Parex Announces Colombia Acquisition
Parex Resources Inc., a company focused on oil exploration and production in Colombia and Trinidad, yesterday [Apr.12] announced an acquisition of the class A common shares of a Bermuda based, Colombian focused private company.
Parex, through a wholly owned subsidiary, has entered into a purchase and sale agreement with a Bermuda based subsidiary of Nabors Industries Ltd., to acquire its wholly owned subsidiary [“Targetco”], the operations of which include interests in five exploration blocks located in Llanos Basin and two blocks located in Middle Magdalena Basin in Colombia for a total of approximately 567,000 gross acres [276,000 net acres].
The Acquisition closed on April 12, 2012 with an effective date of February 29, 2012. RBC Capital Markets acted as financial advisor to Parex in respect of the Acquisition, and FirstEnergy Capital Corp. acted as strategic advisor.
The consideration paid for Targetco shares was approximately US$72.6 million in cash, including customary closing adjustments. Targetco has no bank debt and an estimated working capital deficiency as at February 29, 2012 of $2.4 million.
Parex will also be assuming $17.7 million of letters of credit related to Targetco’s interests post closing. The Acquisition was funded by Parex’ working capital. Parex is also in the process of securing a $50 million revolving credit facility with a Canadian chartered bank.
