Gran Tierra Energy Agrees To Sell Colombia, Ecuador Oil Business To Maurel & Prom For $1.3 Bln

Gran Tierra Energy agreed to sell its oil business in Colombia and Ecuador to Maurel & Prom S.A for $1.33 billion, a deal framed as the product of a portfolio review aimed at strengthening Gran Tierra’s financial position. The transaction would transfer the South American operations and substantially all of Gran Tierra’s net liabilities to Maurel & Prom, leaving Gran Tierra debt-free with liquidity, including about $250 million in cash at closing, zero debt, a $65 million note receivable due in less than a year, and an undrawn $75 million (CAD) credit facility. Gran Tierra plans to use part of the net proceeds for a share repurchase, with the remainder funding its Canadian and Azerbaijan programs and general corporate purposes. Its shares closed at $6.83 on the NYSE.