This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Gran Tierra Energy Tests 1,984 Barrels Of Oil Per Day (18.5 Degree API) With Peru Discovery Well

Stocks in this article: GTE

Planning Horizontal Sidetrack to Implement Long Term Test and Bring New Oil to Market

CALGARY, Feb. 21, 2013 /PRNewswire/ - Gran Tierra Energy Inc. ("Gran Tierra Energy") (NYSE MKT: GTE, TSX: GTE), a company focused on oil exploration and production in South America, today provided updates for its exploration drilling in Peru.

"Gran Tierra Energy has successfully completed initial testing of the Bretaña Norte 95-2-1XD exploration well in Peru at rates that far exceeded expectations. We are currently planning to extend the  Bretaña Norte 95-2-1XD exploration well with a horizontal leg, with operations expected to commence by the end of February, to initiate long term testing and to fast-track first production from the Bretaña discovery," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "This discovery has material contingent resource potential, and is expected to provide significant growth for the company and assist Perupetro in achieving its objectives to bring new oil to the market on behalf of the Government of Peru," concluded Coffield.

Peru 

Block 95 (100% working interest and operator)

Gran Tierra Energy completed initial testing of the Vivian Formation sandstone reservoir in the Bretaña Norte 95-2-1XD exploration well. Log interpretations and MDT fluid and pressure sampling had indicated the presence of an oil-bearing sandstone reservoir in the Vivian Formation beginning at 9,408 feet measured depth (" MD") or 8,851 feet true vertical depth (" TVD") with an approximate gross oil column thickness of 99 feet and 53 feet net pay thickness.  Laboratory analyses of the oil samples indicate the oil has a gravity of 18.5 degrees API.

A drill stem test was conducted over a 29 foot interval from 9,409 feet MD to 9,438 feet MD.  Approximately 1,170 barrels of oil per day (" BOPD") was produced on natural flow without pumps for 19.65 hours with 0% water cut through a 46/64 inch choke. The choke size was then increased to a 64/64 inch and oil flow increased to approximately 1,984 BOPD on natural flow without pumps over a period of 1.5 hours with 0% water cut. Cumulative production over the testing period amounted to 1,082 barrels of oil. The wellhead flowing pressure and temperature were increasing through the test, indicating that the formation was cleaning up and oil flow was increasing over the duration of the test.  The test was successfully concluded when available crude oil storage capacity had been achieved.

The horizontal sidetrack, which is expected to commence at the end of February, will be completed and used to initiate a Long Term Test (" LTT") of the Bretaña Norte 95-2-1XD exploration well.  Timing for initiation of the LTT has not been determined yet, but it is expected to commence within a period of 12 months, subject to facilities upgrade, and execution of crude oil transportation and delivery agreements.

In its press release dated June 11, 2012, Gran Tierra Energy announced the results of a contingent gross lease resource estimate for the oil discovery on Block 95, provided by its independent reserves auditor, GLJ Petroleum Consultants effective June 1, 2012, before the drilling of the Bretaña Norte 95-2-1XD exploration well. The resource estimate has been prepared in compliance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook.  The estimates included a low estimate "1C" contingent resources of 11.5 million stock tank barrels of oil (" MMSTB"), a best estimate "2C" contingent resources of 31.6 MMSTB, and a high estimate "3C" contingent resources of 88.1 MMSTB.  There is no certainty that it will be commercially viable to produce any portion of these resources.   Additional information respecting such contingent resource estimates is included in the June 11, 2012, press release and under the heading "Forward-Looking Statements and Advisories" below.

About Gran Tierra Energy Inc.

Gran Tierra Energy is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated in the United States, trading on the NYSE MKT (GTE) and the Toronto Stock Exchange (GTE), and operating in South America. Gran Tierra Energy holds interests in producing and prospective properties in Colombia, Argentina, Peru, and 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.

Gran Tierra Energy's 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 and Advisories

Readers are cautioned that the well-flow test results disclosed in this press release are not necessarily indicative of long term performance or of ultimate recovery.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,614.81 +215.14 1.31%
S&P 500 1,941.28 +37.27 1.96%
NASDAQ 4,419.4780 +103.4040 2.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs