RE:RE:RE:RE:RE:Well guys and gals, BECAUSE Further on GTE's aquisition of i3 Energy from Oilman Jim's Letter - August 25, 2024.
Gran Tierra Energy (GTE GTE.TSX GTE.L G1P0.F) and i3 Energy (I3E.L ITEEF ITE.TSX I32.F) announced they have reached agreement on the terms of a recommended and final cash and share offer by Gran Tierra for i3 Energy pursuant to which Gran Tierra will acquire the entire issued and to be issued share capital of i3 Energy. Under the terms of the acquisition, each i3 Energy shareholder will receive one new Gran Tierra share for every 207 i3 Energy shares, 10.43 pence cash per i3 Energy share and a cash dividend of 0.2565 pence per i3 Energy share in lieu of the ordinary dividend in respect of the three month period ending 30 September 2024. Following completion of the acquisition, i3 Energy shareholders will own up to 16.5% of Gran Tierra, which will then hold approximately 1.4 million net acres in Colombia, 138 thousand net acres in Ecuador and 584 thousand net acres in Canada including 298 thousand net acres in Central Alberta, 102 thousand net acres in Wapiti/Elmworth, 50 thousand net acres in Simonette, and 69 thousand net acres in North Alberta (Clearwater). Previous news from GTE was of another oil discovery with the Charapa-B6 well on the Charapa Block in Ecuador. What is described as a significant find is located just west of the recently discovered Arawana-J1 and Bocachico Norte-J1 wells, further underscoring the potential of this region. The Charapa-B6 well marks the company’s third oil discovery in 2024 and its fifth in Ecuador since Gran Tierra resumed its exploration campaign after disruptions caused by the pandemic. The company has run production casing, cemented and perforated the Hollin oil zone and begun production testing at Charapa-B6. The rig has been moved to drill the Charapa-B7 exploration well which was spud on August 9, 2024.
The i3 Energy investors will tell you they got a sweet deal in all this. According to Gran Tierra: Background to and reasons for the Acquisition
Over the last five years, Gran Tierra has looked to diversify into specific oil and gas basins where it is confident it can create shareholder value focused on operated, high-quality assets with large resources in place and access to infrastructure. The Western Canadian Sedimentary Basin (“WCSB”) being one of the basins on Gran Tierra’s priority list. The majority of the Gran Tierra team has worked in the WCSB and, with its headquarters located in Calgary, is well positioned to do so again.
So, is it Gran Tierra's plan to get out of South America as the team is uncomfortable working there, not able or adapted, or just being there (corrupt governments, civil unrest and drug cartels)? I mean, "the majority of the Gran Tierra team has worked in the WCSB and, with its headquarters located in Calgary, is well positioned to do so again". Are they looking to one day sell the a South American assets and return western Canada?
That above quote from Gran Tierra raises questions!