🕐21.09.09 - 19:37 Uhr
Gran Tierra Energy Continues Building Production Capacity at Costayaco Field, Colombia
Gran Tierra Energy Continues Building Production Capacity at Costayaco
Field, Colombia
Five Million Barrel Cumulative Production Threshold Attained
CALGARY, Alberta, September 21, 2009, Gran Tierra Energy Inc.
(NYSE Amex:
GTE, TSX: GTE), a company focused on oil exploration and production in South
America, today provided an operations update for the Costayaco Field in the
Chaza Block, Putumayo Basin of southern Colombia.
Gran Tierra Energy has a
100% working interest in the field and is the operator.
"On top of meeting our daily production plateau target of 19,000 BOPD at the
end of August, ahead of schedule, we have now tied in an additional
production well and are preparing to drill the final development well in the
field for 2010, which will allow us to maintain these production levels as
the field matures." said Dana Coffield, President and Chief Executive
Officer of Gran Tierra Energy.
Costayaco-9 Production Test Results
Gran Tierra Energy has completed production testing on Costayaco-9, a
vertical development well located 1,950 feet southwest of Costayaco-8.
In
early September, two separate production tests were conducted with a jet
pump on Costayaco-9.
A 24.5 hour production test was conducted on the T
sandstone of the Villeta formation.
This test covered a 40 foot interval
and tested at approximately 926 BOPD with less than 1% watercut.
A second
23.5 hour production test was conducted on the Caballos sandstone.
This
test covered a 64 foot interval and tested at approximately 1,840 BOPD with
less than 1.5% watercut.
Costayaco-9 has been tied in and is currently on
production (from the T sandstone only) at approximately 1,860 BOPD.
Costayaco-10 Update
Costayaco-10 will be drilled approximately 2,500 feet southwest of
Costayaco-9.
Lease construction is currently underway and the well is
expected to spud in the last week of September.
The main objective for
Costayaco-10 is to add production capacity to assist in maintaining the
gross production plateau of 19,000 BOPD from the Costayaco field.
In
addition, it is expected to convert probable and possible reserves into
proven and probable reserves respectively.
This is the last well planned to
be drilled in the Costayaco field in 2009.
Production Update
Costayaco field reached the five million cumulative barrels of oil
production milestone on September 10, 2009.
As stated in a previous
announcement, an increase in royalties becomes effective once cumulative
production exceeds five million barrels for the Costayaco field.
The
additional royalty is dependent on West Texas Intermediate (WTI) oil price,
and is approximately 17.1% at $70.00/bbl WTI.
The combined royalty rate at
19,000 BOPD gross production and $70 WTI is approximately 26.5%.
This
results in a net after royalty production level of approximately 13,000 BOPD
for the Costayaco field (including third party Net Profits Interest).
This
is in addition to current production of approximately 1,100 BOPD net after
royalty from Gran Tierra Energys other operated fields in the Putumayo
Basin, and approximately 1,200 BOPD net after royalty production from
Argentina.
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, trading on the NYSE Amex Exchange (GTE) and the Toronto Stock
Exchange (GTE), and operating in South America.
Gran Tierra Energy holds
interests in producing and prospective properties in Argentina, Colombia and
Peru, and has opened a business development office in Rio de Janeiro,
Brazil.
Gran Tierra Energy 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.
Gran Tierra Energys Securities and Exchange Commission filings are
available on a web site maintained by the Securities and Exchange Commission
at http://www.sec.gov and on SEDAR at http://www.sedar.com.
Forward Looking Statements:
The statements in this news release regarding Gran Tierra Energys
expectations that it can maintain these production levels as the field
matures and Costayaco-10 is expected to spud in the last week of September
are forward looking statements or financial outlook (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 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.
Information on potential factors that could affect Gran Tierra
Energy are included in risks detailed from time to time in Gran Tierra
Energys Securities and Exchange Commission filings, including, without
limitation, under the caption "Risk Factors" in Gran Tierra Energys
Quarterly Report on Form 10-Q filed August 10, 2009.
These filings are
available on a Web site maintained by the Securities and Exchange Commission
at http://www.sec.gov and on SEDAR at www.sedar.com.
The forward-looking
statements contained herein are expressly qualified in their entirety by
this cautionary statement.
The forward-looking statements included in this
press release are made as of the date of this press release and Gran Tierra
Energy disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as expressly required by applicable securities
legislation.
Contact Information
For media and investor inquiries please contact David Feick, Equicom Group,
866-973-4873, 403-536-5903, .
To update your contact information or to be removed from this dissemination
list, please e-mail .