Gran Tierra Acquires Strategic Assets in Putumayo, Llanos Basins.
M2 EQUITYBITES-February 26, 2019-Gran Tierra Acquires Strategic Assets in Putumayo, Llanos Basins
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26 February 2019 - Canada-based oil exploration company Gran Tierra Energy Inc. (NYSE American: GTE) (TSX: GTE) (LSE: GTE) has entered into agreements to acquire working interest (WI) in three Colombia-based oil companies from private companies for USD 104.2m, the company said.
Gran Tierra will acquire working interest in and operatorship of the Suroriente Block, increasing Gran Tierra's WI in Suroriente from 15.83% to 52%; 50% WI in and operatorship of the Putumayo-8 Block, which is contiguous with Suroriente and Gran Tierra's PUT-31 Block (100% WI); 100% WI in the Llanos-5 Block, which is contiguous with Gran Tierra's LLA-1, -10 and -70 Blocks, representing a new core area for the company.
All reserves, future net revenue and production are on a WI before royalties basis unless otherwise indicated.
Transfer of operatorship is subject to regulatory recognition and the terms of any applicable joint operating agreements.
The acquisition further strengthens and consolidates Gran Tierra's position as the premier operator and top landholder in the Putumayo Basin, and makes the company the operator of 100% of its Putumayo Blocks.
The acquisition immediately adds production, reserves, cash flow and drill-ready exploration prospects to Gran Tierra's portfolio.
This acquisition fits perfectly with Gran Tierra's focussed strategy by further expanding the company's portfolio in the proven, underexplored Putumayo Basin, with access to established infrastructure.
Gran Tierra Energy Inc., together with its subsidiaries, is an independent international energy company focussed on oil and natural gas exploration and production in Colombia.
The company is focussed on its existing portfolio of assets in Colombia and will pursue new growth opportunities throughout the country.
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