Gran Tierra Energy to Sell South American Oil Business to Maurel & Prom for $1.3 Billion
Gran Tierra Energy (GTE.L) agreed to sell its oil business in Colombia and Ecuador to French oil and gas exploration and production company d (MAU.PA) for $1.33 billion, according to a Wednesday filing.Under the terms, the buyer will assume the London-listed energy company's 9.750% senior secured amortizing notes due 2031, 9.5% senior notes due 2029 and its prepayment facility.Following the redemption of its 7.75% senior notes due 2027 and transaction costs, Gran Tierra expects to receive net proceeds of $315 million, of which $250 million will be paid in cash at closing, and the remaining $65 million will be payable in one year. Proceeds are earmarked for stock repurchases, funding Canadian and Azerbaijan projects and general corporate purposes.The sale, which is subject to shareholder approval and regulatory clearances, is expected to close on Dec. 31, with an economic effective date of March 31.