Gran Tierra Energy Inc. has agreed to sell 50% of its Simonette Montney assets to Logan Energy Corp. for approximately CA$52 million (US$37.02) cash in what Gran Tierra called a strategic joint venture.

Logan will assume operatorship of the assets, which averaged 1,590 boe/d in the third quarter. In addition to the initial cash consideration, Logan will carry the first development well in the Lower Montney region valued at CA$3 million (US$2.14 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. The company said Logan will accelerate drilling on the assets from the fourth quarter through first-quarter 2026.

The deal also reduces costs across the asset by increasing scale, shared pad sites and other efficiencies.

At closing, Gran Tierra will retain 50% working interest in the assets, the company said Nov. 26. The company will retain interest in 25 net sections of the Simonette Montney play with production of about 795 boe/d.

The deal provides a growth-focused platform to advance Gran Tierra’s Montney development, the company said.

Gary Guidry, Gran Tierra president and CEO, said the sale enables the company to keep a material stake in the play for future growth.

“This strategic partnership with a top-tier operator, who already has established infrastructure in the area, will significantly accelerate development and generate near-term cash flow,” Guidry said. “We intend to use a portion of the proceeds to deliver value to our shareholders through development of other key assets in the portfolio and share buybacks, while also strengthening our balance sheet by reducing net debt.”

Gran Tierra also reported that in Ecuador it had made a seventh successful oil discovery, which it said further confirms “the significant potential of the Arawana / Zabaleta field area.”

Guidry said the Ecuador oil discovery from the Zabaletea-K1 was a pivotal exploration well that further substantiated and delineated the Arawana / Zabaleta area. The Zabaleta-K1 was drilled over 4 km from the Arawana-J1 well drilled earlier this year and was “charged with oil highlighting the magnitude of this discovery.”

“The success of this well solidifies Gran Tierra’s understanding of the field area and will be a key pillar of development growth plans in South America for years to come,” he said.

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