New User:

Forgot your password?

Stock Market & Financial Investment News

News Breaks
May 29, 2014
16:40 EDTGTEGran Tierra to sell Argentina business to Madalena Energy for $69M
Gran Tierra Energy announced it has entered into agreements whereby Madalena Energy has agreed to acquire Gran Tierra Energy's Argentina business unit for an aggregate consideration of approximately US$69M, comprised of US$49M in cash, US$14M in Madalena shares, and expected working capital adjustments of approximately US$6M. Gran Tierra Energy has received a deposit of US$12.6M and Madalena is expected to raise the remainder of the cash required to complete the transaction pursuant to a subscription receipt offering on a bought deal basis. In 2013, the Argentina business unit contributed average annual production of 3,028 barrels of oil equivalent per day, net after royalty and spent US$6.5M of its 2014 planned Argentina capital program of US$48M in the first quarter. "With the April 30, 2014 effective date of the transaction, Gran Tierra Energy plans to reduce its 2014 corporate capital spending program by an amount comparable to the planned Argentina capital program of US$48M, less the amount spent up to the closing date of the transaction. This reduction in corporate capital spending, in addition to the approximate US$69M aggregate consideration, will further strengthen the balance sheet for future capital spending requirements and allow us to dedicate our resources to where they will have maximum impact and to focus on our more profitable operations," concluded CEO Coffield. The Madalena board of directors has unanimously approved the Agreements. The closing date is expected to be on or before June 30 and it is subject to TSX Venture Exchange approval
News For GTE From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
November 13, 2015
05:11 EDTGTEGran Tierra to acquire Petroamerica
Gran Tierra Energy and Petroamerica Oil announced that they have entered into an arrangement agreement dated November 12 whereby Gran Tierra has agreed to acquire all of the issued and outstanding common shares of Petroamerica by way of a statutory plan of arrangement under the Business Corporations Act. Under the terms of the Arrangement Agreement, Petroamerica shareholders will receive, at their election, either 0.40 of a Gran Tierra common share or C$1.33 in cash for each Petroamerica share, subject to a maximum of 70% of the consideration payable in cash. If Petroamerica shareholders elect to accept all share consideration, Gran Tierra expects to issue 43.6M common shares. Gran Tierra will also be assuming the net positive working capital of Petroamerica, estimated at $25M as at October 31, after accounting for severance and transaction costs, and including previously restricted cash which Gran Tierra expects to replace with letters of credit. Based on a 5-day volume weighted average trading price of C$3.32 per Gran Tierra common share on the facilities of the TSX, the transaction value including working capital and accounting for severance and transaction costs is $84M. Gran Tierra believes that the acquisition of Petroamerica is highly strategic and will strengthen its position as the premier operator and land holder in the Putumayo Basin. Petroamerica's undeveloped land holdings and exploration and development portfolio are highly complementary to Gran Tierra's own exploration portfolio, strong cash flow, reserves base and balance sheet strength. With expected base pro forma production of 28,000-30,000 boe/d in 2016, Gran Tierra believes that the combined entity will be uniquely positioned as a high growth, well-capitalized, Colombia focused oil and gas producer with a dominant position in the Putumayo basin and a growing presence in the Llanos basin. In addition, Gran Tierra has the financial capacity to pursue additional exploration and development projects within Petroamerica's asset portfolio. The successful completion of the Acquisition is expected to be accretive to Gran Tierra's net asset value per share. Gran Tierra will remain debt free with pro forma working capital of $135M-$210M, depending on the form of consideration elected by Petroamerica shareholders.

Sign up for a free trial to see the rest of the stories you've been missing.
I agree to the disclaimer & terms of use