Pacific Rubiales, a Canadian based oil company and natural gas producer, announced that it will purchase 85,714,285 units of CGX Energy, Inc. stock, for an investment of C$30 million.
According to Market Watch, the group is also entering in to an agreement with CGX to provide tech assistance to the company with respect to its operations. They will also be able to participate in the next commitment wells in Guyana, on the Coretyne and Annex offshore drilling platforms.
They will be funding the new projects at 50%, and in exchange will receive a 33% interest in each Petroleum Production License (PPL).
The Canadian-based oil company already owns 58.7 million (about 18 percent) of CGX shares, according to Reuters.
Market Watch reports that Ronald Pantin, Chief Executive Officer of the Company, stated of the announcement that:
“This is a great opportunity for the Company to expand its investment in the highly prospective offshore Guyana oil play. Through our ownership in CGX, the technical services agreement and a direct earning option, the Company will be participating in an exploration campaign in an offshore basin with analogous geology to West Africa and Brazil.”
Pantin went on to say that:
“We are looking forward to working with the management of CGX on realizing the potential of offshore Guyana. This investment is strategic to the Company’s objective of being the leading Latin American independent explorer and producer of hydrocarbons.”
Pacific Rubiales already owns 100 percent of Meta Petroleum Corp, which is a Colombian oil producer that operates the Rubiales, Priri and Quifa oil fields in the Llanos Basin. They operate in association with Ecopetrol, S.A., according to Market Watch, which is the Colombian national oil company.
CGX began drilling off of Guyana’s coast following the South American nation’s invitation for them and the Spanish oil compant Repsol to explore for oil for the first time in 10 years.