Gran Tierra Energy Successfully Drills Costayaco-4 in Colombia, Completion and Testing Operations Initiated



    
    Costayaco Field Production Plans for Expansion to 10,000 BOPD Gross
    

    CALGARY, Alberta, June 13 /CNW/ -- Gran Tierra Energy Inc. (Amex:   GTE;
TSX: GTE), a company focused on oil exploration and production in South
America, today announced that it had completed drilling Costayaco-4, a new
well drilled in the Costayaco Field in Colombia.  Gran Tierra Energy also
updated progress being made with additional drilling activities and production
infrastructure development.

    Colombia Operations

    
    Chaza Block
    Costayaco-4
    
    Gran Tierra Energy completed drilling operations for Costayaco-4, the
fourth well drilled in the Costayaco field, a new oil field discovered in
2007.  The Costayaco field is located in the Chaza Block in the Putumayo
Basin, where the company has a 50% working interest and is the operator, with
Solana Resources holding the remaining 50% working interest.
    Gran Tierra Energy drilled Costayaco-4 directionally from the Costayaco-2
well site and drilled through the same reservoir sequences encountered in the
previous wells drilled in the field, reaching a total measured depth of 8,884
feet (7,344 feet true vertical depth) on May 24, 2008.  The bottom-hole
location is approximately 541 meters north of Costayaco-2.  Gran Tierra Energy
successfully acquired core of the major reservoir intervals in the Villeta T
sandstone and the Upper Caballos sandstone.  Analysis of the core will provide
additional data for reservoir modeling and full field development planning.
Log interpretations from data acquired after drilling indicate approximately
16 feet of potential hydrocarbon pay in the Kg Sand Unit of the Rumiyaco
Formation, 14 feet in the U Sandstone Unit of the Villeta Formation, 38 feet
in the T Sandstone Unit of the Villeta Formation and 125 feet in the Caballos
Formation.  This is almost 25% more potential net pay than in any of the
previous three wells in the field.
    Gran Tierra Energy is currently designing a completion and testing
program to evaluate the hydrocarbon reservoirs encountered.  Gran Tierra
Energy expects testing to begin in late June and take approximately one month
to complete.
    
    Costayaco-5
    
    Gran Tierra Energy has completed construction of the drilling location
for Costayaco-5.  The company will drill this well on the west flank of the
Costayaco field, approximately 1,120 meters west of Costayaco-2 (1,060 meters
north west of Costayaco-1 discovery well) in an attempt to locate the
oil-water contact in the T Sandstone Unit and to further define the reserves
of the Costayaco Field.  Drilling is to commence in late June and finish in
late July.  The company plans to drill Costayaco-6 and -7 during 2008.
    
    Costayaco Production and Infrastructure
    
    The Costayaco field is currently producing approximately 7,000 barrels of
oil per day (BOPD) gross from Costayaco-1, -2 and -3, which is being
transported by truck to offloading facilities at Uchupayaco on the existing
pipeline system. Construction of an 8 inch 10 kilometer oil transfer line from
Costayaco-1 to Uchupayaco is approximately 53% complete.  Gran Tierra Energy
expects the line to be operational in early August.   Once connected to
existing infrastructure, plans are to ramp up Costayaco production to
approximately 10,000 BOPD gross, overcoming the Santana to Orito pipeline
bottleneck by trucking approximately 3,000 BOPD gross around this pipeline
segment.  Gran Tierra Energy is investigating the opportunity to possibly
truck approximately another 3,000 to 5,000 BOPD gross north to Neiva.
Additional infrastructure expansion is being evaluated to accommodate the
anticipated increase in production from the continuing Costayaco drilling
program and to negate the need for any trucking.
    
    Rio Magdalena Block
    Popa-2 Exploration Well
    
    Gran Tierra Energy initiated drilling of the Popa-2 exploration well in
the Rio Magdalena Block in the Middle Magdalena Basin, on May 8, 2008. Gran
Tierra Energy expects drilling to be completed in late June.  This well is
being 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 farm-in agreement, Omega Energy Colombia
will earn a 60% share of the company's interest by paying 100% of the costs
associated with the exploration well.  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
    
    Gran Tierra Energy initiated re-entry operations of the Palmera-1 well on
May 28, 2008, an exploration well drilled in 1996 that had potential oil pay
in the Kg Sandstone of the Rumiyaco Formation indicated on logs but which was
never tested.  Gran Tierra Energy expects these testing operations to be
completed in late June.  In addition, the company is continuing to interpret
newly acquired 3-D seismic data in preparation for drilling an exploration
well in the block. Gran Tierra Energy is operator of the Azar Block and has a
40% working interest.
    
    Peru Operations
    
    Gran Tierra Energy completed the 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 in May 2008.  Preparations are
being made to enter the Second Exploration Periods of both Blocks 122 and 128,
beginning with an extensive environmental impact assessment that will be
undertaken to support 2-D seismic data that 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
    
    Gran Tierra Energy began mobilization of a rig to drill the Proa-1
exploration well in the Surubi Block in the Noroeste Basin of northern
Argentina during the second quarter of 2008.  The company expects drilling to
begin in early July and be completed in late August.  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.
    
    Production Growth Continues
    
    Gran Tierra Energy's production for the second quarter to date has
averaged approximately 3,250 BOPD net after royalty.  This is up from an
average of 2,842 BOPD reported for the first quarter of 2008.  Production has
grown further to an average of approximately 4,100 BOPD net after royalty in
early June.  The majority of the production growth has taken place in
Colombia, with Argentina production having grown to approximately 550 BOPD net
after royalty.
    Commenting on progress, Dana Coffield, President and Chief Executive
Officer of Gran Tierra Energy Inc., stated, "The Costayaco Field in Colombia
continues to exceed our expectations.  Significant progress is being made on
defining production infrastructure requirements, advancing production capacity
and setting new production targets for the field, in addition to advancing our
exploration programs in our other operated blocks in Colombia, Peru and
Argentina."
    
    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 American Stock
Exchange (GTE) and the Toronto Stock Exchange (GTE). The company holds
interests in producing and prospective properties in Argentina, Colombia and
Peru. The company has a strategy that focuses on growing 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 http://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
expected production growth, plans and expectations for testing and drilling,
expectations as to results of these testing and drilling operations and
infrastructure, the use to which acquired seismic data will be put, the
benefits that will result from the identification of the oil-water contact in
the Costayaco discovery, and expectations as to completion of the pipeline
from Costayaco-1 and the timing for the other events cited above, 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 the
usefulness of the seismic data and benefits of the discovery of the oil-water
contact may be different than Gran Tierra Energy predicts.  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 "Item 1A -- Risk Factors" in Gran Tierra Energy's Annual
Report on Form 10-K/A for the period ended December 31, 2007, filed with the
Securities and Exchange Commission on May 12, 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 Energy does not
undertake an obligation to update forward-looking or other statements in this
release. Gran Tierra Energy's forward-looking statements are expressly
qualified in their entirety by this cautionary statement.

    Contacts:

    
     Dana Coffield                                 Al Palombo
     Gran Tierra Energy, Inc.                      Cameron Associates
     President & Chief Executive Officer           Investor Relations
     (800) 916-4873                                (212) 245-8800 Ext. 209
     info@grantierra.com                           al@cameronassoc.com
    




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 
Al Palombo, Investor Relations 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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