CALGARY, Oct. 12, 2011 /PRNewswire via COMTEX/ --
Additional Oil Identified With Moqueta-6 Delineation Well
Gran Tierra Energy Inc. ("Gran Tierra Energy") (NYSE Amex: GTE, TSX:
GTE), a company focused on oil exploration and production in South America,
today announced that it has initiated exploration drilling operations
on two oil prospects in Brazil and exploration drilling operations on
one oil prospect in Colombia. Delineation and development drilling is
ongoing in Colombia, with additional oil column identified in the
Moqueta-6 delineation well.
"Two years after announcing a strategic decision to enter Brazil, Gran
Tierra Energy has assembled a large land position and a diverse
exploration and development drilling portfolio, with exploration
drilling operations now initiated on two prospects, one onshore and one
offshore. In parallel, our delineation and development drilling
operations on recently discovered reserves in Colombia are ongoing,
with exciting new delineation results indicating additional oil column
in the Moqueta oil discovery. We have also begun additional exploration
drilling on our lands in the Putumayo Basin of Colombia," said Dana
Coffield, President and Chief Executive Officer of Gran Tierra Energy.
Brazil
BM-CAL-10 Block (Statoil 45% WI & Operator, Petrobras 40% WI, Gran
Tierra Energy 15% WI)
Statoil do Brasil Ltda. ("Statoil") commenced drilling operations on
October 1, 2011 on the 1-STAT-7-BAS exploration well. The well is
located in the deepwater portion of the Camamu Basin at a water depth
of 6,200 feet, directly offshore from Salvador and the onshore
Recôncavo Basin where Gran Tierra Energy's operated acreage is located,
and is expected to take 60 days to drill.
Documents associated with Gran Tierra Energy's two farm-in agreements
with Statoil, whereby Gran Tierra Energy will be entitled to earn a 10%
working interest in Concession Contract BM-CAL-7 operated by
PetróleoBrasileiro S.A. ("Petrobras"), and a 15% working interest in
Concession Contract BM-CAL-10 operated by Statoil, in the offshore
Camamu Basin, are being prepared for submission to the Agência Nacional
de Petróleo, Gás Natural e Biocombustíveis ("ANP") for regulatory
approval.
REC-T-142 Block (Gran Tierra Energy 70% WI & Operator, Alvorada 30% WI)
Drilling of the 1-GTE-01-BA oil exploration well began on October 7,
2011. The well is located in Block REC-T-142 in the prolific onshore
Recôncavo Basin. This operation is commencing with the drilling of a
vertical pilot hole from which core will be acquired from the
prospective reservoir section. The pilot well is planned to reach a
total measured depth of approximately 6,070 feet and take approximately
35 days to drill.
Upon completion of the well and subsequent evaluation to determine if
adequate reservoir is present, a drilling rig is planned to return late
in 2011 to drill a horizontal sidetrack from the pilot hole at the
optimum depth to test the productivity of the sandstone reservoir
target. This will be the first of three horizontal wells Gran Tierra
Energy plans to drill in late 2011 and continuing into the first
quarter of 2012.
REC-T-129 Block (Gran Tierra Energy 70% WI & Operator, Alvorada 30% WI)
Drilling of the 1-GTE-02-BA oil exploration well is scheduled to begin
in mid-October, 2011. This well is located in Block REC-T-129 in the
Recôncavo Basin and is targeting two independent light oil reservoir
targets. The well is expected to reach a total measured depth of
approximately 6,400 feet and take approximately 35 days to drill.
Colombia
Rumiyaco Block (Gran Tierra Energy 100% WI and Operator)
The Rumiyaco-1 oil exploration well began drilling on October 9, 2011.
This prospect lies in the southern Putumayo Basin approximately 85
kilometers southwest of Gran Tierra Energy's existing producing
properties, and between two existing oil producing trends. The well is
expected to test a structural closure defined by 3-D seismic data at a
total measured depth of approximately 10,700 feet and take
approximately 45 days to drill.
Chaza Block (Gran Tierra Energy 100% WI and Operator)
The Moqueta-6ST1 delineation well in the 2010 Moqueta oil discovery
reached total measured depth of 5,724 feet in basement after
encountering oil shows in the Kg Sandstone, the U Sandstone, the T
Sandstone and the Caballos reservoirs. The primary T Sandstone and
Caballos reservoirs were encountered approximately 250 feet deeper than
the equivalent reservoirs in Moqueta-5. Electric log interpretations
and pressure gradient data indicate oil pay in the T Sandstone and
Caballos reservoirs. A testing program is currently being designed to
confirm the nature of the fluids and reservoir productivity of the
sandstones.
Testing results are expected in approximately one month.
Sierra Nevada Block (Gran Tierra Energy 100% WI and Operator)
Drilling of the Brillante SE-2 delineation well is expected to begin
late October, 2011. This gas field was discovered in 2010 and lies in
the Lower Magdalena Basin in northern Colombia. This is the first of
two delineation wells that are planned to be drilled in late 2011 and
early 2012, with the intent to define adequate reserves to justify the
construction of a gas pipeline and commit to long term gas sales
contracts. The field is currently producing a nominal volume of gas
which is transported by a third party utilizing compressed natural gas
trucks. Gran Tierra Energy plans to increase this production to
approximately 2 million standard cubic feet of gas per day before the
end of 2011. The well is expected to reach total measured depth of
approximately 6,000 feet and take approximately 25 days to drill.
Garibay Block (CEPSA 50% WI and Operator, Gran Tierra Energy 50% WI)
Drilling of the Jilguero-2 delineation well in the 2010 Jilguero oil
discovery in the Llanos Basin of eastern Colombia is ahead of
schedule. The well is expected to reach total measured depth of
approximately 9,830 feet in mid-October.
Planning for the initiation of long-term testing of Melero-1, a new oil
discovery made in 2011, is continuing, with first production expected
in December.
"In summary, the Fourth Quarter of 2011 is going to be a very exciting
time for our company, with exploration, delineation and development
drilling results expected in Brazil and Colombia, and planning ongoing
for a robust 2012 drilling program in those countries as well as in
Peru and Argentina, all expected to be fully funded with cash and cash
flow at current oil prices and production volumes," concluded Coffield.
About Gran Tierra Energy Inc.
Gran Tierra Energy is an international oil and gas exploration and
production company, headquartered in Calgary, Canada, incorporated in
the United States, trading on the NYSE Amex Exchange (GTE) and the
Toronto Stock Exchange (GTE), and operating in South America. Gran
Tierra Energy holds interests in producing and prospective properties
in Colombia, Argentina, Peru, and Brazil. Gran Tierra Energy has a
strategy that focuses on establishing a portfolio of producing
properties, plus production enhancement and exploration opportunities
to provide a base for future growth.
Gran Tierra Energy's Securities and Exchange Commission filings are
available on a web site maintained by the Securities and Exchange
Commission at http://www.sec.gov and on SEDAR at http://www.sedar.com.
Forward Looking Statements:
This news release contains certain forward-looking information and
forward-looking statements (collectively, "forward-lookingstatements")
under the meaning of applicable securities laws, including Canadian
Securities Administrators' National Instrument 51-102 - Continuous Disclosure Obligations and the United States Private Securities Litigation Reform Act of 1995.
The use of the words "expected", "planned", "plans", "scheduled",
"may", "will" and derivations thereof similar terms identify
forward-looking statements. In particular, but without limiting the
foregoing, this news release contains forward-looking statements
regarding Gran Tierra Energy's planned and expected drilling operations
in Brazil and Colombia including, without limitation: anticipated
drilling locations, depths and timelines; the results of Gran Tierra
Energy's two farm-in agreements with Statoil; expectations respecting
testing, pilot hole and delineation drilling; the timing and amount of
production expected from drilling activities; and the funding of
drilling and operations.
The forward-looking statements contained in this news release reflect
several material factors and expectations and assumptions of Gran
Tierra Energy including, without limitation: assumptions relating to
log evaluations; that Gran Tierra Energy will continue to conduct its
operations in a manner consistent with past operations, the accuracy of
testing and production results and seismic data, the effects of certain
drilling techniques and the general continuance of current or, where
applicable, assumed operational, regulatory and industry conditions.
Gran Tierra Energy believes the material factors, expectations and
assumptions reflected in the forward-looking statements are reasonable
at this time but no assurance can be given that these factors,
expectations and assumptions will prove to be correct.
The forward-looking statements contained in this news release are
subject to risks, uncertainties and other factors that could cause
actual results or outcomes to differ materially from those contemplated
by the forward-looking statements, including, among others: the two
farm-in agreements with Statoil are subject to regulatory approval by
the ANP, the timing and results of which are outside of Gran Tierra
Energy's control, which approval if not obtained or delayed could cause
these farm-ins not to occur or to be delayed; unexpected technical
difficulties and operational difficulties may occur, or the obtaining
of environmental permits may be delayed, which could impact or delay
the commencement of drilling exploration, development and/or
delineation wells; geographic, political and weather conditions can
impede testing, which could impact or delay the commencement of
drilling exploration, development and/or delineation wells; and the
risk that current global economic and credit market conditions may
impact oil prices and oil consumption more than Gran Tierra Energy
currently predicts, which could cause Gran Tierra Energy to not realize
the benefit that it expects from the contracts, or to fund the drilling
operations solely from cash and cash flow from operations. Although
Gran Tierra Energy's plans for its drilling operations and the funding
thereof are based upon the current expectations of the management of
Gran Tierra Energy, there may be circumstances where, for unforeseen
reasons, a change in such plans may be necessary as may be determined
at the discretion of Gran Tierra Energy and there can be no assurance
as at the date of this press release as to how drilling operations may
be altered or funds reallocated. Should any one of a number of issues
arise, Gran Tierra Energy may find it necessary to alter its current
business strategy and/or capital spending program. Further information
on potential factors that could affect Gran Tierra Energy are included
in risks detailed from time to time in Gran Tierra Energy's Securities
and Exchange Commission filings, including, without limitation, under
the caption "Risk Factors" in Gran Tierra Energy's Quarterly Report on
Form 10-Q filed August 9, 2011. These filings are available on a Web
site maintained by the Securities and Exchange Commission at http://www.sec.gov and on SEDAR at www.sedar.com.The forward-looking statements contained herein are expressly
qualified in their entirety by this cautionary statement. The
forward-looking statements included in this press release are made as
of the date of this press release and Gran Tierra Energy disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as expressly required by applicable securities
legislation.
SOURCE Gran Tierra Energy Inc.