Colombia’s largest private oil producer, Pacific Rubiales announced Tuesday it will buy smaller oil and gas company PetroMagdalena for $243 million.
Ronald Pantin, Pacific Rubiales CEO said, “We are very pleased to strike this deal with PetroMagdalena, which is already a key provider of light oil as diluent for our crude. We believe this acquisition is both very complementary and accretive to our existing business.”
Canada-based Pacific Rubiales will buy all of PetroMagdalena’s issued and outstanding common shares subject to, among other things, approval of two thirds of PetroMagdalena’s shareholders and warrantholders.
PetroMagdalena, a Canada-based oil and gas exploration company with 19 interests in properties in Colombia, has a market value of $180 million.