PetroFalcon Gets Closer to Lundin Purchase

Venezuelan company PetroFalcon is one step closer to acquiring Lundin Venezuela. The company announced that it has received approval from its shareholders, and it now just waits for final approval from the Venezuelan Ministry of Energy and Petroleum.

Previously announced, the acquisition includes 100% of Lundin Venezuela's outstanding shares at a 33% premium, as well as a private placement with Lundin BV, the subsidiary of Lundin Petroleum. This has been conditionally approved by the Toronto Stock Exchange.

Lundin Venezuela owns 5% of Baripetrol, S.A., which is a JV between it and PDVSA, Tecpetrol de Venezuela and Perenco Oil and Gas International. Producing both oil and natural gas, Baripetrol operates the 297,000-acre Colon Block onshore western Venezuela.

PetroFalcon is eager to strengthen its involvement in Venezuela. The company currently owns 40% of PetroCumarebo, a JV with Petroleos de Venezuela. PetroFalcon is also in the process of buying 30% of the Chevron-operated Cardon III Block in the Gulf of Venezuela. PetroFalcon is listed with the Toronto Stock Exchange.