Pacific Rubiales closes strategic acquisition of Petrominerales
On November 28, 2013, Pacific Rubiales Energy Corp. (Pacific Rubiales) announced that it closed its acquisition of Petrominerales Ltd. (Petrominerales) by way of a plan of arrangement.
With the completion of the arrangement, Pacific Rubiales has acquired all of the issued and outstanding shares of Petrominerales. Under the terms of the agreement, announced September 29, 2013, Petrominerales shareholders received C$11.00 cash for each Petrominerales common share held, for a total value of approximately C$935 million in cash, plus one common share of a newly formed exploration and production company (Alvopetro Energy Ltd.), and the assumption of net debt estimated at C$640 million, including convertible bonds.
Alvopetro's assets consist of Petrominerales' Brazilian exploration assets and approximately C$100 million in cash.
Petrominerales is a Latin American focused exploration and production company with exploration blocks covering a total of 2.0 million acres in Colombia and 9.5 million gross acres (6.4 million net) in Peru.
Pacific Rubiales is a Canadian company and producer of natural gas and crude oil, with assets in Colombia's Llanos Basin and the La Creciente natural gas field in northern Colombia.
Further information can be found on Canada Newswire's website.