Gran Tierra Up 3%, But Off Day High on initial Moqueta-3 results, despite missing Q3 production
Gran Tierra Energy Inc. (GTE.TO) has overcome missing its Q3 production target, rising 3% on positive initial Moqueta-3 results. However, the stock is off an early day high of 7.99 and gains may be capped due to the production numbers.
On its Initial Moqueta-3 Results, GTE said: "Initial drilling and logging results have been obtained from the Moqueta-3 delineation well, with a bottom-hole location 450 meters south of the Moqueta-1 discovery well in the Chaza Block of the Putumayo Basin. Oil and gas shows were recorded through the Villeta Lower U Sandstone, the Villeta T Sandstone and the Caballos formations, with electric logs indicating total net oil pay in the Moqueta-3 well increasing to 118 feet, from 44 feet encountered in the Moqueta-2 delineation well. As a result of these initial indications of increased oil pay, a test program is being designed to confirm the fluid content and productivity of the encountered zones. This test program is expected to start immediately and take approximately three weeks to complete."
On production, GTE said: "In the third quarter 2010, Gran Tierra Energy preliminary estimates production of 13,200 barrels of oil per day (BOPD) net after royalty. This falls below the company's previously disclosed full year estimate of between 14,000 and 16,000 BOPD, net after royalty. Significantly impacting production were OTA pipeline disruptions, leading to twenty-two days of downtime in the third quarter. The OTA pipeline was back in service on September 20, 2010 with current production from all Gran Tierra Energy properties of approximately 15,000 BOPD net after royalty, including approximately 14,200 BOPD from Colombia and 800 BOPD from Argentina.
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