C&C set to buy Bermuda-based Ramshorn in $89m deal
CALGARY (Reuters) - Canadian oil and gas company C&C Energia said its unit plans to buy Bermuda-based explorer Ramshorn International's Colombian oil and gas properties for $89 million.C&C, which owns a 30 percent interest in the Cachicamo block in central Llanos Basin, Colombia, plans to buy Ramshorn's 70 percent interest in the oil-rich basin.
Cachicamo is adjacent to C&C's major producing property on the Cravoviejo block. The company expects significant cost savings through the consolidation of the two blocks.
C&C expects the deal to close in late April, 2011.
The company said it has identified about five exploration prospects based on a survey conducted in 2010. C&C plans to drill at least two prospects this year and spud its first well in the second quarter.
The company also plans to raise $100 million in a bought deal to fund the acquisition, it said in a statement. The financing is expected to close by April 21.