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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Cal Gary who wrote (17033)	3/17/2011 3:49:05 PM
From: architect*	1 Recommendation Read Replies (1) \| Respond to of 24921

Petrolifera's PDP's press notes, that PDP has met or exceeded, all of its current work commitments for Block 106 (in 2010), I'm not sure what work was accomplished. Did PDP drill an exploration well in block 106? If so were the well results negative? If PDP performed a seismic survey and drilled an exploration well, typical work requirement and PDP disliked the results of their earlt exploration of block 106, its reasonable to assume that GTE would also dislike the results. PDP provided a letter to ANH. Typically, a letter of intent is not binding, so if the acquisition of PDP is approved, GTE could seek to modify PDP's statement of intent. I not saying they should or would. PDP ran out of capital to develop and monetize their Northern Colombian gas fields, its really hard to know when PDP was responding to their lack of available capital, and when PDP was making changes in their business plan. GTE will finish the development of the Northern Colombia gas exploration that PDP couldn't finish and monetize, because PDP's lack of capital investment funding. Petrolifera's acquisition by GTE will result in an increase of GTE's 2011 capital budget by maybe $70 MM, from $300 MM to say $370 MM. PDP's Northern Colombian Gas play appears to be a viable commercial project with gas sales prices in $4.5 M btu $6.5/M btu. Some increase in near term production revenue for GTE from that project. Peru block 95 that was purchased last year, will change GTE's their approach to their Peru business plan. Block 95 has a good oil discovery and needs capital investment. Global Energy Development GED.l like Petrolifera did not have capital investment to develop their block 95 oil discovery, GTE has available funding. Much less risk than the Iquitos Arch elephant hunting. The growth story for Gran Tierra I believe will be in Brazil. In 2011 GTE plans to drill two production oil wells, two exploration oil wells and two horizontal oil wells. The horizontal wells are into an existing oil field, near very large Bakken type oil fields. I'd guess that if the horizontals could produce 1k bopd, could afford to drill two horizontal wells a month into GTE's Bakken prospect for many years to come. The Moqueta oil field is getting bigger, and the gas top cap was not found in Moqueta 4. Moqueta 4 flowed nicely, 1.6k bopd on natural flow, although the gas to oil ratio in the Moqueta field is high. To produce Moqueta at high oil flow rates,say an additional 10K bopd GTE will need to construct a Gas injection plant in a remote location. The Moqueta pipeline (under construction) connecting to Costayaco will have 20k bopd capacity. Canangucha is a high risk prospect, but worth the $4MM to drill, as Canangucha's location is very close to the Costayaco infrastructure. Drilling results from Canangucha will probably be released in GTE's next operational update. Rumayaco is another good prospect that is fairly close to the Costayaco - Moqueta trend. One day at a time! Sending prayers that the world doesn't end tomorrow!