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Gran Tierra Energy to Sell Colombia and Ecuador Business to Maurel & Prom for $1.33 Billion
Gran Tierra Energy Inc. has agreed to sell its oil business in Colombia and Ecuador to Maurel & Prom for a total consideration of $1.33 billion, a deal that will leave the company debt-free with significant cash and reposition it around growth plans in Canada and Azerbaijan. The transaction, which has been unanimously approved by Gran Tierra's board, is expected to close around December 31, 2026, subject to stockholder and regulatory approvals. The divested business represents approximately 29,000 barrels of oil per day of average working-interest production and about 144 million barrels of proved-plus-probable reserves. After the assumption of substantially all liabilities and other adjustments, Gran Tierra expects net cash proceeds of approximately $315 million, with about $250 million in cash at closing and a $65 million note receivable due 364 days later. The company plans to use a portion of the proceeds for a share repurchase and the remainder to fund its Canadian and Azerbaijan programs, while the continuing company estimates a pro-forma proved-developed-producing net asset value of approximately $12.49 per share, an 83% premium to its 20-day volume weighted average price.