Block 122 is located on the eastern flank of the Maranon Basin in northern Peru, on the crest of the Iquitos Arch and covers 1.2 million acres. The License Contract defines a seven-year exploration term divided into four periods, each involving a minimum work/financial commitment. The minimum commitment for the first work period, which is mandatory, is $0.5 million. The potential commitment over the seven-year period is $5.0 million and includes technical studies, seismic acquisition and the drilling of one exploration well. The License Contract defines an exploitation term of thirty years for commercial discoveries of oil.
Dana Coffield, President and Chief Executive Officer of Gran Tierra, stated, "The completion of this transaction marks the completion of our first stage of growth, building a base of production and prospective land in three target countries in South America. Our entries into Argentina, Colombia and Peru have each taken different approaches: via strategic property additions in Argentina, via a corporate acquisition in Colombia, and now via a wildcat exploration license in Peru. The combination provides a mix of production/cash flow, low risk drilling opportunities and higher risk/higher reward drilling opportunities that we intend to pursue aggressively over the coming years."
Gran Tierra Energy, Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated and traded in the United States and operating in South America. The Company now holds interests in producing and prospective properties in Argentina, Colombia and Peru. To date, the Company has pursued a strategy that focuses on establishing a portfolio of producing properties, development and exploration opportunities, through selective acquisitions, to provide a base for future growth.
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