UPDATE 1-Gran Tierra to acquire interest in 3 Peruvian blocks

Mon Sep 20, 2010 6:57am EDT

Related Topics

* To acquire 20 pct interest in 3 blocks

* Blocks operated by unit of ConocoPhillips

Sept 20 (Reuters) - Canada's Gran Tierra Energy (GTE.TO) agreed to acquire a 20 percent working interest in three exploration blocks operated by a unit of ConocoPhillips (COP.N) in Peru, to further expand its presence in the South American country.

Under the deal, Gran Tierra, an oil and gas explorer, will get working interest in blocks 123, 124 and 129, located in the Maranon Basin. The blocks consist of about 6.7 million gross acres and are located near two blocks operated by Gran Tierra.

The company said it has entered into an agreement with Burlington Resources Peru Ltd, Sucursal Peruana, a wholly-owned unit of U.S.-based ConocoPhillips, for the deal.

The transaction is subject to Peru's petroleum agency PeruPetro S.A. and Peruvian government approvals, which are expected to take about four to six months, Gran Tierra said.

In late August, Gran Tierra said it will pay $22.6 million to Brazil's Alvorada Petroleo to get a majority working interest in the on-shore Reconcavo Basin. [ID:nSGE67T0FJ]

Shares of the Calgary, Alberta-based company, which have gained over 6 percent since its Brazilian deal, closed at C$7.01 Friday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Maju Samuel)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.