Gran Tierra makes 7th oil discovery in Ecuador

Gran Tierra Energy made a seventh successful oil discovery in the Arawana-Zabaleta field area, Ecuador. The Zabaleta-K1 was drilled over 4 km from the Arawana-J1 well drilled earlier this year and was charged with oil.

The company has also entered into a purchase and sale agreement with Logan Energy, pursuant to which Logan would acquire 50% and operatorship of a portion of Gran Tierra’s Simonette Montney assets for approximately C$52 million in cash, subject to customary adjustments. After the closing of the Transaction, Gran Tierra would retain 50 percent working interest in the Assets.

In addition to the initial cash consideration, Logan will carry the first development well in the Lower Montney region valued at $3 million net to Gran Tierra. Gran Tierra will obtain priority access and preferential terms on existing Logan owned infrastructure as part of the newly formed joint venture.