Pacific Rubiales Closes Acquisition Of Petrominerals, Launches New Company

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Acquired all the outstanding shares including E&P in Colombia and Peru; Launched a new Brazil focused company.

Petrominerales Ltd. (TO: PMG) has successfully completed its plan of arrangement with Pacific Rubiales Energy Corp. (TO: PRE) for the acquisition by Pacific Rubiales of all the outstanding shares of Petrominerales, the companies announced Nov. 28.

Pursuant to the arrangement, each share of Petrominerales has been exchanged for C $11 cash and one share of a new Brazil focussed company, Alvopetro Energy Ltd. The arrangement is a culmination of Petrominerales' exploration and development successes in Colombia and Peru.

"We are pleased to announce the closing of the acquisition of Petrominerales. This acquisition is an excellent fit with our strategy of integrating light oil with our heavy oil business to secure additional components of the value chain, provide immediate capture of additional value through asset synergies, grow production, reserves and cash flow at attractive metrics, and provide significant exploration upside. The Petrominerales light oil and pipeline assets in Colombia provide a strategic hedge for our future supply, cost and security of diluent volumes and pipeline transportation, based on our expectation of the company's growing heavy oil production," Ronald Pantin, CEO, said in the release.

Alvopetro has been launched as a standalone resource company. Alvopetro holds all of the Brazilian assets owned by Petrominerales.

Alvopetro will be engaged in the exploration for, and the acquisition, development and production of, hydrocarbons in the RecĂ´ncavo, Tucano, Camamu- Almada and Sergipe-Alagoas basins, onshore Brazil. Alvopetro's interests consist of three producing fields and 12 exploration blocks comprising 120,013 gross acres onshore Brazil. Alvopetro intends to develop producing hydrocarbons by appraising and developing existing discoveries and exploring in areas considered by management to be prospective for hydrocarbon resources.

Pacific Rubiales Energy Corp. is an independent energy company engaged in the exploration, development, and production of oil and natural gas in Colombia, Peru, Guatemala, Brazil, Papua New Guinea, and Guyana. The company is headquartered in Toronto. Petrominerales Ltd. is an independent energy company engaged in the exploration, development, and production of crude oil in Colombia, Peru, and Brazil. The company is headquartered in Calgary.