Rubiales Gains in After CGX Purchase for Guyana Exploration

Pacific Rubiales Energy Corp., the Canadian oil producer that operates fields in Colombia, rose to a three-week high after agreeing to buy a stake in CGX Energy Inc., a Toronto-based exploration company with blocks in Guyana.

The shares rose 0.7 percent to 44,700 pesos, the highest price since Sept. 21, at 3 p.m. Bogota time.

“Rubiales is diversifying its exploration portfolio,” said Santiago Melo, an analyst at brokerage Alianza Valores SA. 

“It’s yet to be seen if they’ll put up the exploration results needed for this project to be taken into account.”

Rubiales said in a statement yesterday that it will buy about 19 percent of CGX’s outstanding common shares for $41 million. 

CGX licenses in Guyana cover 8.6 million gross acres of offshore and onshore fields.

Rubiales Chief Executive Officer Ronald Pantin said the investment in CGX, which has blocks in the Guyana/Suriname basin, is a “step forward into offshore opportunities in one of the most prospective areas in the world.”

Rubiales signed a letter of intent Oct. 12 with Les Etablissments Maurel & Prom SA for a 50 percent participation in a field in northeastern Peru, according to a regulatory filing.