Canadian oil and gas producer Pacific Rubiales Energy Corp said on Wednesday it plans to repurchase around 4.3 percent of its common shares on the Toronto and Bogota exchanges, starting this week.
Pacific Rubiales operates the largest producing oil field in Colombia, which is enjoying a boom in oil and mining investment and whose output has broken historic highs so far this year.
“The company intends to make the bid because it believes that the common shares may be undervalued from time to time in relation to its current and future business prospects,” the company said in a statement.
Pacific Rubiales said it would buy back up to a maximum of 11,598,513 common shares of a total of 268 million outstanding and issued common shares; the program would begin on April 8 and end on April 7, 2012.
Increasing output from Rubiales’ heavy oil fields is one of the main reasons Colombia, Latin America’s No. 4 oil producer, has seen national production beat historic levels.