* Tests at Garibay block produced 3,894 bopd
* Deal fell through due to lack of approvals
* Shares rise 4 percent
By Abhiram Nandakumar
BANGALORE, Oct 25 Gran Tierra Energy (GTE.TO),
a Canadian oil and gas exploration company, said it planned to
start production at a block in Colombia it had intended to sell
off, in December, sending its shares up 4 percent.
Gran Tierra, which has assets in Colombia, Argentina and
Peru, said testing at its Jilguero-1 well in the Garibay block
produced 3,894 barrels of oil per day across four formations.
Gran Tierra, which owns half of the Garibay block through
its unit Solana Petroleum Exploration Colombia Ltd, had
intended to sell its stake to operator and part-owner CEPSA
Colombia S.A. in October, but couldn't complete the deal as the
required approvals were not completed on time.
BMO Capital Markets-Canada analyst Christopher Brown said
the deal falling through turned out to be fortunate for Gran
"It (the discovery) was just an unexpected surprise as no
one knew that this was still in the Gran Tierra portfolio," he
said, adding that the extent of the discovery would be known
only after long-term testing was completed.
Calgary, Alberta-based Gran Tierra's shares, which have
gained nearly 27 percent in value in the last three months,
touched a high of C$7.88, before paring some gains to trade at
C$7.77 Monday morning on the Toronto Stock Exchange.
(Reporting by Abhiram Nandakumar in Bangalore; Editing by Don