PetroLatina reported that, following the announcement made on May 19, 2008, Tribeca Oil and Gas, Inc. ("TOGI"), a portfolio investment company of Tribecapital Partners S.A., has now completed its total investment of US$25 million in the Company.
TOGI initially invested US$10 million in the Company by way of convertible secured loan notes. These Notes have today been converted by TOGI into 5,890,080 new ordinary shares of US$0.50 each, at a conversion price of £0.86 per Ordinary Share.
TOGI has today invested a further US$15 million in the Company by way of a subscription for 9,470,919 Ordinary Shares. This represents an increase of 635,799 Ordinary Shares from the number of subscription shares referred to in the announcement made on May 19, 2008, due to the issuance of shares in respect of certain historic contingent liabilities. Accordingly, TOGI has today been allotted, in aggregate, 15,360,999 Ordinary Shares (the "TOGI Shares").
All related security held by TOGI relating to the Company and members of its group since May 16, 2008 has now been released.
As part of the consideration for the Subscription, TOGI has also been granted 1,875,260 warrants which are automatically exercisable, for no additional consideration, into 1,875,260 Ordinary Shares if, and to the extent that, any exercise of the Company's existing outstanding 3,482,625 warrants occurs.
As announced previously, the new funds will provide the Company with additional cash resources to meet certain outstanding liabilities and fund its ongoing work program in Colombia. The Company is embarking on a promising development and exploration program over the next few months, and currently intends to commence drilling a minimum of four wells during the remainder of 2008.
Following completion of the Subscription, TOGI now holds Ordinary Shares representing, in aggregate, a 35%interest in the Company. The transaction represents an investment by TOGI at a price of £0.73 per share on a fully diluted basis, or £0.83 per share on an issued share capital basis.
Luc Gerard, President of Tribeca, commented, "We're delighted to have secured a substantial stake in PetroLatina. The Company has positive cash flow and a specific investment plan to increase production through development wells and drill exploration wells in blocks such as La Paloma, that show tremendous reserves potential. Additionally, the Company has the capability to transport a much larger throughput with respect to its Rio Zulia - Ayacucho pipeline in the event that production from the Rio Zulia or Tibu fields increases as currently anticipated by Ecopetrol. Accordingly, we believe that the Company has tremendous potential for increasing shareholder value."
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