Monday, April 30, 2012
Pacific Rubiales Partnering Up With Short Sale Target Interoil !
TORONTO, April 30, 2012 - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) announced today that it has signed a binding agreement with InterOil Corporation (NYSE: IOC; POMSoX: IOC) whereby it can acquire a 10% net participating interest in the PPL237 Petroleum Prospect License and the Triceratops structure located within PPL237, onshore in Papua New Guinea for an estimated total investment of up to approximately U.S.$345 million. The investment will be comprised of an up-front down payment of U.S.$116 million cash, funding of an agreed exploration work program, and cash payments based on the independently certified resources of the Triceratops structure. The Company's net participating interest is calculated after accounting for a 5% total project back-in right of the Government of Papua New Guinea.
Ronald Pantin, Chief Executive Officer of the Company, commented: "This is an exciting opportunity for the Company to participate in a low risk, high return investment. This farm-in has been structured in a way that limits the Company's down side risk in a very prospective region. The bulk of our investment will only be made if we receive independent certification of the resource potential at the Triceratops structure and once Triceratops is in production, our share of the investment will be funded through a portion of the production Proceeds."