Gran Tierra Energy Initiates Testing of Costayaco-3 and Drilling of Costayaco-4



    
    Production Infrastructure Upgrades Advancing to Handle New Production
    

    CALGARY, Canada, March 24 /CNW/ -- Gran Tierra Energy Inc. (TSX: GTE)(OTC
Bulletin Board: GTRE), a company focused on oil exploration and production in
South America, today announced that it had begun testing operations on
Costayaco-3, a new well drilled in the recently discovered Costayaco Field. 
Gran Tierra Energy initiated drilling of Costayaco-4 while continuing new
production facility upgrades to handle new production.  In parallel, Gran
Tierra Energy's exploration operations are advancing in Colombia, Peru, and
Argentina.
    
    Colombia Operations
    Costayaco-3, Chaza Block
    
    Gran Tierra Energy commenced testing operations for Costayaco-3, the
third well drilled in the Costayaco field, a new oil field discovered in 2007,
on March 19.  The Costayaco field is located in the Chaza Block in the
Putumayo Basin, where Gran Tierra Energy has a 50% interest and is the
Operator; Solana Resources holds the remaining 50% interest.  The well drilled
through the same reservoir sequences encountered in Costayaco-1 and -2,
reaching a total depth of 8,620 feet on February 20.  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.  Good oil shows were encountered through these
reservoir sections.  Gran Tierra Energy has interpreted a potential oil-water
contact from logs at a depth of 8511 feet measured depth (-7260 feet subsea)
in the lower Caballos Formation, approximately 34 feet lower than the lowest
known oil in Costayaco-2.  No evidence of an oil-water contact has been
identified in the other potential pay zones.
    Gran Tierra Energy expects testing operations to last for approximately
one month.  Similar to Costayaco-2, which tested a maximum of over 6,600
barrels of oil per day (BOPD), only the primary T Sandstone and Caballos
reservoirs will be tested.
    
    Costayaco-4, Chaza Block
    
    Gran Tierra Energy initiated drilling of Costayaco-4 on March 16 and is
expected to take approximately six weeks to drill.  Costayaco-4 will be a
deviated well drilled from the Costayaco-2 pad, and will have a bottom-hole
location approximately 541 meters to the north.  The drilling operations will
include coring of key reservoir intervals.  Testing of Costayaco-4 will
follow.  Gran Tierra Energy has budgeted drilling of Costayaco-5, -6 and -7
for 2008.
    
    Costayaco Production Infrastructure, Chaza Block
    
    Gran Tierra Energy programmed a Long Term Test (LTT) for Costayaco-2 in
the next four months.  LTT production rates for Costayaco-2 will vary from
1,800 BOPD to 3,500 BOPD from different zones which will be determined and
adjusted during the testing period.  A 6 inch production flowline from
Costayaco-2 to Costayaco-1 has been completed and is expected to be
operational by the end of March.
    Costayaco-1 continues to produce approximately 3,500 BOPD with 0.3% water
cut.  Gran Tierra Energy will continue utilizing trucks for transportation of
crude from Costayaco-1 and new crude from the Costayaco-2 to the existing
pipeline infrastructure at Uchupayaco.  Pipe has been delivered to the field,
and environmental permits have been approved, to initiate construction of an 8
inch 10 kilometer pipeline from Costayaco-1 to Uchupayaco.  This production
line will replace the current trucking operations and Gran Tierra Energy
expects it to be completed in June.
    Work is underway to reduce production constraints beyond Uchupayaco in
order to accommodate potential production growth from Costayaco, which is
expected to rise to 6,000 - 9,000 BOPD gross during the second half of 2008.
Gran Tierra Energy is currently evaluating a second stage of infrastructure
expansion, to incorporate additional drilling through the balance of 2008 and
potentially into 2009.
    
    Juanambu Update, Guayuyaco Block
    
    Construction of the 6 kilometer flow line from the Juanambu oil field,
another new oil field discovered in 2007, was completed on February 29.
Approximately 1,300 to 1,500 BOPD is now being transported through the flow
line to Gran Tierra Energy's Toroyaco facilities.  This flow line replaces
trucking operations that had been utilized for the last six months.  The
Juanambu oil field is in the Guayuyaco Block in the Putumayo Basin, where Gran
Tierra Energy is the Operator with a 35% working interest; Solana Resources
holds a 35% working interest and Ecopetrol S.A. holds a 30% working interest.
    
    Popa-2 Exploration Well, Rio Magdalena Block
    
    Location construction for the Popa-2 exploration well in the Rio
Magdalena Block in the Middle Magdalena Basin has begun, with drilling
expected to begin in early April. This well will be drilled near a
non-commercial oil discovery made by Gran Tierra Energy in 2006 at Popa-1,
which tested approximately 160 BOPD.  Gran Tierra Energy is the operator of
the Rio Magdalena Block and has a 100% working interest.  Under the terms of a
recently completed farmin agreement, Omega Energy Colombia will earn a 60%
share of Gran Tierra Energy's interest.  In the event of a commercial
discovery, Ecopetrol S.A. has a right to back in for a 30% working interest,
to be split proportionally between Gran Tierra Energy and Omega Energy
Colombia.
    
    Azar Block
    
    Planning is continuing for the work-over of the Palmera-1 well, an old
exploration well that had potential oil pay indicated on logs but which was
never tested.  Testing is scheduled for the second quarter.  In addition,
newly acquired 3-D seismic data is currently being interpreted in preparation
for drilling an exploration well in the fourth quarter of 2008. Gran Tierra
Energy is operator of the Azar Block and has a 40% working interest.
    
    Peru Operations
    
    Acquisition of approximately 20,000 linear kilometers of new high
definition airborne gravity and magnetic data over the entire area of Blocks
122 and 128 is continuing.  Approximately 10,100 linear kilometers, or 51% of
the program, has been acquired to date.  This data will be used to define
exploration leads over which 2-D seismic data will be acquired in the Second
Exploration Period of each block.  Block 122 encompasses approximately 1.2
million acres and Block 128 encompasses approximately 2.2 million acres of
land.  Gran Tierra Energy is operator and holds a 100% working interest in
both exploration blocks.
    
    Argentina Operations
    
    Well design, rig contracting, and planning continue for the drilling of
the Proa-1 exploration well in the third quarter in the Surubi Block in the
Noroeste Basin of northern Argentina.  Gran Tierra Energy is Operator and has
a 100% working interest in this block.  In addition, technical evaluation work
and a variety of well work-overs continue in Gran Tierra Energy's other six
landholdings in the basin.
    Commenting on progress, Dana Coffield, President and Chief Executive
Officer of Gran Tierra Energy Inc., stated, "2008 is off to an extremely
strong start.  Production for the first two months of 2008, net after royalty,
has averaged 3,126 BOPD.  With field delineation drilling operations,
production testing operations, exploration drilling operations, and remote
sensing data acquisition operations taking place across our three operating
arenas Colombia, Peru, and Argentina, we are on track to have another
extremely successful year as we continue to build a substantial international
oil and gas company."
    
    About Gran Tierra Energy Inc.:
    
    Gran Tierra Energy Inc. is an international oil and gas exploration and
production company operating in South America, headquartered in Calgary,
Canada, incorporated in the United States, and trading on the Toronto Stock
Exchange (GTE) and the OTC Bulletin Board (GTRE). The company holds interests
in producing and prospective properties in Argentina, Colombia and Peru. The
company 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. Additional information concerning Gran
Tierra Energy is available at www.grantierra.com . Investor inquiries may be
directed to info@grantierra.com or 1-800-916-GTRE (4873).
    
    Forward Looking Statements:
    
    The statements in this news release regarding Gran Tierra Energy's plans
and expectations for testing and drilling, expectations as to results of these
testing and drilling operations and infrastructure, and expectations as to
completion of the pipeline from Costayaco-1, are forward looking information,
forward looking statements or financial outlooks (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.  These forward-looking statements 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.  Although, Gran Tierra Energy believes that the assumptions
underlying, and expectations reflected in, these forward-looking statements
are reasonable, it can give no assurance that these assumptions and
expectations will prove to be correct. Important factors that could cause the
results or outcomes discussed herein to differ materially from those indicated
by these forward-looking statements, include, among other things:  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 the production, transport or sale of its products,
and geographic, political and weather conditions; and oil discoveries and
amounts may be different than Gran Tierra Energy predicts.  Further
information on potential factors that could affect Gran Tierra are included in
risks detailed from time to time in Gran Tierra's Securities and Exchange
Commission filings, including, without limitation, under the caption "Item 1A
- Risk Factors" in Gran Tierra's Annual Report on Form 10-K for the period
ended December 31, 2007, filed with the Securities and Exchange Commission on
March 14, 2008.  These filings are available on a Web site maintained by the
Securities and Exchange Commission at http://www.sec.gov. The forward-looking
statements contained herein are made as at the date of this press release.
Gran Tierra does not undertake an obligation to update forward-looking or
other statements in this release. Gran Tierra's forward-looking statements are
expressly qualified in their entirety by this cautionary statement.




For further information:

For further information: Dana Coffield, President & Chief Executive 
Officer of Gran Tierra Energy, Inc., +1-800-916-4873, info@grantierra.com; or 
Investor Relations: Al Palombo of Cameron Associates, +1-212-245-8800 Ext.
209,  al@cameronassoc.com, for Gran Tierra Energy, Inc. Web Site:
http://www.grantierra.com

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