TORONTO, May 28, 2012 /PRNewswire via COMTEX/ -- Pacific Rubiales Energy Corp) is pleased to announce that it has agreed to purchase 85,714,285 units of CGX Energy Inc.  ("CGX") at a price of C$0.35 per unit for an aggregate investment of C$30 million. At the same time, the Company has entered into a technical services agreement with CGX whereby Pacific Rubiales will provide technical assistance to CGX in respect of its operations. In addition the Company will have an option to participate in each of the next wholly owned commitment wells to be drilled on the Corentyne and Annex offshore Petroleum Production Licences ("PPL"), in Guyana, by funding 50% of the exploration well costs and certain seismic costs, in exchange for a 33% interest in the respective PPL's.

Ronald Pantin, Chief Executive Officer of the Company, commented: "This is a great opportunity for the Company to expand its investment in the highly prospective offshore Guyana oil play. Through our ownership in CGX, the technical services agreement and a direct earning option, the Company will be participating in an exploration campaign in an offshore basin with analogous geology to West Africa and Brazil. We are looking forward to working with the management of CGX on realizing the potential of offshore Guyana. This investment is strategic to the Company's objective of being the leading Latin American independent explorer and producer of hydrocarbons."

The purchase of the units is being accomplished by way of a private placement offering by CGX. Each unit will consist of one common share of CGX plus one half of one common share warrant. Each warrant will entitle the Company to purchase one additional common share of CGX at an exercise price of C$0.60 within an 18 month period following issuance of the units. The units are expected to be issued within a week following the required TSX Venture Exchange and CGX shareholder approval.

Pacific Rubiales currently owns 58.7 million shares of CGX, which were acquired by the Company through a bought deal financing that closed in October 2011. Upon issuance of the units, the Company will hold approximately 35% of the issued and outstanding common shares of CGX on a non-fully diluted basis. The Company will also be entitled to nominate up to three directors to serve on CGX's board of directors.

Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns 100 percent of Meta Petroleum Corp., a Colombian oil operator which operates the Rubiales, Piriri and Quifa oil fields in the Llanos Basin in association with Ecopetrol, S.A., the Colombian national oil company, and 100 percent of Pacific Stratus Energy Corp. which operates the La Creciente natural gas field. The Company is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia as well as in other areas in Colombia and northern Peru. Pacific Rubiales has working interests in 43 blocks in Colombia, Peru and Guatemala. The Company's common shares trade on the Toronto Stock Exchange and La Bolsa de Valores de Colombia and as Brazilian Depositary Receipts on Brazil's Bolsa de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC, and PREB, respectively.

http://www.marketwatch.com/sto...y-2012-05-28-7183450 

The big boys have begun to move in. The small company with access to the politicians who give them the rights never can raise the capital to sustain the preliminary seismic assessment, drill exploratory wells and if oil is found, develop the well heads, transportation pipeline infrastructure etc. These small company have to sell to the major companies. These are few because they survive by predation.

If oil is found in Guyana we are done for. We are in for the experience of Equatorial Guinea and Ecuador . This corrupt regime and our political instability and lack of a strong national culture means we are in for all against all mayhem as in Nigeria.

The ignorant assess in office and their savants will throw up their arms in dismay and complain of negritude and naysayers. Well, let them tell me why they can beat the cycle that has afflicted every resource rich society especially one with the curse of oil.

Do you think the PNC et al will throw up their hands and listen to the Pontifications as in the NICIL fiasco? Here these crooks are  secretive about a crony controlled company with a few million dollars. What will they do if the have to deal with boatloads of cash! I can assure you that guns will be drawn and blood spilled if we do not solve our political problems .

-----

Well said Strom. I agree fully. Let them give us reasons why Guyana will escape the resource curse.