Pacific Rubiales to hike CGX stake, involvement

Pacific Rubiales Energy Corp., Toronto, will expand its investment in the Guyana oil play along South America's northeastern margin with the purchase of a further 85.7 million shares of CGX Energy Inc. for $30 million.

Also, Pacific Rubiales will provide technical operational assistance to CGX and have an option to participate in each of the next wholly owned commitment wells to be drilled on the Corentyne and Annex offshore petroleum production licenses in Guyana by funding 50% of the exploratory well costs and certain seismic costs in exchange for 33% interest in the respective PPLs.

Pacific Rubiales already owns 58.7 million shares of CGX, and the new purchase will expand its stake in CGX to 35%. Pacific Rubiales said, "This investment is strategic to the company's objective of being the leading Latin American independent explorer and producer of hydrocarbons."