Gran Tierra has entered into an agreement to farm into 3 blocks operated by Burlington Resources Peru Limited, Sucursal Peruana, a wholly owned subsidiary of ConocoPhillips Company. Under the agreement, Gran Tierra Energy will acquire a 20% working interest in blocks 123, 124 and 129, which are located in the Maranon Basin and are contiguous to Gran Tierra Energy's blocks 122 and 128. For the purpose of enhancing the regional interpretation of the area, the terms of the transaction with ConocoPhillips include sharing technical data derived from the seismic and drilling program on Gran Tierra Energy's blocks 122 and 128.
"This farm-in opportunity will enhance Gran Tierra Energy's position within the basin and provide the opportunity to work with a premier exploration and production operator that has demonstrated technical excellence, strong project management capabilities, and a firm commitment to safety and sustainable development," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "With the participation in these blocks, Gran Tierra Energy will become one of the largest onshore exploration acreage holders in Peru and be well positioned to test new potential hydrocarbon plays in the region."
Blocks 123, 124 and 129 consist of approximately 6.7 million gross acres and are positioned along the flank of the Iquitos Arch adjacent to the prolific Maranon Basin, where over 1 billion barrels of recoverable oil have been discovered to date. A 2-D seismic program is currently underway on the blocks to fulfill the second period work program commitments and is scheduled for completion in 2011.
The transaction is subject to PeruPetro S.A. and Peruvian Government approvals, which are expected to take approximately four to six months.
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