Gran Tierra Hits Oil Pay at Juanambu-1


Putumayo Basin, Colombia
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Gran Tierra Energy Inc. has successfully completed a drill stem test (DST) program on its recently drilled Juanambu-1 exploration well in the Guayuyaco Block, Putumayo Basin, in southern Colombia.

Production at a combined natural flow rate of 589 barrels of oil per day (BOPD) of 32O API oil with constant wellhead flowing pressure was obtained in three independent reservoir intervals. In addition, two additional zones produced oil with swabbing. One produced 6 BOPD and the other produced 183 BOPD with a jet pump.

An optimum well completion program is currently being designed; typical completions in adjacent producing fields utilize jet pumps, which can significantly increase production rates above natural flow rates.

Final test results are being integrated into an application for declaration of commerciality for submission to Ecopetrol, the state oil and gas company of Colombia. Early production will be initiated by trucking to nearby facilities operated by Gran Tierra Energy. Upon approval of commerciality, additional facilities may have to be constructed to handle the production and transport the oil by pipeline.

Six different reservoir intervals were tested by six independent DSTs as follow from the lower to upper zones: Lower Caballos sandstone, Middle Caballos sandstone, T sandstone, U sandstone, A limestone and Kg sandstone:

  • DST-1 (Lower Caballos) perforated and tested intervals 9041'-9046' and 9048'-9054' (11 feet). After swabbing, the stabilized well production in natural flow was 77 BOPD (32.4O API) with a trace of water(completion fluid).The well was producing in natural flow for 14 hours.
  • DST-2 (Middle Caballos) perforated and tested intervals 8998'-9004' and 9006'-9023' (23 feet). After swabbing, the stabilized well production in natural flow was 354 BOPD (32.5O API) with a trace of water (completion fluid). The well was producing in natural flow for 24 hours.
  • DST-3 (T sandstone) perforated and tested intervals 8867'-8882' and 8886'-8910' (39 feet). After swabbing, the stabilized well production in natural flow was 158 BOPD (31.4O API) with a trace of water (completion fluid). The well was producing in natural flow for 30 hours.
  • DST-4 (U sandstone) perforated and tested interval 8710-8714 (4 feet). The well production by swabbing was 6 BOPD (27O API) with 71% BSW and 19,000 ppm of chlorides (completion fluid).
  • DST-5 (A limestone) perforated and tested intervals 8560'-8566' and 8572'-8600' (34 feet). These intervals did not flow any measurable fluid volume.
  • DST-6 (Kg sandstone) perforated and tested interval 7995'-8010' (15 feet). After swabbing, the well was not able to flow naturally. The oil production rate on jet pump was 183 BOPD (21O API) with 12% BSW during the last 8 hours.

Gran Tierra Energy holds a 50% working interest and is the Operator of the Guayuyaco Block. Solana Resources Limited holds a 50% working interest and Ecopetrol has a 30% interest back-in right on commercial discoveries, which if exercised, would reduce Gran Tierra Energy working interest to 35% and Solana Resources Limited working interest to 35% in this new commercial field.

The service rig used in these testing operations is being redeployed to the Costayaco-1 exploration well location in the adjacent Chaza Block to begin testing operations. Costayaco-1 encountered similar oil shows in the same reservoirs that were tested in Juanambu-1, and which are currently producing in adjacent oil fields operated by Gran Tierra Energy. Gran Tierra Energy is the operator of the Chaza block with a 50% working interest.

Dana Coffield, President and CEO, stated: "We are thrilled with the results of the test program. The oil quality is better, and the reservoir performance is far superior than is found in our adjoining producing fields. We look forward to working with Ecopetrol to attain commerciality of this new field, and bring on new production utilizing the local infrastructure operated by Gran Tierra Energy."

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. Gran Tierra holds interests in producing and prospective properties in Argentina, Colombia and Peru. To date, Gran Tierra 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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