2009-08-16-2008-08-01-2008-10-01

Bought co. holding 747,000 acres in Catatumbo, Lower, Middle and Upper Magdalena, Llanos basins, gaining 10.3 MMBOE 2P, 24.2 MM 3P.

Pacific Rubiales Energy Corp., Toronto, (Toronto: PEG) has acquired Colombian company Kappa Energy Holdings Ltd. for approximately US$168 million in cash. Kappa holds exploration and production licenses in Colombia totaling 747,000 acres consisting of nine leased and operated blocks in the Catatumbo, Lower, Middle and Upper Magdalena, and Llanos basins. Reserves as of May 31 were approximately 10.3 million barrels of oil equivalent proved and probable, and 24.2 million equivalent proved, probable and possible. The deal was financed through a convertible unsecured subordinated debt offering of C$240 million with an 8% coupon and a conversion price of C$13. GMP Securities LP was financial advisor.