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You can still profit from investing in oil with this mid-cap: TFN Hot Stock Pick of the Week

Posted July 2, 2008

Laura Cadden on TFN Hot Stock Pick of the Week

Baltimore — (TFN): This oil and natural gas exploration, development and production mid cap has garnered territory and drilled exploratory wells in select Blocks of Peru, Argentina and Colombia with extremely lucrative prospects. With these projects, this firm has moved from a minor speculative player to a solid company with excellent growth prospects.

by Laura Cadden, TodaysFinancialNews.com

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Listed on the AMEX exchange as of April 8, Gran Tierra Energy Inc. (GTE: AMEX) is an oil and gas exploration and production company with facilities in Argentina, Peru and Colombia.

Looking way good so far this year

Last year, Gran Tierra’s net income for the first quarter was a negative $6.7 million. First quarter of this year showed their numbers distinctly in the green with a net income of $4.7 million.

First-quarter 2008 revenue came in at $20.8 million compared to $4.5 million for the same quarter in 2007.

The company saw their average oil sales, net of royalties, increased 148% over last year’s production for the same period – up to 2,842 BOPD.

Already in the second quarter, they are reportedly producing as high as 4,100 BOPD net after royalty.

Kicking into high gear

In Argentina, the company has partial interests in wells located in the Noroeste Basin. Last year, the company finished work on a sidetrack well in the El Vinalar Block and has plans to dig more wells there in the upcoming months.

As of early 2007, Gran Tierra has 100% interest in Blocks 122 and 128 in the Maranon Basin in northern Peru. The company plans to begin operations on the 3.4 million acres they own this year.

But it’s the company’s Colombian locations that are making big news of late…

The Colombian advantage

Gran Tierra’s Colombian interests are in nine blocks, four of which are currently producing – or on the verge thereof.

In 2007, the Calgary-based company drilled three oil discovery wells in the Colombian Putumayo Basin.

This year, they have completed the drilling of another well in the 80,242-acre Chaza Block area of the Basin. Gran Tierra has a 50% working interest along with the operator, Solana Resources. Early assessments predict about 25% more potential net pay for this well as compared to the previous ventures in the Block. Testing of the new site is expected to complete by the end of July.

Good results from a well dug in 2006 in the 144,670-acre Rio Magdelena Block of Colombia has led to the drilling of another well in the region this year — with three more in the works. The costs for this latest venture have been taken care of by Omega Energy Colombia, which will then earn a 60% share of the company’s interest if it produces.

Testing for the new Rio Magdelena Block well should be completed by mid-July.

Gran Tierra Energy Inc.
300, 611-10th Avenue S.W.
Calgary, AB T2R 0B2
Canada
Phone: 1-403-265-3221
Fax: 1-403-265-3242
http://www.grantierra.com

Climb aboard

If the tests prove these wells capable of producing the amount of black gold anticipated, the stock price for this company will take off. Heck, it’s already seeing lots of momentum in anticipation.

This company is on a profitable track. I recommend you move now and buy shares of Gran Tierra Energy Inc. (GTE: AMEX) at or under $10 a share. I expect this stock to rise by at least 20% by December 1, 2008.

Coming soon!

J. Christoph Amberger brings you Hot Stock Confidential. Learn more here (but keep it confidential!)…


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Posted by Laura Cadden · Filed Under TFN Members Only 

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