Gran Tierra Energy Inc, a company focused on oil exploration and production in South America, provided updates for its exploration and operation activities in Peru.
Block 95 (100% working interest and operator subject to PeruPetro S.A. and Peruvian Government approvals)
Gran Tierra Energy began drilling the Bretana Norte 95-2-1XD exploration well in Block 95 on December 15, 2012. This well will continue drilling into the first quarter of 2013, with initial results expected at the end of the quarter. The bottom-hole target is located approximately 3.7 kilometers south of the Bretana-1 well, which was drilled in 1974 and tested 18° API gravity oil on natural flow rates of approximately 807 BOPD. Gran Tierra Energy Peru S.R.L. currently holds a 60% working interest in Block 95 and has entered into an agreement to purchase the remaining 40% working interest from Global Energy Development PLC. Subject to PeruPetro S.A. and Peruvian Government approvals, Gran Tierra Energy will have a 100% working interest in Block 95.
In its press release dated June 11, 2012, Gran Tierra Energy announced the results of a contingent gross lease resource estimate for the oil discovery on Block 95, provided by its independent reserves auditor, GLJ Petroleum Consultants effective June 1, 2012. The resource estimate has been prepared in compliance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook. The estimates included a low estimate “1C” contingent resources of 11.5 million stock tank barrels of oil (“MMSTB”), a best estimate “2C” contingent resources of 31.6 MMSTB, and a high estimate “3C” contingent resources of 88.1 MMSTB. In addition to evaluating the reservoir with discovered oil, the well will explore deeper horizons for additional potential pay zones. Additional information respecting such contingent resource estimates is included in the June 11, 2012 press release. There is no certainty that it will be commercially viable to produce any portion of the resources.
Blocks 123 and 129 (100% working interest, subject to government approval, and operator)
PeruPetroS.A. has approved Gran Tierra Energy Peru S.R.L. assumption of operatorship of Blocks 123 and 129, located on the eastern flank of the prolific Maranon Basin of northern Peru, effective January 1, 2013. Assumption of 100% working interest is pending government approval.
