Preparations for Testing Program Initiated
CALGARY, Canada, Jan. 15 /CNW/ -- Gran Tierra Energy Inc. (OTC Bulletin
Board: GTRE), a company focused on oil exploration and production in South
America, today announced that it has successfully completed the drilling of
the Costayaco-2 well in the Putumayo Basin of Colombia and has initiated
preparations for testing the primary hydrocarbon reservoirs encountered.
Costayaco-2 is the second well to be drilled in the Costayaco field, an
oil field discovered in the Chaza Block in the second quarter of 2007. The
well is located 560 meters northeast of the Costayaco-1 discovery well.
Drilling of Costayaco-2 was initiated on December 6, 2007 and total measured
depth of 8,600 feet was reached on January 2, 2008. The well bore has been
cased and the Pride-17 drilling rig was released on January 8, 2008.
Costayaco-2 encountered the same reservoir sequences with similar good
oil and gas shows as were encountered in the Costayaco-1 discovery well.
Initial log interpretations from data acquired during drilling indicate
potential hydrocarbon pay in the Kg Sand Unit of the Rumiyaco Formation, the U
Sandstone Unit of the Villeta Formation, the T Sandstone Unit of the Villeta
Formation and the Caballos Formation. Preliminary log interpretations indicate
better reservoir quality in the T Sandstone and the Caballos Formation
compared to Costayaco-1.
The Pride-6 service rig is being mobilized to initiate testing of the
primary hydrocarbon reservoirs encountered during drilling. Testing
operations are expected to begin in late January and scheduled to be completed
The Pride-17 drilling rig is being mobilized to the Costayaco-3 location.
Costayaco-3 is located approximately 960 meters west of the Costayaco-1
location. Drilling is expected to commence in late January and be completed
in late February.
Production from Costayaco-1 has increased to approximately 3,500 gross
barrels of oil per day (BOPD), or 1,580 BOPD net after royalty to Gran Tierra
Energy, as a result of the commingling of two reservoir zones, the Caballos
and the Villeta T sandstone reservoirs.
Crude oil production from Costayaco-1 is currently being trucked to new
loading facilities in the existing pipeline infrastructure at Uchupayaco.
Potential crude oil production from Costayaco-2 will also be trucked to the
same facilities. Construction of an 11 kilometer 8 inch pipeline from the
Costayaco field to Uchupayaco is expected to begin in mid-April. Upon
completion mid-year, this pipeline will replace trucking operations.
The acquisition of a new 70 square kilometer 3-D seismic program over the
Costayaco oil field has been completed. This data is currently being
interpreted and will be used to assist with the positioning of future
development drilling operations in the Costayaco field. Acquisition of 41
kilometers of new 2-D seismic data to define additional exploration potential
in the Chaza Block has been initiated.
Gran Tierra Energy holds a 50% working interest and is the Operator of
the Chaza Block. Solana Resources Limited holds the remaining 50% working
interest. The Chaza Block is subject to the new and fiscally attractive
Agencia Nacional de Hidrocarburos royalty/tax contract which includes no
additional state participation.
"The continued exceptional production performance of Costayaco-1 combined
with the early positive drilling results from Costayaco-2, the pending
initiation of drilling of Costayaco-3 and integration of results with the new
3-D seismic data all bode well for efficiently delineating the reserve and
production potential of the Costayaco field, allowing us to plan a full field
development, including additional drilling, facilities and pipeline to handle
new production as appropriate through 2008," stated Dana Coffield, President
and Chief Executive Officer of Gran Tierra Energy Inc.
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. is an international oil and gas exploration and
production company, headquartered in Calgary, Canada, incorporated and traded
in the United States and operating in South America. Gran Tierra Energy holds
interests in producing and prospective properties in Argentina, Colombia and
Peru. The company's strategy is focused on establishing a portfolio of
drilling opportunities to exploit undeveloped reserves to grow production, as
well as undertaking exploration to grow future reserves. Additional
information concerning Gran Tierra Energy is available at
http://www.grantierra.com. Investor inquiries may be directed to
firstname.lastname@example.org or 1-800-916-GTRE (4873).
Forward Looking Statements
The statements in this press release regarding Gran Tierra Energy's
expectations with respect to the timing of testing and drilling operations,
transportation of crude oil and the construction of the pipeline, the use to
which seismic data will be put, and the ability of Gran Tierra Energy to plan
a full field development, including additional drilling, facilities and
pipeline to handle new production as appropriate through 2008, are 'forward-
looking statements' within the meaning of Section 27A of the United States
Securities Act of 1933, as amended, and Section 21E of the United States
Securities Exchange Act of 1934. Although these forward-looking statements
reflect the good faith judgment of management, forward-looking statements are
inherently subject to known and unknown risks and uncertainties that may cause
actual results to be materially different from those discussed in these
forward-looking statements including, but not limited to, in the case of these
forward-looking statements: unexpected delays in drilling or pipeline or other
transportation infrastructure completion due to equipment failure or other
unforeseen reasons; unforeseen events, such as unexpected difficulties in
drilling or unexpected discoveries, may cause Gran Tierra Energy to reallocate
resources, which may delay drilling, surveys, design plans, transportation
infrastructure development and production or alter the mix of development
drilling and exploration drilling in Gran Tierra Energy's portfolio; and
unexpected costs may decrease funds available to carry out Gran Tierra
Energy's plans described in this press release, which could delay or prevent
execution of these plans. Readers are urged not to place undue reliance on
these forward-looking statements, which speak only as of the date of this
release. Gran Tierra Energy assumes no obligation to update these forward-
looking statements to reflect any event or circumstance that may arise after
the date of this release, other than as may be required by applicable law or
regulation. Readers are urged to carefully review and consider the various
disclosures, including the risk factors, made by Gran Tierra Energy in its
reports filed with the Securities and Exchange Commission, in particular under
the caption "Item 1A - Risk Factors" of its quarterly report on Form 10-Q
filed on November 8, 2007, which attempt to advise interested parties of the
risks and factors that may affect Gran Tierra Energy's business. If one or
more of these risks or uncertainties materialize, or if the underlying
assumptions prove incorrect, Gran Tierra Energy's actual results may vary
materially from those expected or projected.
For further information:
For further information: Dana Coffield, President & Chief Executive
Officer of Gran Tierra Energy Inc., +1-800-916-4873, email@example.com; or
investors, Al Palombo of Cameron Associates, +1-212-245-8800, ext. 209,
firstname.lastname@example.org, for Gran Tierra Energy Inc. Web Site: