Canada’s Gran Tierra Energy Inc. completed the acquisition of PetroLatina Energy Ltd. for about $525 million, according to an Aug. 23 press release.
The initial payment of $500 million at closing is subject to closing adjustments, and a deferred payment of $25 million will be made by Dec. 31.
PetroLatina is a private E&P with assets primarily in Colombia’s Middle Magdalena Basin.
Gary Guidry, president and CEO of Gran Tierra, said the acquisition will complement the company’s current reserves and resource base in the Putumayo Basin.
The acquisition was funded through cash on hand; a new $130 million term loan added to the credit facility with Scotiabank as administrative agent; and about $173.5 million in proceeds from the private placement of about 57.83 million subscription receipts priced at $3 each. Also, each of the lenders for the secured revolving credit facility, including Scotiabank, Natixis (New York Branch), Societe Generale, HSBC Bank Canada, Royal Bank of Canada and Export Development Canada, were added.
Recommended Reading
Mexico Pacific Working with Financial Advisers to Secure Saguaro LNG I FID
2024-10-23 - Mexico Pacific is working with MUFG, Santander and JP Morgan to arrange the financing needed to support FID and the anchor phase of Saguaro Energía LNG.
US Energy Secretary Nominee Chris Wright Champions Energy at DUG GAS
2024-11-19 - President-elect Donald Trump's energy secretary nominee Chris Wright championed energy's role in bettering human lives earlier this year on stage at Hart Energy’s DUG GAS Conference and Expo.
Baker Hughes Wins Contracts for Woodside’s Louisiana LNG Project
2024-12-30 - Bechtel has ordered gas technology equipment from Baker Hughes for the first phase of Woodside Energy Group’s Louisiana LNG development.
Exclusive: Why Family Offices Favor ‘Lower-Risk’ Oil, Gas Investments
2024-11-22 - Evan Smith, Stephens’ senior vice president for investment banking, describes growth in the company’s network of family offices, specifically those investing in the energy sector, in this Hart Energy Exclusive interview.
Exxon Slips After Flagging Weak 4Q Earnings on Refining Squeeze
2025-01-08 - Exxon Mobil shares fell nearly 2% in early trading on Jan. 8 after the top U.S. oil producer warned of a decline in refining profits in the fourth quarter and weak returns across its operations.