Petrominerales Prices $550 Million Convertible Note Offering

Monday, Aug 16, 2010

Petrominerales Ltd. ("Petrominerales" or the "Company") (TSX:PMG), a 66% owned subsidiary of Petrobank Energy and Resources Ltd. (TSX:PBG), is pleased to announce that we have priced our previously announced offering (the "Offering") of US$550 million principal amount convertible notes (the "Notes"). The Offering is being led by ABG Sundal Collier Norge ASA as sole bookrunner.

The Notes to be issued by Petrominerales are convertible into common shares of Petrominerales, have annual coupon 2.625% and a conversion price of US$34.746 (Cdn$36.254) per Note, representing a conversion premium of 35% to the volume weighted average Petrominerales share price on the Toronto Stock Exchange during the three day trading period from August 10, 2010 to August 12, 2010 of US$25.74 (Cdn$26.80).

The Notes will be issued at 100% of their principal amount and, unless previously redeemed, converted or cancelled, will mature in 2016. The Notes are expected to be issued on or about August 25, 2010. The Offering is subject to certain approvals, including the approval of the Toronto Stock Exchange.

This Offering further enhances Petrominerales' already substantial financial flexibility and strengthens our balance sheet. It is expected that the proceeds of the Offering will be used to fund our oil and gas exploration and development activities in Colombia and Peru, and may be used to capitalize on potential acquisition opportunities as they arise.

Source: Market Wire