Gran Tierra Closes Financing

Gran Tierra Energy Inc. on Wednesday said that it has completed a second and final closing of its private placement financing, through which it raised a total of $75 million.

An additional $10 million was raised from the sale of Gran Tierra's common stock and warrants on the same terms as the initial $65 million raised in the first closing of the private placement financing announced on June 21, 2006. Canaccord Capital Corp. and Sanders Morris Harris acted as placement agents for the additional financing.

The supplemental private placement of securities provided total proceeds of $9,995,924 from the sale of 6,663,949 units, each unit consisting of one common share plus a warrant to purchase one-half share. Proceeds from all closings totaled $75 million from the sale of 50 million units. The proceeds have been used for two acquisitions in Colombia and Argentina. They are earmarked for a third acquisition in addition to drilling and work programs. Gran Tierra intends to supplement its private placement financing with a committed debt facility of $25 million.

Gran Tierra Energy, Inc. is an international oil and gas exploration and production company, headquartered in Calgary, incorporated and traded in the United States, and operating in South America. The company now holds interests in producing and prospective properties in Argentina, Colombia, and Peru. To date, it has pursued a strategy that focuses on establishing a portfolio of producing properties and development and exploration opportunities--through selective acquisitions--to provide a base for future growth.