Gran Tierra Energy discovered the Juanambu oil field 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 Colombia’s national oil and gas company Ecopetrol 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.
Dana Coffield, president and CEO of Gran Tierra Energy, said: 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.
