Gran Tierra Energy Inc. has completed the testing of the new field wildcat Popa-1 well in the Rio Magdalena Block, Colombia, and has initiated the mobilization of three rigs in preparation for exploration drilling programs in Colombia and Argentina.
Popa-1 was drilled to a final depth of 9,285 feet on July 14, 2006. Drill-stem testing executed in two of the uppermost prospective sandstone intervals of the Monserrate Formation indicated flow rates of up to 200 barrels of oil per day. The produced fluid consisted of light oil (34 degree API) with a relatively high gas/oil ratio and no water. The initial testing program did not result in definitive reservoir performance characterization due to constraints in the test equipment and as a result, a second phase of testing was undertaken. This second testing program commenced in late-October and is now completed. Testing was unable to prove commercial rates of production and the well will be plugged and abandoned.
The Popa-1 well establishes a new light oil exploration play trend for continuing activity in the Rio Magdalena Block. Gran Tierra Energy is now initiating plans for acquiring seismic data in early 2007 to further delineate the Popa structure and assess the potential of additional exploration leads adjacent to the Popa location.
The Company continues to ramp up drilling activities in other arenas. Ten exploration wells are currently scheduled to be drilled in the coming year. In Colombia, a drilling rig is being mobilized to drill the Laura prospect in the Talora Block, Middle Magdalena Basin, with drilling scheduled to begin in early December, 2006. The rig is then planned to be moved to drill the Caneyes prospect in the adjacent Rio Magdalena Block in early January, 2007. A second drilling rig is currently being mobilized to drill the Juanambu prospect in the Putumayo Basin of Colombia with drilling expected to begin in early January, 2007. The rig is then planned to be moved to the adjacent Chaza Block to drill the Naboyaco prospect. In Argentina, a drilling rig is being mobilized to drill the Puesto Climaco-2 sidetrack in the Vinalar Block in the Noroeste Basin, with drilling expected to begin in early December, 2006. Five additional new wells are scheduled to be drilled in Colombia and Argentina in 2007 by the Company. A significant workover program is also planned in parallel to enhance production from existing wells.
Dana Coffield, President and Chief Executive Officer of Gran Tierra, stated “The results of the testing program at Popa-1 are disappointing; nevertheless, the results of this high-risk exploration well have opened the door on a new exploration play on our existing lands which we intend to pursue. With rigs contracted and being mobilized, we are now entering the second phase of our strategy, creating value through the drill bit. With an extensive drilling opportunity portfolio and a continuous drilling program ahead of us, we expect it will be a busy and exciting year for our Company.”