Gran Tierra to sell Colombia and Ecuador oil business for $1.33 billion

Gran Tierra Energy has agreed to sell its Colombia and Ecuador oil business, representing all of its South American assets, to Établissements Maurel & Prom S.A. for $1.33 billion, while Maurel & Prom separately reported strong first-half 2026 results and outlined the financing and operational backdrop supporting the deal. Maurel & Prom said first-half revenue rose 27% year on year to $366 million, supported by an average oil sale price of $103.8 a barrel and group working-interest production of 37,890 boepd. EBITDA increased 63% to $227 million, operating income rose 64% to $161 million, and consolidated net income climbed 78% to $191 million. Free cash flow was $77 million, with the group reporting a positive net cash position of $257 million and immediately available bank liquidity of $500 million at June 30, 2026. On Aug. 5, 2026, Maurel & Prom said it signed a definitive share purchase agreement with Gran Tierra for assets in Colombia and Ecuador that represented 29,026 bopd of working-interest production in the first half of 2026 and 144 million barrels of certified 2P reserves at Dec. 31, 2025, excluding the Tisquirama assets acquired in the first quarter of 2026. The portfolio is predominantly operated and spans producing assets, development projects and exploration acreage in Colombia's Middle Magdalena Valley, Putumayo and Llanos basins and Ecuador's Oriente Basin. Maurel & Prom said the assets offer material organic growth potential, targeting working-interest production of around 40,000 bopd by 2029-2030. The total transaction value is $1.33 billion, subject to customary adjustments, with an economic effective date of March 31, 2026 and expected closing around Dec. 31, 2026. Maurel & Prom said it paid a $50 million deposit on signing and that $65 million will be payable 364 days after closing. A substantial part of the consideration will be met through the rollover of Gran Tierra's existing senior notes, which had $582 million outstanding at June 30, 2026, and a $350 million prepayment facility, reducing the cash due at closing. The company signed an agreement in July 2026 to refinance its bank debt through a new $465 million five-year facility comprising a $300 million term loan and a $165 million revolving credit facility. It expects about $250 million of additional liquidity from that refinancing, with completion conditions expected by early October 2026. Gran Tierra has said the sale would leave the continuing company debt-free with about $250 million of cash at closing and support a strategic refocus on Canada and Azerbaijan, alongside a potential return of capital to stockholders.