PetroLatina Secures $25MM Investment from Tribeca
Summary
PetroLatina reported that, following the announcement made on May 19, 2008, Tribeca Oil and Gas, Inc. ("TOGI"), a portfolio investment company of Tribecapital Partners S.A., has now completed its total investment of US$25 million in the Company.TOGI initially invested US$10 million in the Company by way of convertible secured loan notes. Accordingly, TOGI has today been allotted, in aggregate, 15,360,999 Ordinary Shares (the "TOGI Shares").All related security held by TOGI relating to the Company and members of its group since May 16, 2008 has now been released.As part of the consideration for the Subscription, TOGI has also been granted 1,875,260 warrants which are automatically exercisable, for no additional consideration, into 1,875,260 Ordinary Shares if, and to the extent that, any exercise of the Companys existing outstanding 3,482,625 warrants occurs.As announced previously, the new funds will provide the Company with additional cash resources to meet certain outstanding liabilities and fund its ongoing work program in Colombia. The Company is embarking on a promising development and exploration program over the next few months, and currently intends to commence drilling a minimum of four wells during the remainder of 2008.Following completion of the Subscription, TOGI now holds Ordinary Shares representing, in aggregate, a 35%interest in the Company. The Company has positive cash flow and a specific investment plan to increase production through development wells and drill exploration wells in blocks such as La Paloma, that show tremendous reserves potential. Additionally, the Company has the capability to transport a much larger throughput with respect to its Rio Zulia - Ayacucho pipeline in the event that production from the Rio Zulia or Tibu fields increases as currently anticipated by Ecopetrol.