Gran Tierra Energy Inc. (GTE), a company focused on oil and gas exploration and production in Colombia, announced that management of Gran Tierra is evaluating a proposal relating to the Company's assets in Peru (the Peruvian Assets) which will involve a spin-out of such assets to a separate entity (SpinCo) in which Gran Tierra will retain an equity interest (the Proposed Transaction). The proposal contemplates that SpinCo would engage in external capital raising activities to fund the ongoing development of the Peruvian Assets.
The Company had previously advised that the Peruvian Assets were not core to its ongoing plans and that it was considering a sale, farm-out or SpinCo of such assets. The Company has not entered into a binding agreement to pursue the Proposed Transaction or any other transaction relating to the direct or indirect disposition of the Peruvian Assets. There are no assurances or guarantees that such a transaction, including the Proposed Transaction, will be undertaken by the Company or, if such a transaction is undertaken, with respect to the type, terms or timing of such a transaction. It is the Company's intention not to disclose developments with respect to the status of discussions until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate.