The 1001 well was drilled to a final depth of 4,301 meters in December and production has since stabilized at 54 cubic meters a day of oil, or 340 barrels a day (b/d).
Initial production had previously been estimated as reaching roughly 500b/d, according to an earlier BNamericas report.
Although three zones were encountered in the well, the Palmar Largo JV has elected to begin production from a single zone for the time being.
The Palmar Largo JV consists of several producing oil fields operated by Argentine oil company Pluspetrol, which produced an average 325b/d net before royalties to Gran Tierra in 4Q05.
This new well is expected to add 50b/d net to Gran Tierra's net interest, the statement said.
The well is roughly 10km northwest of the Palmar Largo field in Argentina's northwest basin and was spudded on September 25 2005.
Gran Tierra acquired a 14% working interest in the Palmar Largo JV from South Korean oil company Dong Won Corporation last June for US$7mn.
Gran Tierra also owns 50% interests in two other minor properties in the northwest basin, Nacatimbay and Ipaguazu, both operated by Argentine oil exploration company CGC.
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