DivestmentAug 5, 2026, 07:12 AM
Gran Tierra to Sell Colombia & Ecuador Business for $1.33B
AI Summary
Gran Tierra Energy Inc. has entered into a definitive agreement to sell its Colombia and Ecuador oil business to Établissements Maurel & Prom S.A. for a total consideration of $1.33 billion. This strategic divestment will transfer all of Gran Tierra's South American assets and substantially all net liabilities, positioning the company to be debt-free with significant cash at closing. Gran Tierra will focus on its retained assets in Canada and Azerbaijan, with plans to return capital to stockholders and fund future growth.
Key Highlights
- Gran Tierra to sell its Colombia and Ecuador oil business for $1.33 billion.
- Purchaser, Maurel & Prom, will assume Gran Tierra's 2031 and 2029 Senior Secured Amortizing Notes.
- Gran Tierra expects to have approximately $250 million cash at closing and $65 million note receivable.
- The Divested Business represents approximately 29,000 boepd of production and 144 MMbbl of 2P reserves.
- Gran Tierra will retain operations in Canada and Azerbaijan, becoming debt-free.
- Pro-forma PDP net asset value is estimated at $12.49 per share, an 83% premium to 20-day VWAP.
- The transaction is subject to stockholder and regulatory approvals, targeted to close by December 31, 2026.
- A termination fee of $50 million is payable under specified circumstances.
Price Impact
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