Bolivar Energy Corp. Announces the purchase of Pacific Rubiales Energy's 32.5% stake in the Arrendajo Block, Llanos Basin, Colom
January 25 2011 - 8:05AM
PR Newswire (Canada)
CALGARY, Jan. 25 /CNW/ -- /NOT FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR FOR DISSEMINTATION IN THE UNITED STATES/
CALGARY, Jan. 25 /CNW/ - Bolivar Energy Corp. ("Bolivar" or the
"Company") is pleased to announce that it has entered into a
purchase agreement with Pacific Rubiales Energy Corp. ("Pacific
Rubiales") whereby Bolivar will purchase Pacific Rubiales' 32.5%
interest in and operatorship of the Arrendajo Block in the Llanos
Basin, Colombia. Final approval of the arrangement is subject to
regulatory approval by the Agencia Nacional de Hidrocarburos
("ANH") and by partners in the Block. For the purchase of the
32.5% operating interest in the Arrendajo Block, Bolivar will pay
US$6.5 million cash in addition to reimbursing Pacific Rubiales
approximately US$3.44 million for its share of phase 5 and 6 costs
already incurred. Going forward, Bolivar will assume any future
costs in its 32.5% pro-rata participating interest for the combined
phases 5 and 6 of the Exploration and Production Contract. John
Moreland, President and CEO of Bolivar states: "Bolivar is very
excited at the prospect of assuming a material ownership stake in
the Arrendajo Block. We are encouraged by the technical merit and
potential of the Block and look forward to near-term news flow from
the expected Q1/2011 drilling of a well. We are pleased to have
concluded this initial deal with Pacific Rubiales and look forward
to a long and prosperous relationship with them in the
future." Work on the Arrendajo Block is currently
ongoing, with three separate 3D seismic acquisition programs in
progress. The partners in the Block intend to commence the drilling
of a well on the Arrendajo Block in Q1/2011. The Arrendajo
Block comprises 31,606 gross hectares (10,272 net) and offers
multi-zone stacked potential. The Block is located close to
numerous producing fields in the Central Llanos Basin which
include: Las Abejas, Chaparrito, Los Toros, Palmarito, Sirenas,
Corocora and Dorotea. The Offering: Bolivar is also pleased to
announce that it has entered into an agreement with Raymond James
Ltd. and Haywood Securities Inc. as co-lead underwriters and
including Paradigm Capital Inc. (collectively, the "Underwriters"),
for the sale of 70,588,300 units of the Company (the "Units"), on a
bought deal basis, at a price of $0.17 per Unit for gross proceeds
of $12,000,011 (the "Offering"). Each Unit shall consist of one
common share of the Company (the "Common Shares") and one-half of
one Common Share purchase warrant of the Company (each whole
warrant, a "Warrant"). Each Warrant will be exercisable for one
additional Common Share at a price of $0.25, subject to adjustment,
for a period of 24 months from the Closing Date (as defined below).
In addition, the Underwriters shall have the option to purchase up
to an additional 15% of the Units issued, exercisable in whole or
in part at any time up to 48 hours prior to the Closing Date, at
the same price and terms as the Offering for additional gross
proceeds of up to $1,800,002. The net proceeds from the Offering
will be used to fund the exploration and development of the
Company's petroleum assets in Colombia and for general business
development, acquisitions, and working capital purposes. The Units
will be offered by way of private placement to accredited investors
under applicable securities laws in the Provinces of Quebec,
Ontario, Alberta, Saskatchewan and British Columbia and such other
jurisdictions in Canada as the Co-lead Underwriters and the
Corporation may agree. The Offering is scheduled to close on or
about February 15, 2011 (the "Closing Date") and is subject to
certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the TSX Venture
Exchange and the securities regulatory authorities. This news
release does not constitute an offer to sell or a solicitation of
an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "1933 Act"),
or any state securities laws and may not be offered or sold within
the United States or to, or for the account or benefit of U.S.
persons (as defined in Regulation S under the 1933 Act) absent such
registration or an applicable exemption from such registration
requirements. About Bolivar Energy Corp. Bolivar Energy Corp. is an
early stage exploration company active in the Llanos Basin in
Colombia, and trading on the TSX Venture Exchange under the symbol
"BVR". Forward-Looking Statement This news release includes
forward-looking statements related to the expected occurrences in
relation to the properties identified. A multitude of factors
can cause actual events to differ significantly from any
anticipated development and although the Company believes that the
expectations represented by such a forward-looking statement are
reasonable; there can be no assurance that such expectations will
be realized. These forward looking statements are based
upon assumptions that the Company has made concerning the oil and
gas industry in Colombia, the reliability of available data
regarding the properties, and the continuing market for oil and
gas. Risk factors may include the uncertainty of conducting
operations under a foreign regime, the availability of labour and
equipment, the fluctuating price of oil and gas, and the Company's
dependence upon other participants in the property areas.
Neither the Company nor any of its subsidiaries nor any of its
officers or employees guarantees that the assumptions underlying
such forward-looking statements are free from errors, nor do any of
the foregoing accept any responsibility for the future accuracy of
the opinions expressed in this document or the actual occurrence of
the forecasted developments. To view this news release in HTML
formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/January2011/25/c4994.html
p/p tabletr valign="top"td align="left"Bolivar Energy Corp.br/ John
Morelandbr/ President and Chief Executive Officerbr/ Telephone:
(403) 802 0770 a
href="mailto:john.moreland@bolivarenergycorp.com"john.moreland@bolivarenergycorp.com/a/td
td align="left"Bolivar Energy Corp.br/ Peter Argirisbr/ Chief
Financial Officerbr/ Telephone: (403) 802 0770 a
href="mailto:peter.argiris@bolivarenergycorp.com"peter.argiris@bolivarenergycorp.com/a/td/tr/table
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