GTE

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Gran Tierra Energy Announces Successful Acreage Awards in Brazil 05/16 04:00 PM

Expands Land Position in Recôncavo Basin With Successful bids on Three Blocks in ANP Bid Round 11

CALGARY, May 16, 2013 /PRNewswire/ - Gran Tierra Energy Inc. (GTE:$6.34,00$0.02,000.32%) , a company focused on oil exploration and production in South America, today announced successful bids on three blocks in the recently completed 2013 Brazil Bid Round administered by Brazil's Agência Nacional de Petróleo, Gás Natural e Biocombustíveis ("ANP"). The open and competitive process was available to those pre-qualified by the ANP and successful bid contracts are expected to be finalized by August, 2013.

"Gran Tierra Energy (GTE:$6.34,00$0.02,000.32%) has made a commitment to building a business in Brazil, initially by successfully developing the Tiê conventional oil discovery in the onshore Recôncavo Basin, growing production from approximately 400 barrels of oil per day gross, to approximately 1,000 barrels of oil per day gross currently," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy Inc. (GTE:$6.34,00$0.02,000.32%) "In addition, we have initiated a new technology application in Brazil, horizontal drilling with multi-stage fracture stimulation in tight oil-bearing reservoirs. We are extremely pleased to have successfully captured three new blocks which significantly increases the acreage we have to refine the technology and pursue this play in the coming years in the event of success."

The three blocks, REC-T-86, 117 and 118, are located north of Gran Tierra Energy (GTE:$6.34,00$0.02,000.32%) 's core existing areas in the Recôncavo Basin onshore Brazil and offers additional potential on the company's current exploration play trend that will enable Gran Tierra Energy (GTE:$6.34,00$0.02,000.32%) to leverage its growing knowledge of the basin. The three blocks encompasses 20,658 gross acres of land under an initial 3 year exploration period, during which Gran Tierra Energy (GTE:$6.34,00$0.02,000.32%) is committed to drill 5 exploration wells, acquire 84 square kilometers of 3D seismic data and pay a signature bonus of approximately $16.5 million upon finalization of the concession agreement.

[dan_s]

For those of you unfamiliar with GTE, you should read our profile. You can find it under the Watch List Tab. In my opinion, this stock is worth at least $10/share. Production is now firmly over 20,000 bopd with the potential to move a lot higher. They have big time potential on Columbia, Peru and now Brazil.

The company has a rock solid (almost debt free) balance sheet and very strong cash flows from operations.