Gran Tierra Energy Announces Farmout of Acreage in Colombia

    Initiates Planning for 2008 Exploration Drilling Program

    CALGARY, CANADA, August 1 /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 farmed out 50% of its 80% interest in the
Azar Block in the Putumayo Basin of Colombia. Gran Tierra Energy will retain a
40% interest in the Azar Block and will retain Operatorship. Under the terms
of the farmout, Gran Tierra Energy's share of costs for its retained 40%
interest in work commitments in the first three exploration phases will be
carried by the new partner. The farmout arrangement creates for Gran Tierra
Energy a more attractive capital risk/reward profile for this prospective
asset, and positions the company for additional drilling in 2008 with an
experienced partner to complement emerging development plans related to two
recent oil discoveries in Colombia.

    The Azar Block covers 51,639 acres (209 square kilometers). It is located
immediately east of Gran Tierra Energy's current operations and production in
the Santana and Guayuyaco Blocks and is located approximately 20 kilometers
east of the recent Juanambu-1 and Costayaco-1 oil discoveries operated by Gran
Tierra Energy that tested flow rates up to 5,906 barrels of oil per day and
778 barrels of oil per day respectively. The Azar Block is located
approximately 60 kilometers east of the two new technical evaluation areas
that were recently awarded 100% to Gran Tierra Energy by the Agencia Nacional
de Hidrocarburos (ANH) and announced on July 23, 2007.

    Work commitments in the Azar Block consist of six consecutive phases. The
first phase requires the acquisition of new seismic data, which will be
acquired in 2007. The second phase requires a workover of an existing
exploration well, Palmera-1, which encountered oil shows during drilling and
in which oil pay was interpreted from logs after drilling. The well was never
tested as it was not deemed commercial at the time it was drilled in 1996. The
third phase requires the drilling of a new exploration well. The subsequent
three phases each contain one exploration well commitment per phase. The Azar
block is subject to the new and fiscally attractive ANH royalty/tax contract
which includes no additional state participation.

    Dana Coffield, President and CEO stated "The assignment of interests and
Operatorship of this block to Gran Tierra Energy in early 2007, and subsequent
award of the two recently announced technical evaluation contracts, continues
to advance our strategy of actively acquiring under-developed assets to
replenish and maintain a substantial inventory of drilling prospects as our
existing inventory of prospects is drilled. With our new partner, we are now
advancing the execution of our work commitments in the Azar Block and will add
an exploration well to our 2008 drilling program, which will include
exploration drilling in addition to the development drilling program
associated with our recent oil discoveries in Colombia."

    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. To date, Gran Tierra Energy has pursued a strategy that focuses on
establishing a portfolio of producing properties, and development and
exploration opportunities, through selective acquisitions, to provide a base
for future growth. Additional information concerning Gran Tierra Energy is
available at Investor inquiries may be directed to or 1-800-916-GTRE (4873).

    Forward Looking Statements

    The statements in this press release regarding the acquisition of new
seismic data and Gran Tierra Energy's intention to add an exploration well to
its 2008 drilling program 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, delay's
in the acquisition of seismic data or cancellation or postponement of the
exploration well resulting from unexpected technical or operational
difficulties arising in connection with pursuing these actions. 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 its quarterly report on Form 10-Q filed on May 15,
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

For further information:

For further information: Gran Tierra Energy Inc. Dana Coffield,
800-916-4873 President & Chief Executive Officer or
Cameron Associates Al Palombo, 212-245-8800 Ext. 209 Investor Relations

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Gran Tierra Energy Inc.

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