Corporate M&A

Gran Tierra Reduces Stake in Peru-focused PetroTal to 16.8%

By Mahati K L
January 22, 2021
a minute read

TSX-listed Gran Tierra Energy Inc. has signed agreements with certain private purchasers to divest around 109 million common shares of Calgary-based PetroTal Corp., representing a 13.4% stake in the company. The shares were sold at a price of US$0.13623 per share, for total proceeds of approximately US$14.8 million.

Prior to the transaction, Gran Tierra beneficially owned and controlled approximately 246 million common shares of PetroTal , representing a 30.15% stake. As a result of this transaction, Gran Tierra’s stake now stands reduced at around 16.8%.

In December, Gran Tierra had signed 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 PetroTal for approximately £21.7 million (US$28.9 million). However, the transaction with Remus was subsequently terminated on January 18th.

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 probable (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 currently averages around 9,500 barrels of oil per day (bbls/d).

Gran Tierra is dual-listed on the TSX and the NYSE, and is currently engaged in exploration and production operations in Colombia and Ecuador.

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