Pacific Rubiales Seeks US$200 Million Credit Line With BofA's Aid

Toronto-listed Pacific Rubiales Energy Corp. (PEGFF, PRE.T) has engaged Banc of America Securities as lead arranger for an unsecured two-year credit facility of up to $200 million, the oil company said in a statement Wednesday.

Rubiales expects the creditors to be both international and Colombian lenders. Closing is expected to occur on or before Mar. 31, 2010. The company said it does not expect to fully draw down the facility during 2010.

In Bogota, Pacific Rubiales shares gained 2.35% to 30,460 Colombian pesos ($15.83) recently.

The share price is rising due to firmer crude prices and strong local demand, rather than because of Wednesday's announcement, said Natalia Agudelo, an analyst with local brokerage InterBolsa.

"It's a rollover of debt; I don't think this is additional debt," Agudelo said.

Pacific Rubiales is now trading at volumes in Bogota that could allow it to be included in Colombia's benchmark IGBC stock index next quarter, Agudelo added.

Pacific Rubiales produces around 110,000 barrels of oil a day from its Colombian operations, equivalent to around 54,000 barrels after subtracting its partners' share of production and paying royalties to the Colombian state.

-By Matthew Bristow, Dow Jones Newswires; 57-3142983277; colombia@dowjones.com

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