Petrominerales Closes US$550 Million Convertible Note Offering

BOGOTA, COLOMBIA--(Marketwire - Aug. 25, 2010) - Petrominerales Ltd. ("Petrominerales") (TSX:PMG), a 66% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG), is pleased to announce the closing of our previously announced offering ("Offering") of US$550 million principal amount of convertible notes due 2016 ("Notes"). The Notes are convertible into common shares of Petrominerales with an annual coupon rate of 2.625% and a conversion price of US$34.746 per share. The Offering resulted in gross proceeds to Petrominerales of US$550 million. The Offering was led by ABG Sundal Collier Norge ASA, as sole bookrunner. TD Securities Inc. acted as lead advisor and Canaccord Genuity Corp., Cormark Securities Inc., FirstEnergy Capital Corp., GMP Securities L.P., Haywood Securities Inc., Scotia Capital Inc. and UBS Securities Canada Inc. acted as strategic advisors in respect of the Offering. Petrominerales Ltd. is a Latin America-based exploration and production company producing oil in Colombia with 17 exploration blocks covering a total of 2.1 million acres in the Llanos and Putumayo Basins and five exploration blocks in Peru covering a total of 9.4 million gross (5.2 million net) acres in the Ucayali and Titicaca Basins. Petrominerales is 66% owned by Petrobank Energy and Resources Ltd. (TSX:PBG).