Hey CJR, Vn previoulsy denied Approval
PetroFalcon says Venezuelan authorities deny approval for Anadarko Venezuela acquisition - Update
10/8/2008 10:39 PM ET
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(RTTNews) - Wednesday, independent oil and gas company PetroFalcon Corporation (PFC.TO: News ) said Venezuelan Ministry of Energy and Petroleum or MEP has denied approval for the acquisition of Anadarko Venezuela Company by PetroFalcon.
Early April, PetroFalcon signed a deal to purchase Anadarko Venezuela from Anadarko Petroleum (APC: News ) for US$200 million in cash. The deal was subject to the approval of the Venezuelan Ministry of Energy and Petroleum or MEP.
Anadarko Venezuela indirectly owns 18% of Petroritupano, S.A., a joint venture with Petroleos de Venezuela, S.A. (PDVSA) and Petrobras Energia, S.A. (PZE). In addition, Anadarko Venezuela holds a US$58 million voucher that can be used as credit with the Venezuelan government for new oil and gas investment opportunities.
PetroFalcon said that it has been advised that MEP has denied approval for the acquisition because PDVSA plans to purchase Anadarko Petroleum's interest in Petroritupano. Under the terms of the deal, Anadarko Petroleum will return PetroFalcon's US$5 million deposit with interest.
Lundin Petroleum AB, which indirectly owns 45% of PetroFalcon, provided a guarantee to Anadarko Petroleum for the full purchase price for which, PetroFalcon agreed to issue 17.1 million common shares of the company to Lundin Petroleum.
On April 11, PetroFalcon issued 7.1 million of these shares to Lundin Petroleum. The company has expensed the initial shares as stock-based financing fees. PetroFalcon said that the remaining 10 million shares would not be issued.
PFC.TO declined C$0.02 and closed Wednesday's regular trading session at C$0.38. APC declined $0.38 or 1.08% and closed at $34.80. After hours, APC declined further $0.22 or 0.63% and traded at $34.58.
by RTT Staff Writer
