Gran Tierra Energy to Complete Costayaco-7 as Water Injector
05 August 2009 - 9:00PM
PR Newswire (US)
Pipeline Repairs to Trans Andean Pipeline Continuing CALGARY, Aug.
5 /PRNewswire-FirstCall/ -- Gran Tierra Energy Inc. (NYSE Amex:
GTE, TSX: GTE), a company focused on oil exploration and production
in South America, today announced that testing of Costayaco-7 has
been completed. In addition, production operations are continuing
at a reduced level while repairs continue with the
Ecopetrol-operated Trans Andean Pipeline west of Orito. Costayaco-7
The Costayaco-7 well is located at the northern end of the
Costayaco Field in the Chaza Block, Putumayo Basin of southern
Colombia. Following the well's initial results, further testing
demonstrated that only formation water, and no oil, was present in
the top of the Villeta T Reservoir where well logs and pressure
data had indicated a potential thin oil column. This well will now
be completed as a water injector to dispose of produced water from
the Costayaco field, and to provide pressure support for the
Villeta T reservoir. Production Operations Repairs on the
Ecopetrol-operated Trans Andean Pipeline west of Orito are
continuing. Since the pipeline was shut in on July 10, Gran Tierra
Energy has produced crude at a reduced level of approximately 6,000
barrels of oil per day (BOPD) net after royalty in Colombia using
available trucking capacity. The company expects to continue
producing at approximately these levels until repairs are
completed. Argentina production has been averaging approximately
860 BOPD net after royalty during this period. Production in
Argentina has since risen to approximately 1,200 BOPD net after
royalty following recent completion of well workover activity. "We
expect to be able to return to normal production levels immediately
following the completion of repairs," said Dana Coffield, President
and Chief Executive Officer of Gran Tierra Energy. "Production from
the recently drilled Costayaco-8, with a production capacity of
3,500-4,500 BOPD, is ready to be tied in, and drilling operations
at Costayaco-9 are proceeding normally with completion expected in
late August." 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 http://www.grantierra.com/.
Forward Looking Statements: The statements in this news release
regarding Gran Tierra Energy's expectations that Gran Tierra will
continue producing at reduced levels of approximately 6,000 BOPD
net after royalty in Colombia utilizing trucking capacity until
repairs are completed, that production will resume immediately
following the completion of repairs, and that drilling operations
at Costayaco-9 will be completed in late August, 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 results or outcomes
discussed herein to differ materially from that indicated by the
forward-looking statements, including, among others: 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 and drilling
operations and the production, transport or sale of its products;
geographic, political and weather conditions can impact testing and
drilling operations and the production, transport or sale of its
products; trucking capacity may not be sustainable at the expected
capacity due to unforeseen reasons,; and the risk that recent
disruptions will continue longer than expected. 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
http://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 document
are made as of the date of this document 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. DATASOURCE: Gran Tierra Energy
Inc. CONTACT: For media and investor inquiries please contact
Thomas McMillan, Equicom Group, (866) 973-4873, (403) 536-5903,
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