Gran Tierra Energy Inc. Announces Closing of PetroLatina Energy Ltd. Acquisition

CALGARY, ALBERTA--(Marketwired - Aug. 23, 2016) -

All dollar amounts are in United States ("U.S.") dollars unless otherwise indicated.

Gran Tierra Energy Inc. ("Gran Tierra" or the "Company") (NYSE MKT:GTE)(TSX:GTE) is pleased to announce today that the Company has completed the previously announced acquisition of PetroLatina Energy Ltd. ("PetroLatina") for a purchase price of approximately $525 million (the "Acquisition"), consisting of an initial payment of $500 million at closing, subject to closing adjustments, and a deferred payment of $25 million no later than December 31, 2016. PetroLatina is a private, independent exploration and production company with assets primarily in the Middle Magdalena basin of Colombia.

Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: "We are pleased that the Acquisition has closed quickly and we now look forward to developing the upside potential in our new core area in the prolific Middle Magdalena Basin. We have acquired significant proved, probable and possible reserves which we expect to enhance our long-term growth strategy and to be an excellent fit with Gran Tierra's current reserves and resources base in the Putumayo Basin."

The Acquisition was funded through a combination of cash on hand, borrowings under Gran Tierra's existing credit facilities, a new term loan, and the proceeds of a private placement of subscription receipts of the Company ("Subscription Receipts").

In connection with the Acquisition, Gran Tierra issued 57,835,134 Subscription Receipts priced at $3.00 per Subscription Receipt to certain institutional investors and certain directors and executive officers of Gran Tierra for aggregate gross proceeds of approximately $173.5 million. In accordance with their terms, each Subscription Receipt was exchanged for one share of common stock in the capital of the Company (the "Common Shares") and the proceeds of the Subscription Receipt financing were released from escrow on August 23, 2016. Holders of the Subscription Receipts are not required to take any action in order to receive the Common Shares. The Common Shares were issued in book-entry form using the direct registration system of Computershare Trust Company, N.A., Gran Tierra's transfer agent.