Petrominerales Ltd.

Petrominerales Ltd.

May 30, 2012 08:00 ET

Petrominerales Announces Normal Course Issuer Bid and Automatic Share Purchase Plan

CALGARY, ALBERTA--(Marketwire - May 30, 2012) - Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG) (BVC:PMGC), is pleased to announce that the Board of Directors of Petrominerales has approved a normal course issuer bid (the "NCIB").

The Toronto Stock Exchange ("TSX") has accepted the Company's notice to make the NCIB to purchase outstanding common shares on the open market, in accordance with the rules of the TSX. As approved by the TSX, Petrominerales is authorized to purchase up to 8,377,935 common shares, representing approximately ten percent of the public float of Petrominerales' common shares as defined by the policies of the TSX, being 83,779,350 common shares. As of today's date, there are 99,786,313 common shares outstanding. On any trading day, Petrominerales will not purchase more than 178,469 common shares.

Petrominerales is authorized to make purchases during the period from June 1, 2012 to May 31, 2013, or until such earlier time as the NCIB is completed or terminated at the option of Petrominerales. Any common shares Petrominerales purchases under the NCIB will be completed through the facilities of a Canadian registered exchange, including the TSX and the Alpha Exchange, or through a Canadian alternative trading systems, including but not limited to, CHI-X Canada, MATCH Now (TriAct Canada), Omega ATS and Pure Trading, at the prevailing market price at the time of the transaction. All common shares acquired under the NCIB will be cancelled.

Petrominerales is also pleased to announce that we have entered into automatic share purchase plan ("Plan") with a broker in order to facilitate purchases of our shares under our NCIB. Under the Plan, our broker may purchase shares on Petrominerales' behalf under the NCIB at times when Petrominerales would ordinarily not be permitted to purchase shares due to self-imposed blackout periods.

The Plan will be implemented as of June 1, 2012. Purchases will be made by our broker based upon the parameters prescribed by the TSX, applicable laws and the terms and conditions of the Plan, until such time as the Plan is terminated at the option of Petrominerales.

Petrominerales believes from time to time, the market price of our common shares may not reflect their underlying value. Our strong balance sheet and cash flow present us with the opportunity to capitalize on the current valuation of Petrominerales in the market which, in our opinion, does not fairly represent the value and potential of our asset base. The purchase of common shares for cancellation will be advantageous to our shareholders by increasing the value of shares remaining.

Petrominerales acquired 4,678,381 common shares under our prior NCIB which expired May 26, 2012, at a weighted average price of $26.70.

Petrominerales Ltd. is an international oil and gas company operating in Latin America since 2002. Today, Petrominerales is the most active exploration company and the fourth largest oil producer in Colombia. Our high quality land base and multi-year inventory of exploration opportunities provides long-term growth potential for years to come.

Contact Information

  • Petrominerales Ltd.
    Corey C. Ruttan
    President and Chief Executive Officer
    403.705.8850 or 011.571.629.2701

    Petrominerales Ltd.
    Jack F. Scott
    Chief Operating Officer
    403.705.8850 or 011.571.629.2701

    Petrominerales Ltd.
    Kelly D. Sledz
    Chief Financial Officer
    403.705.8850 or 011.571.629.2701