Pacific Rubiales Energy Corp. (TSX: PRE), an oil and natural gas explorer, is set to acquire C&C Energia Ltd. in a deal valued at about $500 million.

The deal is expected to expand Pacific Rubiales' presence in Colombia by allowing it to tap into specific sections of the oil-rich Llanos basin.

C&C Energia holds interests in eight blocks in Llanos, including Cravoviejo, Cachicamo, Llanos 19 and Pajaro Pinto. With C&C under ownership, Pacific Rubiales is slated to produce an average of about 10,800 barrels of oil per day.

Pacific Rubiales, based in Bogota, Colombia, offered $7.81 per C&C Energia share, which represents a premium of 4 percent to the stock’s close of $7.50 on Nov. 16.

Each common share of C&C Energia will be exchanged for 0.3528 common shares of Pacific Rubiales and one common share of a new exploration company under the deal, Pacific Rubiales said.

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