The battle continues for junior Colombian oil producer, Suroco Energy, which produces roughly 2500 bopd currently and has a prospective land position in Colombia's Putomayo Basin in the south of that country.
Privately held producer, Vetra Holding, and its special acquisition subsidiary, Vetra Acquisition, have increased their offer for all of the outstanding shares of Suroco Energy from $0.60 in cash to $0.72 as well as removing a number of the conditions associated with their offer, the company said in a news release out this morning.
Vetra's new offer competes strongly with Petroamerica's all shares offer, worth roughly $0.66 based on yesterday's closing price for Petroamerica, which we wrote about here.
Vetra also criticized Suroco's governance in recommending Petroamerica's bid, and not holding a formal auction process.
"The fight is always dirty when the prize is good," one Suroco shareholder commented to me earlier.
Petroamerica will likely have to make a higher offer if they intend to stay in competition for Suroco, which we expect they will do.
The Suroco shareholders meeting will be held at 10:00 am MT on June 25, 2014 in Calgary.
Here is Vetra's news release: VETRA Increases All Cash Offer for Suroco Energy Inc. to $0.72 per Common Share, Removes Conditions and Exposes Management's Failures
(Disclosure: I am long Petroamerica stock)