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Pacific Rubiales eyes Guyana with CGX investment

Pacific Rubiales Energy Corp. has agreed to purchase 58.7 million common shares of CGX Energy Inc. for an investment of $41.1 million (Can.). Both are based in Toronto.

CGX is focused on exploring for oil in the Guyana-Suriname basin, an area ranked second in the world for oil and gas prospectivity by the US Geological Survey.

The investment is being made pursuant to CGX’s recently announced bought deal financing through a syndicate of underwriters led by Cormark Securities Inc. whereby CGX has agreed to issue 114.3 million common shares at 70¢/share. Pacific Rubiales, which doesn’t hold a stake in CGX at present, will own 19% on completion of the offering.

Pacific Rubiales owns 100% of Meta Petroleum Corp., a Colombian oil operator that operates the Rubiales and Piriri oil blocks in the Llanos basin in association with Colombia’s state Ecopetrol SA. Pacific Rubiales is focused on identifying opportunities mainly in the eastern Llanos basin, in other areas of Colombia, and in northern Peru. It has working interests in 46 blocks in Colombia, Peru, and Guatemala.

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