Enters into agreement to acquire a 60% interest and operatorship of
Block 95 in the prolific Marañon Basin
CALGARY, Dec. 12 /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 it has entered into an agreement to farm into
Global Energy Development PLC Block 95 in Peru's Marañon Basin.
Pursuant to the terms of the agreement, Gran Tierra Energy will acquire
a 60% working interest and operatorship in Block 95.
"This farm-in will allow Gran Tierra Energy to expand and diversify its
exploration portfolio while also reducing technical risk given that
petroleum resources have already been discovered and tested on the
block," said Dana Coffield, President and Chief Executive Officer of
Gran Tierra Energy. "With this agreement, Gran Tierra Energy will be
amongst the largest onshore exploration acreage holders in Peru and
will be well positioned to test both existing and new hydrocarbon plays
in the region."
Block 95 consists of 1.3 million gross acres, and is located in
north-east Peru, due south of Gran Tierra Energy's existing acreage in
the prolific Marañon Basin where over 1 billion barrels of recoverable
oil have been discovered to date. The contract area contains the
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.
Under the agreement, Gran Tierra Energy will assume the cost of
drilling an exploration well, up to a cap of US$15 million, along with
its share of past costs incurred in respect of the well. Upon reaching
the US$15 million cap, Gran Tierra Energy will pay only its pro rata
share of costs going forward.
Gran Tierra Energy expects to start drilling the exploration well before
year-end 2011, once final environmental permits are obtained.
The transaction is subject to PeruPetro S.A. approval, which is expected
to take approximately four to six months.
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 Argentina, Colombia, 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-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 "expects", "expected" and "will" 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 presence in Peru,
as well as expected plans, results and benefits regarding commitments
and exploration, production and development for the Block 95 farm-in
and expectations regarding the timing of the approval of PeruPetro S.A.
and the timing of commencement of drilling Bretaña-2.
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
flow rates in the Bretaña field and recoverability in the Marañon
Basin. 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
transaction is subject to regulatory approval by PeruPetro S.A., the
timing and results of which are outside of Gran Tierra Energy's
control, which approval if not obtained or delayed could cause the
transaction not to occur; 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 Bretaña-2; geographic, political and weather conditions can
impede testing, which could impact or delay the commencement of
drilling Bretaña-2; 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 intention to expand its presence in Peru.
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
SOURCE Gran Tierra Energy Inc.
For further information: For further information:
Additional information is available on Gran Tierra Energy's website at www.grantierra.com. For media and investor inquiries please contact Jason Crumley, Director, Investor Relations at 403-265-3221 or firstname.lastname@example.org.