Canadian oil and gas producer Pacific Rubiales Energy has acquired PetroMagdalena Energy, which has working interests in 19 properties in five onshore basins in Colombia, for approximately $225m.

The five onshore basins produced approximately 3.6 Mboe/d net after royalty in the first quarter of 2012.

According to a plan of arrangement under the British Columbia Business Corporations Act, Pacific Rubiales’ 100% owned subsidiary 0942183 B.C. Ltd has acquired all of the outstanding PetroMagdalena common shares not already owned by it or its affiliates, for $1.60 per share.

Pacific Rubiales chief executive officer Ronald Pantin said the company will invest its financial resources and technical expertise to accelerate exploration and development, grow production and also achieve a reduction in consolidated G&A costs.

"The acquired production provides the company with a reliable and growing supply of diluent, which is required for its heavy oil production in Colombia and adds bolt-on exploration acreage," Pantin said.

Pacific Rubiales is focused on identifying opportunities primarily within the eastern Llanos Basin of Colombia and in other areas in the country and northern Peru, with working interests in 43 blocks in Colombia, Peru and Guatemala.