Tag Archives: petromagdalena

Rubiales (PRE.to) to buy Alange-cum-PetroMagdalena (PMD.to) — time to cash out

(After-hours update at bottom regarding that headline.)

When life gives you lemonade, dilute and drink. Or as the statement says:

Shareholders of PetroMagdalena will receive C$1.60 in cash for each outstanding Share, representing a premium of approximately 38% on the 20 day volume weighted average price of PetroMagdalena’s common shares on the TSX-V as of June 4, 2012. In addition, holders of all of the outstanding PetroMagdalena warrants (TSX-V: PMD.WT) will receive C$0.25 in cash for each unexercised Warrant held at closing. The Warrants had a closing trading price on the TSX-V of C$0.215 on June 4, 2012.

Pacific Rubiales chairmen Serafino Iacono and Miguel de la Campa owned a combined 644,857 shares of PetroMagdalena, according to PetroMagdalena’s 2011 Annual Information Form. PRE.to agreed to buy Petromagdalena for $1.60 a share, or 44 cents a share above average market price, in cash. If the deal goes through as currently structured, it will put $2.35 million of Pacific Rubiales money directly into the pockets of Iacono and de la Campa. Continue reading

Alange-cum-Petromagdalena (PMD.v) 2011 results: all ok now? (UPDATED)

Back in the dark ages of 2011, I wrote about PetroMagdalena Energy (PMD.v), at the time known as Alange Energy. Short version: Management boosted shareholder expectations. When the disappointment came, the stock fell. I pointed out the company CEO touting on TV. The CEO quit. People got annoyed. Shareholders sued the company. The company threatened to sue me. A year later, what do we see in the 2011 results?

The company gives play to its increase in reserves and steadily rising production. Production is still way below where it should have been according to the BS spouted by the prior management team, but increased production is increased production. Good news. With these oil prices, that should make for a profitable company.

Instead, we see a $111 million annual net loss at a company with only $349 million in assets and $86 million in sales. Ouch. Where did the money go? Continue reading