Gran Tierra to Close First CGC Asset Acquisition end-October

Canadian oil and gas company Gran Tierra Energy (Nasdaq: GTRE) will close the purchase of the first of several E&P assets from Argentine oil exploration company CGC at the end of October, Gran Tierra president and CEO Dana Coffield told BNamericas.

Gran Tierra in February signed a letter of intent to purchase CGC's Argentine assets in the northwest basin for US$37.8mn, although closure of the purchase has taken longer than expected due to regulatory and legal delays, Coffield said.

The properties would add roughly 760b/d oil production and 8.5Mf3/d (240,000m3/d) natural gas production net before royalties to Gran Tierra's operations, Gran Tierra previously said.

The acquisition would boost Gran Tierra's hydrocarbons production in Argentina to roughly 1,600boe/d and expand the company's exploration portfolio to 5,100 sq km of land.

Proven reserves in the CGC assets are approximately 1.9Mb of oil and liquids and 23Mf3 of gas.

Gran Tierra owns 50% interests in two other minor properties in the northwest basin, Nacatimbay and Ipaguazu, both of which are operated by CGC.

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