GTRE up 20% today on news.
biz.yahoo.com
I own a half position in GTRE, now wish it was a full position. Thanks to Ed Ajootian for bringing GTRE to the board's attention some time ago.
Gran Tierra Energy Announces Commerciality Approved for Juanambu Oil Discovery in Colombia
Tuesday November 20, 8:29 am ET
Gross Production Established at Approximately 1,410 Barrels of Oil Per Day (BOPD), Boosting Gran Tierra Energy Net Production To 2,600 BOPD
CALGARY, Alberta--(BUSINESS WIRE)--Gran Tierra Energy Inc. (OTC Bulletin Board: GTRE - News), a company focused on oil exploration and production in South America, today announced that the company has received approval of commerciality for the Juanambu oil field in the Guayuyaco Block in Colombia. Production from this new oil field has been established at approximately 1,410 barrels of oil per day.
Gran Tierra Energy discovered the Juanambu oil field in the Putumayo Basin of southern Colombia in the first quarter of 2007 with the Juanambu-1 exploration well. The company subsequently undertook testing of this well in the second quarter of 2007, and applied for commerciality to Ecopetrol, the national oil and gas company of Colombia, in the third quarter of 2007. Gran Tierra Energy has now obtained approval of commerciality from Ecopetrol.
The Guayuyaco Block is governed by an Association Contract. Under the terms of the Association Contract, Ecopetrol has the right to back into the Juanambu oil field for a 30% interest upon declaration of commerciality. Gran Tierra Energy now holds a 35% interest in the Juanambu field and will retain Operatorship of both the field and the Guayuyaco Block. Solana Resources also retains a 35% interest in the field.
Production of the 32 degree API quality crude is currently being transported by truck. A five kilometer six inch flow-line is being planned to transport oil from the Juanambu-1 discovery well to existing infrastructure. Construction of this line is scheduled to begin in mid-December, 2007, and is scheduled to be completed in mid-January, 2008.
Gran Tierra Energy’s production in Colombia has been averaging approximately 1,500 BOPD, net after royalty, and production from operations in Argentina has been averaging approximately 600 BOPD, net after royalty. With this new production from Juanambu, Gran Tierra Energy’s net after royalty average production is now approximately 2,600 BOPD, compared to an average production of approximately 2,100 BOPD average since September of 2007.
Dana Coffield, President and CEO, stated "Gran Tierra Energy has been experiencing sustained production growth in the second half of 2007 as we initiated trucking operations to handle new production from our oil discoveries made in the first half of 2007. The bulk of our capital program for 2008 will be dedicated to continuing the development of these reserves, both by development drilling and building associated production infrastructure. This is an extremely exciting time in the growth of Gran Tierra Energy as we transition from an exploration focused company to a development focused company that will be growing production while executing ongoing exploration programs to build on our reserve base.” |
