Gran Tierra Divests Majority of its Stake in PetroTal
TSX-listed Gran Tierra Energy Inc. has entered into an agreement with Remus Horizons PCC Ltd., a private investment fund managed by a subsidiary of Hong Kong-based Remus Corp., for the sale of a 26.7% stake in Houston-based PetroTal Corp. for approximately £21.7 million.
Under the terms of the agreement, Remus will acquire approximately 218 million shares in PetroTal at a price of £0.099 per share. Upon closing, Gran Tierra will retain approximately 28.1 million shares, representing a 3.44% stake in PetroTal. The shares retained by Grand Tierra are subject to escrow pursuant to TSX Venture Exchange (TSX-V) escrow requirements imposed in connection with PetroTal’s reverse take-over transaction completed in December 2017, when Sterling Resources Ltd. combined with PetroTal Ltd. The combined entity was subsequently renamed PetroTal Corp.
TSX-V and LSE-AIM listed PetroTal is focused on developing and exploiting the Bretaña oil field located in Block 95 in Peru, and also holds interests in additional exploration prospects and leads in Block 107. Total proven (1P) and proven plus probably (2P) reserves attributable to the company stood at 21.5 and 47.7 million barrels of oil (MMbbls), respectively, as of December 31st, 2019. Company production during Q3-2020 averaged around 2,444 barrels of oil per day (bbls/d).
“As part of our ongoing commitment to a disciplined financial strategy, with a focus on balance sheet protection and long-term value preservation, we decided to sell the majority of our PetroTal shares,” said Gary Guidry, President & CEO of Gran Tierra.
“Our deeply experienced management team look forward to working with PetroTal and the Peruvian national authorities to support further development of PetroTal, in full cooperation with all their stakeholders,” added Sath Kanagarajah, CEO of Remus.
The transaction is subject to the satisfaction or waiver of certain customary closing conditions.