News Archive
Gran Tierra Energy Completes Testing of Costayaco-8 in Colombia
July 10, 2009
Caballos Formation Produces 2,640 Barrels of Oil Per Day and the Upper T Sandstone of the Villeta Formation Produces 2,211 Barrels of Oil Per Day
CALGARY, Alberta, July 10, 2009, Gran Tierra Energy Inc. (AMEX: GTE; TSX: GTE), a company focused on oil exploration and production in South America, today announced that testing of Costayaco-8, a new development well drilled in the Costayaco Field in Southern Colombia, is complete. During the test, the Upper T Sandstone of the Villeta formation produced 2,211 barrels of oil per day (BOPD) and the Caballos formation produced 2,640 BOPD.
“Our testing confirms the results from the previously announced logging operations on Costayaco-8, and further demonstrates the potential of this well to contribute to the field’s overall production,” said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. “We remain on track to attain a gross production plateau of 19,000 BOPD on the Costayaco field in the fourth quarter of 2009.”
Testing was carried out by perforating 44 feet of the Upper T sandstone interval, from 8,144 feet measured depth (md) to 8,198 feet md, and perforating 104 feet of the Caballos formation, from 8,286 feet md to 8,432 feet md.
During testing, the Caballos interval produced oil at an average rate of 2,640 BOPD with no water for 11 hours using a jet pump. The Caballos and Upper T Sandstone intervals, when tested together using a jet pump, produced oil at an average rate of 2,988 BOPD with no water for 20 hours. After the Caballos and Upper T Sandstone commingled production test was completed, the Caballos interval was isolated. The Upper T Sandstone interval produced oil at an average rate of 2,211 BOPD with no water for 7 hours when tested with a jet pump.
Operations Update
Test results for Costayaco-7 will be finalized shortly. Site preparation for Costayaco-9 is complete, and the drilling rig is currently moving to the location which is 1,958 feet southwest of Costayaco-8. Costayaco-9 is expected to spud on July 14th. The drilling of Costayaco-10 is expected to follow immediately after Costayaco-9.
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. 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.
Forward Looking Statements:
The statements in this news release regarding Costayaco-8’s potential to be a significant contributor to production potential of the field, that Gran Tierra Energy remains on track to attain a gross production plateau of 19,000 BOPD on the Costayaco field in the fourth quarter of 2009, Gran Tierra Energy’s expectations regarding the expected timing for completion of testing of Costayaco-7, the expected spud date of Costayaco-9, and the expected timing for the drilling of Costayaco-10, are forward looking statements or financial outlook (“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. There are a number of important factors that could cause the actual results or outcomes to differ materially from those indicated by the forward-looking statements, including, among others: test results do not guarantee the long term production performance of a well; 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 its testing, drilling and production operations, and transport or sale of its products; and geographic, political and weather conditions can impact testing, drilling and production operations, and the production, transport or sale of its products. 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 “Risk Factors” in Gran Tierra Energy's Quarterly Report on Form 10-Q filed May 8, 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 are made as of the date of this press release and Gran Tierra Energy disclaims any intention or obligation to update or revise the 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 Thomas McMillan, Equicom Group, 866-973-4873, 403-536-5903, info@grantierra.com.