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

Rhea-AI Summary

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.

Positive

• 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

Negative

• Reduced operational control by transferring operatorship to Logan Energy

Insights

Financial Analyst

This strategic joint venture marks a significant development for Gran Tierra, bringing in C$52 million in cash while retaining a 50% working interest in the Simonette Montney assets. The deal structure is particularly advantageous as it allows GTE to maintain substantial exposure to the asset's upside potential while reducing capital requirements and operational risk. The Montney formation is known for its prolific oil production potential and this partnership with Logan Energy could accelerate development without straining GTE's balance sheet. The cash injection strengthens Gran Tierra's financial position and provides additional flexibility for their broader portfolio development. The transaction values GTE's total Simonette Montney position at approximately C$104 million, offering shareholders a clearer picture of the asset's market value.

Energy Sector Analyst

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 50% working interest and operatorship of a portion of Gran Tierra's Simonette Montney assets (the “Assets”) for approximately C$52 million in cash, subject to customary adjustments. Gran Tierra will retain the remaining 50% working interest in the Assets.

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?

Logan Energy paid approximately C$52 million in cash for a 50% working interest in a portion of GTE's Simonette Montney assets.

What percentage of the Simonette Montney assets did GTE retain?

Gran Tierra Energy retained a 50% working interest in the Simonette Montney assets.

Who will operate the Simonette Montney assets after the GTE-Logan transaction?

Logan Energy Corp. will operate the assets following the transaction completion.

What is the strategic purpose of GTE's joint venture with Logan Energy?

The joint venture aims to provide a growth-focused platform to advance Gran Tierra's Montney development and aligns with the company's strategy of long-term value creation.