Gran Tierra Energy has agreed to sell its Colombia and Ecuador operations to Établissements Maurel & Prom in a deal valued at approximately $1.33 billion. The transaction includes about 29,000 barrels of oil per day of production and roughly 144 million barrels of proved-plus-probable reserves, with Maurel & Prom assuming substantially all of Gran Tierra's outstanding debt and other liabilities. Following the sale and redemption of its remaining 2027 notes, Gran Tierra expects to hold approximately $250 million in cash, an additional $65 million note receivable, and no debt, while gaining access to an undrawn Canadian credit facility. The company plans to return a portion of the proceeds through a share repurchase program and estimates its pro forma proved-developed-producing net asset value at approximately $12.49 per fully diluted share, an 83% premium to its recent 20-day volume-weighted average share price. The deal, which remains subject to shareholder and regulatory approvals, is targeted to close around the end of 2026 and will reposition Gran Tierra around a debt-free balance sheet and a growth strategy focused on Canada and Azerbaijan.
Gran Tierra Energy IncSells assets for $1.33B, eliminates debt, and plans share buyback, with NAV premium.
Etablissements Maurel et Prom SAAcquires producing assets and reserves, expanding its portfolio.
