Pacific Rubiales Energy Corp. announced the closing of a US$50 million one-year term loan which is being provided by Citibank N.A. Nassau Bahamas Branch. The borrower is Meta Petroleum Corp. (a 100% operating subsidiary of the company) for use in the company's 2009 capital expenditure program. It will be drawn in one tranche on or about April 7, 2009 and will bear interest at a rate of 5.5% above the Citibank quoted rate for dollars in the London market. The loan includes standard terms and conditions for a facility of this nature and does not contain any prepayment penalties. Pacific Rubiales and Pacific Stratus Energy Colombia Corp. have provided guarantees to support the obligations of Meta Petroleum as borrower.
The company intends to repay this loan upon the closing of its previously announced US$100 million senior secured revolving credit facility, expected to close later this month.
Pacific Rubiales was advised in the transaction by Endeavour Financial International Corporation.
Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales and Piriri oil fields in the Llanos Basin in association with Ecopetrol S.A., the Colombian national oil company. The company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has a current net production of approximately 34,000 barrels of oil equivalent per day, with working interests in 34 blocks in Colombia and Peru.
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