🕐30.08.10 - 16:54 Uhr
Gran Tierra Energy Establishes Initial Exploration & Production Position in Brazil
Gran Tierra Energy Establishes Initial Exploration & Production Position in
Brazil
Acquires operated light oil reserves, production and exploration upside
CALGARY, Aug.
30 - Gran Tierra Energy Inc.
("Gran Tierra Energy") (NYSE
Amex: GTE, TSX: GTE), a company focused on oil and gas exploration and
production in South America, today announced that it has finalized an
agreement with Alvorada Petroleo S.A.
("Alvorada") whereby Gran Tierra
Energy will pay US$22.6 million and fulfill certain commitments, including
in part, the drilling of 2 wells in 2011, to receive a 70% working interest
in Blocks REC-T-129, -142, -155 and -224 in the on-shore Reconcavo Basin,
Brazil.
The transaction is subject to Gran Tierra Energy obtaining the
customary regulatory approval from Brazils Agencia Nacional de Petroleo Gas
Natural e Biocombustiveis ("ANP").
"This farm-in opportunity presents Gran Tierra Energy with a solid
entry-point into Brazil, with new light oil reserves, production and
exploration upside, including near-term drilling opportunities," said Dana
Coffield, President and Chief Executive Officer of Gran Tierra Energy.
"Gran
Tierra Energy continues to evaluate additional exploration and production
opportunities in Brazil, with the intention of expanding our presence in
Brazils growing oil and gas sector."
Under the terms of the agreement, Gran Tierra Energy will become the
operator of Blocks REC-T-129, -142, -155 and -224 and has committed to pay
100% of the costs to drill an exploration well on each of Blocks REC-T-129
and -142 and its working interest share of the 130 km2 3D seismic program
currently being conducted on the four blocks.
These blocks were awarded to
Alvorada through Brazils 9th ANP bid round.
Blocks REC-T-129, -142, -155 and -224 are located approximately 70 km
Northeast of Salvador, Brazil in the prolific Reconcavo Basin.
This basin
covers an area of approximately 10,000 km2, contains 129 oil and gas fields,
and has produced over 1.5 billion barrels of oil to date.
Production from
this basin is characterized by light oil ranging between 35 degrees and 40
degrees API.
Earlier this year, a 38 degrees API oil discovery was made on Block REC-155.
The current gross production from the discovery is approximately 500 barrels
of oil per day from the Sergi formation.
Gran Tierra Energy anticipates
drilling additional wells to further delineate this discovery and
potentially increase production and reserves from the field.
This discovery
currently has unaudited estimated gross recoverable resources of 6 million
barrels of oil.
In addition to the current oil discovery on Block REC-155, Gran Tierra
Energy has identified a new oil resource play that would potentially employ
multi-staged frac horizontal well technology and intends to investigate this
opportunity with Alvorada Petroleo.
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,
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 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:
This news release contains certain forward-looking information and
forward-looking statements (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.
The use of the words "anticipates", "potentially",
"potential" and "will" identify forward-looking statements.
In particular,
but without limiting the foregoing, this news release contains
forward-looking statements regarding Gran Tierra Energys presence in
Brazil, planned and expected results regarding commitments and exploration,
production and development plans for the Alvorada farm-in.
The forward-looking statements contained in this news release 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, including, among others: the transaction is subject to
regulatory approval, which if not obtained or delayed could cause the
transaction not to occur; Gran Tierra Energy may incur unexpected technical
difficulties and operational difficulties in its operations in Brazil, which
could impact or delay its drilling and other obligations in the Alvorada
farm-in; geographic, political and weather conditions can impede testing and
drilling operations or Gran Tierra Energys ability to expand its presence
in Brazil; and the risk that current global economic and credit market
conditions may impact oil prices and oil consumption more than Gran Tierra
Energy currently predicts, which could cause Gran Tierra Energy to modify
its intention to expand its presence in Brazil.
Further 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
6, 2010.
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.
For further information: Additional information is available on Gran Tierra
Energys website at www.grantierra.com; For media and investor inquiries
please contact Jason Crumley, Director, Investor Relations at 403-265-3221
or
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