Petrominerales Ltd.
TSX : PMG

Petrominerales Ltd.
Petrobank Energy and Resources Ltd.
TSX : PBG

Petrobank Energy and Resources Ltd.

August 31, 2010 13:33 ET

Petrominerales Provides InterOil Update

BOGOTÁ, COLOMBIA--(Marketwire - Aug. 31, 2010) - In connection with the previously announced private placement ("Private Placement") of equity and bonds by InterOil Exploration and Production ASA ("InterOil"), Petrominerales Ltd. ("Petrominerales") (TSX:PMG), a 66% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG), announces that the Municipal Court of Asker and Bærum (the "Court") has dismissed Petrominerales' motion for an injunction to prevent InterOil from completing the Private Placement (the "Injunction").

On August 24, 2010, Petrominerales placed an order for NOK 450 million in InterOil shares at a price of NOK 16.00 per share and NOK 310 million principal amount of InterOil bonds, conditional upon Petrominerales obtaining not less than 50.1% of the outstanding InterOil shares. We also advised the InterOil board that we were willing to provide financing on the same terms as were offered to InterOil by Citibank in the event Citibank chose to withdraw its financing commitment, thereby providing a complete solution for all of InterOil's financial difficulties. We further advised the InterOil board that, upon receiving our allocation under the Private Placement, we would make an offer to acquire all of the remaining InterOil shares at a price of NOK 16.00 per share. On August 25, 2010, InterOil announced that it had disregarded Petrominerales' higher offer and allocated the equity offering for a total of NOK 324 million at a price of NOK 12.50 per share to certain existing shareholders, including the current majority shareholders, and new investors, but excluding Petrominerales. On August 26, 2010, the Court granted a temporary Injunction. Today, following oral hearings, the Court dismissed the Injunction and InterOil announced that the share issue pursuant to the Private Placement has been registered and InterOil will meet its obligations towards the secured bondholders and Citibank.

Although Petrominerales was expecting a different outcome based on our North American experience with respect to corporate governance and minority shareholder rights, we respect the decision and authority of the Court in this matter. Although we are evaluating our alternatives with respect to our current InterOil shareholdings, we do not intend to pursue additional offers for InterOil shares at this time and will direct our resources to other opportunities. 

Petrominerales also announces that, following the registration of the Private Placement, Petrominerales' ownership of InterOil shares has been diluted below 5%. Petrominerales now controls 1,696,867 shares in the company, representing 3.55% of the shares outstanding following the share issue.

Petrominerales Ltd. is a Latin America-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 2.1 million acres in the Llanos and Putumayo Basins and five exploration blocks in Peru covering a total of 9.4 million gross (5.2 million net) acres in the Ucayali and Titicaca Basins. Petrominerales is 66% owned by Petrobank Energy and Resources Ltd. (TSX:PBG).

Contact Information

  • Petrominerales Ltd.
    John D. Wright
    Strategic Adviser and Chairman of the Board
    403.750.4400 or 011.571.629.2701
    or
    Petrominerales Ltd.
    Corey C. Ruttan
    President and Chief Executive Officer
    403.750.4400 or 011.571.629.2701
    or
    Petrominerales Ltd.
    Jack F. Scott
    Chief Operating Officer
    403.750.4400 or 011.571.629.2701
    or
    Petrominerales Ltd.
    Kelly D. Sledz
    Chief Financial Officer
    403.750.4400 or 011.571.629.2701
    ir@petrominerales.com
    www.petrominerales.com