Press release from Marketwire
Petrominerales Prices $550 Million Convertible Note Offering
Thursday, August 12, 2010
BOGOTA, COLOMBIA--(Marketwire - Aug. 12, 2010) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG), a 66% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG), is pleased to announce that we have priced our previously announced offering (the "Offering") of US$550 million principal amount convertible notes (the "Notes"). The Offering is being led by ABG Sundal Collier Norge ASA as sole bookrunner.
The Notes to be issued by Petrominerales are convertible into common shares of Petrominerales, have annual coupon 2.625% and a conversion price of US$34.746 (Cdn$36.254) per Note, representing a conversion premium of 35% to the volume weighted average Petrominerales share price on the Toronto Stock Exchange during the three day trading period from August 10, 2010 to August 12, 2010 of US$25.74 (Cdn$26.80).
The Notes will be issued at 100% of their principal amount and, unless previously redeemed, converted or cancelled, will mature in 2016. The Notes are expected to be issued on or about August 25, 2010. The Offering is subject to certain approvals, including the approval of the Toronto Stock Exchange.
This Offering further enhances Petrominerales' already substantial financial flexibility and strengthens our balance sheet. It is expected that the proceeds of the Offering will be used to fund our oil and gas exploration and development activities in Colombia and Peru, and may be used to capitalize on potential acquisition opportunities as they arise.
Petrominerales Ltd. is a Latin America-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 2.1 million acres in the Llanos and Putumayo Basins and five exploration blocks in Peru covering a total of 9.4 million gross (5.2 million net) acres in the Ucayali and Titicaca Basins. Petrominerales is 66% owned by Petrobank Energy and Resources Ltd. (TSX:PBG).
Certain information provided in this press release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Specifically, this press release contains forward-looking statements relating to an offering of convertible notes, including expected terms of the Offering, timing for completion of the Offering and anticipated use of proceeds. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. A discussion of those risks and uncertainties can be found in the Company's Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; fluctuations in oil prices; the results of exploration and development drilling; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; timing of receipt of regulatory approvals; investor demand for the Offering; and other factors, many of which are beyond the control of the Company. There is no representation by Petrominerales that actual results achieved during the forecast period will be the same in whole or in part as those forecast. Except as may be required by applicable securities laws, Petrominerales assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Petrominerales Ltd. John D. Wright Chairman and Strategic Advisor 403.750.4400 or 011.571.629.2701or
Petrominerales Ltd. Corey C. Ruttan President and Chief Executive Officer 403.750.4400 or 011.571.629.2701or
Petrominerales Ltd. Jack F. Scott Chief Operating Officer 403.750.4400 or 011.571.629.2701or
Petrominerales Ltd. Kelly D. Sledz Chief Financial Officer 403.750.4400 or 011.571.629.2701 email@example.com www.petrominerales.com