By Stephen Voss
July 29 (Bloomberg) -- Gran Tierra Energy Inc., a Canadian oil and gas explorer operating in South America, agreed to buy Solana Resources Ltd. to create a larger international exploration and production company.
Solana shareholders will receive 0.9527918 of a common share in Gran Tierra or its Canadian subsidiary for each common share held under the terms of the agreement, the companies, both based in Calgary, Canada, said today in PRNewswire statements. The proposed transaction is subject to regulatory, stock exchange, court and shareholder approvals.
The combined company will have production of 15,000 barrels of oil equivalent a day, proven reserves of 18.4 million barrels and an enterprise value of $1.35 billion, and will own all of the Costayaco oil field discovery in Colombia, the statement said.
Gran Tierra Chief Executive Officer Dana Coffield and Solana CEO Scott Price will host a joint conference call for investors at 11 a.m. U.S. Eastern time today. Gran Tierra operates in Colombia, Argentina and Peru. Coffield will remain chief executive of the combined company.
Blackmont Capital Inc. and Tristone Capital Inc. are the financial advisors to Gran Tierra and Solana, respectively.
To contact the reporter on this story: Stephen Voss in London at sev@bloomberg.net
Tuesday, July 29, 2008
Gran Tierra Energy to Buy Solana Resources in Merger
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