Petrominerales Ltd PMGLF

Re: Share Buyback Response

[oilwatcher13]

This is the response from Petrominerales IR with respect  to their share repurchase program;

With respect to our current NCIB program, we have repurchased and cancelled 6,000,668 shares in 2012.  We currently have 1,377,2637 shares that can be repurchased and cancelled prior to May 2013; however, our priority is to continue buying back our bonds that are puttable in August 2013.

[pokerbeeks]

That is pretty much the answer that I received verbatim.  I guess it makes sense for several reasons: This will help avoid a cheap as they have conversion options attached which have dropped in value along with the stock. The conversion options may gain a lot possible balloon bond payment this summer. They are buying them relatively of value if the stock jumps between now and the summer

[pokerbeeks]

That is pretty much the answer that I received verbatim.  I guess it makes sense for several reasons: This will help avoid a balloon bond payment in the summer of around 200 million and the refinancing risk associated with that. It will lower the potential share dilution in the summer if the stock price rises and the options end in the money. They are buying them back at a cheaper price