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What: Shares of South American oil explorer Gran Tierra Energy
So what: In Brazil the company has begun exploratory drilling operations on one offshore prospect and one onshore prospect. Drilling in Colombia has indicated an additional oil column in Moqueta that could add to the company’s reserves.
Now what: Details of the Moqueta discovery were sparse today but likely were the driving force behind the shares moving higher. The company is expecting to begin a “robust 2012 drilling program” in Brazil, Colombia, Peru, and Argentina in wholly owned sites and joint ventures. The market is expecting a good year in 2012, and with the company’s forward P/E standing under 10 the upside potential is looking attractive.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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