Gran Tierra Expands Presence in Northern Argentina
On November 2, 2006 Gran Tierra completed the acquisition of interests in four properties from Compania General de Combustibles S.A. (CGC) for a total consideration of $2.1 million. The assets acquired include a 93.18% participation in the Valle Morado Block, a 100% interest in the Santa Victoria Block and the remaining 50% interests in the Nacatimbay and Ipaguazu Blocks (in which the Company currently holds 50% interests). These properties add approximately 1.1 million gross acres to the Company's current land base and exploration/development portfolio in the Noroeste Basin in northern Argentina. Gran Tierra will be the operator of all four properties.
The Company's offer to purchase CGC's interests in eight properties in Argentina was initially made on February 22, 2006. Completion of the acquisitions has since been subject to various authorizations within Argentina including local court approvals, the potential exercise of rights of first refusal and certain third-party consents.
Court approval has since been obtained, allowing the Company to complete the acquisition of the interests in the four properties. Gran Tierra is considering its options to acquire the interests in the remaining four properties, which interests remain subject to rights of first refusal among joint venture partners and other third party consents.
Dana Coffield, President and Chief Executive Officer of Gran Tierra, stated, "When we made our initial offer to CGC, our Company had a small, newly-acquired base of operations in Argentina. We were targeting entry opportunities in Colombia and Peru. We were operating in a buoyant oil and gas market, and our growth ambitions were dependent on financing. Nine months later we are in a very different position. We have established ourselves in three countries. We are moving into a second stage of growth, focused on drilling. We have cash in the bank and a portfolio of opportunities. We are in a position to high-grade our investment decisions moving forward, taking risks, uncertainty, upside and shareholder value into account. It is a good position to be in at this stage of our growth and at this time in the market."
Gran Tierra Energy, Inc. is an international oil and gas exploration and production company, headquartered in Calgary, Canada, incorporated and traded in the United States and operating in South America. The Company now holds interests in producing and prospective properties in Argentina, Colombia and Peru. To date, the Company has pursued a strategy that focuses on establishing a portfolio of producing properties, development and exploration opportunities, through selective acquisitions, to provide a base for future growth.
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Company: CGC more info
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