CALGARY, Alberta, Feb. 15 /CNW/ — Gran Tierra Energy, Inc. (OTC Bulletin Board: GTRE.OB) today announced the successful initiation of production from the Ramon Lista-1001 well in the Palmar Largo Block in the Noroeste Basin of Argentina. Ramon Lista-1001 was drilled to a total depth of 4,301 meters on December 25, 2005. The well was completed in late January 2006 and perforated on February 1. Testing was initiated at a flow rate of 68 cubic meters per day (428 barrels per day) of oil with a 10% watercut from a 15 meter zone in the Yacoraite Formation (4,132 to 4,147 meters). Production has currently stabilized at 54 cubic meters per day of oil (340 barrels per day) with low watercut. A total of three zones were encountered in the well; the Palmar Largo Joint Venture has elected to commence production from a single zone for the time being. The two additional pay zones total 27 meters in the Yacoraite Formation (4,186 to 4,193 meters and 4,149 m to 4,169 meters) and are being evaluated for additional production potential.
Gran Tierra acquired a 14% interest in the Palmar Largo Joint Venture in September, 2005. Gran Tierra's share of production from Palmar Largo averaged approximately 325 barrels per day (net before royalties) over the fourth quarter of 2005. Current production from Ramon Lista-1001 adds approximately 50 barrels per day to Gran Tierra's share of production.
Dana Coffield, the Company's President and CEO, stated, "Ramon Lista is Gran Tierra's first participation in drilling in Argentina and its first success. A central component of our business model is to acquire proven reserves and create value by drilling. We intend to continue and duplicate this success in Argentina and elsewhere in South America."
About Gran Tierra Energy, Inc.
Gran Tierra Energy, Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated and traded in the United States and operating in South America. The Company currently holds interests in producing and non-producing properties in Argentina and is pursuing a growth strategy that focuses on establishing a portfolio of producing properties, and development and exploration opportunities, by selective acquisitions, to provide a base for future growth. Additional information concerning Gran Tierra is available at http://www.grantierra.com. Investor inquiries may be directed to [email protected] or 1-800-916-GTRE(4873).
Forward Looking Statements
This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, including without limitation those statements regarding the Company's ability to exploit oil and gas exploration opportunities. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements including, but not limited to, failing to discover reserves that may be extracted on a commercially viable basis, inaccurately estimating oil and gas reserves, intense competition, environmental risks and general economic conditions including the price of oil and gas. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release, other than as may be required by applicable law or regulation. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including those risks set forth in the Company's Current Report on Form 8-K filed on November 10, 2005, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. We undertake no obligation to update these forward-looking statements.