Gran Tierra Energy has agreed to sell its entire oil business in Colombia and Ecuador to Établissements Maurel & Prom for total consideration of $1.33 billion, the companies said August 5, 2026. The buyer, a Paris-listed oil and gas producer majority owned by PT Pertamina Internasional Eksplorasi dan Produksi, a unit of Indonesia's national energy company, Pertamina, will assume substantially all of Gran Tierra's net liabilities as part of the deal. Gran Tierra's board approved the transaction unanimously.
Deal terms
The $1.33 billion figure is a total enterprise value that includes Maurel & Prom assuming Gran Tierra's 9.750% Senior Secured Amortizing Notes due 2031, its 9.500% Senior Notes due 2029, and its prepayment facility. After that liability assumption, closing adjustments, redemption of Gran Tierra's 7.750% Senior Notes due 2027, and transaction costs, Gran Tierra expects total net cash proceeds of about $315 million. Of that, roughly $250 million arrives in cash at closing, with the remaining $65 million payable 364 days later under an unsecured note issued by the divested business.
The assets changing hands
The Colombia and Ecuador business produced about 29,000 barrels of oil per day on a working-interest basis, before royalties, in the first half of 2026. It carries about 144 million barrels of proved-plus-probable reserves, calculated in the GTE McDaniel Reserves Report and excluding reserves tied to the Tisquirama assets Gran Tierra acquired in the first quarter of 2026, across roughly 1.4 million gross acres in the two countries.
Valuation
The purchase price works out to about $45,900 per barrel of oil equivalent per day of production, 4.3 times trailing EV/EBITDA, and $9.24 per barrel of 2P reserves. Gran Tierra said the $1.33 billion consideration lines up closely with the after-tax net present value, discounted at 10%, of the divested business's 2P reserves, which the McDaniel report puts at about $1.37 billion.
What Gran Tierra keeps
Once the sale closes, Gran Tierra expects to retain production of 12,000 to 13,000 barrels of oil equivalent per day, more than 500,000 net acres, about 86 million barrels of 2P reserves, 80 million barrels of contingent resources and 67 million barrels of prospective resources, all as of June 30, 2026. The remaining assets sit in Canada, acquired in 2024, and in Azerbaijan, where Gran Tierra holds an exploration, development and production sharing agreement for the onshore Guba-Khazaryani region, announced in a press release dated February 19, 2026, covering a 65% working interest and operatorship, a five-year exploration and appraisal period, and a 25-year development period that can extend five more years.
Balance sheet and premium
Gran Tierra estimates its pro-forma proved-developed-producing net asset value at about $12.49 per share, combining the $315 million in net cash proceeds with roughly $165 million of before-tax net present value from its Canadian PDP reserves, across about 38.4 million fully diluted shares. That figure excludes any upside from Canadian contingent and prospective resources or the Azerbaijan exploration acreage, and represents a premium of about 83% to Gran Tierra's 20-day volume-weighted average share price of $6.825. The net cash proceeds alone equate to about $8.21 per share, a premium of about 20% to that same price before counting any value from the retained assets. Chief executive Gary Guidry said the deal leaves the company "debt-free with significant liquidity," including an undrawn $75 million Canadian-dollar credit facility.
Approvals and timeline
The deal still needs approval from Gran Tierra stockholders, consent from certain creditors and the prepayment buyers under its Prepayment Agreement, and regulatory clearance in Colombia and Ecuador. Gran Tierra is targeting a close on or about December 31, 2026, with an economic effective date of March 31, 2026. Part of the net cash proceeds is earmarked for a share repurchase, with terms to be set by the board and announced separately; the rest will fund Gran Tierra's Canada and Azerbaijan programs.
