Taghmen pays $32m for Colombian producer
Oil and gas explorer Taghmen Energy got a lift on news it has bought Colombia's Petroleos del Norte SA for $32m.
The Latin America focused outfit will pay a first instalment of $19m, giving Taghmen control of the company, with the second tranche of $13m payable on extension of the Tisquirama licence.
PDN, which produces 977 barrels of oil per day from the three fields it operates in the Middle Magdalena Valley in Colombia, has proven and probable reserves of 6.9m barrels (net to its interests).
It owns and operates the Rio Zulia - Ayucucho pipeline, which generated $1m in tariff income in 2005, while the group generated some $3.08m in operating cash flow last year.
(Article continues below)Advertisement
In addition, it holds three additional exploration licences in the country. First closing is scheduled for the second quarter of 2006.
Chief executive Nicholas Gay said, "This is a key acquisition for Taghmen giving us immediate production and infrastructure in Colombia which both complements our existing asset base there and gives us a launch pad to create a sizeable business."
"Following the acquisition, the group will be well positioned in Latin America with core businesses in Colombia and Guatemala that have the potential to produce around 3,500 bopd by the end of 2007."
