Gran Tierra Energy Inc. (GTE.TO)

Colombia producer. 28,000 barrels a day. They should do $.35-$.40 a day in cash flow this year. Balance sheet is very strong with $90 million of cash. They are going to be an acquirer. Just made 2 acquisitions at the end of last year. Fabulous balance sheet.

Has added to his portfolio recently. Had a management change with a new CEO, who has cleaned up and brought down G&A costs. They substantially reduced in-country drilling costs in Colombia. Made 2 acquisitions to solidify their position in a part of southern Colombia. There is also a pretty exciting end sands (?) play that they are chasing now. Has confidence that they are turning this company around.

Has just gone through a major cost restructuring. They had very successful assets in Colombia. Doing 18,000 BOE’s a day. It got beat up in the latter half of the year. Assets in Brazil are not doing very well. Had a big asset in Peru that was supposed to be the breakthrough for them, but they had some wells that were not so good and it is heavy oil, so the economics are pretty tough. Any time this stock is under $3, it is a great buy. They are focusing mainly on Colombia now and are looking at using their balance sheet which has no debt but has about $1.50 in cash.

Doesn’t feel there is much risk associated with Peru and Colombia, where it operates. CEO resigned, but that is more related to the company. Any time there is management change coupled with being international; it is more of a market perception thing. He is negative on the commodity and on this company. It is not a bad company; it is just not going to work well in this environment.

Doing well operationally. Even though the stock has come off, this oil/gas producer in Colombia generates its own cash flows and hasn’t had to go back to the market. It has no debt and has a lot of cash on the balance sheet. Thinks it is going to do very well on a rebound.

(A Top Pick May 14/13. Up 23.73%.) Sold her holdings a few months ago. Still has room to the upside, but she was just trimming some of her internationals.

Has been in a bit of a range. Just sold their Argentinian assets, so now they can focus on Columbia and Peru. Thinks they are getting a little more noticed. However, it is hard to compete. He prefers Parex (PXT-T) because the growth rate is much higher and there is less reliability on exploration results. Nothing wrong with holding this in a basket of international names.

Focused in Columbia, Argentina, Peru and Brazil. Potentially a fourth quarter story when they drill some more wells. Buy at $5.

Focused in South America. Opportunities in Peru and they were in Columbia previously. Oil weighted. Good visibility in terms of projects. Good growth visibility. Sentiment is weaker right now. He has found better opportunities in Canadian focused names. But there is nothing wrong with it.

His company has this as a Sector Outperform with a $9.50 target. Management strategies on growing the assets are definitely showing good results.

Had some exciting wells this year. Feels you can make 15%-20% a year on this one. In 18-24 months, he can definitely see this stock at $10.

Have done a good job. Big focus and big upside recently has been in Colombia. Produced about 21,000 BOEs a day in the 3^rd quarter with $0.30 in cash flow. Lowered their CapX because they are not moving as fast in activity in Peru where they have a discovery. Trying to do more seismic and make a decision whether to go ahead or not. Balance sheet is in great shape with $350 million in cash, $1.25 a share. Until they can make another discovery in Colombia or have more success in Peru, he feels they are fully valued. Under $6 would probably be a Buy.

Has no debt. Held for a year and half. Pretty good management. A company that will always have little hiccups but they are buying opportunities. They are well managed and can afford to institute a dividend.

Colombia is now out of favour but this company subsequently made a discovery in Peru where they have had some very good results. That discovery will not be coming on stream for another 2 years. He would like to see it down to about $5.50.

A great story. Got production in Columbia and Brazil and Peru. 23k BOEs in Q1 of which 96% is oil. Expanding in Peru. Likes the stock. $6.48 NAV. Great buy under $5.