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Pacific Rubiales (TSX:PRE) to Acquire Petrominerales (TSX:PMG)

Written By Jason Stutman

Posted September 30, 2013

Pacific Rubiables (TSX:PRE) to Acquire Petrominerals (TSX:PMG)

Canada’s Petrominerales Ltd. (TSX: PMG) is to be acquired by Pacific Rubiales Energy Corp. (TSX: PRE) for a purchase price of $907 million. Under the agreement, Petrominerales shareholders will receive $11.00 per common share plus one share of ExploreCo, a newly formed exploration and production company. The purchase price represents a 42 percent premium on Petrominerales last traded price. Petrominerales is currently up 8 percent in premarket.

This is just one of nearly a dozen acquisitions by Pacific Rubiales in the last two years. The bulk of the company’s reserves currently hold heavy crude, but this deal gives it access to low-density crude. Pacific will surely benefit from the low-cost transportation of light oil.

China’s Energy Endgame

There’s a serious difference between the U.S. policy of embracing all forms of energy and China’s own plan to secure future energy supplies: China isn’t stopping at its borders. From Venezuela to Brazil to Kazakhstan, China is dishing out huge sums of cash to support its growing energy consumption. But while the endgame for the U.S. is simply energy independence, China has a much bigger target it mind. For more on China’s endgame, and how to tap into those profits, click here. 

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