2010-09-28-2010-09-20

To acquire 20% WI in blocks 123, 124 and 129 covering 6.7 million gross acres.

Gran Tierra Energy Inc., Calgary, (NYSE Amex; Toronto: GTE) plans to farm-in to three blocks operated by Burlington Resources Peru Ltd., Sucursal Peruana, a wholly owned subsidiary of Houston-based supermajor ConocoPhillips (NYSE: COP) for an undisclosed price.

Gran Tierra Energy will acquire a 20% working interest in Blocks 123, 124 and 129 in the Maranon Basin. The blocks are contiguous to Gran Tierra Energy's Blocks 122 and 128. The terms of the transaction with ConocoPhillips include sharing technical data derived from the seismic and drilling program on Gran Tierra Energy's Blocks 122 and 128.

"This farm-in opportunity will enhance Gran Tierra Energy's position within the basin and provide the opportunity to work with a premier exploration and production operator that has demonstrated technical excellence, strong project management capabilities and a firm commitment to safety and sustainable development," says Gran Tierra president and chief executive Dana Coffield. "With the participation in these blocks, Gran Tierra Energy will become one of the largest onshore exploration acreage holders in Peru, and the company will be well positioned to test new potential hydrocarbon plays in the region."

Blocks 123, 124 and 129 consist of approximately 6.7 million gross acres and are positioned along the flank of the Iquitos Arch adjacent to the prolific Maranon Basin, where more than 1 billion barrels of recoverable oil have been discovered to date. A 2-D seismic program is currently under way on the blocks to fulfill the second period work program commitments and is scheduled for completion in 2011.

The transaction is subject to PeruPetro SA and Peruvian government approvals, which are expected to take approximately four to six months.

Gran Tierra has oil and gas assets primarily in South America.