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Gran Tierra to acquire Petrolifera Add to ...

Gran Tierra Energy Inc. will acquire Petrolifera Petroleum Ltd. in a stock deal valued at $195-million (U.S.), including assumed debt, under a friendly agreement announced by the Calgary-based companies Monday.

Based on Monday's stock price, the offer is worth $1.03 per Petrolifera share - a 29 per cent premium to the market price for the company's stock.

Petrolifera is a mid-sized oil and gas producer focused on South America - in Colombia, Peru and Argentina.

Gran Tierra, which is also active in the region, will issue 19 million of its shares - or about 8 per cent of its outstanding stock - to acquire all of Petrolifera's outstanding shares and warrants.

The offer of 0.1241 of a Gran Tierra share for each Petrolifera share is being supported unanimously by Petrolifera's board of directors.

The transaction will require approval from Petrolifera's shareholders.

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