TORONTO, July 24, 2012 /CNW/ - PetroMagdalena Energy Corp. (TSX-V: PMD) is pleased to announce that the Supreme Court of British
Columbia has issued a Final Order approving the Plan of Arrangement
involving PetroMagdalena, holders of common shares and common share
purchase warrants of PetroMagdalena (collectively, "Securityholders") and 0942183 B.C. Ltd., a wholly owned subsidiary of Pacific Rubiales
Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB).
Receipt of the Final Order follows PetroMagdalena's special meeting of
Securityholders held on July 23, 2012 wherein approximately 95.87% of
all Securityholders, present in person or represented by proxy and
voting as a single class, voted in favour of the Plan of Arrangement.
Under the Plan of Arrangement, (i) each former holder of common shares
will receive C$1.60 in cash for each common share held immediately
prior to the Plan of Arrangement becoming effective, and (ii) each
former holder of common share purchase warrants will receive C$0.25 in cash for each common share purchase warrant held immediately
prior to the Plan of Arrangement becoming effective. Further details
regarding the Plan of Arrangement are set out in PetroMagdalena's
notice of special meeting of Securityholders and Information Circular
dated June 21, 2012, a copy of which is available at www.sedar.com under PetroMagdalena's profile and on PetroMagdalena's website www.petromagdalena.com.
Assuming all conditions of the Plan of Arrangement are satisfied or
waived, PetroMagdalena expects the Plan of Arrangement to become
effective on or about July 27, 2012. If the Plan of Arrangement is
effected on July 27, 2012, the common shares and common share purchase
warrants will be delisted from the TSX Venture Exchange at the close of
business on July 30, 2012.
About PetroMagdalena Energy Corp.
PetroMagdalena is a Canadian-based oil and gas exploration and
production company, with working interests in 19 properties in five
basins in Colombia. Further information can be obtained by visiting our
website at www.petromagdalena.com.
Certain information contained in this news release, including any
information relating to the proposed transaction (the "Transaction") and or future financial or operating performance of PetroMagdalena
may be deemed "forward-looking". These statements relate to future
events or future performance and reflect PetroMagdalena's expectations
regarding the Transaction, and the future growth, results of
operations, business prospects and opportunities of PetroMagdalena,
Pacific Rubiales and the combined company. These forward-looking
statements also reflect PetroMagdalena's current internal projections,
expectations or beliefs and are based on information currently
available to each party, respectively. These forward-looking statements
are subject to a variety of risks and uncertainties that are identified
and disclosed in the Annual Information Form of PetroMagdalena for the
year ended December 31, 2011. In some cases forward-looking information
can be identified by terminology such as "may", "will", "should",
"expect", "intend", "plan", "anticipate", "believe", "estimate",
"projects", "potential", "scheduled", "forecast", "budget" or the
negative of those terms or other comparable terminology. Assumptions
upon which such forward-looking information regarding completion of the
Transaction is based include that each party will be able to satisfy
the conditions to the Transaction, that all third party regulatory and
governmental approvals to the Transaction will be obtained and all
other conditions to completion of the Transaction will be satisfied or
waived. Although PetroMagdalena believes that the forward-looking
information contained in this news release is based on reasonable
assumptions, readers cannot be assured that actual results will be
consistent with such statements. Accordingly, readers are cautioned
against placing undue reliance on forward-looking information.
PetroMagdalena expressly disclaims any intention or obligation to
update or revise any forward-looking information, whether as a result
of new information, events or otherwise, except in accordance with
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news
SOURCE: PetroMagdalena Energy Corp.
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