Pacific Rubiales Energy, a Toronto-based firm that is Colombia's second-largest oil producer, said here it has reached an agreement to acquire "all issued and outstanding" common shares of another Canadian oil company, PetroMagdalena, for $243 million.

PetroMagdalena has working interests in 19 oil and gas properties in five hydrocarbon basins in Colombia.

Pacific said in a press release that the acquired company's share of production at those properties is more than 3,000 barrels of oil equivalent per day before deduction of royalties, adding that that result allowed it to significantly boost cash flow last year.

The head of Pacific Rubiales in Colombia, Ronald Pantin, said he was pleased with the transaction and noted that PetroMagdalena "already is a key supplier of light oil for the dilution of our crude."

The acquisition complements Pacific's current business and will foster continued growth, he said.

The multinational said in its release that "in the coming days PetroMagdalena will issue a statement specifying the details of the accord."

Pacific, which operates the Rubiales oil field, Colombia's biggest, and also has stakes in several pipelines and in gas blocks, produces just over 250,000 barrels per day, or roughly a quarter of total production in the Andean nation. EFE