Gran Tierra Energy Announces Joint Venture with Petrobras and Statoil, Offshore Brazil
CALGARY, Sept. 15, 2011 /CNW/ --
First exploration well in program to be drilled in 2011
CALGARY, Sept. 15, 2011 /CNW/ - Gran Tierra Energy Inc. ('Gran Tierra Energy') (NYSE Amex: GTE, TSX: GTE), a company focused on oil exploration and production in South America,
today announced that it has entered into two farm-in agreements with
Statoil do Brasil Ltda. ('Statoil'), whereby Gran Tierra Energy will
earn a 10% working interest in Concession Contract BM-CAL-7 operated by
PetróleoBrasileiro S.A. ('Petrobras'), and a 15% working interest in
Concession Contract BM-CAL-10 operated by Statoil, in the offshore
Camamu-Almada Basin, Brazil. The completion of the two transactions is
subject to obtaining regulatory approval from Agência Nacional de
Petróleo, Gás Natural e Biocombustíveis ('ANP') and other customary
conditions of closing.
'The conclusion of these farm-in opportunities will establish Gran
Tierra Energy in offshore Brazil, one of the most important petroleum
regions in the world today. Partnering with Petrobras and Statoil will
provide Gran Tierra Energy with an opportunity to participate in
multiple highly prospective exploration plays with two world-class
offshore operators experienced in those plays' said Dana Coffield,
President and Chief Executive Officer of Gran Tierra Energy.
BM-CAL-7 encompasses approximately 1,362 square kilometers (336,558
acres), and BM-CAL-10 encompasses approximately 1,680 square kilometers
(415,137 acres); water depths range from approximately 400 to 2,800
meters. Multiple leads and prospects have been identified on the two
blocks.
The Camamu-Almada Basin lies immediately south and offshore from the
onshore Recôncavo Basin, where Gran Tierra Energy is the operator of
four blocks and is poised to begin both development drilling and
exploration drilling operations.
Under the terms of the farm-in agreements, Gran Tierra Energy will be a
non-operating partner and will pay its participating interest share of
costs incurred to date and in the future on the Concession Contracts as
well as a carry on the drilling of the first exploration obligation
well with respect to Concession Contract BM-CAL-7 and Concession
Contract BM-CAL-10. Additional amounts may also be payable in the event one of the first
exploration obligation wells results in a discovery and in the event of
future development. The Gran Tierra Energy 2011 budget impact is
expected to be US$17 million.
The first exploration well on Concession Contract BM-CAL-10 is
anticipated to be drilled late 2011.
'Similar to what we have done successfully in the other South American
jurisdictions in which we operate, Gran Tierra Energy is today building
a portfolio of different types of drilling opportunities in Brazil,
ranging from established onshore exploration and production operations
in the Recôncavo Basin, to higher reward offshore operations in the
Camamu-Almada Basin, exposing the company to diverse and substantial
growth opportunities for the future. We look forward to obtaining the
required regulatory approval from the ANP and to participation in the
Concession Contracts with Petrobras and Statoil,' concluded Coffield.
About Gran Tierra Energy Inc.
Gran Tierra Energy is an international oil and gas exploration and
production company, headquartered in Calgary, Canada, incorporated in
the United States, trading on the NYSE Amex Exchange (GTE) and the
Toronto Stock Exchange (GTE), and operating in South America. Gran
Tierra Energy holds interests in producing and prospective properties
in Colombia, Argentina, Peru, and Brazil. Gran Tierra Energy has a
strategy that focuses on establishing a portfolio of producing
properties, plus production enhancement and exploration opportunities
to provide a base for future growth.
Gran Tierra Energy's Securities and Exchange Commission filings are
available on a web site maintained by the Securities and Exchange
Commission at http://www.sec.gov and on SEDAR at http://www.sedar.com.
Forward Looking Statements:
This news release contains certain forward-looking information and
forward-looking statements (collectively, 'forward-looking statements')
under the meaning of applicable securities laws, including Canadian
Securities Administrators' National Instrument 51-102 - Continuous Disclosure Obligations and the United States Private Securities Litigation Reform Act of 1995.
The use of the words 'expects', 'expected', 'anticipated', 'targeting',
'estimated' and 'will' identify forward-looking statements. In
particular, but without limiting the foregoing, this news release
contains forward-looking statements regarding Gran Tierra Energy's
planned and expected presence in Brazil, the benefits it expects from
the Concession Contracts, the timing and duration of drilling the
exploration wells, and the expected impact the contracts will have on
its 2011 budget.
The forward-looking statements contained in this news release reflect
several material factors and expectations and assumptions of Gran
Tierra Energy including, without limitation, assumptions relating to
field size and recoverability in the Camamu-Almada Basin. Gran Tierra
Energy believes the material factors, expectations and assumptions
reflected in the forward-looking statements are reasonable at this time
but no assurance can be given that these factors, expectations and
assumptions will prove to be correct.
The forward-looking statements contained in this news release are
subject to risks, uncertainties and other factors that could cause
actual results or outcomes to differ materially from those contemplated
by the forward-looking statements, including, among others: the
transaction is subject to regulatory approval by AgenciaNacional de
Petroleo Gas Natural e Biocombustiveis, the timing and results of which
are outside of Gran Tierra Energy's control, which approval if not
obtained or delayed could cause the transaction not to occur or to be
delayed; unexpected technical difficulties and operational difficulties
may occur, or the obtaining of environmental permits may be delayed,
which could impact or delay the commencement of drilling exploration
wells; geographic, political and weather conditions can impede testing,
which could impact or delay the commencement of drilling exploration
wells; and the risk that current global economic and credit market
conditions may impact oil prices and oil consumption more than Gran
Tierra Energy currently predicts, which could cause Gran Tierra Energy
to not realize the benefit that it expects from the contracts. Further
information on potential factors that could affect Gran Tierra Energy
are included in risks detailed from time to time in Gran Tierra
Energy's Securities and Exchange Commission filings, including, without
limitation, under the caption 'Risk Factors' in Gran Tierra Energy's
Quarterly Report on Form 10-Q filed August 9, 2011. These filings are
available on a Web site maintained by the Securities and Exchange
Commission at http://www.sec.gov and on SEDAR at www.sedar.com. The forward-looking statements contained herein are expressly
qualified in their entirety by this cautionary statement. The
forward-looking statements included in this press release are made as
of the date of this press release and Gran Tierra Energy disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as expressly required by applicable securities
legislation.
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For investor and media inquiries please contact:
Jason Crumley
Director, Investor Relations
403-265-3221
info@grantierra.com
www.grantierra.com
