To buy from Remora Energy International LP
Deal to be funded by equity and debt
Deal to add 50 pct to operating income, reserves and production (Names seller in paragraph 1, adds background)
Canadian oil company Parex Resources will buy the other half of Llanos Basin blocks in Colombia for $255 million from Remora Energy International LP, to tap the full potential of the oil project, and doubled its 2011 exit target.
Privately held Remora Energy is a Bermuda based exploration and production company and owns Columbus Energy, which held the 50 percent stake in Llanos Basin.
The deal comes a day after the company announced initial test results of its Kona 2 well in the Colombia n project , which tested 2,634 barrels of fluid per day.
The acquisition will be funded by a bought deal of C$165.2 million ($172.8 million) and C$85 million of debt, the company, which explores oil and natural gas in South America and the Caribbean region, said.
The company will issue 23.6 million receipts on a bought deal basis to a syndicate of underwriters led by FirstEnergy Capital and Scotia Capital.
The company, which currently does not have a n y debt, will fund the rest of the deal from its existing working capital.
The acquisition is expected to add about 50 percent to operating income, reserves and production on a per share basis.
The company with a market capitalization of about $568 million said it expects to double its 2011 exit output at 14,000 barrels of oil per day and forecast its Colombian operation's capital budget to increase by about $30-$35 million.
The acquisition is expected to close by June 29.
Shares of the Calgary-based company closed at C$7.67 on Wednesday on the Toronto Venture Exchange. ($1 = 0.956 Canadian dollar).
Deal to be funded by equity and debt
Deal to add 50 pct to operating income, reserves and production (Names seller in paragraph 1, adds background)
Canadian oil company Parex Resources will buy the other half of Llanos Basin blocks in Colombia for $255 million from Remora Energy International LP, to tap the full potential of the oil project, and doubled its 2011 exit target.
Privately held Remora Energy is a Bermuda based exploration and production company and owns Columbus Energy, which held the 50 percent stake in Llanos Basin.
The deal comes a day after the company announced initial test results of its Kona 2 well in the Colombia n project , which tested 2,634 barrels of fluid per day.
The acquisition will be funded by a bought deal of C$165.2 million ($172.8 million) and C$85 million of debt, the company, which explores oil and natural gas in South America and the Caribbean region, said.
The company will issue 23.6 million receipts on a bought deal basis to a syndicate of underwriters led by FirstEnergy Capital and Scotia Capital.
The company, which currently does not have a n y debt, will fund the rest of the deal from its existing working capital.
The acquisition is expected to add about 50 percent to operating income, reserves and production on a per share basis.
The company with a market capitalization of about $568 million said it expects to double its 2011 exit output at 14,000 barrels of oil per day and forecast its Colombian operation's capital budget to increase by about $30-$35 million.
The acquisition is expected to close by June 29.
Shares of the Calgary-based company closed at C$7.67 on Wednesday on the Toronto Venture Exchange. ($1 = 0.956 Canadian dollar).
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