By OGJ editors
HOUSTON, Apr. 3 -- Gran Tierra Energy Inc., Calgary, reached agreement to purchase Argosy Energy International in Gran Tierra's first foray into Colombia.
Consideration is $37.5 million cash, $3.5 million in Gran Tierra common shares, and $1 million in overriding and net profit interests. Closing is set for May 31 or before.
Argosy, which has a diverse portfolio of producing properties, drill-ready prospects, and exploration acreage, has operated in Colombia since 1983. Its land position is 153,000 net acres. Its production in 2005 averaged 1,070 b/d net before royalty. Proved reserves were 2.8 million bbl at Dec. 31, 2005.
Argosy Energy produces from the Santana (four fields) and Guayuyaco (one field) contract areas, both of which it operates, in the Putumayo basin.
It has 50% participation in the Rio Magdalena contract, 20% interest in the Talora Block, and 50% participation in the Chaza Block.
Argosy Energy is finalizing drilling plans for a prospect in the Rio Magdalena area. Two drill-ready prospects have been identified in Guayuyaco and are planned for late 2006-early 2007.
