Calgary-based Gran Tierra Energy (GTE:TSX) and its co-venturer Petrogas (BOE:TSXV) announced their discovery of a significant supply of oil in the Neuquen Basin of Argentina on September 12.

The oil and gas they found existed in one of the three exploration wells on the Rinconada Norte block which is located in the Basin. Test runs performed on the oil discovered have produced approximately 944 barrels of oil equivalent per day and around 13,360 cubic meters per day of gas, which is equal to 79 barrels of oil equivalent per day. Using the depth of the wells tested and electric logs information, Petrogas estimated the oil column thickness to be 197 feet or roughly 60 meters.

Equity research firm Macquarie Equities Research recently rated Gran Tierra Energy as OUTPERFORM and provided its target stock price for the company of $C5.87. Gran Tierra opened at C$5.80 on September 12 after closing at C$5.87 the previous day. The company has hit a 52-week low of C$5.00 and reached a 52-week high of C$9.37.