Gran Tierra Energy (GTE) said on Wednesday it had agreed to sell its Colombia and Ecuador oil business to France's Maurel & Prom for $1.33 billion, exiting South America to focus on growth in Canada and Azerbaijan.
The transaction includes the assumption of Gran Tierra's senior notes and prepayment facilities, leaving the company debt-free with about $250 million in cash at closing. The Canadian energy firm said an additional $65 million will be paid via an unsecured note due within 364 days.
The deal values the divested South American assets at about $45,900 per barrel of oil equivalent per day and about 4.3 times enterprise value to last-twelve-months adjusted EBITDA.
Gran Tierra said production from the assets averaged around 29,000 barrels of oil per day in H1 2026, backed by about 144 million barrels of proved-plus-probable reserves.
The company plans to return a portion of the net cash proceeds to stockholders through a share repurchase program, subject to board and shareholder approval.
The remaining capital will fund ongoing development in Canada and its newly secured exploration acreage in Azerbaijan, Gran Tierra said in a statement.
The transaction cuts Gran Tierra's corporate overhead, eliminating roughly $80 million in annual interest expenses.
The continuing company retains about 12,000 to 13,000 barrels of oil equivalent per day in production, alongside an undrawn Canadian credit facility of CA$75 million ($53.4 million).
Gran Tierra estimates its pro forma proved-developed-producing net asset value at $12.49 per share, representing an 83% premium to its 20-day volume-weighted average price.
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