More Oil at Moqueta-4, Exploration Drilling Activity Ramps Up, Dry Hole at Taruka-1
CALGARY, Feb. 15 /CNW/ - Gran Tierra Energy Inc. ("Gran Tierra Energy") (NYSE Amex: GTE; TSX:
GTE), a company focused on oil and gas exploration and production in South
America, today announced an operations update for Colombia, Peru,
Argentina and Brazil.
Moqueta Field, Chaza Block (100% working interest and Operator)
Initial drilling and logging results have been obtained from the
Moqueta-4 delineation well located approximately 1.5 kilometers to the
west of the Moqueta-1 discovery well in the Chaza Block of the Putumayo
Basin. Oil shows were recorded throughout the Villeta U Sandstone, the
Villeta T Sandstone and the Caballos formations, with electric logs and
RFT pressure data indicating total potential net oil pay in Moqueta-4
of approximately 125 feet, compared to 118 feet in the Moqueta-3 and 44
feet in the Moqueta-2 delineation wells. As a result of these initial
indications of increased oil pay, a test program is being conducted to
confirm the fluid content and productivity of the encountered
reservoirs. This test program, which commenced on January 27, 2011, is
expected to be completed in early March of 2011.
To date, no oil-water contact has been identified from the available
data, nor has there been any indication that gas is present in any of
the reservoirs at Moqueta-4. Subject to successful testing and
subsequent delineation drilling, there remains potential for additional
oil down-dip. Additional delineation drilling is being planned for
2011 to further evaluate the extent of this oil discovery. In addition,
a 115 square kilometer 3D seismic survey is being permitted and will be
acquired over areas not currently covered by 3D to help determine the
areal extent of the field.
Final design of the Moqueta to Costayaco 6 inch, 8 kilometer pipeline is
currently underway with environment permitting completed. Gran Tierra
Energy anticipates construction will start mid-February, 2011 with an
anticipated completion date and start of long-term testing of the
Moqueta field in May 2011.
Costayaco Field, Chaza Block (100% working interest and Operator)
Drilling operations have concluded on the Costayaco-12 and -13
development wells, which were drilled as infill production wells to
test the respective northern and southern extensions of the Costayaco
field. Completion and testing has commenced at Costayaco-12. Production from the Costayaco-12 and -13 wells is intended to assist in
maintaining production plateau at the Costayaco field; these will be
converted to water-injectors to assist with pressure maintenance in the
field later in the Costayaco field life.
Pacayaco Prospect, Chaza Block (100% working interest and Operator)
A new well, or a sidetrack of the existing well in the Pacayaco
prospect, is expected to spud late in the second quarter of 2011.
Newly acquired 3D seismic data suggests that a new drilling location
may be required to direct the well to the intended down-hole location
that was targeted on 2D seismic by the recently drilled Pacayaco-1
Canangucho Prospect, Chaza Block (100% working interest and Operator)
The exploration well Canangucho-1, located east of the Costayaco Field,
began drilling on February 10, 2011. Canangucho-1 is targeting the
same reservoirs present in the Costayaco and Moqueta oil fields.
Drilling is expected to take approximately one month.
Juanambu Field, Guayuyaco Block (70% Working Interest and Operator)
Civil construction work for the Juanambu-3 development well in the
Guayuyaco Block in the Putumayo basin is ongoing and approximately 90%
complete. Juanambu-3 is anticipated to begin drilling in early March
and take approximately one month to drill.
Taruka Prospect, Piedemonte Sur Block (100% working interest and
The Taruka-1 exploration well reached total depth on February 7, 2011.
The target reservoirs were encountered, but with only poor oil shows.
The well was plugged and abandoned.
Colombia Operations Update
The Ecopetrol-operated Trans-Andean oil pipeline, through which Gran
Tierra Energy sales oil is transported from the Putumayo Basin, has
been working at reduced capacity due to maintenance at the Tumaco Port
crude offloading terminal in the Pacific Coast city of Tumaco. The
port was offline from approximately December 28 to February 7, 2011.
During this period, Gran Tierra Energy continued production at reduced
volumes of approximately 60% of capacity in the Putumayo Basin, with a
portion of oil volumes being exported by pipeline through Ecuador as
well as by truck within Colombia. On February 8, 2011, transportation
through the same Trans-Andean pipeline was halted as a disruption
occurred in the line. The pipeline was restored on February 14, 2011.
Gran Tierra Energy's sales for the month of January averaged
approximately 12,200 barrels of oil per day, net after royalty, before
the recent disruption of the Trans-Andean oil pipeline.
On February 8, 2011 drilling operations commenced on the Kanatari-1
exploration well on Block 128. Drilling is expected to conclude in
late February, with results expected in March. The drilling rig is
expected to mobilize to drill a second exploration well this year in
the adjacent Block 122.
In addition, an application for regulatory approval of the acquisition
of a 60% interest in Block 95 has been submitted to PeruPetro S.A. for
approval. Gran Tierra Energy has budgeted one exploration well on the
block in the fourth quarter of 2011. The contract area contains the
previously drilled Bretaña-1 well, which was drilled in 1974 and tested
18° API gravity oil on natural flow rates of approximately 800 barrels
of oil per day.
In the Valle Morado gas field, sidetrack drilling operations on the
VM.x-1001 delineation well will be suspended due to a number of
operational challenges that have been encountered. Gran Tierra Energy
continues to review alternatives associated with the field
An application for approval of the acquisition of a 70% interest in
Blocks REC-T-129, -142, -155 and -224 in the on-shore Recôncavo Basin,
Brazil has been submitted for regulatory approval from Brazil's Agência
Nacional de Petróleo Gás Natural e Biocombustíveis ("ANP"). The ANP is presently reviewing Gran Tierra Energy's request to be
recognized as an operator in Brazil. The budgeted 2011 drilling
program on Blocks REC-T-129, 142 and 155 consists of four exploration
and two development wells.
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. 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 Argentina, Colombia, Peru and, subject to regulatory approval,
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-looking statements")
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 "expect", "anticipate", "potential", "will",
"may", "being", "suggests" and "planned" identify these forward-looking
statements. In particular, but without limiting the foregoing, this
news release contains forward-looking statements regarding planned and
expected testing, timing and results regarding Moqueta-4, potential for
additional oil down-dip, planned additional wells, anticipated timing
and information from Gran Tierra Energy's seismic acquisition program,
timing of submission of regulatory and environmental applications and
receipt and timing of environmental permits and other regulatory
approvals, planned construction of the pipeline from Moqueta to the
Costayaco facilities, anticipated improvement in the recovery factor of
oil reserves in the Costayaco field, expected drilling and spudding of
the exploration and development wells, anticipated downtime of the
Trans-Andean pipeline and expected effect on production, and expected
seismic operations and spud date in Peru.
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 effects of
drilling down-dip and the general continuance of current or, where
applicable, assumed operational 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: Gran Tierra
Energy's operations are located in South America, and unexpected
problems can arise due to guerilla activity, technical difficulties and
operational difficulties which impact or delay its testing and drilling
operations; geographic, political, weather and other industry
conditions can impede and/or delay testing and drilling operations and
can impede and/or delay construction of pipeline and other facilities;
resumption of service at the Trans-Andean oil pipeline may not occur
on the timelines or in the manner expected, or at all; regulatory and
environmental permits may not be received on the terms or timelines
anticipated, or at all; 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 modify its exploration activities. 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 November 5, 2010. 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.
Additional information is available on Gran Tierra Energy's website at www.grantierra.com.
SOURCE Gran Tierra Energy Inc.
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