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Monday, December 23, 2013

Pacific Rubiales to sell Colombia pipeline stake for $385 mln, (TSE: PRE.TO)

Pacific Rubiales Energy Corp, the largest private oil producer in Colombia, said it would sell its interest in the country's largest oil pipeline to a group led by the private equity arm of Franklin Templeton for $385 million. The deal follows Canadian oil producer Talisman Energy Inc's decision earlier this month to sell its stake in the 590,000-barrel-per-day Ocensa oil pipeline to an investment group for about $595 million.Toronto-based Pacific Rubiales had bought a 5 percent stake in the pipeline as part of its C$1.6 billion acquisition of Canadian oil company Petrominerales Ltd in November.Pacific Rubiales said on Monday it would use the proceeds to repay the debt related to the Petrominerales acquisition, reducing the acquisition cost to about C$1.2 billion.

Pacific Rubiales Energy Corp. (Pacific Rubiales) is a producerand seller of natural gas and heavy crude oil. Shares of PRE traded higher by 1.13% or $0.21/share to $18.74. In the past year, the shares have traded as low as $17.55 and as high as $25.94. On average, 1093240 shares of PRE.TO exchange hands on a given day and today's volume is recorded at 2460585.