CALGARY (CP) -- The exploration well flowed at a combined rate of 8.5 million cubic feet of gas and 236 barrels of oil and liquids a day, the junior company said. It added that the well is being suspended for additional testing and evaluation before any commercial production.
Gran Tierra Energy, with a 100% working interest, is the operator of the 57,868-hectare Rio Magdalena Block.
Under terms of a recently completed farm-in agreement, Omega Energy Colombia will earn a 60% share paying all the costs associated with drilling, testing and completing the Popa-2 well.
If a commercial discovery is made, Ecopetrol S.A. has a right to back in for a 30% working interest, to be split between Gran Tierra and Omega.
"These initial test results from Popa-2 are exciting, confirming a new exploration play initially identified on our lands in 2006," said Dana Coffield, president and CEO of Gran Tierra.
"The Rio Magdalena block is a large block near existing infrastructure with numerous leads and prospects for further testing as our confidence in this new exploration play continues to mature."
Gran Tierra holds interests in producing and prospective properties in Argentina, Colombia and Peru.
In trading on the Toronto Stock Exchange, Gran Tierra shares fell one cent to $5.07.
(c) The Canadian Press 2008