- Under an agreement with Remus Horizons PCC, Gran Tierra Energy (GTE) is set to offload the majority of its interest in PetroTal (TAL)
- Gran Tierra currently owns 246.1 million shares in PetroTal, representing approximately 30.15 per cent of its issued and outstanding capital
- Of this amount, the company will sell just over 218 million shares, representing 26.7 per cent of PetroTal to Remus Horizons for a total of £21.67 million (roughly C$36.85 million)
- The company said the decision was part of its focus “on balance sheet protection and long-term value preservation”
- Gran Tierra Energy is currently down 1.89 per cent to $0.52 per share
Under an agreement with Remus Horizons PCC, Gran Tierra Energy (GTE) is set to offload the majority of its interest in PetroTal (TAL).
Calgary-based Gran Tierra currently owns 246.1 million shares in PetroTal, which operates the Bretana oil field in Peru, representing approximately 30.15 per cent of its issued and outstanding capital.
According to the deal with Remus Horizons – which was signed on December 11 through Gran Tierra’s wholly owned subsidiary, Gran Tierra Resources – Remus will purchase just over 218 million of these shares at a price of £0.099385 (C$0.17) each for a total of £21.67 million (roughly C$36.85 million).
“As part of our ongoing commitment to a disciplined financial strategy, with a focus on balance sheet protection and long-term value preservation, we decided to sell the majority of our PetroTal shares,” said Gary Guidry, President and CEO of Gran Tierra Energy.
“Manolo Zuniga and the entire team at PetroTal have done an excellent job developing the Bretana oil field in Peru and navigating through these very challenging and volatile times in the industry,” he added.
Upon completion of the transaction, which is expected to close on around December 18, 2020, Gran Tierra’s holding in PetroTal will be reduced to roughly 28.08 million shares, or 3.44 per cent of the company.
“We are delighted to achieve this significant strategic milestone for Remus and our investors,” said Sath Kanagarajah, CEO of Remus Horizons PCC.
“Our deeply experienced management team looks forward to working with PetroTal and the Peruvian national authorities to support further development of PetroTal, in full cooperation with all their stakeholders,” he continued.
Gran Tierra Energy is currently down 1.89 per cent to $0.52 per share at 2:17pm EST.