Gran Tierra to Acquire Petrolifera Petroleum

Gran Tierra Energy is to acquire Petrolifera Petroleum for $195m.

Under the terms of the agreement, Petrolifera shareholders will receive a 0.12 Gran Tierra Energy share for every Petrolifera share held.

A total of 19 million Gran Tierra Energy shares are expected to be issued, which represents an increase of approximately 8% in shares outstanding.

Gran Tierra Energy president and CEO Dana Coffield said the transaction will add undeveloped oil and gas reserve potential in Colombia, exploration opportunities in Colombia and Peru, and additional oil production and reserves in a rising oil price environment in Argentina.

Petrolifera owns interests in 11 exploration and production blocks, three located in Colombia, three in Peru and five in Argentina.