Petro Andina Resources Inc. provides an update on the unsolicited offer and shareholder value maximization process and activities in both Trinidad & Tobago and Colombia exploration programs.
Shareholder Value Maximization Process
The Petro Andina Board of Directors wishes to reiterate its unanimous recommendation that shareholders reject the unsolicited offer to acquire Petro Andina by a wholly-owned subsidiary of Pluspetrol Resources Corporation N.V. (Pluspetrol Offer). Petro Andina's Board of Directors and financial and legal advisors continue to consider and pursue a range of alternatives to maximize shareholder value.
In response to the unsolicited Pluspetrol Offer, data rooms in Calgary, Houston, London and Buenos Aires are now open and active, with a diverse group of international companies having been asked to submit proposals by mid August.
To facilitate one of the potential alternatives, Petro Andina is evaluating the creation, on a tax efficient basis, of a separate publicly listed entity (ExploreCo) to hold Petro Andina's exploration assets in Colombia and Trinidad & Tobago. Further evaluation of the potential ExploreCo is underway. The potential creation of ExploreCo would be subject to all necessary approvals.
New Ventures Activities Update
Petro Andina has been actively progressing its new venture developments in Colombia and in Trinidad & Tobago.
In Colombia, the Company is in the process of awarding a contract for acquiring 450 square kilometers of three-dimensional seismic with an anticipated start time in August 2009.
In Trinidad & Tobago, approximately half of a 216 kilometer two-dimensional seismic acquisition program has been completed and it is anticipated that the program will be completed in August 2009. Next steps will be to process and interpret the data, which is scheduled to be completed early in the fourth quarter of 2009.