February 27, 2012 / 12:27 PM / 6 years ago

UPDATE 1-Gran Tierra 4th-qtr profit rises on output

* Q4 EPS $0.11 vs $0.04 last year

* Q4 rev up 44 pct

* Terminates agreement with Statoil in Brazil

Feb 27 (Reuters) - Gran Tierra Energy Inc’s quarterly profit more than doubled, helped by higher production and the Canadian oil and gas explorer said it has terminated its agreement with the Brazilian unit of Statoil.

Last September, South American-focussed Gran Tierra, which has operations in Colombia, Argentina, Peru and Brazil, had signed partnership agreements with Statoil’s Brazilian division for two properties located in the Camamu-Almada Basin.

Gran Tierra said it gave notice to Statoil that it would not enter into and assume its share of the work obligations of the second exploration period of Block BM-CAL-10, and would pay $26 million as part of the agreement.

The Calgary-based company said October-December profit rose to $32.5 million, or 11 cents a share, from $13.1 million, or 4 cents a share, a year ago.

High U.S. crude oil prices, which rose 17 percent to average about $92.39 per barrel in October-December, also boosted Gran Tierra’s profit.

Revenue and other income rose 44 percent to $161.8 million.

October-December production, after royalties, rose 16 percent to 18,521 barrels of oil equivalent per day (boepd).

The company backed its 2012 production forecast of 20,000-21,000 boepd after royalties. Production for 2011 was 17,408 boepd.

Majority of Gran Tierra’s production comes from Colombia, where it started with net production of about 700 bopd in 2006.

In the last quarter output from the region grew by just 2 percent to 15,467 boepd, on the face of some disappointing drilling results.

The company’s Brazilian wells produced 2,863 boepd, more than three times from the year ago quarter.

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