Gran Tierra Energy Inc. Announces Closing of Strategic Joint Venture Transaction and Partnership with Logan Energy Corp. to Accelerate Value in High-Impact Canadian Montney Oil Play
Gran Tierra Energy (NYSE American:GTE) has completed a strategic joint venture transaction with Logan Energy Corp. (TSXV:LGN) for its Simonette Montney assets in Canada. Under the agreement, Logan acquired a 50% working interest and operatorship of a portion of the assets for approximately C$52 million in cash, subject to customary adjustments. Gran Tierra retains the remaining 50% working interest. The partnership aims to provide a growth-focused platform to advance Gran Tierra's Montney development, aligning with the company's strategy of long-term value creation.
Gran Tierra Energy (NYSE American:GTE) ha completato una transazione strategica di joint venture con Logan Energy Corp. (TSXV:LGN) per i suoi asset Simonette Montney in Canada. Ai sensi dell'accordo, Logan ha acquisito un interesse lavorativo del 50% e la gestione di una parte degli asset per circa C$52 milioni in contante, soggetto ad aggiustamenti consueti. Gran Tierra mantiene il restante 50% dell'interesse lavorativo. La partnership ha l'obiettivo di fornire una piattaforma focalizzata sulla crescita per avanzare nello sviluppo Montney di Gran Tierra, in linea con la strategia dell'azienda di creare valore a lungo termine.
Gran Tierra Energy (NYSE American:GTE) ha completado una transacción estratégica de joint venture con Logan Energy Corp. (TSXV:LGN) para sus activos Simonette Montney en Canadá. En virtud del acuerdo, Logan adquirió un 50% de interés operativo y la gestión de una parte de los activos por aproximadamente C$52 millones en efectivo, sujeto a ajustes habituales. Gran Tierra retiene el 50% restante del interés operativo. La asociación tiene como objetivo proporcionar una plataforma centrada en el crecimiento para avanzar en el desarrollo Montney de Gran Tierra, alineándose con la estrategia de la empresa de crear valor a largo plazo.
Gran Tierra Energy (NYSE American:GTE)는 캐나다의 Simonette Montney 자산에 대해 Logan Energy Corp. (TSXV:LGN)와 전략적 합작 투자 거래를 완료했습니다. 계약에 따라 Logan은 약 C$52 백만의 현금으로 자산 일부에 대한 50%의 운영권과 운영 권한을 인수했습니다. Gran Tierra는 나머지 50% 운영권을 보유하고 있습니다. 이 파트너십은 Gran Tierra의 Montney 개발을 발전시키기 위한 성장 중심 플랫폼을 제공하는 것을 목표로 하며, 회사의 장기 가치 창출 전략과 일치합니다.
Gran Tierra Energy (NYSE American:GTE) a finalisé une transaction stratégique de joint-venture avec Logan Energy Corp. (TSXV:LGN) pour ses actifs Simonette Montney au Canada. Dans le cadre de l'accord, Logan a acquis un intérêt de travail de 50 % et l'exploitation d'une partie des actifs pour environ C$52 millions en espèces, sous réserve d'ajustements habituels. Gran Tierra conserve le 50 % restant de l'intérêt de travail. Le partenariat vise à fournir une plateforme axée sur la croissance pour faire avancer le développement de Montney de Gran Tierra, en ligne avec la stratégie de l'entreprise de création de valeur à long terme.
Gran Tierra Energy (NYSE American:GTE) hat eine strategische Joint-Venture-Transaktion mit Logan Energy Corp. (TSXV:LGN) für seine Simonette Montney-Assets in Kanada abgeschlossen. Im Rahmen der Vereinbarung erwarb Logan ein 50%iges Betriebsinteresse sowie die Betriebsführung eines Teils der Vermögenswerte für etwa C$52 Millionen in bar, vorbehaltlich üblicher Anpassungen. Gran Tierra behält die verbleibenden 50% des Betriebsinteresses. Die Partnerschaft zielt darauf ab, eine wachstumsorientierte Plattform bereitzustellen, um die Montney-Entwicklung von Gran Tierra voranzutreiben, was mit der Strategie des Unternehmens zur Schaffung langfristiger Werte übereinstimmt.
- Received C$52 million in cash from asset partial sale
- Maintains 50% working interest in Simonette Montney assets
- Strategic partnership could accelerate development of Montney assets
- Reduced operational control by transferring operatorship to Logan Energy
Insights
This strategic joint venture marks a significant development for Gran Tierra, bringing in
The joint venture with Logan Energy represents a strategic pivot that could significantly enhance Gran Tierra's position in the Canadian Montney play. By transferring operatorship to Logan while maintaining a substantial stake, GTE can benefit from Logan's operational expertise and local market knowledge. The Montney formation is one of North America's most economically viable oil plays, known for its high-quality light oil and strong well economics. This partnership structure is becoming increasingly common in the industry as companies seek to optimize capital allocation while maintaining exposure to high-potential assets. The deal should help accelerate development timelines and potentially unlock value faster than if GTE had proceeded independently.
CALGARY, Alberta, Dec. 17, 2024 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) is pleased to announce that Gran Tierra (by way of its wholly-owned subsidiary) has completed its previously announced strategic joint venture transaction and partnership (the “Transaction”) with Logan Energy Corp. (“Logan”) (TSXV:LGN). Pursuant to the Transaction, Gran Tierra and Logan entered into a purchase and sale agreement whereby Logan acquired a
The Transaction is expected to provide a growth-focused platform to advance Gran Tierra's Montney development and is aligned with the Company's corporate strategy of long-term value creation.
Contact Information
For investor and media inquiries please contact:
Gary Guidry
President & Chief Executive Officer
Ryan Ellson
Executive Vice President & Chief Financial Officer
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company currently focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Canada, Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company's portfolio. The Company's common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company's website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may be directed to info@grantierra.com or (403) 265-3221.
Gran Tierra's Securities and Exchange Commission (the “SEC”) filings are available on the SEC website at http://www.sec.gov. The Company's Canadian securities regulatory filings are available on SEDAR+ at http://www.sedarplus.ca and UK regulatory filings are available on the National Storage Mechanism website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Forward-Looking Statements and Legal Advisories:
This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward-looking information within the meaning of applicable Canadian securities laws (collectively, “forward- looking statements”). Forward looking statements often use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “strategy”, “focus”, “envision”, “goal”, “believe”, “hope”, “aims”, “continue”, “will”, “may”, “should”, “would”, “could”, or other words of similar meaning. In particular, but without limiting the foregoing, this press release contains forward- looking statements regarding the benefits of the Transaction and the business strategy, plans and objectives of Gran Tierra. The forward-looking statements contained in this press release reflect material factors, expectations and assumptions of Gran Tierra including, without limitation, that Gran Tierra will continue to conduct its operations in a manner consistent with its current expectations, the performance of Logan as operator of the Assets, and the ability of Gran Tierra to execute its business and operational plans in the manner currently planned.
Among the important factors that could cause our actual results to differ materially from the forward-looking statements in this press release include, but are not limited to performance by Logan as operator in a manner different than currently expected by the Company and the factors detailed from time to time in Gran Tierra's periodic reports filed with the Securities and Exchange Commission, including, without limitation, under the caption “Risk Factors” in Gran Tierra's Annual Report on Form 10-K for the year ended December 31, 2023 filed February 20, 2024, and its other filings with the SEC. These filings are available on the SEC website at http://www.sec.gov and on SEDAR+ at www.sedarplus.ca.
The forward-looking statements contained in this press release are based on certain assumptions made by Gran Tierra based on management's experience and other factors believed to be appropriate. Gran Tierra believes these assumptions to be reasonable at this time, but the forward-looking statements are subject to risk and uncertainties, many of which are beyond Gran Tierra's control, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Each forward-looking statement speaks only as at the date of this announcement. Gran Tierra disclaims any intention or obligation to update or correct the information contained in this announcement (whether as a result of new information, future events or otherwise), except as required by applicable law or by the rules of any competent regulatory authority.
FAQ
How much did Logan Energy pay GTE for the Simonette Montney assets stake?
What percentage of the Simonette Montney assets did GTE retain?
Who will operate the Simonette Montney assets after the GTE-Logan transaction?
What is the strategic purpose of GTE's joint venture with Logan Energy?
