UPDATE 2-Pacific Rubiales to expand in Colombia with C&C Energia deal

Mon Nov 19, 2012 2:50pm EST
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* Offer of C$7.81 is at 4 pct premium to C&C's Friday close

* Deal expands Pacific Rubiales presence in Llanos basin

* Shares of C&C Energia rise as much as 25 pct

By Bhaswati Mukhopadhyay

Nov 19 (Reuters) - Canadian oil and natural gas producer Pacific Rubiales Energy Corp will buy rival Colombia-focused C&C Energia Ltd in a deal valued at about C$500 million ($500 million) as oil production in the South American country regains momentum after years of decline.

Colombia, Latin America's fourth-largest oil producer, hopes for a 20-fold increase in oil reserves to 41 billion barrels by 2030.

The acquisition gives Pacific Rubiales access to four blocks in the prolific Llanos basin, which contains Colombia's largest producing oilfield -- the Rubiales. The oilfield accounts for most of Pacific Rubiales's gross operated production.

C&C Energia, which currently produces about 11,500 barrels of oil per day, holds interests in eight blocks in Colombia spread over 597,000 acres. It operates seven of these blocks.

Pacific Rubiales produced 97,142 barrels of oil equivalent per day, net of royalty, in the quarter ended Sept. 30.   Continued...