Gran Tierra Energy Inc. 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
[mappress] Source:Gran Tierra Energy Inc. ,September 15, 2011;