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Press release from Marketwire

Petrominerales With Ecopetrol and Pacific Rubiales Announce Closing of A COP$ 2.1 Billion Debt Facility for the Araguaney to Banadia Pipeline

(Oleoducto Bicentenario Phase 1)

Friday, May 11, 2012

Petrominerales With Ecopetrol and Pacific Rubiales Announce Closing of A COP$ 2.1 Billion Debt Facility for the Araguaney to Banadia Pipeline13:10 EDT Friday, May 11, 2012CALGARY, ALBERTA--(Marketwire - May 11, 2012) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG) (BVC:PMGC); Ecopetrol and Pacific Rubiales Energy Corp. are pleased to announce that Oleoducto Bicentenario S.A. (Bicentenario) has closed a debt facility for approximately US$1,200 million, to the equivalent of COP$2,1 billion. The loan has been provided by a syndicate of ten Colombian Banks. Bicentenario is a special-purpose vehicle owned 55,97% by Ecopetrol S.A., 32,88 % by Pacific Rubiales Energy, 9,65% by Petrominerales, and the remainder owned by other E&P companies operating in Colombia. The credit facility will be drawn down by Bicentenario mainly for the following purposes: (i) Advanced payment of part or total of the subordinated shareholders loans; (ii) to finalize the completion of Phase 1 of the project; (iii) working capital; financial costs; and (iv) general costs and expenses.The facility has an interest rate of DTF + 4.54%, a maturity of 12 years with a 1 year grace period. The loan is non-recourse to the sponsors. Bicentenario shareholders will be signing ship- or -pay contracts for the transportation of their own production.This facility ensures funding for the completion of Phase 1 of the Bicentenario pipeline project. The project financing structure aims at a debt/equity ratio of 70/30% for the company. Further phases of the project will seek similar structure once the final investment decision is made. Phase 1:Phase 1 of the project is expected to be operational in the fourth quarter of 2012. Phase 1 will connect the Los Llanos prolific oil basin to the Caño Limón Colombian oil transportation system and on to the Port of Coveñas. Sponsor transportation costs will be significantly reduced, thus allowing to increase production from the area. Phase 1 scope includes a 240 km x 42 inch pipeline from Araguaney Station to Banadía Station. This will enable transport capacity to be expanded by 120,000 bbls/day.The debt facility has been structured by Corporación Financiera Colombiana S.A. (CORFICOLOMBIANA) and Bicentenario has been advised by Nexus Banca de Inversión throughout the financing of the project. The Lead Agent was Bancolombia S.A.Petrominerales an international oil and gas company operating in Latin America since 2002. Today, Petrominerales is the most active exploration company and the fourth largest oil producer in Colombia. Our high quality land base and multi-year inventory of exploration opportunities provides long-term growth potential for years to come.Forward‐Looking Statements.Certain information provided in this press release constitutes forward‐looking statements. Specifically, this press release contains forward‐looking statements relating to the Company's future exploration and development activities and the timing for bringing wells on production. The forward‐looking statements are based on certain key expectations and assumptions, including expectations and assumptions concerning the availability of capital, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, prevailing commodity prices and economic conditions, the availability of labour and services, the ability to transport and market our production, timing of completion of infrastructure and transportation projects, weather and access to drilling locations. 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. You can find a discussion of those risks and uncertainties in our 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, recompletions and related activities; timing and rig availability; availability of transportation and offloading capacity, outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; risks associated with oil and gas operations; 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 forecasts. 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: Corey C. RuttanPetrominerales Ltd.President and Chief Executive Officer+1 403.920.0124 or +57 1.629.2701ORJack F. ScottPetrominerales Ltd.Chief Operating Officer+1 403.920.0124 or +57 1.629.2701ORKelly D. SledzPetrominerales Ltd.Chief Financial Officer+1 403.920.0124 or +57 1.629.2701