Drilling plans by Gran Tierra are also advancing in Argentina where in the El Vinalar Block, located in the Noroeste Basin of northern Argentina, work has begun on a sidetrack to the Puesto Climaco-2 well. This sidetrack will test the up-dip potential of an undrained reservoir interval in an existing proven producing field. This will be Gran Tierra Energy's first operated well in Argentina and is scheduled to be drilled in November, 2006.
Gran Tierra's acquisition of assets from Compania General de Combustibles S.A. (CGC) continues to be subject to various authorizations within Argentina, including court approval for the sale of CGC's interests in the eight properties. Pursuant to the terms of the current offer, court approval is to be obtained by September 29, 2006.