Gran Tierra Energy Inc. (TSX: T.GTE, Stock Forum) successfully completed initial testing of the Bretaña Norte 95-2-1XD exploration well in Peru at rates that far exceeded expectations.
The company completed initial testing of the Vivian Formation sandstone reservoir in the Bretaña Norte 95-2-1XD exploration well, where it holds a 100% working interest.
According to the Gran Tierra Energy press release, approximately 1,170 barrels of oil per day was produced on natural flow without pumps for 19.65 hours with 0% water cut through a 46/64 inch choke.
The choke size was then increased to a 64/64 inch and oil flow increased to approximately 1,984 barrels of oil per day on natural flow without pumps over a period of 1.5 hours with 0% water cut.
Cumulative production over the testing period amounted to 1,082 barrels of oil.
In other news, the horizontal sidetrack, which is expected to commence at the end of February, will be completed and used to initiate a long-term test of the Bretaña Norte 95-2-1XD exploration well.
Timing for initiation of the long-term test has not been determined yet, but it is expected to commence within a period of 12 months, subject to facilities upgrade, and execution of crude oil transportation and delivery agreements.
Gran Tierra is an international oil and gas exploration and production company, headquartered in Calgary, Canada.
On Thursday, Gran Tierra was trading at $5.60 a share. The company has a market cap of $1.5 billion, based on 268.5 million shares outstanding. The 52-week high and low was $6.56 and $4.10 respectively.