Gran Tierra Makes Gas-Condensate Discovery at Rio Magdalena
Gran Tierra Energy Inc. has successfully tested the Popa-2 exploration well in the Rio Magdalena Block in central Colombia at a combined rate of 8.5 million cubic feet of gas per day and 236 barrels of oil and condensate per day. The well is being suspended for additional testing and evaluation prior to production completion.
Gran Tierra Energy initiated drilling of the Popa-2 exploration well in the Rio Magdalena Block in the Middle Magdalena Basin, on May 8, 2008, and reached total measured depth of 8,646 feet in basement on June 21, 2008. Electric log interpretations together with mud log and the shows encountered during drilling indicated potential hydrocarbon pay in the Guaduas Formation, the Monserrate Formation, and Basement. A drill-stem test (DST) program was initiated on July 4 and a total of seven DST's were conducted; the test program was completed on August 8, 2008.
DST-1 and DST-2 tested Basement and the lower Monserrate Formation, and recovered 58 barrels of water per day and 259 barrels of water per day respectively by swabbing.
DST-3 in the Monserrate Formation at 7,770 to 7,790 feet, tested 1.400 million standard cubic feet of gas per day with 85 barrels of 39.9 degree API oil per day and 370 barrels of water per day, by natural flow from a 16/64" choke.
DST-4 in the Monserrate Formation at 7,730 to 7,760 feet, tested 3.186 million standard cubic feet of gas per day with 77 barrels of 61.3 degree API condensate per day and only a trace of water, by natural flow from a 64/64" choke.
DST-5 in the upper Monserrate Formation at 7,624 to 7,630 feet, 7,640 to 7,646 feet, and 7,662 to 7,666 feet, tested 3.953 million standard cubic feet of gas per day with 74 barrels of 61.7 degree API condensate per day and only a trace of water, by natural flow from a 48/64" choke.
DST-6 in the Guaduas Formation recovered 989 barrels of water per day by natural flow and DST-7 in the Guaduas Formation recovered 15 barrels of water per day by swabbing.
The Popa-2 well bore will be suspended for further testing and evaluation prior to production completion.
Popa-2 was drilled to the same reservoirs at a shallower depth and 2,035 meters away from a non-commercial oil discovery made by Gran Tierra Energy in 2006 at Popa-1, which tested approximately 160 barrels of oil per day. Gran Tierra Energy acquired a new 89 kilometer 2-D seismic program after the initial discovery, and used it to pick the location of Popa-2.
Gran Tierra Energy, with a 100% working interest, is the operator of the 144,670 acre Rio Magdalena Block. Under the terms of a recently completed farm-in agreement, Omega Energy Colombia will earn a 60% share of the company's interest by paying 100% of the costs associated with drilling, testing and completing the Popa-2 well. In the event of a commercial discovery, Ecopetrol S.A. has a right to back in for a 30% working interest, to be split proportionally between Gran Tierra Energy and Omega Energy Colombia.
Commenting on progress, Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy Inc., stated, "These initial test results from Popa-2 are exciting, confirming a new exploration play initially identified on our lands in 2006. The Rio Magdalena block is a large block near existing infrastructure with numerous leads and prospects for further testing as our confidence in this new exploration play continues to mature."
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