Gran Tierra is acquiring Petroamerica for total net consideration of approximately US$85 mm. Petroamerica shareholders can elect to receive either 0.4 of a Gran Tierra share for each Petroamerica share held or C$1.32 per share in cash. The cash payment has a maximum of 70% or approximately US$77 mm. We assume that Petroamerica shareholders will elect to receive shares, thereby continuing to benefit from the upside potential of the combined entity.
