10 September 2012

IFC, IFC ALAC Fund to invest $27mn in PetroNova to support its O&G exploration program in Colombia

Washington, D.C.- 10 September 2012 - IFC, a member of the World Bank Group, and the IFC African, Latin American, and Caribbean Fund (IFC ALAC Fund), have agreed to make a $27 million equity investment in PetroNova, Inc, to support the expansion of the company’s oil and gas exploration program in Colombia. Increased oil and gas exploration and production helps Colombia increase its energy supplies, boost exports, and increase government revenues. 

IFC will invest $15 million. The IFC ALAC Fund, a private equity fund managed by IFC Asset Management Company, will invest $12 million. The equity financing package will be used by PetroNova to fund its drilling program in the Llanos and the Caguan-Putumayo basins.

IFC’s investment will support PetroNova’s active exploration drilling program,” said Mr. Antonio Vincentelli, PetroNova’s President and CEO. “We are looking forward to working with the IFC and applying the valuable global knowledge and experience they can provide as we progress our drilling program.”

In addition to providing financing, IFC has been advising PetroNova on environmental and social standards. IFC is also exploring how the company can participate in IFC’s ongoing advisory work to enhance the use of oil revenues by local municipalities in Colombia. 

“We believe PetroNova has the leadership and capacity to help develop Colombia’s domestic oil and gas resources—key economic-growth sectors in the country,” said Lance Crist, IFC’s Global Head for Oil and Gas. “This investment aligns with our strategy to support growing junior oil and gas companies in Latin America as they work to unlock significant national and local economic opportunities in the region.” 

In Colombia, IFC focuses on supporting sectors that are essential to social and economic development, including natural resources industries, infrastructure, health, education, agribusiness, and public-private partnerships to build ports, roads, and airports. IFC assists leading Colombian companies in modernizing and expanding their businesses. IFC also promotes access to finance for micro, small, and medium enterprises, and works on improving the investment climate by simplifying regulations and royalty management.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. 

IFC African, Latin American, and Caribbean (ALAC) Fund is a $1 billion investment fund that invests alongside IFC in equity investments in Sub-Saharan Africa, Latin America, and the Caribbean. It provides long-term growth capital for private enterprises in these regions. 

PetroNova, through its subsidiaries, is engaged in the exploration for, and the acquisition and development of, oil and natural gas resources in South America, specifically in Colombia. The Company's assets currently include the Company's interests in the PUT-2 and Tinigua Blocks located in the Caguan-Putumayo Basin in Colombia, both of which are operated by the Company, and the non-operated CPO-06, CPO-07 and CPO-13 Blocks located in the Llanos Basin in Colombia. 

Source: IFC