Canadian outfits to form Pacific Rubiales

Colombian operators Pacific Stratus Energy and Petro Rubiales Energy plan to merge as Pacific Rubiales Energy Corp. in a deal worth $2.5 billion (Can.).

By OGJ editors
HOUSTON, Nov. 13 -- Colombian operators Pacific Stratus Energy Ltd. and Petro Rubiales Energy Corp. plan to merge as Pacific Rubiales Energy Corp. in a deal worth $2.5 billion (Can.).

The combined entity will have production estimated at 30,000 boe/d in 2008, the largest independent acreage portfolio in Colombia, several blocks in Peru,

The merger requires approval by two thirds of Pacific Stratus shareholders. A vote will be set for early 2008. Both boards approved the deal unanimously, but they have not yet signed a definitive agreement.

Petro Rubiales owns 100% of Meta Petroleum Ltd., a Colombian concern that operates Rubiales and Piriri oil fields in the Llanos basin. Pacific Stratus produces a net 1,900 b/d of oil and has working interests in the Caguan, Dindal, Rio Seco, Puli B, La Creciente, Moriche, Guama, and Arauca blocks in Colombia and Blocks 135, 137, and 138 in Peru.

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