Earlier this month, Orinoquia Capital Ltd. acquired more than 25.1 million common shares of Canadian energy company PMI Resources Ltd. The share gain was the result of an April 4 merger between a wholly owned subsidiary of the Vancouver-based PMI Resources and the Bogotá-based oil and gas company PentaNova Energy Corp.
“Pursuant to the merger, each outstanding share of PentaNova was cancelled in exchange for an entitlement to receive shares in PMI,” according to PMI Resources. This development, in line with the British Virgin Islands Business Company Act, per the company, gave Orinoquia Capital the 25.1 million shares, or 13.74% of the outstanding common shares of PMI Resources.
“The company acquired the common shares for investment purposes,” said PMI Resources in a statement. “The company will evaluate its investment in PMI from time to time and may — based on such evaluation, market conditions, and other circumstances — acquire further common shares, or other securities of PMI, or dispose of its holdings of securities of PMI.”
PMI Resources and PentaNova Energy closed on a C$45,000,000 private placement in February. According to the company, this followed PentaNova’s move to enter into definitive agreements to acquire an interest in three blocks in northern Colombia. The arrangement called for PentaNova to receive an 80% interest in the Maria Conchita Block, an 80% interest in the SN-9 Block, and a 60% interest in the Tiburon Block.
“We are extremely pleased with the success of the private placement financings and with our ability to secure such high quality assets,” said Luciano Biondi, chief executive officer of PentaNova, in a statement earlier this year. “We look forward to closing of the acquisition and our next steps in the development of these assets.”