Gran Tierra Energy Inc. and Solana Resources Limited announce completion of business combination

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[{"type":"text","content":"\n\n\n\nCALGARY, Nov. 14 /CNW/ - Gran Tierra Energy Inc. (AMEX: GTE; TSX: GTE)\nand Solana Resources Limited (TSX-V: SOR; AIM: SORL) today announced that they\nhave completed the business combination of Gran Tierra and Solana.\n\n\nThe boards of directors and the stockholders of both companies approved\nthe transaction, and all other regulatory and court approval requirements were\nsatisfied. Pursuant to the terms of the arrangement agreement announced July\n29, 2008, each Solana shareholder received either (i) 0.9527918 of a common\nshare of Gran Tierra or (ii) 0.9527918 of a common share of Gran Tierra\nExchangeco, Inc., a Canadian subsidiary of Gran Tierra (an "Exchangeable\nShare") for each common share of Solana held. The Exchangeable Shares: (i)\nhave the same voting rights, dividend entitlements and other attributes as\nGran Tierra common stock; (ii) are exchangeable, at each shareholder's option,\non a one-for-one basis, into Gran Tierra common stock; and (iii) will be\nlisted on the Toronto Stock Exchange on or about November 19, 2008 in\naccordance with the Toronto Stock Exchange conditional approval. The\nExchangeable Shares will automatically be exchanged for Gran Tierra common\nstock five years from closing, and in certain other events. The business\ncombination will be accounted for as an acquisition and the combined company\nhas approximately 263.1 million shares outstanding (on a diluted basis).\n\n\nFollowing closing of the business combination, Gran Tierra has become an\nintermediate-sized producer with the following attributes:\n\n\n- current production in excess of 11,600 barrels of oil equivalent per\n day (boe/d);\n- estimated 2008 exit production in excess of 15,000 boe/d;\n- working interest in 26 contract areas, 24 operated by Gran Tierra;\n- an undeveloped land base of over 1.5 million net acres in Colombia,\n 1.3 million net acres in Argentina and 3.4 million net acres in Peru;\n- an extensive inventory of both exploration and development drilling\n prospects for potential future growth; and,\n- a 100% working interest in the Costayaco Field, one of the largest\n light oil discoveries in recent years in Colombia.\n\n\nThe combined company has cash on hand in excess of US$140 million and no\nlong-term debt. With its strong balance sheet, Gran Tierra believes that it is\nwell positioned for ong...

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