CALGARY, Alberta - PlusPetrol Resources Corp NV said on Thursday it plans to bid about C$400 million ($354 million) for Petro Andina Resources Inc (PAR.TO) to expand its oil and gas operations in Argentina, Colombia and Trinidad.
Netherlands-based PlusPetrol, which already has extensive production in South America, said it will bid C$8.10 in cash per share of Petro Andina,
The offer represents a 31 percent premium over the C$6.20 issue price of the target firm's recent C$27 million equity issue, PlusPetrol said.
Shares in Petro Andina jumped C$1.85, or 27 percent, to C$8.80 on the Toronto Stock Exchange.
Calgary-based Petro Andina produces heavy oil in Argentina, and has exploration acreage in Colombia and Trinidad and Tobago. In the first quarter, it produced 15,645 barrels of oil equivalent a day, a jump of 61 percent from a year earlier.
PlusPetrol said it produces 120,000 barrels of oil and gas liquids and 1.35 billion cubic feet of natural gas a day.
It said it will formally launch its bid on Friday and that it will be open for 60 days. It will be conditional on investors tendering at least two-thirds of Petro Andina's stock.
($1=$1.13 Canadian) (Reporting by Jeffrey Jones; editing by Peter Galloway)