Gran Tierra Power, Inc. is buying i3 Power plc for an implied worth of roughly $225.4 million (GBP 174.1 million).
Gran Tierra stated the acquisition will create “an unbiased power firm of scale within the Americas with important manufacturing, reserves, money flows and improvement optionality”.
i3 Power is an unbiased oil and gasoline firm with a various, full-cycle portfolio of belongings within the Western Canadian Sedimentary Basin (WCSB) and UK North Sea (UKN). Its registered workplace is in Eastleigh, United Kingdom, and it has an workplace situated in Calgary in Canada, the place the vast majority of its workers are primarily based and the place its operational plans are formulated and executed.
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i3 Power’s Canadian acreage spans 4 key areas in among the WCSB’s most financial play varieties, together with Central Alberta, Simonette, Wapiti and Clearwater. The belongings are 76 p.c operated with manufacturing from roughly 850 internet long-life, low-risk and low-decline wells, spanning roughly 600,000 internet acres. These 4 core areas mixed delivered 18,271 barrels of oil equal of manufacturing (boepd) within the second quarter.
i3 Power has introduced 2024 working curiosity manufacturing of 18,000 to 19,000 boepd from its Canadian belongings with exit charge steering of 20,250 to 21,250 boepd, whereas Gran Tierra has introduced 2024 manufacturing steering of 32,000 to 35,000 barrels of oil per day, based on the discharge.
Additional, i3 Power has over 250 internet booked drilling areas (374 gross booked drilling areas) related to 2P reserves which, coupled with Gran Tierra’s substantial booked reserves, latest exploration discoveries and important potential acreage throughout Colombia and Ecuador, offers improvement and exploration upside potential for shareholders, Gran Tierra famous.
Below the phrases of the acquisition, every i3 Power shareholder will probably be entitled to obtain one new Gran Tierra Share for each 207 i3 Power Shares held and 10.43 pence money per i3 Power Share. As well as, every i3 Power Shareholder will probably be entitled to obtain a money dividend of 0.2565 pence per i3 Power Share in lieu of the strange dividend in respect of the three-month interval ending September 30, 2024.
Upon completion of the acquisition, i3 Power shareholders will come clean with 16.5 p.c of Gran Tierra. Gran Tierra will switch the complete issued share capital of i3 Power to its wholly owned, oblique subsidiary, Gran Tierra EIH. Gran Tierra EIH is the holding entity for Gran Tierra’s Colombian belongings.
Upon completion, i3 Power shares will probably be cancelled from buying and selling on the AIM market of the London Inventory Alternate and delisted from the TSX, Gran Tierra stated.
Over the past 5 years, Gran Tierra stated it has “regarded to diversify into particular oil and gasoline basins the place it’s assured it will possibly create shareholder worth targeted on operated, high-quality belongings with giant assets in place and entry to infrastructure,” with the WCSB being one of many basins on its precedence record.
Gary Guidry, President and CEO of Gran Tierra, stated, “We’re thrilled to announce this acquisition, which marks a big milestone in diversifying our portfolio whereas strengthening our asset base. By integrating these high-quality, operated belongings, together with low-decline manufacturing, giant assets in place and a considerable land base, we aren’t solely enhancing our asset base but additionally aligning with our long-term strategic imaginative and prescient. We’re excited to welcome the proficient Canadian group to our firm, as their experience and dedication will probably be invaluable in driving our continued success. This acquisition is a testomony to our dedication to sustainable and worthwhile progress and delivering constant worth to our shareholders”.
Majid Shafiq, CEO of i3 Power, stated, “We imagine that the acquisition presents an distinctive alternative for i3 Power’s Shareholders. The acquisition represents the end result of an intensive course of to appreciate the utmost worth out there for shareholders and affords important upside potential; it expedites the belief of honest worth, with a money premium and incremental upside via continued possession within the Mixed Group, with out necessitating further capital funding, time, or operational danger. This enterprise mixture will considerably improve scale, thereby bettering capability to drive progress, manufacturing, and money flows for the advantage of all shareholders and native stakeholders”.
To contact the creator, e-mail rocky.teodoro@rigzone.com
