Staged New Field Developments in Colombia Being Implemented
CALGARY, ALBERTA, September 27 /CNW/ - Gran Tierra Energy Inc. (OTC
Bulletin Board: GTRE), a company focused on oil exploration and production in
South America, today announced that the Company's net after royalty production
has averaged approximately 2,034 barrels of oil per day (BOPD) since September
10, 2007 as the result of recent increased production from two new oil field
discoveries in Colombia operated by Gran Tierra Energy. A staged new field
development program has been initiated to allow for continued production
growth through 2008.
The first stage of development is being implemented at the new Costayaco
oil field in the Chaza Block, located in the Putumayo Basin of Colombia.
Production with natural flow has averaged approximately 1,748 BOPD gross (788
BOPD net after royalty) since September 10, 2007 from selected reservoir zones
in the discovery well Costayaco-1.
This production is currently being transported by truck to existing
facilities. A ten kilometer eight inch pipeline is being designed to replace
trucking operations. This pipeline is expected to have a physical capacity of
up to 25,000 BOPD to handle any new production from future development wells,
although the initial throughput will be limited to existing infrastructure
capacity which is estimated at 5,000 to 6,000 BOPD. This pipeline is expected
to be operational at mid year 2008.
Two development wells are currently planned for the Costayaco field, with
drilling to be initiated late in the fourth quarter of 2007 and continuing
into 2008. A new 3-D seismic acquisition program encompassing 70 square
kilometers over the field has been initiated and is expected to be completed
in the fourth quarter of 2007. The results of this seismic program will be
used to plan development drilling in 2008. A second stage of additional
development drilling and infrastructure construction will be contingent on the
results of these initial wells.
A staged development program is also being implemented for the new
Juanambu oil field in the Guayuyaco Block, located adjacent to the Chaza Block
in the Putumayo Basin of Colombia. Early production testing has been completed
and the application process for commerciality is continuing. The construction
of a six kilometer six inch flowline is being planned to transport oil from
the Juanambu-1 discovery well to existing infrastructure and should be
operational in late fourth quarter of 2007. A second stage of development
drilling and infrastructure construction is being evaluated for 2008.
Since September 10, 2007 Gran Tierra Energy's production in Colombia has
averaged approximately 1,491 BOPD, net after royalty, and production from
operations in Argentina has averaged approximately 543 BOPD. Gran Tierra
Energy's 2,034 BOPD net after royalty average production for this period is up
from 1,140 BOPD average for the first half of 2007.
Dana Coffield, President and CEO, stated "My objective of attaining a
2007 exit rate for Gran Tierra Energy in excess of 2,000 BOPD net after
royalty has been attained three months ahead of schedule. Gran Tierra Energy's
work program focus is now transitioning from exploration to development
activities which are intended to continue our production growth into 2008.
These development programs will be complemented by continued exploration
activity in our three countries of operations through 2008."
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 http://www.grantierra.com. Investor inquiries may be directed to
email@example.com or 1-800-916-GTRE (4873).
Forward Looking Statements
The statements in this press release regarding Gran Tierra Energy's
expectations relating to expected pipeline capacities and the timing of
pipelines and flowlines becoming operational, and planned drilling and
exploration activity 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. Words such
as "may", "expect", "believe", "intend" and similar expressions are intended
to identify forward-looking statements. 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
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 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 the 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
its quarterly report on Form 10-Q filed on August 14, 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: Gran Tierra Energy Inc. Dana Coffield,
800-916-4873 President & Chief Executive Officer firstname.lastname@example.org or
Investor Relations: Cameron Associates Al Palombo, 212-245-8800 Ext. 209