TORONTO, April 13, 2011 /PRNewswire/ -- Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC) announced today that it has closed the amendment (the "Amendment") to its existing US$250 million unsecured revolving credit facility (the "Revolving Credit Facility"). As a result of the great interest generated amongst the lending syndicate, the amount of the Revolving Credit Facility was increased from the US$250 million initially committed by the lenders in April 2010 to US$350 million. Bank of America Merrill Lynch acted as Global Coordinator and Sole Bookrunner.
The Amendment was limited to the same lenders under the Revolving Credit Facility and, in addition to increasing its amount of the facility from US$250 million to US$350 million, under the terms of the Amendment the Company extended the term of the Revolving Credit Facility to April, 2013 and reduced the applicable commitment fees and the applicable margin.
To date, the Company has not drawn down any funds from the Revolving Credit Facility and the Company does not expect to require any proceeds from the Revolving Credit Facility to fund its 2011 capital expenditure budget. The Revolving Credit Facility will be utilized as needed to take advantage of opportunities in the Colombia E&P sector that may become available and to fulfill the Company's business strategy.
The applicable margin and commitment fees of the Revolving Credit Facility will continue to be determined in accordance with the rating assigned to the Company's senior debt securities by Standard & Poor's Ratings Group and Fitch Inc. Based on the Company's current rating and expected usage, the commitment fee will be reduced from 100 bps to 75 bps and the applicable margin from 325 bps to 250 bps over LIBOR.
Subject to customary acceleration events set forth in the credit agreement relating to the Revolving Credit Facility, or unless terminated earlier by the Company without penalty, repayment of outstanding principal on the Revolving Credit Facility will be made in full on April 26, 2013.
Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has a current net production of approximately 88,000 barrels of oil equivalent per day, after royalties, with working interests in 40 blocks in Colombia, Peru and Guatemala.
The Company's common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia under the ticker symbols PRE and PREC, respectively.
Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 5.7 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
FOR FURTHER INFORMATION
Mr. Ronald Pantin
Chief Executive Officer and Director
Mr. Jose Francisco Arata
President and Director
(416) 362 7735
Ms. Belinda Labatte
Investor Relations, Canada
(647) 428 7035
Ms. Carolina Escobar V
Investor Relations, Colombia
+ (57 1) 628 3970
Cautionary Note Concerning Forward-Looking Statements
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, reserve and resource estimates, potential resources and reserves and the Company's exploration and development plans and objectives) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of estimates of capital and operating costs, production estimates and estimated economic return; the possibility that actual circumstances will differ from the estimates and assumptions; failure to establish estimated resources or reserves; fluctuations in petroleum prices and currency exchange rates; inflation; changes in equity markets; political developments in Colombia or Peru; changes to regulations affecting the Company's activities; uncertainties relating to the availability and costs of financing needed in the future; the uncertainties involved in interpreting drilling results and other geological data; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 10, 2011 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE Pacific Rubiales Energy Corp.