September 18, 2008

Gran Tierra Energy Discovers Oil in Argentina

Gran Tierra Energy has finished drilling and testing the Proa.x-1 exploration well in the Surubi Block of the Noroeste Basin in Argentina.

Gran Tierra Energy began drilling the Proa.x-1 exploration well on July 9, 2008, and reached a total measured depth of 12,920 feet.

Good oil shows were encountered in Cretaceous volcanics and volcaniclastics in the Palmar Largo formation during drilling and oil saturations were indicated on logs. Gran Tierra Energy conducted a drill-stem test in the Lower Palmar Largo formation from 12,694 to 12,713 feet and obtained no flow.

Gran Tierra Energy will initiate long-term production testing in approximately one week, with commercial oil sales to begin concurrently. Crude oil transportation will be through an existing 3.5-inch, 15km pipeline with approximately 4,000bopd capacity to existing facilities at the Gran Tierra Energy-operated Chivil Field in the adjacent Chivil Block.

Dana Coffield, president and CEO of Gran Tierra Energy, said: "This success adds near-term production and cash flow to our Argentina business unit, in addition to increasing the prospectivity of identified leads in the Surubi Block and in the adjoining Chivil and Palmar Largo blocks, where Gran Tierra Energy has a 100% and 14% working interest respectively."