Gran Tierra to Acquire Block 95 in Peru

Gran Tierra Energy will acquire a 60% working interest in Global Energy Development’s block 95 in Peru’s Marañon Basin along with operatorship rights.

Under the agreement, Gran Tierra will assume the cost of drilling an exploration well up to a cap of $15m, and its share of past costs incurred on the well.

Above the $15m cap, the firm will pay only its pro rata share of costs going forward.

The contract area contains the Bretaña-1 well, which was drilled in 1974 and tested 18° API gravity oil on natural flow rates of about 800 barrels of oil a day.

The firm expects to start drilling the well by the end of 2011, once final environmental permits are obtained.