Gran Tierra Energy oil output hits 15,334 bpd end-Mar '09

Canadian-based oil company Gran Tierra Energy Inc (TSE:GTE) reached an oil output of up to 15,334 barrels per day (bpd), net after royalty, at end-March against some 10,000 bpd on average in the first quarter of 2009.

The increase is due mainly to the development of the Costayaco field in Colombia's Chaza block, operated by Gran Tierra Energy, the company said on Thursday.

Gran Tierra Energy expects to keep its production at roughly 15,000 bpd through the second quarter of 2009, as the Costayaco-5 oil well is about to come on stream in the next days.

The company also announced an asset purchase and sale agreement with Lewis Energy Colombia Inc for Gran Tierra Energy's interests in the Guachiria Norte, Guachiria, and Guachiria Sur blocks in Colombia's Llanos basin. The deal is expected to cut by USD 6.2 million (EUR 4.7m) Gran Tierra Energy's capital spending in 2009. The company will retain a 10% overriding royalty interest in Guachiria Sur in case of a discovery.

Publication: ADP News
Provider: AII Data Processing Ltd.
April 10, 2009