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Pacific Rubiales Energy Corp. has completed its acquisition of PetroMagdalena Energy Corp.
PetroMagdalena has working interests in 19 properties in five onshore basins in Colombia producing approximately 3.6 Mboe/d (approximately 95% light/medium crude oil and natural gas liquids) net after royalty in the 1Q of 2012 and with 2011 year-end net proved plus probable reserves of 22.9 MMboe (64% light/medium crude oil and natural gas liquids).
“We know the PetroMagdalena assets well. The company can apply its financial resources and technical expertise to unlock and accelerate exploration and development, growing production and also achieving a reduction in consolidated G&A costs,” said Ronald Pantin, the company’s CEO. “The acquired production provides the company with a reliable and growing supply of diluent, which is required for its heavy oil production in Colombia and adds bolt-on exploration acreage.”
The acquisition was completed pursuant to a plan of arrangement under the British Columbia Business Corporations Act. Under the arrangement, a wholly-owned subsidiary of Pacific Rubiales acquired all of the outstanding PetroMagdalena common shares not already owned by it or its affiliates for $1.60 per share. The purchaser acquired 140,738,004 common shares of PetroMagdalena pursuant to the arrangement.