BUSINESS
12/23/2013 08:23 EST | Updated 02/22/2014 05:59 EST

Franklin Templeton unit buying stake in Colombian pipeline from Pacific Rubiales

TORONTO - Pacific Rubiales Energy Corp. (TSX:PRE) will receive US$385 million cash for selling its five per cent interest and transportation rights in a Colombian oil pipeline.

The buyer is a consortium led by a private equity unit of Franklin Templeton.

Pacific Rubiales acquired its stake in the OCENSA pipeline when it bought Petrominerales Ltd., in a $1.6-billion deal that was announced in September and closed on Nov. 28.

Proceeds from the OCENSA deal will be applied to the Petrominerales transaction and reduce the total acquisition cost for Pacific Rubiales to about C$1.2 billion.

Separately, Pacific Rubiales announced Monday that it has received successful results from the CPE-6-IX exploration well and the CPE-6-H2 appraisal well drilled in December in Colombia's eastern Llanos Basin.

Pacific Rubiales has a 50 per cent working interest and is operator of the CPE-6 block and the other half is held by a subsidiary of Talisman Energy Inc. (TSX:TLM).