The figures included in this report were extracted from the Company’s unaudited financial statements. The financial information is expressed in billions of Colombian pesos (COP), or US dollars (USD), or thousands of barrels of oil equivalent per day (mboed) or tons, as noted. For presentation purposes, certain figures in this report were rounded to the nearest decimal place.

In words of Felipe Bayón Pardo, CEO of Ecopetrol:

“The results for the third quarter of 2021 confirm Ecopetrol’s technical, operational, and financial capacity to seize the favorable price environment. They also evidence the benefits of the structural adjustments that we have implemented in response to recent challenges. With the culmination of the purchase of a controlling 51.4% stake in Interconexión Eléctrica (“ISA”), the quarterly figures include the consolidated results of this subsidiary for one month, which represents a transformational milestone that allows us to present the results of the new Ecopetrol Group for the first time.

During this quarter, we continued delivering record results, with a consolidated revenue of COP 23.3 trillion, a net income of COP 3.8 trillion and an EBITDA of COP 10.4 trillion (EBITDA margin of 44%). In the first nine months of the year, our consolidated revenue amounted to COP 60.0 trillion, a net income of COP 10.6 trillion (6.3 times the net income generated throughout 2020), and an EBITDA of COP 28.0 trillion (EBITDA margin of 47%).

On the commercial front, we highlight the improvement in the realization price of our crude oil basket, which went from 38.4 USD/Bl in the third quarter of 2020 to 68.0 USD/Bl in the third quarter of 2021, demonstrating the good results of the strategy for diversification of destinations and close relation with our customers, in addition to the operational flexibility of the company by consolidating the delivery at place (DAP) mechanism. Additionally, we highlight the signing of diesel and motor gasoline supply contracts with wholesale distributors, a milestone that represents a referent for the industry and marks the beginning of a new commercial stage that consolidates the liquid fuels distribution chain in the country.

Exploration

The Liria YW12 well stands out, which proved the presence of hydrocarbons in a new structure near a production field, being a milestone that continues to drive our exploration activity in the Piedemonte Llanero. Ecopetrol and its partners completed 10 wells during the first nine months of the year, exceeding the target of 9 wells for 2021. The accumulated production of the exploratory assets accounted for more than 1.2 million boe at the end of the third quarter of 2021 (4,517 boed on average), with 67% of the production corresponding to oil and 33% to gas. Additionally, in August the Flamencos-1 and Boranda discoveries, located in the Middle Magdalena Valley, were declared commercial, which are part of the “Near Field Exploration” strategy in areas close to existing infrastructure that seeks the incorporation of production and reserves in a short period of time. In the international field, and in line with the growth and geographic diversification strategy of the Ecopetrol Group, our subsidiary, Ecopetrol Óleo e Gás do Brasil, acquired a 30% stake in the block S-M-1709, located in the Santos basin in Brazil during the “Rodada 17” bidding session organized by the National Petroleum Agency (ANP for its Portuguese acronym). The acquisition of this block, which will be operated by Shell, is focused on the basins with the highest potential in the continent.

Production

The Ecopetrol Group continues its recovery path, after experiencing a significant impact during the first half of the year associated with operating restrictions in the Castilla field and the public order situation in Colombia. During the third quarter, production reached 683.6 mboed, accounting for a growth of 3.5% when compared to the second quarter. Some of the relevant milestones of the quarter are: i) full production stabilization in the Castilla field, ii) normalization of production, previously affected by roadblocks due to public order disturbances in the second quarter of the year, and iii) the contribution from the new Flamencos-1 and Boranda commercial discoveries. Given the average production level for the quarter and the projections for the fourth quarter of the year, we estimate the 2021 yearly production to be around 680 mboed.

Natural gas and LPG

Production experienced an increase of 3.5% in the third quarter of 2021 compared to the same period of the previous year, as a result of higher sales volumes from Ecopetrol, Hocol, and Permian, primarily associated with a recovery in demand. During the third quarter, the contribution of gas and LPG to the Group’s total production was 20.6%, with a combined EBITDA margin of 60.0%.

Permian

Operations continue to advance according to plan, employing 4 drill rigs and 2 completion crews. We drilled 22 wells in this quarter, for a total of 69 so far this year. In addition, 16 new wells started production, for a total of 91 wells in production (22 in 2020 and 69 in 2021). It is worth highlighting that the level of production of the operation already exceeds 50.0 mboed, generating 24.4 mboed before royalties for Ecopetrol in the third quarter (equivalent to net 18.9 mboed after royalties).

Unconventionals

In terms of the Comprehensive Research Pilot Projects in Unconventional Reservoirs (PPII) Kalé and Platero, we continue advancing with the work schedules according to plan. On October 29, we submitted PPII-Kalé’s Environmental Impact Assessment (EIA) to the National Authority for Environmental Licensing (ANLA for its Spanish acronym), and on July 8, we conducted the first territorial dialogue and environmental monitoring as requirements for filing PPII-Platero’s EIA. To date, 450 dialogue and educational meetings have taken place within the influence area.

Midstream

In the midstream segment, during the quarter we transported 1,012.2 mbd, which represented a recovery of 52.3 mbd compared to the immediately previous quarter. The volume transported during the first nine months of the year was 993.3 mbd, a decrease of 2.0% compared to the same period of 2020, as a result of a lower production of crude oil in the country, mainly in the Llanos area.

In terms of renewable energy self-generation in the segment, in September we started operating six new solar plants at the stations of Baranoa, Miraflores, Mansilla, Tocancipá, Yumbo, and Pereira, in order to reduce approximately 513 tons of CO2 per year, also in line with our decarbonization targets by 2050. Similarly, we finished the construction of the San Fernando Solar Park last October 22, 2021, which will provide 61 MWp of available capacity and it is considered the largest renewable energy self-generation facility in the country.

Regarding transportation disputes, the agreement announced by Frontera, CENIT and Bicentenario on November 17, 2020, was approved by the Administrative Tribunal of Cundinamarca by means of an order that was notified on November 5 of 2021. It is important to mention that the agreement has a favorable opinion from the Attorney General’s Office (Procuraduría General de la Nación), received on March 24, 2021, also, it puts an end to all disputes between the parties regarding to the transportation contracts for the Bicentenario Pipeline and the Caño Limón – Coveñas Pipeline, as well as other contracts for storage and port services. With this agreement, all existing arbitration proceedings arising from these disputes are concluded.

Downstream

The downstream segment continued with the positive trend observed throughout 2021, with a consolidated throughput of 358.0 mbd and an integrated gross margin of 9.5 USD/Bl as of September 2021. This segment closed the third quarter with a throughput of 353.8 mbd and an integrated gross margin of 9.0 USD/Bl, respectively. These results are largely attributable to: i) the improvement of the refined products basket, in line with the generalized increase in demand due to the reactivation of the productive sector, ii) selling of inventories due to a favorable price environment and the positive operating performance at the Barrancabermeja refinery, iii) the adoption of commercial strategies at Esenttia to mitigate the weakening of the Polypropylene Margin, iv) the stability of Invercolsa as a result of higher natural gas sales and installations, and v) the segment’s cash cost stability. The aforementioned, despite the operational events originated at the Cartagena refinery during the quarter, which have already been solved.

ISA Acquisition

In the new electric power transmission and toll roads segment (which arose out of our acquisition of ISA) only consolidates one month of results into the quarter, we highlight the following: i) in the electric power business, the entry into operation of three projects (in Chile, Brazil, and Colombia), as well as the granting of the Environmental license for the UPME07-2017 Sabanalarga-Bolívar 500 kV project in Colombia, and ii) in the road concessions business, the construction of eight projects continued in Colombia and Chile, which will add 246 km to the existing road network.

It is important to note that a Transition Management Office (TMO) was established, which has made possible the transition process from ISA to the consolidation and reporting of the Ecopetrol Group. The main efforts in the last 12 weeks since the acquisition have been focused on ensuring compliance with the legal and regulatory requirements associated with accounting consolidation, reporting, and financial planning processes, as well as matters related to compliance and corporate governance. The next steps will be aimed at prioritizing opportunities and synergies to accelerate the capture of joint value.

Environmenta, Social, Governance

In TESG, we continued to make progress in each pillar of the strategy throughout the year.

In the environmental front, particularly in renewable energy projects, Ecopetrol was included as a relevant participant in the Colombian Hydrogen roadmap launched by the Ministry of Mines and Energy on September 30. Moreover, we highlight the contract entered with South Pole on August 6, 2021, who will be our structuring partner for the Nature-Based Solutions projects, and the Cooperation Agreement signed with The Nature Conservancy, which seeks to leverage the implementation of the Ecopetrol Group’s decarbonization plan. As of September 2021, we had fulfilled 79% of the goal established for 2021 within the framework of the “Sembrar Nos Une” national initiative with 3,149,716 trees planted.

In the social dimension, during the first nine months of the year, the Company allocated social investment resources for a total of COP 269 billion in strategic and mandatory investments. Similarly, by means of the “Obras por Impuestos” (Works in lieu of Taxes) mechanism, we completed 25 projects by the end of the third quarter, with a total value of COP 201 billion, mainly focused on the improvement of roads and endowments to student residences. Additionally, Ecopetrol’s Diversity and Inclusion Program was granted the Equipares-Icontec Silver Seal, highlighting the communications efforts carried out within the framework of this program due to its coherence, assertiveness, connection, and impact as a fundamental pillar for the strategy.

In corporate governance, the TMO team appointed within the Company has been presenting on a regular basis the developments around the successful incorporation of ISA into the Ecopetrol Group to the Board of Directors, in line with our commitment to advance in a transition that ensures the continuity of the strategy and the robustness of Ecopetrol and ISA’s governance principles. Identifying and aligning the best practices of both companies will ensure the implementation of a corporate governance structure that stands out for its experience and transparency. Last October 22 of 2021, ISA’s extraordinary General Shareholders’ Meeting took place, in which new Directors were appointed and Ecopetrol exercised its right to nominate candidates in virtue of the controlling position it currently holds on ISA.

In digital transformation, we have captured benefits in the digital agenda for a total of USD 36.5 million by the end of the third quarter of 2021, with advancements in the digital agenda, digital factories, intelligence, and innovation projects.”

Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 17,000 employees. In Colombia, it accounts for more than 60% of hydrocarbon production, and most of the hydrocarbon transportation, logistics, and refining systems, and has leading positions in petrochemicals and gas distribution. With the acquisition of 51.4% of ISA’s shares, it participates in energy transmission, management of real-time systems (XM) and the Concesión Costera Barranquilla – Cartagena. At the international level, Ecopetrol focuses on strategic basins on the American continent, with E&P operations in the United States (the Permian basin and the Gulf of Mexico), Brazil and Mexico, and through ISA and its subsidiaries it has leading positions in the transmission business in Brazil, Chile, Peru and Bolivia, in road concessions in Chile, and in telecommunications.

Third Quarter Financial and Operating Results

Arrow Exploration’s Financial Statements and MD&A are available on SEDAR (www.sedar.com). All numbers are expressed in US dollars unless otherwise noted.

^{(1) Non-IFRS Measures – see “Non-IFRS Measures” below
(2) Includes $5 million Canacol promissory note
(3) Long-term restricted cash not included in working capital}

Third Quarter 2019 Highlights and Subsequent Events

• For the three months ended September 30, 2019, Arrow recorded $6,320,471 in revenues (net of royalties) on crude oil sales of 151,313 barrels, 528 barrels of NGL’s and 55,037 Mcf of natural gas sales.
• Adjusted EBITDA for the three months ended September 30, 2019 was $1,993,407.
• Production averaged 1,799 boe/d, a decrease of 60 boe/d over the second quarter of 2019.
• Revenue (net of royalties) of $6.32 million represented a decrease of approximately $1.2 million over the previous quarter. Brent oil prices averaged $62.03 for the third quarter of 2019 which represented a reduction of more than $6 per barrel relative to the second quarter. Lower Brent oil prices in the third quarter compared to the second quarter had a negative impact on operating netbacks which were $21.68 per boe vs. $25.40 per boe, respectively.
• Operating costs were $2,828,585 or $17.56 per produced boe which represents a reduction of $376,552 (12%) versus the second quarter of 2019.
• Working Capital deficit of approximately $3.2 million does not include the $5 million promissory note to Canacol Energy Ltd. (“Canacol”) which was included in the Working Capital deficit calculation in the second quarter due to amending and extending the promissory note in July, 2019. Arrow Exploration’s net debt was calculated at $7,092,058 as of September 30, 2019 which is comprised of: Current Assets of $8,771,087, Accounts Payable and Accrued Liabilities of $11,935,993, Canacol promissory note of $5 million, and long-term receivables of $1,072,848.
• Subsequent to quarter end, Arrow announced that Mr. Bruce McDonald resigned as President, Chief Executive Officer and Director of Arrow Exploration. Mr. McDonald was entitled to severance payments totaling $485,000 that was paid subsequent to quarter end and will be reported in fourth quarter financial statements. Mr. Jack Scott, Chief Operating Officer of Arrow Exploration, was appointed interim President and CEO.

Jack Scott, Interim CEO commented, “I’m pleased to report a record quarter from the perspective of EBITDA and funds flow from operations at $1,993,407 and $1,500,573 respectively. These record operating results were achieved despite a reduction in Brent Oil pricing of more than $6 per barrel and average production being reduced by 60 boe/d relative to the second quarter. Record results were driven by our continued focus on reducing both operating and G&A costs throughout Arrow Exploration. Further cost reduction initiatives have been identified and will be implemented in future quarters in order to expand Arrow’s free cash flow, allowing Arrow Exploration to pay down debt.”

Strategic Alternatives Process

Arrow’s Board of Directors has formed a Special Committee to evaluate strategic alternatives for Arrow Exploration with a view to improving Arrow Exploration’s balance sheet, including addressing its working capital deficit, long-dated payables and upcoming debt maturity in October 2020, and maximizing enterprise value. The strategic alternatives process is intended to explore a comprehensive range of strategic alternatives including: a sale, merger or other business combination; a disposition of all or certain assets of Arrow Exploration; recapitalization and refinancing opportunities; sourcing new financing and equity capital; and other alternatives to maximize value. The committee has been given a mandate by the board to hire a strategic advisor(s) to support the evaluation of all potential alternatives. Arrow Exploration will provide additional information regarding the strategic alternatives process once such advisor(s) has been selected. There can be no guarantees as to whether the strategic alternatives process will result in a transaction or the terms or timing of any resulting transaction.

Arrow Exploration Corp. (operating in Colombia via a branch of its 100% owned subsidiary Carrao Energy S.A.) is a publicly-traded company with a portfolio of Colombian oil assets that are under-exploited, under-explored and offer high potential growth. Arrow Exploration’s business plan is to rapidly expand oil production from some of Colombia’s most active basins, including the Llanos, Middle Magdalena Valley (MMV) and Putumayo Basin. The asset base is predominantly operated with high working interests, and the Brent-linked light oil pricing exposure combines with low royalties to yield attractive potential operating margins. Arrow’s seasoned team is led by a hands-on and in-country executive team supported by an experienced board. Arrow is listed on the TSX Venture Exchange under the symbol “AXL”

This historic moment will also serve as a symbol of the economic evolution the nation is undergoing. After decades of security challenges, Colombia is now fully open for business.

Photo: Lorenzo Garavito of HBI discusses the best investment sectors and economic transformation taking place in Colombia. (Credit: Loren Moss)

Lorenzo Garavito, president of HBI (Banca de Inversión Helm Group Company), says that the investment community’s interest in the country is rising, with the peace process being a key factor. While the opportunities are vast, he believes the best move is to bet on the consumer. Retail, restaurants, and grocery stores are all low-risk plays that will bring good returns. Agriculture, while less certain, is another big growth area in Garavito’s eyes. At the same time, Colombia’s traditional family-owned business structures, more suited to an agricultural and industrial age, are modernizing and internationalizing, and to do this, they are more and more seeking the help of modern investment banks, entities that were practically nonexistent in Colombia a couple of decades ago.

To learn about the most-promising sectors, rising interest from institutional investors, and how Colombia’s evolving economy is affecting traditional family-owned businesses, Executive Editor Loren Moss of Finance Colombia recently sat down with Lorenzo Garavito.

Finance Colombia: Here in Colombia, as in a lot of countries in Latin America, many businesses tend to be family-owned and family-run, sometimes over multiple generations. Even when we look at the tycoons in Colombia, we’re usually talking about families. With the recent changes in the laws and changes in the landscape here in Colombia, how do we see the modernization, if you will, of the economy affecting family businesses and the traditional structure?

Lorenzo Garavito: Colombia has always been a country where entrepreneurs have created companies, and the public markets are very small. It’s very difficult to get money out of the public market, so families tend to stick together and grow their businesses.

There have always been concerns with succession from generation to generation. Is the new generation ready? How can you protect the company from these changes?

We’ve seen companies saying, “We just want to have a professional manager and we´ll run the company at the board level.” We’ve seen companies saying, “We need an external investor to mediate among cousins and the third and fourth generations.” We’re involved right now in a transaction where the owner basically said, “Look, I want to leave some something to my kids, but I also want to enjoy my money and my retirement.” So he split the business in two. He left a part to his kids and he’s selling that other part of the business.

“I would bet on the consumer. I would definitely bet on retail stores. Not only supermarkets, but glasses or wine or restaurants — or anything that has to do with consumers.” – Lorenzo Garavito, president of HBI

What we’ve seen in the last 18 months is that the recent volatility in the market has brought up some more fears among the second and third generations. Some companies are think they need to make acquisitions outside Colombia and try to become a non-Colombian company. So we’ve seen family businesses making acquisitions in Central America — incorporating a holding company in Panama, for example.

The investment bank is always a neutral third party, and I think our role, besides doing a transaction and raising money selling a company, our paramount role is to make sure that the family relationship doesn’t suffer because of a discussion about money, right?

Finance Colombia: So, people might traditionally think that the time to call an investment bank is when they’re going to do a transaction. But you’re saying that the investment bank can also actually work as an advisor and help structure things — help mediate, help negotiate — even if there’s not necessarily an acquisition or a deal to make?

Lorenzo Garavito: Yeah. I think that our role is as mediators in those situations. Things can be taken in a different way or misinterpreted. So bringing in a third party to mediate in those money issues is always a good idea. We can make an evaluation and have plans to separate the business or give liquidity to some of the members or bring in a third party. We can analyze the situation and provide ideas to the companies.

Finance Colombia: Are there a lot of other cases like that happening in Colombia, with Colombian businesses that are looking to maybe sell out even to a foreign investor?

Lorenzo Garavito: Yeah. We’ve seen that. I think that selling today, it’s still tricky because, two years ago, one dollar was equal to 1,700 pesos. Now the peso has devalued to around 2,900 to one dollar. So, in dollar terms, your business was previously worth a lot more than what it is worth today. So the decision to sell is not there yet. I think people are very conservative and they want to know what’s going to happen the dollar, inflation, exchange rate, tax reform, etc.

But I think, as I mentioned, we have seen a lot of inquiries about helping solve family discussions where people, in these volatile times, have different ideas. Some want to grow, some want to sell, some want to make other decisions. So we’ve been getting involved in situations where people are making transactions just to solve the different views of their members, their shareholders.

Finance Colombia: At what size — whether that’s in revenues or whether that’s in capitalization — is it even worth the exploration of talking to an investment bank?

Lorenzo Garavito: Well, I think there are also tiers in investment banking here, so there are a lot of firms that cover small-size companies. We cover kind of medium- to medium-high-sized businesses, so our transactions usually start around $30 million USD to $300 million USD. But I know there are a lot of firms that do $5 million USD deals or $2 million USD deals.

“If I wanted to take a lot more risk, I think agriculture is the place to be.” – Lorenzo Garavito, president of HBI

We were actually recently involved in a transaction where a foreign company hired us to find companies in a specific target, and we found one that was very small — but it was exactly what our client needed. So it’s a $1 million USD transaction with a family-owned business where the owner is preparing to retire. The business is managed by one of the siblings, and the owner basically thinks that the person might need the help of somebody once he is missing. This person needs help from somebody to manage the company, so it’s a good idea to bring a partner at this stage.

Finance Colombia: Succession is always complicated. One of the things that I’ve seen is that a father has done very well in business and — either out of blind tradition or not knowing what else to do — is ready to retire, and he says “Well, I’ll just leave it to my kid.” And either the children have no interest in running the business or they have no capacity. So it doesn’t work and the business implodes. The business could have been saved, and I think to myself that it’s sad for the employees. They have worked so hard and given their life to the business — just to see it evaporate.

One of the things I’ve never really seen in Colombia is an employee stock-ownership program. When the founder is ready to retire, he begins to invest the stock in the employees. “You’ve been at the company for 30 years, you get so much.” Eventually, the employees are just like shareholders, and they appoint a board of directors. Is there anything like the employee-owned business or a way to transfer ownership to employees?

Lorenzo Garavito: It’s not very common, but it has happened. We, actually Grupo Helm, had an IT company that was sold to the employees, for example. I know Grupo Sanford, for example, has a stock-option plan for employees, and they distribute stocks. They actually encourage them every year and people might sell or buy at the end of the year, They even have an internal market for shares.

But that’s rare, I think. Private equity has helped in bringing those ideas to companies here as a way to align interest. Some venture capital. I think we’re seeing a change — there are interesting examples out there — but it’s still very limited.

Finance Colombia: In Colombia, as the economy changes, there has been a huge push towards the services sector. At the mid-market, what kind of interest are you seeing from the institutional investors, particularly the more sophisticated and international players? Is that rising? What kind of effects are the economic conditions having on the interest of institutional investors?

Lorenzo Garavito: I think it’s rising. Colombia has had different cycles where sometimes the internal market is more optimistic than the external market, like in the 1990s when things were difficult in Colombia and no foreign market companies wanted to come.

Today I think it’s the opposite. Foreign investors are far more optimistic about the country than local investors. I think it’s because they see the peace process with very optimistic eyes in terms of this being a country that has not been on the radar for a lot of companies and would now be on the radar — even though, in my sense, internally, this process doesn’t mean huge changes initially. I think, over time, it will bring a lot of good changes. But initially I don’t think we’ll see a big difference. But in international eyes, they see this as a boom.

I also think that what the last 18 months have proved in Colombia is that it was not an oil-based economy. Oil was very important — a very important part of our exports and of government financing. But the real ending of the economy was the consumer.

You see results for supermarkets, restaurants, and even shopping malls. They’re doing well. They’re doing very well.

Ten years ago, we had three big cities. Then we increased that to five or six additional cities. Today, if you’re a restaurant, there are 30 cities where you want to be.

Finance Colombia: If you were a fund manager, if you were going to raise a mutual fund, what sectors in Colombia are you bullish on? What is the sector that is under-appreciated and doesn’t get the attention that it deserves from the rest of the world t as far as for an investment destination?

Lorenzo Garavito: Well, I would answer two things: One, in terms of lower-risk areas, I would bet on the consumer. I would definitely bet on retail stores. Not only supermarkets, but glasses or wine or restaurants — or anything that has to do with consumers. I think the consumer will continue to grow, especially in the low- and middle-income. That’s the large bulk of the population.

“Foreign investors are far more optimistic about the country than local investors. I think it’s because they see the peace process with very optimistic eyes. They see this as a boom.” – Lorenzo Garavito, president of HBI

If I wanted to take a lot more risk, I would say agriculture. Colombia is a country that has very good land — a lot of undeveloped land — and very good economics for agriculture in terms of weather, rain, growth, and sunlight. But it has been a sector that has been very difficult to develop.

Of course coffee is one of the best examples of the transformation. But I think that because of all the investments in 4G, the peace process, and a lot of knowledge that is easier to acquire today, if I wanted to take a lot more risk, I think agriculture is the place to be.

Finance Colombia: What does the government need to get right? We all talk about education and we talk about security. What area does the government really need to focus on strategically to improve? What do they need to support over the next decade?

Lorenzo Garavito: In agriculture specifically I would say it is rules. It’s to make sure the rules are there and that you have the same rules for the long term.

Los Llanos is a good example. A lot of people wanted to invest in that region, but then the government wasn’t clear about the rules and nobody knew what was going on. And everything stopped. So today nobody is investing in Los Llanos because there is no security in terms of ownership of the land

And second is infrastructure. Of course, Los Llanos is in the middle of the country and you have to take that product to the ports. Infrastructure is key. I think the government is fixing infrastructure. I hope that once the peace process is done, they will work on security — on legal security — in the long-term for investors.

Petroamerica Oil Corp. is a Canadian oil and gas exploration and production company with interests in fifteen blocks, located in Colombia’s Llanos and Putumayo Basins.  It trades on the TSX Venture Exchange under the symbol PTA.

The vertical amalgamation did not require shareholder approval and was completed to simplify the corporate structure of Petroamerica, said the company in a written statement.  No securities were issued in connection with the vertical amalgamation, and the shares of the subsidiaries were cancelled without any repayment of capital with respect to them.

A Special Meeting of Shareholders will be held next Monday, January 11, At Dentons Canada LLP In Calgary at 10:00 AM

Petroamerica Oil Corp. on November 12 agreed to be purchased by Gran Tierra Energy, Inc. (TSX and NYSE: GTE). With shareholders receiving either 0.4 share of Gran Tierra Energy for each share of Petroamerica Oil Corp stock, or $1.33 Canadian dollars cash per share, limited to 70% of the consideration payable in cash.

Ralph Gillcrist, Petroamerica’s President and CEO said regarding the deal: “This transaction ensures that the high quality assets of Petroamerica will be fully developed and the combination with Gran Tierra will create one of the best-positioned companies in the prolific Putumayo and Llanos basins of Colombia. For Petroamerica’s shareholders, the resulting pro forma company will bring improved liquidity, increased diversity and scale, an outstanding near-term opportunity set and most importantly, the financial capability and balance sheet strength to maximize value of Petroamerica’s portfolio.”

Cover photo – Aguatoca is a popular swimming hole in Casanare, the mostly rural Colombian department where Petroamerica’s Llanos-10 block is located. Photo credit: «Aguatoca» de Juan11211992 – Trabajo propio. Disponible bajo la licencia CC BY-SA 4.0 vía Wikimedia Commons