Gran Tierra Energy agrees to sell Colombia and Ecuador assets for $1.33 billion

What happened

Gran Tierra Energy Inc., an oil and natural gas producer with operations in Canada, Colombia, Ecuador, and Azerbaijan, announced on August 5, 2026, that it has entered into a Share Sale and Purchase Agreement to sell all of the equity interests of its subsidiary Gran Tierra Energy CI GmbH, which holds the company's assets and operations in Colombia and Ecuador. The buyer is Maurel & Prom Andina, a wholly-owned subsidiary of French company Établissements Maurel & Prom S.A.

The total consideration is $1.33 billion, comprising cash, the assumption of certain company debt, a prepayment facility, and a note payable 364 days after signing, subject to adjustments described in the agreement. Upon closing, Gran Tierra Energy will retain its assets in Canada and Azerbaijan.

Transaction details and conditions

The transaction is subject to several conditions, including regulatory approvals from authorities in Colombia and Ecuador, a waiver and release under an existing pre-payment agreement, the redemption of Gran Tierra's outstanding 7.750% Senior Notes due 2027, and the assumption by the buyer of the company's 9.500% Senior Secured Amortizing Notes due 2029 and 9.750% Senior Secured Amortizing Notes due 2031 (with requisite consent from holders of the latter).

The agreement also requires approval by Gran Tierra's stockholders. The board of directors unanimously approved the transaction, having received a fairness opinion from BofA Securities Inc. that the consideration is fair to the company from a financial point of view. The agreement includes a termination fee of $50 million payable by the seller under certain circumstances, and a $50 million deposit from the buyer that the seller may retain if it terminates under specific conditions.

According to the filing, the company will file a proxy statement and disseminate it to stockholders in connection with a special meeting to vote on the transaction.

Market reaction

Gran Tierra's common stock closed at $9.1499 on August 5, 2026, down 3.07% from the previous close of $9.44. The filing does not explain the reason for the price change.