Gran Tierra soars on $1.3 billion South America sale

Gran Tierra soars on $1.3 billion South America sale

Wed, August 5, 2026 at 11:31 AM GMT+3 1 min read

Gran Tierra Energy Inc (TSX:GTE, LSE:GTE, NYSE-A:GTE) shares leapt over 45% to a three-year high after the oil producer agreed to sell all its Colombian and Ecuadorian assets for $1.3 billion and reported a return to quarterly profit.

French oil and gas producer Maurel & Prom will acquire the South American business, which produces around 29,000 barrels of oil per day and holds 144 million barrels of proved and probable reserves.

The buyer will assume substantially all Gran Tierra's net liabilities.

After adjustments, debt repayment and transaction costs, Gran Tierra expects net cash proceeds of around $315 million, including $250 million at completion and a further $65 million within a year.

The sale would leave the company debt-free and could support a "meaningful" share buyback, it said, with the remaining business centred around assets in Canada and Azerbaijan.

Gran Tierra estimated the continuing business would have a net asset value of $12.49 per share, an 83% premium to its 20-day volume-weighted average price. The transaction is targeted to complete around the end of 2026, subject to shareholder and regulatory approvals.

Separately, Gran Tierra reported second-quarter net income of $25 million, reversing a $119 million loss in the previous quarter. Adjusted earnings rose to $85 million from $74 million.

Production fell 9% quarter on quarter to 41,501 barrels of oil equivalent per day, partly reflecting Canadian asset sales and temporary equipment failures at two Colombian fields.

The shares soared to 750p in early trading, later easing to 655p, a gain of 34%.