* Says to pay Alvorada Petrolea $22.6 mln
* Says to get 70 pct working interest in Reconcavo Basin
* Says continues to explore to expand presence in Brazil
Aug 30 Canada's Gran Tierra Energy (GTE.TO),
which is focused on oil and gas exploration in South America,
said it will pay $22.6 million to Brazil's Alvorada Petroleo,
to get a majority working interest in the on-shore Reconcavo
Under the farm-in deal, Gran Tierra said it will also drill
two wells in 2011, to become the operator of Belo
Horizonte-based Alvorada's four blocks, and will finance all
the costs to drill an exploration well on two of these blocks.
These blocks are located near Salvador in Brazil in the
Reconcavo Basin, which contains 129 oil and gas fields, and has
produced over 1.5 billion barrels of oil to date, Gran Tierra
said in a statement. Gran Tierra expects to drill additional
wells, and said this discovery currently has unaudited
estimated recoverable resources of 6 million barrels of oil.
The Calgary-based firm said it continues to evaluate
additional exploration and production opportunities to expand
its presence in Brazil's growing oil and gas sector.
Shares of the company, which have gained about 14 percent
in the past three months, closed at C$6.45 Friday on the
Toronto Stock Exchange.
(Reporting by Gowri Jayakumar in Bangalore; Editing by Jarshad