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Lundin Petroleum sells Venezuela arm to PetroFalcon

Wed Jul 18, 2007 10:15am EDT

Stocks

   

STOCKHOLM, July 18 (Reuters) - Swedish oil and gas firm Lundin Petroleum AB (LUPE.ST) said on Wednesday it was selling a Venezuelan unit for 53.5 million shares in Toronto-listed firm PetroFalcon Corporation PFC.TO.

Lundin said the deal valued its Venezuela unit at $41 million. As part of the transaction, Lundin will also subscribe to about 10.3 million shares in PetroFalcon at a price of 80 Canadian cents per share.

"Following these transactions, Lundin Petroleum will become the largest shareholder in PetroFalcon with a shareholding of approximately 42.5 percent," it said in a statement.

PetroFalcon will use the proceeds from the transaction to fund its capital expenditure commitments and business development activities.



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