Since going public just a few months ago, Gran Tierra (OTC BB: GTRE) has expanded its operations faster than a cheetah in a sports car. The company has done in eight months what it might take your regular company five or ten years. And they're only planning on expanding operations from here on out.

Gran Tierra recently raised a total of $75 million to finance the acquisitions of two major properties in Columbia and Argentina. The purchase will give Gran Tierra nearly 900 barrels of oil production a day. Let me tell you a little about the acquisitions...

The first acquisition was of Argosy Energy International; an active oil producer and explorer in Colombia. The acquisition of the company is expected to add production of about 856 barrels of oil per day and proven reserves of 2.3 million barrels of oil to Gran Tierra (both net after royalty).

Argosy holds interests as an operator in two producing projects covering six fields as well as a total of five exploration blocks. Argosy is also currently drilling the one prospect as we speak.

Gran Tierra's second acquisition was a 50% interest in the El Vinalar Block in Argentina from Golden Oil. This interest is expected to add about 44 barrels per day of oil production (after royalty) and positions Gran Tierra for a drilling program to begin later this year.

And if these two acquisitions weren't enough, a third acquisition of the producing and prospective assets of Argentinean-based Compania General de Combustibles S.A., was just completed at the end of July.

The total land package for all three acquisitions will be a whopping 1.7 million acres.

Now, get this -- once the all acquisitions are fully completed Gran Tierra should be producing over 3,000 barrels of oil per day. And remember, the company managed to put all this together is just over 6 months.

But there's more...

Gran Tierra also recently signed a license contract for the exploration and exploitation of hydrocarbons in Peru, covering Block 122.

The contract was signed on June 8^th between Gran Tierra and state-owned PeruPetro S.A. and is expected to be ratified by supreme decree any day.

Block 122 is located on the eastern flank of the prolific Maranon Basin of northern Peru, on the crest of the Iquitos Arch.

This is a frontier exploration block covering nearing 1.2 million acres, in a geologic position that is comparable to significant petroleum accumulations found elsewhere in the world.

Block 122 is said to be geologically similar to the Prudhoe Bay oil field, the largest in North America.

The nearest producing field to Block 122 is the Corrientes field, with estimated ultimate reserves in excess of 200 million barrels.

Block 122 is definitely in the speculative category, and therefore carries a bit more risk. But the risk/reward scenario is a no-brainer. If the company hits on a well here, it's likely to be a giant, a company maker.

But this story just keeps getting better!

Back in February 2002, Gran Tierra entered into the Rio Magdalena Association Contract. Under the terms of the contract, GTRE agreed to drill two exploration wells in the Rio Magdalena Block -- also in Columbia -- before February ‘07.

Last Thursday, Gran Tierra reported that the first of these wells, Popa-1, has been drilled and logged.

The company announced that Popa-1 was spudded on June 8^th and drilled to a final depth of 9,285 feet on July 14^th.

Gran Tierra recently reported that Popa-1 was able to stabilize oil flow in two flow periods that consisted of light oil -- 34 API gravity degree -- with a relatively high gas/oil ratio and no water. This is a great find as oil with a higher API gravity degree oil value has a much greater commercial value.

The plan for Popa-1 now is to suspend operations while a service rig is brought in to complete and test the full production capability of the existing perforated zones. The rig will also test secondary zones deeper in the well that were not tested with the current operations.

Popa-1 is the first oil accumulation to be discovered in the Rio Magdalena Block and establishes a new light oil play trend for future exploration and production drilling.

Gran Tierra is now drumming up plans for acquiring 3D seismic that will be used for future exploration and development drilling on the Block.

Now, I know there's a lot of concern over oil and gas production companies in South American countries -- especially now that Bolivia has nationalized their natural gas assets. But you can't assume that every country in South America has the same policies.

Columbia for example, where Gran Tierra has the majority of their operations, has the most stable legal systems in the Western Hemisphere.

More importantly the Columbian government has never changed any contractual agreements with oil and gas companies. Even the U.S. has done that in the past. The only thing that the Columbian government has done is change the fiscal terms to make the country's assets more attractive for international investment.

Why?

Well, Columbia is forecasted to be a net importer, and no longer an exporter, in five years. So the country needs foreign investors and companies to actively develop their resources.

The only real problem in Columbia right now is security. But the now that Columbian president Alvaro Uribe, an outspoken critic of leftists like Hugo Chavez and Evo Morales, is in power, the security environment is expected to change.

In fact, I've heard that the crime rate in Bogota now is nowhere as bad as in it is some U.S. cities.

Listen...Gran Tierra is one of those must own stocks, right now.

Remember, we expect Gran Tierra to be producing close 3,000 barrels of oil per day very soon. After that we can expect the company to be producing 5,000 barrels a day by the end of the year.

You read that right -- Gran Tierra should be producing about 5,000 barrels per day by the end of the year!

How?

Just by continuing to do what they've been doing for 8 months now: rapidly expanding their operations. That's why you've just got to hold a position now.

It hardly ever gets better than this folks. Buy Gran Tierra Energy (OTC BB: GTRE) now while it's still cheap. You'll be glad you did.

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