Gran Tierra declared a 2011 capital spending program of US $299.2 million for exploration and production development operations in Colombia, Peru, Argentina and Brazil. The capital spending program includes US $146.9 million allocated for drilling and completions, $74.4 million for facilities, equipment, pipelines and other costs, and US $77.9 million for seismic activities. This budget includes the drilling of ten wells in Colombia, three wells in Peru, two wells in Argentina and six wells in Brazil. The approved 2011 budget also includes funds for 370 km of 2D and 495 km2 of 3D seismic acquisition programs in Colombia, Peru, Argentina and Brazil, primarily in preparation for additional exploration and production drilling operations in 2012.

The net risked prospective resource potential of the 2011 exploration program totals approximately 130 million barrels of oil, with the Valle Morado delineation well targeting a net risked prospective resource potential of approximately 120 billion cubic feet of gas.

Excluding potential exploration success, production in 2011 is expected to range between 21,500 to 23,500 barrels of oil equivalent per day (BOEPD) gross, or 16,000 to 18,000 BOEPD net after royalty.

Gran Tierra Energy had US $308.4 million in cash and equivalents at the end of the third quarter 2010 and has no debt. The 2011 work program and budget is expected to be funded from cash-flow from operations with the balance from cash on hand as necessary.

"Gran Tierra Energy greatly expanded its land position in 2010, while retaining an exceptionally strong balance sheet, positioning the company to undertake its most ambitious exploration program to date," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "A number of our exploration wells budgeted for 2010 have slipped into 2011 due to a variety of regulatory and operational delays. These are planned to be drilled early in 2011 and are being complemented with additional new exploration drilling opportunities. In addition, development drilling and new facilities construction is intended to bring on new production from new reserves found in 2010. Finally, an extensive seismic program is being acquired in all four countries in preparation for continued exploration and development activities in 2012 and beyond."

Tags: Gran Tierra Energy Inc.