Gran Tierra buys Colombias PetroLatina Energy for 525 million

CALGARY — Gran Tierra Energy Inc. has lined up its third major Colombian acquisition of 2016.The Calgary-based company has agreed to pay US$525 million cash for PetroLatina Energy Ltd.Gran Tierra says the PetroLatina acquisition will increase its land position in a prolific part of Colombia and add 53 million barrels to its proven and probable reserves.Mexico opens up huge oil reserves to foreign production, offering massive potential and big riskIt will raise $173.5 million from a syndicated equity issue and get up to $130 million in bridge financing from Scotiabank, its lead lender. Gran Tierra also had $163.3 million of cash as of May 31.In January, Gran Tierra completed the acquisitions of Petroamerica Oil Corp. and PetroGrenada Ltd. as part of a strategy to grow and diversify its holdings throughout Colombia.In May, the company announced its 2016 capital budget would be increased to between US$140 million and US$150 million, from the previously announced US$107 million.The PetroLatina deal was announced late last week and is expected to close by Oct. 31. read more