2010-03-10-2009-12-09

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$31.1MM
Description

To acquire company with 2.7 MM net acres of exploration blocks in Peru & Colombia.

Petrominerales Ltd., Bogota, Colombia, (Toronto: PMG), a subsidiary of Petrobank Energy and Resources Ltd. (Toronto: PBG) plans to acquire PanAndean Resources Plc, Dublin, (London AIM: PRE) for $31.1 million.

PanAndean shareholders will receive £0.15 (about US$0.24) per PanAndean share, plus a pro rata number of shares of Hydrocarbon Exploration PLC, a 100% owned British public limited company into which PanAndean will transfer all of its non-Colombian and non-Peruvian assets.

PanAndean has assets in South America, including four exploration blocks covering 2.6 million net acres in Peru, with approximately $30 million in exploration costs that will be funded by existing joint venture partners of Petrominerales, and an exploration block covering 87,383 acres in Colombia.

Petrominerales says the acquisition will boost its presence in the Ucayali Basin of Peru, where it has a 55% working interest in Block 126.

The transaction, which is subject to customary approvals, is expected to close in February 2010.

RBCCapital Markets is financial advisor to Petrominerales.