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Monday, January 17, 2011

Gran Tierra to buy Petrolifera in $195 mln deal, (TSE: GTE), (TSE: PDP)

Gran Tierra Energy Inc (GTE.TO) said on Monday it will buy Petrolifera Petroleum Ltd (PDP.TO) in a $151 million deal that brings together a pair of Canadian-based companies exploring for oil in South America. Under the deal, Petrolifera shareholders receive 0.1241 of a Gran Tierra share for each of their own. Gran Tierra also will assume Petrolifera's debt and working capital, bringing the deal's total value to $195 million. The board of Petrolifera, which has interests in 11 exploration and production blocks in Colombia, Peru and Argentina, approved the arrangement.