Petroamerica Oil Corp. (TSX-V: PTA), has announced that it has completed a vertical amalgamation with its wholly-owned subsidiaries, Aries Exploration Corp., Petroamerica Inc. and Petroamerica International Corp. pursuant to subsection 184(1) of the Business Corporations Act of Alberta, Canada (ABCA). Each of the subsidiaries is a private company incorporated under the ABCA.
Petroamerica Oil Corp. is a Canadian oil and gas exploration and production company with interests in fifteen blocks, located in Colombia’s Llanos and Putumayo Basins. It trades on the TSX Venture Exchange under the symbol PTA.
The vertical amalgamation did not require shareholder approval and was completed to simplify the corporate structure of Petroamerica, said the company in a written statement. No securities were issued in connection with the vertical amalgamation, and the shares of the subsidiaries were cancelled without any repayment of capital with respect to them.
Petroamerica Oil Corp. on November 12 agreed to be purchased by Gran Tierra Energy, Inc. (TSX and NYSE: GTE). With shareholders receiving either 0.4 share of Gran Tierra Energy for each share of Petroamerica Oil Corp stock, or $1.33 Canadian dollars cash per share, limited to 70% of the consideration payable in cash.
Ralph Gillcrist, Petroamerica’s President and CEO said regarding the deal: “This transaction ensures that the high quality assets of Petroamerica will be fully developed and the combination with Gran Tierra will create one of the best-positioned companies in the prolific Putumayo and Llanos basins of Colombia. For Petroamerica’s shareholders, the resulting pro forma company will bring improved liquidity, increased diversity and scale, an outstanding near-term opportunity set and most importantly, the financial capability and balance sheet strength to maximize value of Petroamerica’s portfolio.”
Cover photo – Aguatoca is a popular swimming hole in Casanare, the mostly rural Colombian department where Petroamerica’s Llanos-10 block is located. Photo credit: «Aguatoca» de Juan11211992 – Trabajo propio. Disponible bajo la licencia CC BY-SA 4.0 vía Wikimedia Commons