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Pacific Rubiales announces U.S.$320 million sale of interest in Pacific Midstream to IFC
Pacific Rubiales announces U.S.$320 million sale of interest in Pacific Midstream to IFC.
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[{"type":"text","content":"\n\n\n\nPacific Rubiales announces U.S.$320 million sale of interest in Pacific Midstream to IFC\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntaj{\nTEXT-ALIGN: JUSTIFY\n}\n\n\n\n\n\n\nPacific Rubiales announces U.S.$320 million sale of interest in Pacific Midstream to IFC\nPR Newswire\nTORONTO, Dec. 17, 2014\n\n\n\nTORONTO, Dec. 17, 2014 /PRNewswire/ - Pacific Rubiales Energy Corp. (TSX: PRE) (BVC: PREC) (BOVESPA: PREB) announced today that it has executed definitive agreements with the International Financial Corporation (\"IFC\"), a member of the World Bank Group, the IFC Global Infrastructure Fund (\"GIF\" managed by the IFC Asset Management Company LLC) and a consortium of investors, whereby it has agreed to sell approximately 43% of its interest in Pacific Midstream Ltd. (\"Pacific Midstream\"), which holds certain of the Company's pipeline and power transmission assets, for a total consideration of U.S.$320 million. \n\nThe agreements will provide the Company with U.S.$240 million in cash, which will be received by year-end. In addition, Pacific Midstream will receive U.S.$80 million in the first quarter of 2015, plus a commitment for an additional U.S.$60 million in cash to develop future infrastructure projects. \n\nRonald Pantin, Chief Executive Officer of the Company, commented:\n\n \"We are pleased to announce this sale, which will significantly improve our cash position and provide additional flexibility as we enter into an uncertain oil price environment in 2015. The participation by IFC underlines the strategic importance and value of our infrastructure assets in Colombia. We will continue to hold a majority interest in Pacific Midstream and capacity rights in its assets, allowing us to maintain the cost advantages that we currently enjoy with respect to crude oil transportation and low cost electricity in our main oil fields in Colombia.\n\n\"Our financial and capital strategy is focused on maintaining a healthy balance sheet and ensuring funding for our future growth, while generating strong returns to our shareholders. In light of the current w...