PetroMagdalena receives final court order for arrangement with Pacific Rubiales Energy Corp.

    




 TORONTO, July 24, 2012 /CNW/ - PetroMagdalena Energy Corp.  is pleased to announce that the Supreme Court of British  Columbia has issued a Final Order approving the Plan of Arrangement  involving PetroMagdalena, holders of common shares and common share  purchase warrants of PetroMagdalena (collectively, "Securityholders") and 0942183 B.C. Ltd., a wholly owned subsidiary of Pacific Rubiales  Energy Corp. . 

 Receipt of the Final Order follows PetroMagdalena's special meeting of  Securityholders held on July 23, 2012 wherein approximately 95.87% of  all Securityholders, present in person or represented by proxy and  voting as a single class, voted in favour of the Plan of Arrangement. 

 Under the Plan of Arrangement, (i) each former holder of common shares  will receive C$1.60 in cash for each common share held immediately  prior to the Plan of Arrangement becoming effective, and (ii) each  former holder of common share purchase warrants will receive C$0.25 in cash for each common share purchase warrant held immediately  prior to the Plan of Arrangement becoming effective. Further details  regarding the Plan of Arrangement are set out in PetroMagdalena's  notice of special meeting of Securityholders and Information Circular  dated June 21, 2012, a copy of which is available at www.sedar.com under PetroMagdalena's profile and on PetroMagdalena's website www.petromagdalena.com. 

 Assuming all conditions of the Plan of Arrangement are satisfied or  waived, PetroMagdalena expects the Plan of Arrangement to become  effective on or about July 27, 2012. If the Plan of Arrangement is  effected on July 27, 2012, the common shares and common share purchase  warrants will be delisted from the TSX Venture Exchange at the close of  business on July 30, 2012. 

 About PetroMagdalena Energy Corp. 

 PetroMagdalea is a Canadian-based oil and gas exploration and production  company, with working interests in 19 properties in five basins in  Colombia. Further information can be obtained by visiting our website  at www.petromagdalena.com. 

 Forward-Looking Statement  

 Certain information contained in this news release, including any  information relating to the proposed transaction (the "Transaction") and or future financial or operating performance of PetroMagdalena  may be deemed "forward-looking". These statements relate to future  events or future performance and reflect PetroMagdalena's expectations  regarding the Transaction, and the future growth, results of  operations, business prospects and opportunities of PetroMagdalena,  Pacific Rubiales and the combined company. These forward-looking  statements also reflect PetroMagdalena's current internal projections,  expectations or beliefs and are based on information currently  available to each party, respectively. These forward-looking statements  are subject to a variety of risks and uncertainties that are identified  and disclosed in the Annual Information Form of PetroMagdalena for the  year ended December 31, 2011. In some cases forward-looking information  can be identified by terminology such as "may", "will", "should",  "expect", "intend", "plan", "anticipate", "believe", "estimate",  "projects", "potential", "scheduled", "forecast", "budget" or the  negative of those terms or other comparable terminology. Assumptions  upon which such forward-looking information regarding completion of the  Transaction is based include that each party will be able to satisfy  the conditions to the Transaction, that all third party regulatory and  governmental approvals to the Transaction will be obtained and all  other conditions to completion of the Transaction will be satisfied or  waived. Although PetroMagdalena believes that the forward-looking  information contained in this news release is based on reasonable  assumptions, readers cannot be assured that actual results will be  consistent with such statements. Accordingly, readers are cautioned  against placing undue reliance on forward-looking information.  PetroMagdalena expressly disclaims any intention or obligation to  update or revise any forward-looking information, whether as a result  of new information, events or otherwise, except in accordance with  applicable securities laws. 

 Neither TSX Venture Exchange nor its Regulation Services Provider (as  that term is defined in the policies of the TSX Venture Exchange)  accepts responsibility for the adequacy or accuracy of this news  release. 

PetroMagdalena Energy Corp.


CONTACT:  Peter Volk General Counsel [phone] 


    

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