Gran Tierra Energy holds a 100% interest and is operator of two license areas on the eastern flank of the Maranon Basin in northern Peru, on the crest of the Iquitos Arch. The effective date of Block 122 is January 1, 2007 and the license for the adjacent Block 128 was effective February 9, 2007. Both contracts define a seven-year exploration term divided into four periods, each involving a minimum work/financial commitment. For each area, the minimum commitment for the initial work period, which is mandatory, is $0.5 million. The potential commitment over the seven-year period is $4.9 million for Block 122 and $3.6 million for Block 128 and includes technical studies, seismic acquisition and the drilling of one exploration well. Both License Contracts define a term of thirty years from their respective effective dates.
A 20,000 linear kilometer high definition airborne-gravity and magnetic survey has been completed in May, 2008 over the entire area of both blocks. The interpreted data will be used to define exploration leads over which 2D seismic data will be acquired beginning in Q1, 2010.
