Published: August 26, 2024 |

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Gran Tierra has announced a recommended and final cash and share acquisition of i3 Energy, valued at approximately $225.4 million, offering a 49 percent premium to i3 Energy’s closing price on August 16, 2024.

i3 Energy has also confirmed that it has received a firm offer from Gran Tierra Energy for the entire issued and to be issued share capital of i3 Energy, following recent speculation in the media.

Following completion, i3 Energy shareholders will own up to 16.5 percent of Gran Tierra.

The acquisition aims to create an independent energy company of scale in the Americas, with increased production, reserves, cash flows, and development options across Canada, Colombia, and Ecuador.

The deal will add 250 net-booked drilling locations from i3 Energy’s assets.

Gran Tierra plans to leverage the combined group’s financial capacity to expedite the development of i3 Energy’s Canadian and Colombian assets, aiming to deliver substantial long-term returns to shareholders.

Gran Tierra plans to transfer the entire i3 Energy share capital to its subsidiary, Gran Tierra EIH, after the acquisition.

The move will result in the i3 Energy shares being delisted from the TSX and cancelled from trading on the AIM market of the London Stock Exchange. Gran Tierra will also apply to have i3 Energy cease to be a reporting issuer in all Canadian jurisdictions.

i3 Energy and Gran Tierra have both announced full-year 2024 EBITDA guidance, with i3 Energy predicting a range of $50–55 million, while Gran Tierra predicts a range of $335–395 million in its low case, $400–460 million in its base case, and $480–540 million in its high case.

i3 Energy predicts 2024 working interest production of 18,000–19,000 BOEPD from Canadian assets, with exit rate guidance of 20,250–21,250 BOEPD, while Gran Tierra predicts production of 32,000–35,000 BOPD.

Source: Seeking Alpha

Gran Tierra Energy, together with its subsidiaries is an independent international energy company currently focused on oil and natural gas exploration and production in Colombia and Ecuador.

i3 Energy is an energy company with a diverse, full-cycle portfolio of assets in the Western Canadian Sedimentary Basin and UK North Sea.

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