Gran Tierra Energy Inc. has entered into agreements (the "Agreements") whereby Madalena Energy Inc. (Madalena) has agreed to acquire Gran Tierra Energy's Argentina business unit for an aggregate consideration of approximately US$69 million, comprised of US$49 million in cash, US$14 million in Madalena shares, and expected working capital adjustments of approximately US$6 million.

Gran Tierra Energy has received a deposit of US$12.6 million and Madalena is expected to raise the remainder of the cash required to complete the transaction pursuant to a subscription receipt offering on a bought deal basis.

Tags: Gran Tierra Energy Inc.