energy-pedia general news
Pacific Rubiales accepts shares of PetroMagdalena in settlement of debt
26 Jan 2012
Pacific Rubiales Energy has entered into an agreement to receive common shares of PetroMagdalena Energy in satisfaction of certain debts owed to it in connection with the exploration program at the Topoyaco block. PetroMagdalena owes Pacific Rubiales approx. U.S. $6 million in connection with a cash call due to a subsidiary of Pacific Rubiales as at December 31, 2011.
The shares for debt agreement was negotiated at arms-length between the two parties on January 19, 2012, using a deemed share price of $1.25 per share. As such, PetroMagdalena will be issuing 4,826,600 (calculated using the Bank of Canada exchange rate at the close of January 19, 2012) common shares in settlement of the above-noted debt. The issuance of the common shares is subject to approval from the TSXV.
Upon issuance of the common shares in settlement of the debt, Pacific Rubiales will own 6,528,900 common shares in the capital of PetroMagdalena, representing 4.4% of its issued and outstanding common shares.
Source: Pacific Rubiales Energy
Sign up for daily newsletter
Newsfeeds