Costayaco-3 Drilling Completed; Logging Operations Initiated
CALGARY, Canada, Feb. 25 /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 has successfully completed five drill
stem tests (DSTs) on its recently drilled Costayaco-2 step out well in the
Costayaco Field, Chaza Block, Putumayo Basin, in southern Colombia. A
combined maximum flow rate in excess of 6,600 barrels of oil per day (BOPD)
The cased hole DST program, designed to evaluate only the primary
reservoirs in the field, commenced on February 2, 2008. Five DSTs were
completed over the Lower, Middle and Upper Caballos Formation, and in the
Villeta T Formation. Secondary reservoirs in the U Sandstone Unit of the
Villeta Formation and the Kg Sandstone Unit of the Rumiyaco Formation, which
had potential pay zones indicated from log interpretations and which were
successfully tested in the Costayaco-1 discovery well, were not tested. These
zones will be tested and considered for completion later in field life when
primary reservoirs become depleted.
The Costayaco-2 well bore is currently being completed for production.
Produced oil will be transported through a new six inch flow line to the
Costayaco-1 truck loading facility, where it will be mixed with crude oil from
Costayaco-1 for trucking to Uchupayaco and the existing pipeline network.
DST-1 (8,494 - 8,498 foot interval; 4 feet of perforations) tested the
Lower Caballos reservoir. No flow was obtained. Additional perforations were
added in DST-1A (8,490 - 8,498 foot interval; 8 feet of perforations) and 26
BOPD of 17.4 API gravity oil with 40% water cut was obtained by swabbing.
DST-2 (8,330 - 8,342 foot interval; 12 feet of perforations) tested the
Upper Caballos reservoir. Swabbing produced 25 BOPD of 29.1 API oil with 8%
DST-3 (8,330 - 8,474 foot interval; 88 feet of perforations) tested the
Upper and the primary Middle Caballos reservoirs combined. Initial swabbing
was followed by production of a maximum of 2,376 BOPD of 30.7 API oil through
a 122/64 inch choke by stabilized natural flow. Only a trace of water (0.3%)
DST-4 (8,200 - 8,236 foot interval; 31 feet of perforations) tested the
primary Villeta T Formation reservoir. Initial swabbing was followed by
production of a maximum of 4,208 BOPD of 30.3 API oil through a 192/64 inch
choke by stabilized natural flow. Only a trace of water (0.3%) was noted.
The Costayaco-1 discovery well is continuing to produce approximately
3,500 BOPD gross with only a trace of water (0.3%) from the Caballos and
Villeta T sandstone reservoirs.
Costayaco-3, the third well in the Costayaco Field, reached TD at 8,620
feet on February 20, and is currently logging.
Gran Tierra Energy holds a 50% working interest and is the Operator of
the Costayaco Field and the Chaza Block. Solana Resources Limited holds the
remaining 50% working interest.
Separately, Gran Tierra Energy is the operator of a total of seven
independent license areas in the Putumayo Basin, and is the largest private
license holder in the basin.
Dana Coffield, President and CEO of Gran Tierra Energy stated "The
outstanding production rates by natural flow established in Costayaco-2,
without the assistance of supplementary pumping, confirms the superior
reservoir continuity and production capacity found in the original discovery
well can be replicated in the Costayaco Field. Planning and permitting for
additional drilling in the Costayaco field is continuing, and results from the
new drilling are being integrated with the recently acquired seventy square
kilometer 3-D seismic program to optimize the development of this field
through the balance of 2008 and continuing into 2009."
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. is an international oil and gas exploration and
production company, headquartered in Calgary, Canada, incorporated in the
United States of America, trading on the OTC Bulletin Board and on the Toronto
Stock Exchange, and operating in South America. Gran Tierra Energy holds
interests in producing and prospective properties in Argentina, Colombia and
Peru. The company's strategy is focused on establishing a portfolio of
drilling opportunities to exploit undeveloped reserves to grow production, as
well as undertaking exploration to grow future reserves. Additional
information concerning Gran Tierra Energy is available at www.grantierra.com.
Investor inquiries may be directed to email@example.com or 1-800-916-GTRE
Forward Looking Statements
The statements in this press release regarding Gran Tierra Energy's
expectations with respect to the timing of testing and drilling operations,
transportation of crude oil, acquisition of seismic data, and the construction
of the pipeline, the use to which seismic data will be put, the ability of
Gran Tierra Energy to plan a full field development, including additional
drilling, facilities and pipeline to handle new production as appropriate
through 2008, and the expectation as to sources of funding, 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: unexpected delays in drilling or pipeline or other
transportation infrastructure 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, transportation
infrastructure development 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 this 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
under the caption "Item 1A - Risk Factors" of its quarterly report on Form
10-Q filed on November 8, 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: Dana Coffield, President & Chief Executive
Officer of Gran Tierra Energy Inc., +1-800-916-4873, firstname.lastname@example.org; or
Al Palombo, Investor Relations, of Cameron Associates for Gran Tierra Energy
Inc., +1-212-245-8800 Ext. 209, email@example.com Web Site: