry, President and Chief Executive Officer of Gran Tierra. Mr. Guidry, please go ahead.

Thank you. Good morning and welcome to Gran Tierra's fourth quarter and year-end 2015 results conference call. My name is Gary Guidry, Gran Tierra's President and Chief Executive Officer and with me today is Ryan Ellson, our Chief Financial Officer. Earlier today, we issued a press release that included detailed financial information about our fourth quarter and year-end 2015 results. In addition, Gran Tierra Energy's 2015 annual report on Form 10-K has been filed on EDGAR and is available on our website, grantierra.com. I'm going to begin today by talking about some of the key developments for the quarter and the year. Ryan will then take a few minutes to discuss key aspects of this year's financial results. We will then open the line to questions. 2015 was a transformation year for Gran Tierra, with the appointment of new management and the Board of Directors in May 2015 the company began its transition to a Columbia concentrated exploration and production company focused on disciplined capital allocation and net asset value per share growth. We are committed to being a low cost operator that is not merely trying to survive in the current environment rather to thrive and position the company for growth in 2016 and beyond. We have significantly driven down costs both in operating and general and administrative expenses. Equally important, we have reduced the time to drill Moqueta and Costayaco wells by approximately 40% to 50%. These drilling efficiencies will become evident as we start to execute on our extensive exploration portfolio over the next couple of years. We continue to focus on our organic growth through exploration and discipline on accessing new business development opportunities. We have been successful on the acquisition front having recently closed two highly strategic acquisitions of Petroamerica and PetroGranada in January 2016,…

Good morning. Overall, Gran Tierra had a strong fourth quarter, the focus in Q4 was on the ongoing execution of our increased capital program announced in Q2 2015, improving our cost structure and ensuring capital discipline to protect our balance sheet and the negotiation of the two strategic acquisitions of Petroamerica and PetroGranada, which both closed in January 2016. Overall, our 2015 capital program came in ahead of schedule and under budget, which is a positive indication that our efforts to reduce cost and improve capital discipline have been successful to-date. Much of the capital program was executed in Q4 2015, we will continue our efforts to grind down both capital and operation costs throughout 2016. We believe that the acquisitions of Petroamerica and PetroGranada are highly strategic and will strengthen our position as the premier operator and land holder in the Putumayo basin. The acquired undeveloped land holdings and exploration development portfolios are complementary to Gran Tierra's own exploration portfolio, strong cash flow, reserves base and balance sheet strength. Highlights of our acquisitions are, the net consideration was $89.4 million after given consideration to the estimated networking capital, for us that's was at 2P NI 51-101 compliant reserves NPV before tax of $131 million and $108.5 million after tax. The working interest 2P NI 51-101compliant reserves were 10.3 million BOE at December 31, 2015. This results in consideration paid of $8.71 per 2P BOE of oil reserves. Whilst we only paid $8.71 per barrel, the primary reason for doing the acquisition was a increased unrisked mean perspective resources by a 180.6 million BOE, 59.2 million BOE risk. Post acquisitions Gran Tierra remains debt free with pro forma working capital of approximately $97 million. We have said this before, but it is worth repeating, we continue to aggressively and systematically…

Thank you, Ryan. As mentioned, we have seen strong results at both Moqueta and Costayaco fields during 2015, despite the challenging oil price environment. Ryan summarized the strong financial position of the company. We are also successfully executing our strategy refocusing the company on the expansion and diversification of our asset base in all of the productive basins in Colombia. Although we were not successful in December 2015 Mexico onshore bid round, we believe that Mexico is an ideal platform to create value and will continue to monitor future opportunities on the ground in Mexico City. Now, I'll turn the call back over to the operator, and Ryan and I'll be happy to take questions. Melanie, please go ahead.

Thank you. Ladies and gentlemen we will now conduct a question-and-answer session for Securities' Analyst [Operator Instructions] One moment please for your first question. The first question is from Nathan Piper of RBC Capital Markets. Please go ahead.

Good morning guys. Two questions from me, you have partially answered the first one, which is great, but what I want to understand is what oil price do you need looking at that cost deflation that you talked about to and embark upon your broader program for 2016 to sort of go for some of discretionary capital that you talked about. Just be interesting to see what oil prices make you more confident to invest more money?

What was the first part of the question Nathan? We got the oil price for the discretionary program. What was the first part?

That's actually is the first part.

I think we answered this first part okay. I think Nathan, the luster that we have is, we operate all of our production and most of our capital program, so we have a lot of flexibility, but I would say that you would see acceleration anywhere around, anything north for $45.

Okay, and so $45 you would tackle the rest of the discretionary capital plan or is there a bit of a kind of ratchet?

It would be a ratchet, right, it would be safe to assume that over $50 we would proceed with that entire program.

Understood and just on cost deflation which is my first question Gary. Could you give us a bit of color as to where do you think cost could go to if $30 or $40 a barrel persists for quite some time. So do you think there is significant cost savings to be made on the OpEx side as well as CapEx side through this year or how the easy wins already be made?

Well, the early wins have been made for sure and a big part of our reduction in capital cost for drilling has been internal efficiencies, the way in which we are doing things and there is probably some more of that improvement to occur. I think the second part is the deflection of cost if low oil prices continue might be on the order of 10%.

Okay that’s clear and my final question if I may, just on the OTA pipeline, I mean you have done a tremendous job despite the OTA pipeline this year, which was as you had mentioned for over 200 days. What is the long-term solution do you think in Southern Columbia, if your production volumes begin to increase, I mean if you maybe get 25,000 barrels a day away at the moment, but if that was to become 35 or 40 with exploration success and so on, what are you thinking of in terms of contingencies in the future?

We are looking at infrastructure in a couple of regards and we do just from what we have seen of the N Sands, we are pretty highly confident, it’s a matter of degree of success and so we are looking at both the Northern routes where we tend to truck oil in times where the OTA is down, the OTA itself of course. And then looking south from the Putumayo-7 and Suroriente block looking at its southern explore routes. So our plan is to continue to have multiple ways to export and transport crude oil including when natural disasters occur, the delta I think part of the reason, Ryan was describing our need to truck more oil during the last year and that was due to a natural disaster, a landslide. So you are always going to have things occur. I think the other part of the focus Nathan is that we're not just focusing on reducing transport costs, we have a very good team working with Ryan on the marketing side as well to make sure we get the premium for our light sweet crude oil as well and we've had some real progress there.

Great. So, you don't see an upper limit to current transport solutions that you've got?

No, we do not.

Thank you.

Thank you. The second question is from Ian Macqueen of Paradigm Capital. Please go ahead.

Good morning guys. You have done a good job on the arbitration, describing what has happened on the arbitration, but there is a very significant difference between the way the ANH is calculating what is odd and high price royalties at $92.8 million and you at $44.8 million. So first of all I think it's taken a long time to go through these and you are not the only one that are subject to, there is just no high price royalty disputes. Can you explain a little bit more about the process and why there is such a significant difference between the way you view it, the ANH views it and how confident you're about timing and the outcome?

One of the things is there is really two components of ANH driver, is just as you know when should HPR start to be calculated and our position is that it is after 5 million barrels has reached in the [Canada] (Ph) and we started paying the HPR once Moqueta reached to 5 million. The second big component is what are the interest in penalties calculated at, is at peso denominated contract and that would LIBOR plus 20% or the U.S. dollar denominated contract which would be closer to 4%, as they get the big difference in the calculation.

So, did they started day one basically saying you should owe high price royalties as of day one, you started I think April 30 of 2015 that's a fairly significant number, if that's the difference?

That's the difference, is when Moqueta reached the 5 million barrels, the ANH position was from barrel one high price royalties should be paid.

Right and you have been paying high price royalties from the 5 million barrel point, so the difference really is whether you start from zero, whether you start from 5 million barrels?

Right and what interest rate do you use whether its 4% to 20%.

I don't believe there's a precedent yet on this as to how the ANH is going to treat this. I mean as I said, you are not the only ones that are subject to this, to the arbitrations, but we just haven't seen an outcome and just it seems there is a substantial difference in all cases, there isn't a precedent yet, is there?

No, not that we are aware of, and in each case, if you look at each case separately because as you know one there is both the geological differences but also the contract difference in each case as well.

Right. And lastly, how confident are you that it’s going to actually be - so there is going to be a conclusion to the arbitration in either 2Q or Q3?

We're confident that we will have the resolution in Q2 or Q3 of this year.

Okay, good. Thanks guys.

Thanks Ian.

Thank you. Gentlemen there are no further questions at this time. Please continue.

Thank you, Melanie. In conclusion, I would like to again thank everyone for joining us today. We look forward to speaking with you in the next quarter and update you on our ongoing progress. Thank you very much.

Thank you. The conference has now ended. Please disconnect your lines at this time. We thank you for your participation.