Gran Tierra Continues Argentina Tests, Begins Colombia Drilling

Gran Tierra Energy Inc. on Wednesday said that the company is continuing well testing operations in Argentina and has initiated drilling operations in Colombia. In addition, gas production has been re-established at the previously shut-in Nacatimbay field in the Nacatimbay block of Argentina.

Testing is continuing on the Puesto Climaco-2 sidetrack in the Vinalar block in Argentina. Gran Tierra holds a 50% working interest in this block. A second short sidetrack was required when logging tools were stuck in the hole during initial reservoir evaluation in late December 2006. The new hole has now been cased and logged, with perforations and testing to take place in the coming days. Production facilities associated with the Puesto Climaco field are in place and ready to accommodate additional production from the Puesto Climaco-2 sidetrack immediately.

Also in Argentina, a workover rig has arrived at the Ipaguazu field to recomplete the IPX-1 well and re-establish production from this shut-in field. Gran Tierra holds a 100% working interest in the Ipaguazu block. These workover operations are continuing. Production at the Nacatimbay field in the near-by Nacatimbay Block, where Gran Tierra Energy has a 100% working interest, has been re-established following facilities upgrade activity. This previously shut-in field is now producing approximately 570 thousand cubic feet of gas per day, plus associated condensate and natural gas liquids.

In Colombia, drilling was initiated on the Laura-1 prospect in the Talora block in the Middle Magdalena Basin on December 27. Gran Tierra has a 20% carried working interest in this block. Drilling is continuing and will be completed this month.

Following the completion of Laura-1, the same drilling rig will mobilize to drill the Caneyes-1 prospect in the adjacent Rio Magdalena block in Colombia in late January 2007. Construction of the drilling location is underway. Gran Tierra currently holds a 100% working interest in this contact area, which is subject to a 30% back-in provision by Ecopetrol, the government petroleum agency, in the event of commerciality.

Mobilization is continuing with another rig to the Primavera Block in the Llanos Basin to drill two wells, Capibara-1 and Cachapa-1, in February 2007. Gran Tierra holds a 15% interest in this block.

A third drilling rig is currently being rigged up to drill the Juanambu-1 prospect in the Guayuyaco block in the Putumayo Basin of Colombia. Drilling is scheduled to commence on January 15, 2007. Gran Tierra's interest in this block is 35% after the Ecopetrol back-in. The rig is planned to be moved to the adjacent Chaza block to drill the Naboyaco-1 prospect immediately after drilling Juanambu-1. Gran Tierra Energy holds a 50% working interest in the Chaza contract area.

Dana Coffield, President and Chief Executive Officer of Gran Tierra, stated "Our simultaneous drilling operations in our two primary operational arenas, Argentina and Colombia, are now fully engaged, with the intent to add material new reserves and production through the drill bit in the first half of 2007."

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 holds interests in producing and prospective properties in Argentina, Colombia and Peru.


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