TORONTO,
May 29, 2012 /PRNewswire/ -
PetroMagdalena Energy Corp. (TSXV: PMD) announced today that it has
received TSX Venture Exchange approval of its previously announced
proposed issuance of shares to settle certain debt owed to Pacific
Rubiales Energy Corp. in connection with the exploration program at
the Topoyaco and Las Quinchas blocks (see press release dated
May 14, 2012).
The Company confirms that it has issued
2,124,616 shares in the capital of the Company at a deemed price of
CA$1.29 per share in order to settle a debt of approximately
US$2.7 million owed to Pacific
Rubiales in connection with cash calls as at March 31, 2012 for the Topoyaco and Las Quinchas
blocks. After this issuance, the current issued and outstanding
number of common shares in the capital of the Company is
149,241,520.
The Company also announces that it has issued
85,000 options to its most recently appointed director, Mr.
Nelson Ortiz, at an exercise price
of CA$2.10 with an expiry date of March 30,
2017, which options vested immediately upon grant.
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.
All monetary amounts in U.S. dollars unless
otherwise stated. This news release contains certain
"forward-looking statements" and "forward-looking information"
under applicable Canadian securities laws concerning the business,
operations and financial performance and condition of
PetroMagdalena. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to estimated production and reserve life of the various oil
and gas projects of PetroMagdalena; the estimation of oil and gas
reserves; the realization of oil and gas reserve estimates; the
timing and amount of estimated future production; costs of
production; success of exploration activities; and currency
exchange rate fluctuations. Except for statements of historical
fact relating to the company, certain information contained herein
constitutes forward-looking statements. Forward-looking statements
are frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate", "estimate" and other
similar words, or statements that certain events or conditions
"may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are
made, and are based on a number of assumptions and subject to a
variety of risks and uncertainties and other factors that could
cause actual events or results to differ materially from those
projected in the forward-looking statements. Many of these
assumptions are based on factors and events that are not within the
control of PetroMagdalena and there is no assurance they will prove
to be correct. Factors that could cause actual results to vary
materially from results anticipated by such forward-looking
statements include changes in market conditions, risks relating to
international operations, fluctuating oil and gas prices and
currency exchange rates, changes in project parameters, the
possibility of project cost overruns or unanticipated costs and
expenses, labour disputes and other risks of the oil and gas
industry, failure of plant, equipment or processes to operate as
anticipated. Although PetroMagdalena has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
PetroMagdalena undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions
should change except as required by applicable securities laws. The
reader is cautioned not to place undue reliance on forward-looking
statements.
Statements concerning oil and gas reserve
estimates may also be deemed to constitute forward-looking
statements to the extent they involve estimates of the oil and gas
that will be encountered if the property is developed. Boe may be
misleading, particularly if used in isolation. A boe conversion
ratio of 6 mcf:1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Estimated values of
future net revenue disclosed do not represent fair market
value.
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 release.
SOURCE PetroMagdalena Energy Corp.