Gran Tierra (GTE) Energy entered into a crude oil sale and purchase agreement and a related prepayment addendum. Under the Oriente Crude Oil Agreements, the Seller will receive an initial advance in an aggregate amount not to exceed $150M and may receive an additional advance of up to $50M, subject to certain conditions. These advances will be satisfied by scheduled deliveries of the Seller’s Ecuadorian Oriente crude oil production. Proceeds from these prepayments are to strengthen the Company’s balance sheet and enhance financial flexibility. In connection with the execution of the Oriente Crude Oil Agreements, Gran Tierra has further optimized its capital structure by amending its Colombian credit facility. The Amendment, among other things, consents to and permits the Seller and the Company to execute and perform the Oriente Crude Oil Agreements, reduces the borrowing base under the Credit Agreement from its then-current amount of $75M to $60M and adjusts certain financial covenants to account for the prepayment structure.
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