Gran Tierra Energy Inc., Calgary, has agreed with private companies to acquire assets in Colombia’s Putumayo and Llanos basins for $104.2 million.
Gran Tierra indirect wholly owned subsidiaries Gran Tierra Resources Ltd. (GTRL) and Gran Tierra Energy Colombia LLC, through its Colombian branch (GTEC), and its indirect partially owned subsidiary Southeast Investment Corp. (SIC) entered into sale agreements to purchase from Vetra Energia SL all of the issued and outstanding shares of Vetra Southeast SLU, together with Vetra Exploracion y Produccion Colombia SAS’s 50% working interest in Putumayo-8 block and 100% working interest in LLA-5 and its entire interest in Suroriente. At closing, Gran Tierra will, through SIC and its Colombian branch—which will be an indirect wholly owned subsidiary of Gran Tierra—hold a 52% working interest in Suroriente, with the remaining 48% working interest held by Ecopetrol SA.
With the transactions, Gran Tierra gains operatorship of the Suroriente block and increases its interest to 52% from 15.83%; gains operatorship of the Putumayo-8 block with 50%, which is contiguous with Suroriente and Gran Tierra’s PUT-31 block; and acquires 100% interest in the Llanos-5 block, which is contiguous with Gran Tierra's LLA-1, LLA-10, and LLA-70 blocks.
Gran Tierra expects to accelerate waterflooding on Suroriente and believes PUT-8 contains at least two drill-ready exploration prospects, which could be drilled this year using existing pads. The LLA-5 block creates a contiguous land base of 620,000 gross acres (525,000 net) near the Cano Limon production complex and the Capachos block.
The acquisition further consolidates its position in the Putumayo basin with complimentary assets and adds a new core area in the Llanos basin, said Gary Guidry, president and chief executive officer, noting an acquisition by a “major US independent” of a material position in two basins “offsetting Gran Tierra.”
He said, “We are excited by the opportunity to accelerate Suroriente’s already successful waterflood in the Cohembi N Sand field and to apply technical knowledge from this field to our N Sand plays across the Putumayo basin.”