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Pacific Rubiales in takeover talks with Alfa and Harbour Energy

06th May 2015

Canada’s Latin America-focused explorer has been approached for acquisition by Mexican conglomerate Alfa and Harbour Energy

Pacific Rubiales is the largest oil and gas explorer operating in Colombia

Pacific Rubiales Energy has entered into exclusive discussions in respect of an offer from Alfa, S.A.B. de C.V. and Harbour Energy Ltd, whereby they would acquire all of the issued and outstanding common shares in the capital of the company not owned by Alfa for a price of CAD 6.50 per share, subject to completion of definitive documentation and final board approvals.

The deal would be worth in total CAD 6bn (USD 4.97bn)

The company's board has constituted a special committee comprised of independent directors, which has engaged an independent financial advisor to deliver a formal valuation in accordance with applicable Canadian securities laws.

Together, Alfa and Harbour Energy have completed technical, financial and legal due diligence.

Alfa and Harbour Energy have agreed with the company to work toward completion of definitive documentation expeditiously. The contemplated transaction would be subject to a number of conditions and there can be no assurance that any transaction will be completed.

Alfa currently holds 59,897,800 Common Shares, representing approximately 18.95 per cent of the issued and outstanding Common Shares.

Pacific Rubiales, Alfa and Harbour Energy do not intend to provide further updates, except as required by applicable laws.

Harbour Energy is a joint venture between Noble Group Ltd and private equity firm EIG Global Energy Partners.

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