Gran Tierra Reaches 'Significant Milestones' in 2Q11

- Gran Tierra Reaches 'Significant Milestones' in 2Q11

Tuesday, August 09, 2011
Gran Tierra Energy Inc.

Gran Tierra announced its financial and operating results for the quarter ended June 30, 2011. All dollar amounts are in United States dollars unless otherwise indicated.

Highlights for the quarter include:

• Quarterly production of 18,141 barrels of oil equivalent per day ("BOEPD") net after royalty ("NAR"), a 36% increase in average daily production from the same period in 2010 of 13,376 BOEPD due to additional production from existing field developments, new production from recent field discoveries, and production growth from the recently acquired assets of Petrolifera Petroleum Ltd. ("Petrolifera");
• Quarterly oil production of 17,525 barrels of oil per day ("BOPD") NAR, a 32% increase in average daily production from the same period in 2010 of 13,234 BOPD NAR;
• Quarterly gas production of 3.7 million cubic feet per day ("MMCFD") NAR, a 334% increase in average daily production from the same period in 2010 of 0.8 MMCFD NAR;
• Revenue and other income for the quarter of $162.1 million, a 93% increase over the same period in 2010;
• Net income of $31.6 million or $0.11 per share basic and diluted compared to net income of $17.4 million or $0.07 per share basic and diluted in the same period in 2010;
• Funds flow from operations of $88.6 million compared to $44.3 million for the same period in 2010;
• Cash and cash equivalents were $211.4 million at June 30, 2011 compared to $355.4 million at December 31, 2010 and working capital decreased to $215.4 million at June 30, 2011 compared to $265.8 million at December 31, 2010;
• Moqueta-5 delineation well testing was initiated from a single zone at production rates of approximately 730 BOPD over 10 days with a jet pump, with additional testing ongoing;
• Major infrastructure projects were completed including the construction and commissioning of the Moqueta to Costayaco flow-line with first short-term test production commencing in June, and the connection of the Costayaco field into Colombia's national electrical system;
• First production contribution from Gran Tierra Energy's Brazil assets in the Recôncavo Basin was recorded in the quarter;
• Continued to mature plans for robust exploration, delineation and development drilling campaigns in Colombia, Brazil, Peru and Argentina through 2011 and into 2012.

"Several significant milestones were achieved in the second quarter of 2011, positioning the Company to achieve continued growth into the future. The completion of the Moqueta to Costayaco flow-line and initiation of production was a major achievement. This is the first time that an oil field in Colombia has been discovered and test production initiated with operations entirely supported by helicopter and without access by road minimizing the environmental footprint of Gran Tierra Energy's operations at this early stage of development," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "We achieved record production in the quarter due to effective management of existing producing fields in Colombia and Argentina and new production from recent discoveries in Colombia and Brazil. Record cash flow, and progress in permitting and contracting, are supporting the execution of our planned exploration and drilling program scheduled for the balance of 2011 and into 2012," concluded Coffield.


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Statoil, Partners Hit Significant Oil Pay in North Sea

- Statoil, Partners Hit Significant Oil Pay in North Sea

Monday, August 08, 2011
Statoil

Statoil and partners Petoro, Det norske and Lundin have made a high-impact oil discovery on the Aldous Major South prospect (PL 265) in the North Sea.

Well 16/2-8, drilled by the Transocean Leader drilling rig, has identified an approximately 65-meter oil column in Jurassic sandstone. The acquired data confirm that this is a reservoir of excellent quality.

Statoil has previously described the well as a high-impact well, and the result confirms Statoil's belief in the exploration potential on the Norwegian continental shelf in line with what was communicated at the Capital Markets Day event in New York in June.

Preliminary volumes are estimated to be between 200 and 400 million barrels of oil equivalent (boe) for this part of the structure in PL 265, and Statoil expects additional upside in the license both north and south of the discovery.

Aldous Major South is located west of Lundin's Avaldsnes discovery (license PL 501), where Statoil has a 40% stake, and some 35 kilometers south of the Statoil-operated Grane field.

Well 16/2-8 indicates the same oil-water contact as in the Avaldsnes discovery well, which suggests the likelihood of communication between the two structures. The Avaldsnes discovery encountered a 17-meter oil column. Statoil will update its total resource estimate for the area when the wells are completed and the data analyzed.

"Aldous Major South is a considerable oil discovery in one of Statoil's core areas. Together with the Avaldsnes discovery this may allow for a new stand-alone development in the North Sea. As the largest resource owner our priority is to find the optimal solution for the area, adding maximum value to all partners," said Gro G. Haatvedt, Statoil's senior vice president for Exploration on the Norwegian continental shelf.

After completing this well Transocean Leader will start drilling the Aldous Major North well. This well also has a considerable volume potential.

The partnership is planning two appraisal wells in PL 265 next year and Statoil has secured rig capacity for this.

The result of the ongoing drilling of the Lundin-operated well (well 16/2-7) in the Avaldsnes structure will help further clarify the area’s potential.

Aldous Major South is located in license 265. Statoil is the operator and has a 40% interest. The other partners are Petoro (30%), Det norske oljeselskap (20%) and Lundin (10%).

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Petrom Announces Potential Significant Gas Find in NW Romania

- Petrom Announces Potential Significant Gas Find in NW Romania

Thursday, July 07, 2011
Dow Jones Newswires
BUCHAREST

Romania's dominant oil company OMV Petrom said drilling success at its 4539 Totea exploration well in the southwestern region of Oltenia, in what could be the "most important onshore gas discovery in the last six years," news agency Mediafax reported.

The 4539 Totea well was drilled following a recent 3D seismic exploration program. Three successful production tests were carried out, with a maximum stabilized production rate of around 3,100 barrels of oil equivalent/day gas and associated condensate, Petrom said in a statement.

"I am happy to announce this success which might represent the most important onshore gas discovery in Romania during the last six years. The results obtained during tests confirm the reservoir's potential as well as our expectations from the Oltenia region where we directed major investments," said Johann Pleininger, member of the Petrom Executive Board, responsible for Exploration and Production.

Petrom said it will start an appraisal program to determine the size of the accumulation, which is located in an area with a high geological complexity. Experimental production on well 4539 Totea is estimated to start by year-end, once the well is linked to the nearby gas pipeline infrastructure.

Petrom is Romania's largest vertically integrated oil company. Austrian OMV owns 51% of the company's shares, while Romanian Economy Ministry and regional investment fund Fondul Proprietatea hold 20.64% and 20.11% in Petrom, respectively. The reminder 8.24% stake is traded on the Bucharest bourse.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Coastal Hits 'Significant' Oil Pay at Bua Ban

- Coastal Hits 'Significant' Oil Pay at Bua Ban

Wednesday, June 15, 2011
Coastal Energy Co.

Coastal announced that the Bua Ban North B-06 well was drilled to a total depth of 6,800 feet TVD and encountered 69 feet of net pay with 28 percent porosity in the Miocene interval. MDT (Modular Dynamic Testing) pressure analysis confirms that the well is in communication with the B-02 and B-04 wells and oil samples recovered have an API gravity of 36 degrees.

The B-06 also encountered 17 feet of net pay with 22 percent porosity in the Eocene in the western upthrown fault block, which has also been referred to as the Bua Ban North Terrace. This is the highest porosity Eocene pay zone that has been encountered in the basin.

Randy Bartley, Chief Executive Officer of Coastal Energy, commented, "We are pleasantly surprised with the results of the B-06 well. The well was expected to encounter a wet section of the reservoir and be used for aquifer support; however, the fact that it encountered a significant oil pay zone in the Miocene which is connected to the other wells in the same fault block has several positive implications.

The lowest known oil in this fault block has been moved lower by 100 feet and has nearly tripled the extent of the structural closure to 425 acres. The oil water contact here is much deeper than originally anticipated. Following this discovery, we will drill an additional well (B-07), to confirm the MDT data which indicate an oil water contact at 3,825 feet. The B-07 well can be used for water injection. We then plan to drill a well (B-08) on the eastern side of the field and northeast of the B-03 well to further evaluate the full extent of this closure. If successful, this would materially increase the size of the productive field.

In addition, the high quality of the Eocene reservoir which was seen confirms our assessment that the Eocene is conventionally producible above 6,500 feet. The B-06 well supports further exploration to the north and west and reduces the risk of the Company's Eocene targets.

The mobile offshore production unit is on standby and will mobilize to Bua Ban North B to begin testing operations as soon as the drilling rig moves off location."

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Statoil Wins Big at Skrugard

Statoil Wins Big at Skrugard

Friday, April 01, 2011

Statoil

Statoil, along with partners Eni Norway and Petoro, has made a significant oil discovery on the Skrugard prospect in the Barents Sea. The breakthrough discovery is one of the most important finds on the Norwegian continental shelf in the last decade.

      Transocean Polar Pioneer

Statoil and its partners are in the process of concluding drilling operations on the Skrugard prospect, which is located approximately 100 kilometers north of the Snohvit gas field in the Barents Sea.

The well was drilled with the Polar Pioneer rig, and has proven gas column of 33 meters and an oil column of 90 meters. The oil is anticipated to be easily producible.

The estimated volume of the discovery is between 150–250 million recoverable barrels of oil equivalent (boe), while Statoil sees opportunities for further upside in the license of up to 250 million barrels – for a potential total of 500 million boe.

"The Skrugard find is significant and a break-through for frontier exploration in the Barents Sea. This opens a new oil province that can provide additional resource growth," said Tim Dodson, executive vice president for Exploration in Statoil.

He emphasizes that it is too early to say something concrete about the total potential of the area, but ventures to characterize the Skrugard find as the most important exploration event on the Norwegian continental shelf in the last decade. The discovery is vital in order to maintain the technology and technical environments in the oil and gas industry in Norway in the future.

Statoil has plans for both the drilling of a new prospect in the same license next year, and a possible appraisal drilling at Skrugard.

The Skrugard prospect was Statoil's first priority in the 20th licensing round on the Norwegian continental shelf, which was awarded in April 2009. Over the course of the spring the Norwegian government will allocate acreage in the 21st licensing round. Acreage in areas nearby Skrugard is expected to be assigned during the round.

Drilling operations have been conducted in a safe, efficient and environmentally friendly manner. Several core samples have been taken in order to understand reservoir properties, and some data collection in the well still remains.

In total there have been over 80 wells drilled in the southern Barents Sea, and Statoil has been the operator for more than 60 of these. The Snøhvit gas field, which is operated by Statoil, is the only field center established so far in the Barents Sea, while Eni's Goliat field is under development.

"The Barents Sea is large, and we can not say that we have cracked the code for the entire area yet. But we have confirmed that our exploration model is correct. This is a break-through, and an important step in understanding how the geology – and thus the hydrocarbon systems in the Barents Sea – works," said Dodson.

"If the volume estimates are confirmed, then this discovery could provide a basis for an independent development. Given that it takes between five to 10 years from discovery to production, we are planning for the future now. Our ambition is to put this find into production as quickly as possible," he added.

Statoil is the operator of license 532 with a 50% share. The license partners are Eni (30%) and Petoro (20%).

Pacific Rubiales Acquires Maurel & Prom Stake in Colombia

Pacific Rubiales Acquires Maurel & Prom Stake in Colombia

Thursday, March 31, 2011
Pacific Rubiales Energy Corp.

Pacific Rubiales announced the acquisition of 50% of the interests held by Maurel et Prom in the Sabanero, Muisca, SSJN-9, CPO-17 and COR- 15 blocks, which are all located on-shore in Colombia.

Mr. Ronald Pantin, Chief Executive Officer of the Company, commented, "We are very pleased to join forces with Maurel et Prom. This acquisition adds significant resources and exploratory potential to our already robust resource base. Moreover, this acquisition fits synergistically with our other assets located in the same basins, paving the way to significant efficiencies in production and transport. With this acquisition we continue raising the bar as the premier explorer and operator in Colombia."
Upon completion of the transaction, Pacific Rubiales will partner with Maurel et Prom in respect of the following interests:

• 100% participation in the Sabanero Block ("E&P Contract No. 17 of 2007 Sabanero") located in the central region of Colombia in the Department of Meta.
• 100% participation in the Muisca Block ("E&P Contract No. 20 of 2008 Muisca") located in the central region of Colombia in the Departments of Boyacá and Cundinamarca.
• 50% participation in the SSJN-9 Block ("E&P Contract No. 47 of 2008 SSJN- 9") located in the northern region of Colombia in the Departments of Bolivar, Cesar and Magdalena. The remaining 50% interest is currently held by HOCOL.
• 50% participation in CPO-17 Block ("E&P Contract No. 40 of 2008 Llanos Orientales - Area Occidental CPO-17") located in the central region of Colombia in the Department of Meta. The remaining 50% interest is currently held by HOCOL.
• 100% participation in the COR-15 Block ("Special Technical Evaluation Agreement Type 3 Contract") located in the central region of Colombia in the Department of Boyacá.

This agreement is subject to legal and regulatory approvals of the ANH and certain contractual approvals with the partners in Colombia.
The general terms of the agreement with Maurel et Prom are as follows:

• Pacific Rubiales will pay to Maurel et Prom cash consideration to a maximum of US $66 million as a reimbursement for past exploration costs in the blocks, as at March 31, 2011.
• Pacific Rubiales will assume a full carried obligation on the exploration and delineation activities in the Sabanero Block with a reimbursement out of the free cash flow. The Company will also secure the financing required by Maurel et Prom to execute its portion of the development activities in such block.
• Reimbursement will also be made by means of free cash flow derived from future hydrocarbon production. Pacific Rubiales offers to assume a full carried obligation of up to US $120 million in three years for exploration activities in the SSJN-9, CPO-17 and Muisca Blocks. This obligation will be subject to revisions pending the activity results and negotiations with the other applicable partners.
• Pacific Rubiales will assume a full carry obligation on exploration activities for Block COR-15, with reimbursement by means of free cash flow derived from future hydrocarbon production. The Company will also secure the financing required by Maurel et Prom to execute its portion of the development activities in such block. Reimbursement will also be made by means of free cash flow derived from future hydrocarbon production.