Gran Tierra to Sell Colombia, Ecuador Business for $1.33B

Gran Tierra Energy agreed to sell its entire Colombia and Ecuador business to Maurel & Prom in a deal valued at $1.33 billion, including assumed debt. The transaction leaves the oil producer debt-free with about $250 million in cash at close and a new focus on Canadian production and exploration in Azerbaijan.

Maurel & Prom will take over Gran Tierra’s 9.750% senior secured amortizing notes due 2031, its 9.500% senior notes due 2029, and a prepayment facility. After those assumptions, Gran Tierra will redeem its 7.750% senior notes due 2027 with part of the proceeds. The net cash to Gran Tierra is expected to be roughly $315 million, with $250 million arriving at closing and the remaining $65 million due 364 days later via an unsecured note from the divested business.

The assets being sold represent about 29,000 barrels of oil per day of first-half 2026 average working-interest production, 144 million barrels of proved-plus-probable reserves, and 1.4 million gross acres across Colombia and Ecuador.

“Gran Tierra’s agreement to divest of our Colombia and Ecuador business realizes the significant value we have created in these assets and marks a deliberate repositioning of the Company,” Gary Guidry, Gran Tierra’s president and chief executive, said in a statement. “The Transaction transfers our South American business and substantially all of our net liabilities to Maurel & Prom, leaving Gran Tierra debt-free with significant liquidity.”

The deal implies a valuation of about $45,900 per barrel of oil equivalent per day and 4.3 times EV to adjusted EBITDA for the trailing twelve months ended June 30, 2026, based on the $1.33 billion enterprise value. The price also works out to $9.24 per barrel of proved-plus-probable reserves.

Gran Tierra’s retained assets include Canadian production of 12,000 to 13,000 barrels of oil equivalent per day, more than 500,000 net acres, and 86 million barrels of oil equivalent of 2P reserves. The company also holds an exploration, development and production sharing agreement for the onshore Guba-Khazaryani region in Azerbaijan, where it has a 65% working interest and operatorship.

Pro-forma net asset value, based on proved-developed-producing reserves, is estimated at $12.49 per share. That includes $315 million of net cash proceeds plus $165 million of before-tax net present value of PDP reserves in Canada, for aggregate NAV of about $480 million across roughly 38.4 million fully diluted shares. The NAV excludes any value from Canadian contingent and prospective resources or the Azerbaijan exploration. The net cash proceeds alone equate to about $8.21 per share, a 20% premium to the 20-day volume-weighted average price of $6.825.

Gran Tierra plans to use a portion of the cash for a share repurchase, the size and terms of which will be determined by the board and announced separately. The repurchase is conditional on the closing of the transaction and stockholder approval.

Maurel & Prom is a Euronext Paris-listed operator with a market capitalisation of roughly $1.9 billion. Pertamina, Indonesia’s state-owned energy company, owns 72.65% of Maurel & Prom. The buyer reported a net cash position of $257 million as of June 30, 2026, and had $500 million in available liquidity, including $370 million in cash. In July, Maurel & Prom refinanced its bank debt with a new $465 million, five-year facility, which is expected to generate about $250 million in additional liquidity. The refinancing is expected to close by early October.

“Under Maurel & Prom’s ownership, the Divested Business is expected to benefit from the backing of a well-capitalized international operator with significant financial resources, strong operational capabilities and an experienced management team,” the company said.

BofA Securities is leading financial adviser to Gran Tierra, with RBC Capital Markets also advising. Bracewell LLP is legal counsel to Gran Tierra, and Herbert Smith Freehills Kramer LLP is advising the buyer.

The transaction has unanimous board approval and is subject to stockholder approval, consent from holders of the 2031 notes and the prepayment agreement buyers, and regulatory approvals in Colombia and Ecuador. The target closing date is Dec. 31, 2026, with an economic effective date of March 31, 2026.

Gran Tierra said the deal eliminates substantially all of its interest costs, producing estimated annual savings of roughly $80 million. The company will maintain its undrawn Canadian credit facility of about $75 million Canadian dollars.