Calgary, Canada-based Gran Tierra Energy Inc. has announced a capital spending program of US$195 million in 2010 for exploration and production development operations in Colombia, Peru, Argentina and business development activities in Brazil.

The budget includes the drilling of seven exploration wells in Colombia, four exploration wells in Peru and re-entry and side-tracking of a well in Argentina. The approved 2010 budget also includes funds for 2-D and 3-D seismic acquisition programs in Colombia, Peru, and Argentina and facility upgrades in Colombia and Argentina. Excluding potential exploration success, production in 2010 is expected to range between 14,000-16,000 barrels of oil per day net after royalty.

Gran Tierra Energy had US $151.6 million in cash at the end of Q3 2009 and has no debt. The 2010 work program and budget is expected to be funded from cash-flow from operations with the balance from cash on hand as necessary. The budget is based on a West Texas Intermediate oil price of US$70 per barrel of oil in 2010.

"Gran Tierra Energy's strong balance sheet and extensive land position containing a broad portfolio of exploration opportunities, with a balance of risk and reward, places us in an excellent position to execute our 2010 exploration work program," said Dana Coffield, president and CEO of Gran Tierra Energy.

"Going forward, we continue to sharpen our focus in Colombia by divesting non-core properties and preparing the Company to begin the largest exploration drilling program in its history in 2010. In conjunction, we are also working to derive value from our Argentine gas assets ahead of drilling in mid-2010."