DivestmentAug 5, 2026, 01:48 AM
Gran Tierra sells Colombia/Ecuador oil business for $1.33B
AI Summary
Gran Tierra Energy Inc. announced a definitive agreement to sell its entire Colombia and Ecuador oil business, representing all South American assets, to Maurel & Prom for a total consideration of $1.33 billion. The transaction will result in Gran Tierra becoming debt-free with approximately $250 million in cash at closing and an additional $65 million due in 364 days. The company plans to return capital to stockholders via a share repurchase and will focus on fully financed growth plans in Canada and Azerbaijan, expecting to retain a pro-forma PDP Net Asset Value of approximately $12.49 per share, an 83% premium to its recent trading price.
Key Highlights
- Sells Colombia and Ecuador oil business to Maurel & Prom for $1.33 billion.
- Expected net cash proceeds of approximately $315 million from the transaction.
- Company to be debt-free with approximately $250 million cash at closing.
- Pro-forma PDP Net Asset Value of approximately $12.49 per share.
- Represents an 83% premium to Gran Tierra's 20-day volume weighted average price.
- Anticipates annual interest expense savings of approximately $80 million.
- Plans to return capital to stockholders through a share repurchase.
- Repositioning for growth in Canada and Azerbaijan with retained production of 12,000-13,000 boepd.
Price Impact
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