Pacific Rubiales Energy acquires 49% of Block Z-1, Offshore Peru

Lawyers Ava G. Yaskiel, Miles F. Pittman, Richard P. Borden, Lori M. Bevan, Edward A. Heakes, Richard A. Wagner

On April 27, 2012, Pacific Rubiales Energy Corp. (TSX:PRE) agreed to acquire from BPZ Resources Inc. (NYSE:BPZ) a 49% participating interest in Block Z-1, Offshore Peru for an investment of US$335 million. Under the terms of the agreement PRE will pay BPZ US$150 million in cash plus a funding commitment of $185 million for BPZ’s share of capital and exploratory expenditures in Block Z-1. Completion of the acquisition is subject to approval of the applicable Peruvian authorities.

PRE is a Canadian-based company and producer of natural gas and heavy crude oil. PRE is focussed on identifying opportunities primarily in the eastern basin of Colombia as well as other areas in Colombia and northern Peru. PRE has working interests in 44 blocks in Colombia, Peru and Guatemala.

Norton Rose Canada LLP represented PRE with a team led by Ava Yaskiel (Securities, Corporate/M&A) and including Miles Pittman (Oil & Gas/M&A), Rick Borden (Banking/ Oil & Gas), Lori Bevan (Corporate), Ed Heakes (Tax) and Richard Wagner (Regulatory).