Daily News: August 25, 2016

Scotiabank Supports Gran Tierra Acquisition of PetroLatina


Gran Tierra Energy completed the acquisition of PetroLatina Energy for a purchase price of approximately $525 million consisting of an initial payment of $500 million at closing, subject to closing adjustments, and a deferred payment of $25 million no later than December 31, 2016.

PetroLatina is a private, independent exploration and production company with assets primarily in the Middle Magdalena basin of Colombia.

In connection with the acquisition, Gran Tierra amended its existing credit facility to add a $130 million term loan with Scotiabank, as administrative agent, and each of the lenders in Gran Tierra’s existing secured revolving credit facility, including Scotiabank, Natixis (New York Branch), Société Générale, HSBC Bank Canada, Royal Bank of Canada and Export Development Canada.

Gary Guidry, president and CEO of Gran Tierra, said, “We are pleased that the acquisition has closed quickly and we now look forward to developing the upside potential in our new core area in the prolific Middle Magdalena Basin. We have acquired significant proved, probable and possible reserves which we expect to enhance our long-term growth strategy and to be an excellent fit with Gran Tierra’s current reserves and resources base in the Putumayo Basin.”