Pacific Rubiales Energy Corp. has agreed to purchase 85,714,285 units of CGX Energy Inc. at a price of C$0.35 per unit for an aggregate investment of C$30 million. At the same time, the Company has entered into a technical services agreement with CGX whereby Pacific Rubiales will provide technical assistance to CGX in respect of its operations.

In addition the Company will have an option to participate in each of the next wholly owned commitment wells to be drilled on the Corentyne and Annex offshore Petroleum Production Licences ("PPL"), in Guyana, by funding 50% of the exploration well costs and certain seismic costs, in exchange for a 33% interest in the respective PPL's.

Tags: CGX Energy Inc., Pacific Rubiales Energy Corp.