By a News Reporter-Staff News Editor at Energy Weekly News -- Pacific Rubiales Energy Corp. (TSX: PRE)
(BVC: PREC) (BOVESPA: PREB) announced that it has filed a Notice of Intention with the Toronto Stock Exchange (the "TSX") to renew its normal course issuer bid (the "Bid"). Under the Bid, which is subject to acceptance by the TSX, the Company will have the right to purchase up to a maximum of 21,651,789 common shares in the capital of the Company (the "Common Shares") through the standard facilities of the exchanges on which the Common Shares are listed. This amount represents 10% of the public float (the issued and outstanding Common Shares not held by insiders) of the Company as of May 31, 2014, determined in accordance with the applicable rules of the TSX. To date, the Company has purchased a total of 11,499,850 Common Shares.
There were a total of 313,779,758Common Shares issued and outstanding as of May 31, 2014. Management of the Company intends to purchase up to 21,651,789 Common Shares and will determine the timing of any such purchases, subject to compliance with applicable TSX rules. Daily purchases will be limited to 353,121Common Shares, other than block purchase exceptions. Purchases made pursuant to the Bid will be made in the open market through the standard facilities of the exchanges on which the Common Shares are listed and the price that the Company will pay for any such Common Shares will be the market price at the time of the acquisition. All purchases will be made in accordance with the requirements of the TSX, La Bolsa de Valores de Colombia (the Colombian Stock Exchange) and Brazil's Bolsa de Valores Mercadorias e Futuros.
The Company is proposing to commence the Bid on June 9, 2014, and have it remain open until the earlier of June 8, 2015 or the date on which the Company has purchased the maximum number of Common Shares permitted under the Bid.
The Company intends to make the Bid because it believes: (i) that the Common Shares may be undervalued from time to time in relation to its current and future business prospects; and (ii) that Common Shares may become available during the period of the Bid at prices that would make the purchase of such Common Shares an appropriate use of available funds and in the best interests of the Company and its shareholders.
Upon purchase, the Common Shares will be cancelled or a portion may be held by the Company to mitigate the obligations of any deferred share compensation plans. A portion of the purchased Common Shares may also be held by the Company's independent pension fund administrator under a portfolio of oil & gas and mining investments.
Pacific Rubiales, a Canadian company and producer of natural gas and crude oil, owns 100% of Meta Petroleum Corp., which operates the Rubiales, Piriri and Quifa heavy oil fields in the Llanos Basin, and 100% of Pacific Stratus Energy Colombia Corp., which operates the La Creciente natural gas field in the northwestern area of Colombia.
Pacific Rubiales has also acquired 100% of Petrominerales Ltd, which owns light and heavy oil assets in Colombia and oil and gas assets in Peru, 100% of PetroMagdalena Energy Corp., which owns light oil assets in Colombia, and 100% of C&C Energia Ltd., which owns light oil assets in the Llanos Basin. In addition, the Company has a diversified portfolio of assets beyond Colombia, which includes producing and exploration assets in Peru, Guatemala, Brazil, Guyana and Papua New Guinea.
The Company's common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC, and PREB, respectively.
Keywords for this news article include: Oil & Gas, Natural Gas, Energy Companies, Pacific Rubiales Energy Corp.
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