Canada’s Pacific Rubiales to Take Control of CGX Energy
Pacific Rubiales Energy Corp,a Canadian company and producer of natural gas and crude oil, announced that it has entered into a binding term sheet with CGX Energy Inc., pursuant to which Pacific Rubiales has agreed to invest Cdn$35,000,000 in CGX at a price of Cdn$0.14 per unit for an aggregate of 250 million units.
Ronald Pantin, Chief Executive Officer of the Company, commented: “This is a great opportunity for the Company to expand and deepen its investment in the highly prospective offshore Guyana oil play. We consider CGX’s large acreage position in Guyana to be a premier, world class exploration asset in an offshore basin with analogous geology to West Africa, Brazil and Venezuela. This investment is well aligned with the Company’s technical strengths, strategy of early stage large resource capture and objective of being the leading Latin American independent explorer and producer of hydrocarbons.”
The private placement is subject to approval of the TSX Venture Exchange (“TSXV”) and other customary closing conditions. CGX engaged GMP Securities L.P. as its financial advisor for the private placement, the net proceeds of which will enable CGX to discharge its immediate obligations under its Georgetown PA Joint Operating Agreement and to continue to fund its other near term obligations. Upon closing of the investment, the board of directors of CGX will be reconstituted to ensure that a majority of the directors are nominees of Pacific Rubiales.
The parties contemplate closing the private placement as soon as possible; however, not later than March 11, 2013 unless otherwise agreed to by the Company, GMP and CGX.
Press Release, March 1, 2013