Radial Cancels US$5mn Debenture for Rancho Hermoso

Canadian oil and gas independent Radial Energy (OTC BB: RENG) will pay a US$5mn convertible debenture contracted with Cornell Capital Partners, the company said in a statement.

Radial said it has received US$3.5mn out of the US$5mn and will not take the remaining US$1.5mn tranche.

The oil company is seeking alternative ways to finance the purchase of Colombian oil producer Rancho Hermoso, which operates two fields in Casanare department.

"Radial management is in advanced negotiations to obtain debt financing for its purchase of 100% of Rancho Hermoso shares and intends to seek alternative fixed-price financing for the balance of the acquisition," Radial said.

Rancho Hermoso operates the Rancho Hermoso and Entrerrios fields in the Llanos Basin.

The Rancho Hermoso oilfield was producing 2,827b/d in July 2006 and Entrerrios 2,600b/d-plus, BNamericas previously reported.

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