Canadian oil company Petrominerales’ (TSX: PMG) acquisition of Pan Andean Resources (AIM: PRE) is due to close on April 13, company CFO Corey Ruttan told BNamericas.

Petrominerales in December 2009 announced the US$31.1mn transaction, which involves acquiring interests in Colombia’s Antorcha block and Peruvian blocks 114, 131, 141 and 161,

The five areas span a combined 6.8M gross acres (2.75Mha, 2.7Mha net).

For each Pan Andean share, Petrominerales offered 0.15 pounds (US$0.24) and one share in Hydrocarbon Exploration, a new firm into which Pan Andean would transfer its non-Colombian and non-Peruvian assets in Bolivia and the US.

Petrominerales already holds 1.8M acres in Colombia (100% working interest) and 2.6M acres in Peru (55% working interest).

“The nice thing is that with this new acquisition, we’ve now got 1.9M acres in Colombia, arguably some of the most attractive land in the country,” Ruttan said. “We’re happy we got to Colombia early and got a jump on the competition. We’re by far the most active explorer in the country.”

PERU

Ruttan said he expects drilling to begin in Peru in early 2011.

“We’re just getting started in Peru,” the CFO said. “We shot some seismic there and we hope to begin drilling some time in early 2011.”

The full interview with Ruttan will appear in this week’s issue of Oil & Gas Perspectives, for subscribers only.

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