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Gran Tierra Energy to Sell Oil Business in Colombia, Ecuador to Maurel & Prom for $1.33 Billion

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Gran Tierra Energy (GTE) said Wednesday it has agreed to sell its oil business in Colombia and Ecuador to French oil and natural gas exploration and production company Maurel & Prom for an enterprise value of $1.33 billion.

The deal includes the purchase of certain Gran Tierra notes by Maurel & Prom and a prepayment facility. Gran Tierra is expected to generate cash proceeds of about $315 million from the sale.

The transaction, which requires approval from Gran Tierra's shareholders and clearance from regulators in Colombia and Ecuador, is expected to complete on or about Dec. 31.

The deal also includes a mutual termination fee of $50 million.

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