A Busy Year Ahead For GTE:
Mid June - spud of the Proa -1 well, in the Surbai block is being drilled as close as possible to their existing Palmar Largo field with 37 million bo existing production
June - Costayaco -4 test results
June late - updated reserves report, also look for some guidance on the reserve estimates in the Villeta T.
June mid - Popa -2 drilling complete, expect press on the preliminary finding.
July - GTE will publish a 2009 drilling program, it should be impressive and include some big targets just North of costayaco. next fields for exploratory drilling are what some call Norte Costayaco, Pacayaco Moqueta, Juanambu, Veredyaco -
July - Completion of the phase 1 pipeline from the Costayco wells to Uchupayco the new pipeline will replace trucking operations and allow production flows increase from the first three Cotayaco wells. Gran Tiera expects production could rise to 9000 bopd (4500 net to GTE) in the second half of 2008.
July - spud of Costayco -5 well, followed by logging
July – Palmera-1 drilling complete flowed by logging and flow testing
August - Expect some updated flow results on each of the six oil formations obtained from the long term production test of Costyaco 2 and 3. Note all of the formations have been flowed tested in each well. All the production tests of C-2&3 and coring of C-4 leads to the planning of the phase 2 pipeline, if Gran Tierra releases press increasing the capacity of the pipeline, above the noted preliminary size of 25,000 bopd.
August - airborne gravity and magnetic data is complete on Peru Blocks 122 and 128 which will be used to define exploration leads over which 2-D seismic data will be acquired. GTE may release some information on exploration targets. There are billion barrels oil targets in the Iquitos Arch area of Peru. The oil is heavy and Gran Tierra would benefit from a "cash rich" pocket partner.
Gran Tierra typically establishes joint venture partnerships, so watch for news of corporate developments on the Peru block. Remember near the Iquitos Arch (block 122 and 128) , a competitor has production plans for two oil fields, each for 100,000 bopd in production. To put a 100,000 bopd oil field into perspective, there are not that many oil fields in the world that produce more than 100,000 bopd, (approximately 120 fields do), most of them are located in the Middle East, or deep off-shore. Peru provides significant long-term future growth with some “giant” heavy oil targets. There are billion barrels oil targets in the Iquitos Arch area of Peru. The oil is heavy and Gran Tierra needs a deep pocket partner.
Reliance Industries a large oil and gas company from India has been shopping for oil blocks in Peru and recently farmed into 90% of block 141 with Pan Andean Resources and into 40% of block 108 from Perupetro. Both blocks are in the southern "dry gas basin"
Any positive Joint venture or corporate developments on Gran Tierra's Peru blocks would be very positive. Reliance Industries is also shopping for blocks in Peru’s oil belt, and a major company like Reliance Industries often contacts small cap companies first to barter. Most of Peru' oil blocks around 122 and 128 are controlled by majors.
