Gran Tierra Energy agreed to support West Face Capital’s board nominees, doubling its board size to eight. West Face nominee Gary Guidry is taking over as CEO. Note that West Face just went active last month, owning nearly 10% of the company.
The idea is to get Gran Tierra to stop with its higher risk explorations and focus on its core Colombia assets. The board has been gambling on high-risk exploration using shareholders’ capital. Its Colombian assets still provide most of the production. The chairman has called these excursions outside of Colombia “elephant hunting”.
Since the beginning of 2011, the current board has approved $1.7 billion in spending, with $860 million spent in Peru, Argentina and Brazil. There's been no appreciable new discoveries or production growth from this spending. Thus, its share price has gone from $8.18 to $3.38, a 59% loss in market value per share.