Gran Tierra subsidiaries to buy Colombian assets from Vetra

Gran Tierra Energy announced on Wednesday that its indirect subsidiaries, Gran Tierra Resources and Gran Tierra Energy Colombia, as well as its indirect partially-owned subsidiary Southeast Investment Corporation, have entered into sale agreements with Vetra Energía, and Vetra E&P.

The London-listed firm said that under the agreement, the Gran Tierra subsidiaries would purchase from the Vetra companies all of the issued and outstanding shares of Vetra's wholly-owned subsidiary, Vetra Southeast.

They would also acquire Vetra E&P's 50% working interest in the Putumayo-8 block, its 100% working interest in the Llanos-5 Block, and its entire interest in the Suroriente Block.

Consideration for the acquisitions would be $104.2m in cash, subject to adjustments under the agreements.

“The closing of the transactions is subject to the satisfaction or waiver of customary conditions, including compliance by each party in all material respects with certain of its covenants,” Gran Tierra Energy’s board said in its statement.

“The transactions related to Vetra Southeast, Suroriente and LLA-5 are expected to close on or before 11 March, following the provision of notice to the Superintendence of Industry and Commerce of the Republic of Colombia, with the transaction related to Suroriente closing immediately following the transactions related to Vetra Southeast.

“The transaction related to Putumayo-8 is subject to a right of first refusal.”