Platino Energy Corp., is pleased to announce that it has closed the previously announced acquisition of all the shares of Colombia Energy Development Company pursuant to a purchase agreement dated 13 October 2014. The aggregate purchase price paid by Platino on closing was approximately US$49 million in cash.
Over the next few weeks Platino plans to start consolidating its existing operations with the newly acquired blocks at both field and office level, beginning execution of Platino's plan for production cost optimisation, finalising plans and timing for identified production growth opportunities in the CEDCO portfolio, and beginning discussions with nearby operators on operational synergies. Platino anticipates providing an operational update as well as 2015 capital spending and production guidance prior to year-end.
Platino also announced that their existing Coati, Put-8, and Andaquies exploration and production contracts have been formally amended by the Agencia Nacional de Hidrocarburos to reflect Platino as the formal holder, and where applicable, formal operator of said contracts.
In connection with the transaction, Platino’s subsidiary has entered into a new US$15 million secured credit facility with BANCO COLPATRIA MULTIBANCA COLPATRIA S.A. Platino drew approximately US$7.5 million on the new credit facility to fund a portion of the purchase price for the CEDCO shares. The balance of the purchase price was financed from their cash on hand.
Adpted from press release by Joe Green