Production Returns to Target Levels in the Putumayo Basin, Colombia CALGARY, June 29 /PRNewswire-FirstCall/ -- Gran Tierra Energy Inc. (AMEX: GTE; TSX: GTE), a company focused on oil exploration and production in South America, today announced that it has completed logging operations and initiated production testing of Costayaco-8. Well logs indicate that both the Upper T Sandstone of the Villeta formation and the Caballos formation lie completely within the field's oil column. In addition, the Company also reported that production has returned to target levels of between 14,000 and 16,000 barrels of oil per day (BOPD) net after royalty following recent pipeline repairs. "The Upper T Sandstone and the Caballos reservoirs came in as expected and are well above the oil/water contact for the field according to well logs," said Dana Coffield, President and Chief Executive Officer of Gran Tierra Energy. "Costayaco-8 was drilled on the crest of the Costayaco Field and early indications suggest the well will be a significant contributor to the production potential of the field." Costayaco-8, located 1,868 feet southwest of Costayaco-1, reached a total measured depth (MD) of 8,570 feet on June 20, 2009. Well logs indicate the presence of reservoir sandstones in the Upper T Sandstone from 8,142 feet MD to 8,198 feet MD and in the Caballos formation from 8,268 feet MD to 8,437 feet MD. The bottom of both formations came in above their respective oil/water contacts. The gross reservoir thicknesses of the Upper T Sandstone and the Caballos formation are 56 feet and 169 feet respectively. During drilling operations, Gran Tierra Energy successfully acquired cores of the major sandstone reservoir intervals in Upper T Sandstone and the Caballos formation. These cores will be used to further assess reservoir parameters, including oil saturations of both zones. Completion and production testing operations at Costayaco-8 have been initiated and are expected to take approximately two weeks. Testing of Costayaco-7 is continuing and anticipated to be complete in early July. Once initial production testing is completed at Costayaco-8 the drilling rig will be moved to the Costayaco-9 site, located 1,958 feet southwest of Costayaco-8. Site preparation for Costayaco-9 is currently underway, and drilling is expected to begin in early July. The Costayaco field is located in the Chaza Block in the Putumayo Basin of Colombia, where the company has a 100% working interest and is the operator. Production Update Following repairs to the Ecopetrol-operated Trans Andean Pipeline, normal production operations have resumed and are currently averaging approximately 17,800 BOPD gross, or 14,750 BOPD net after royalty in Colombia. During the 15 days of reduced production due to pipeline repairs, oil sales averaged approximately 3,610 BOPD gross or 2,963 BOPD net after royalty. Production in Argentina averaged approximately 694 BOPD net after royalty in June due to the temporary shut-in of four wells for workovers. About Gran Tierra Energy Inc. Gran Tierra Energy Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated in the United States, trading on the NYSE Amex Exchange (GTE) and the Toronto Stock Exchange (GTE), and operating in South America. Gran Tierra Energy holds interests in producing and prospective properties in Argentina, Colombia and Peru. Gran Tierra Energy has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a base for future growth. Additional information concerning Gran Tierra Energy is available at http://www.grantierra.com/. Forward Looking Statements: The statements in this news release regarding early indications that Costayaco-8 will be a significant contributor to production potential of the field, and Gran Tierra Energy's expectations regarding the expected timing for completion of testing of Costayaco-7, Costayaco-8, and the beginning of drilling operations on Costayaco-9, are forward looking statements or financial outlook ("forward-looking statements") under the meaning of applicable securities laws, including Canadian Securities Administrators' National Instrument 51-102 Continuous Disclosure Obligations and the United States Private Securities Litigation Reform Act of 1995. These statements are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements. There are a number of important factors that could cause the actual results or outcomes to differ materially from those indicated by the forward-looking statements, including, among others: Gran Tierra Energy's operations are located in South America, and unexpected problems can arise due to guerilla activity, technical difficulties and operational difficulties which impact its testing, drilling and production operations, and transport or sale of its products; and geographic, political and weather conditions can impact testing, drilling and production operations, and the production, transport or sale of its products. Further information on potential factors that could affect Gran Tierra Energy are included in risks detailed from time to time in Gran Tierra Energy's Securities and Exchange Commission filings, including, without limitation, under the caption "Risk Factors" in Gran Tierra Energy's Quarterly Report on Form 10-Q filed May 8, 2009. These filings are available on a Web site maintained by the Securities and Exchange Commission at http://www.sec.gov/ and on SEDAR at http://www.sedar.com/. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this press release and Gran Tierra Energy disclaims any intention or obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. DATASOURCE: Gran Tierra Energy Inc. CONTACT: For media and investor inquiries please contact Thomas McMillan, Equicom Group, (866) 973-4873, (403) 536-5903,

Copyright