Colombia

Gran Tierra Energy is operator and holds interests in 16 blocks in Colombia. Santana, Guayuyaco, Chaza, Guarchiria and Magangue blocks are currently producing. The Rio Magdalena, Talora, Mecaya, Azar ,  2 TEA blocks, San Pablo, Guachiria Norte, Guachiria Sur, Garibay and Catguas are in their exploration phases.

Santana 

  • Participation - Gran Tierra (Operator) 35%, Ecopetrol 65%
  • Area - 1,119 acres (gross); 392 acres (net)
  • Production - 212 bbl/day (net after royalty, Q3 2008)

The Santana Contract area includes 4 producing fields - Linda, Mary, Miraflor and Toroyaco - and 15 wells. Activities are governed by terms of an Association Contract with Ecopetrol. The properties are subject to a 20% royalty and Gran Tierra holds a 35% interest in all fields. The Block has been producing since 1991; a total of 21.5 million barrels (gross) have been produced to Sept 30, 2008.

Oil is sold to Ecopetrol and is exported via the Trans-Andean pipeline. Oil quality is approximately 26 degrees API. Oil prices are defined by contract and are related to a WTI reference. By contract, 25% of sales are denominated in pesos and 75% in US dollars.

Guayuyaco

  • Participation - Gran Tierra (Operator) 70%, Ecopetrol 30%
  • Area - 52,366 acres (gross); 36,646 acres (net)
  • Production - 150 b/d (net after royalty, Q3 2008), for the Guayuyaco field. (pre-merger w Solana)
  • Production - 283 b/d (net after royalty, Q3 2008), for the Juanambu field.   (pre-merger w Solana)

The Guayuyaco Block covers the area surrounding the 4 producing fields of the Santana Contract area and is governed by an Association Contract with Ecopetrol, providing a sliding scale royalty beginning at 8% and 30% participation for Ecopetrol. The Guayuyaco field within the Block was discovered in 2005. The Guayuyaco Block includeds two production fields, the Guayuyaco & the Juanambu fields. The Guayuyaco field has two producing wells with Guayuyaco-1 on stream in February 2005 and Guayuyaco-2 on stream in September 2005.The Juanambu field has one producing well with Juanambu 1 on stream in November, 2007. A second Junanambu well is planned for  2009. Oil quality and sales terms are comparable to Santana oil and volumes are similarly transported via the Trans-Andean pipeline for export.

A combined 2D and 3D seismic survey was acquired over the Block in 2005. Gran Tierra Energy has identified four exploration prospects and three leads within the Guayuyaco area. The Juanambu field was discovered in March 2007 and testing was completed in May 2007. Pre-commercial test production began in June 2007. Commerciality was declared in November, 2007. Production has avereged at approximately 283 b/d (net after royalty) during Q3, 2008. Ecopetrol has exercised their back-in right with a 30% participation.

Rio Magdalena

  • Participation - Gran Tierra (Operator) 40% ; Delavaco 51%; Omega 9%
  • Area - 144,670 acres (gross) 57,868 acres net
  • Non-Producing - exploration acreage

Gran Tierra Energy entered into the Rio Magdalena Association Contract in February 2002. A sliding scale royalty, beginning at 8%, is payable on production from the contract area. A third party has been assigned, subject to receipt of appropriate regulatory approvals, the right to explore the shallow (Tertiary and younger) formations underlying portions of the contact area.

Gran Tierra Energy initiated drilling of the Popa-2 exploration well in the Rio Magdalena block in the Middle Magdalena Basin, on May 8, 2008. GTE expects drilling to be completed in late June. This well is currently drilling near a non-commercial oil discovery made by Gran Tierra Energy in 2006, the Popa-1 well, which tested approximately 160 b/d. GTE is the operator of the Rio Magdalena Block and has a 100% working interest. Under the terms of a recently completed farm-in agreement, Omega Energy Colombia will earn a 60% working interest by paying 100% of the costs associated with Popa-2 well. In the event of a commercial discovery, Ecopetrol has the right to back-in for a 30% working interest, to be split proportionally between GTE and Omega.

Chaza

  • Participation - Gran Tierra (Operator) 100%
  • Area - 80,242 acres 
  • Production - 2,984 b/d (net after royalty, Q3, 2008) (pre-merger w Solana)

The Chaza Block is governed by terms of an Exploration and Exploitation Contract with the government agency ANH, reflecting re-vamped and improved fiscal terms. The Chaza Contract was signed June 2005 and defines a 6 year exploration period and 24 year production period. The Costayaco discovery began test production in June 2007.  A full field plan of developement will be submitted to ANH for approval in March 2009.

Talora

  • Participation - Gran Tierra (Operator) 20%, Omega 80%
  • Area - 108,334 acres (gross); 21,667 acres (net)
  • Non-Producing - exploration acreage

The Talora Exploration & Exploitation Contract was signed September 2004, providing for a 6 year exploration period and 24 year production period. 

Mecaya

  • Participation - Gran Tierra (Operator) 15%, MCP 55%, Expet 30%
  • Area - 74,128 acres (gross); 11,119 acres (net)
  • Non-Producing - exploration acreage

The Mecaya Exploration & Exploitation contract was signed June 2006.

Azar

  • Participation - Gran Tierra (Operator) 40%, Lewis Energy 40%, Geoadinpro 20%
  • Area - 51,639 acres (gross); 20,656 acres (net)
  • Non-producing - exploration acreage

The company is currently working-over the Palmera-1 well, an exploration well drilled in 1996 that had potential oil pay indicated on logs but was never tested. In addition, GTE continues to interpret newly acquired 3D seismic data in preparation for drilling an exploration well on this block in Q4, 2008.

Putumayo A&B Technical Evaluation Agreements (TEA’s)

  • Putumayo A: 570,000 acres (100% participation)
  • Putumayo B: 109,000 acres (100% participation)
  • Non-producing - exploration acreage

These TEAs are expected to be converted to ANH-type contracts during sQ4 2008.

Guachiria

  • Participation – Gran Tierra (Operator) 70%, Lewis Energy 30%
  • Area – 16,803 acres (gross); 11,762 acres (net)
  • The Primavera oil discovery and the Los Aceites oil discovery are both currently producing under a long term test.

GranTierra acquired its interest at Guachiria (in the Llanos basin) via the merger with Solana Resources in November, 2008. The block is governed by the terms of an Association Contract with Ecopetrol with an additional 13% royalty payable to Ecopetrol. 

Guachiria Sur

  • Participation – Gran Tierra (Operator) 70%, Lewis Energy 30%
  • Area – 90,490 acres (gross); 63,343 acres (net)
  • Non-Producing – exploration acreage

Gran Tierra acquired its interest at Guachiria Sur (in the Llanos basin) via the merger with Solana Resources in November, 2008. The block is governed by the terms of an Exploration and Exploitation Contract with the government agency ANH.  

Guachiria Norte

  • Participation – Gran Tierra (Operator) 70%, Lewis Energy 30%
  • Area – 101,817 acres (gross); 71,273 acres (net)
  • Non-Producing – exploration acreage

Gran Tierra acquired its interest at Guachiria Norte (in the Llanos basin) via the merger with Solana Resources in November, 2008. The block is governed by the terms of an Exploration and Exploitation Contract with the government agency ANH.

San Pablo

  • Participation – Gran Tierra (Operator) 100%
  • Area – 104,535 acres
  • Non-Producing – exploration acreage

Gran Tierra acquired its interest at San Pablo (in the Llanos basin) via the merger with Solana Resources in November, 2008. The block is situated immediately to the west of the Guachiria Sur block and is governed by the terms of an Exploration and Exploitation Contract with the government agency ANH.

Garibay

  • Participation – Gran Tierra 50%, CEPSA Colombia (Operator) 50%
  • Area – 75,935 acres (gross); 37,968 acres (net)
  • Non-Producing – exploration acreage

Gran Tierra acquired its interest at Garibay (in the Llanos basin) via the merger with Solana Resources in November, 2008. The block is located approximately 170 km east of Bogota and is governed by the terms of an Exploration and Exploitation Contract with the government agency ANH.

Catguas

  • Participation (northern 30% of the block) – Gran Tierra (Operator) 50%, Trayectoria Oil & Gas 50%
  • Participation (southern 70% of the block) – Gran Tierra (Operator) 85%, Trayectoria Oil & Gas 15%
  • Area – 393,137 acres (gross); 294,340 acres (net)
  • Non-Producing – exploration acreage

Gran Tierra acquired its interest at Catguas (in the Catatumbo basin) via the merger with Solana Resources in November, 2008. The block is governed by the terms of an Exploration and Exploitation Contract with the government agency ANH.

Magangue

  • Participation – Gran Tierra 37.8% (Operator), Ecopetrol 58%, Technopetrol 4.2%
  • Area – 20,757 acres (gross); 7,846 acres (net)
  • Producing – Approximately 150 mcf/d (net after royalty) from the Guepaje gas field

Gran Tierra acquired its interest at Magangue (in the Lower Magdalena basin) via the merger with Solana Resources in November, 2008. The block is governed by the terms of an Association Contract with Ecopetrol.