Canada's Pacific Rubiales confirmed Monday it was acquiring Petrominerales for $1.55 billion, giving it access to energy assets in Colombia and Peru, and was creating an exploration unit that will focus on Brazil.

"Under the Arrangement Agreement, Petrominerales shareholders will receive Cdn. $11.00 (US$10.60) cash for each Petrominerales common share held," Pacific Rubiales said in a statement, adding that the deal also included "one common share of a newly formed exploration and production company ("ExploreCo")."

The purchase price is 42 percent higher than the closing price of Petrominerales's stock on the Toronto Stock Exchange last Friday.

Pacific Rubiales is also assuming C$640 million (US$620 million) in Petrominerales debt, pushing the total value of the acquisition to C$1.6 billion (US$1.55 billion).

"This acquisition is an excellent fit with our strategy, provides immediate capture of additional value through asset synergies, and grows production and cash flow at attractive metrics," Pacific Rubiales CEO Ronald Pantin said.

The deal covers 3.9 million gross hectares (9.8 million gross acres) "of exploration and development properties in Colombia and Peru, as well as oil pipeline interests in Colombia," Pacific Rubiales said.

ExploreCo, which will be based in Calgary, Canada, and will have an initial capitalization of C$100 million (US$96.8 million) in cash, will hold all of Petrominerales's assets in Brazil, Petrominerales said.

"ExploreCo will have a highly prospective acreage position and a well-funded balance sheet combined with an experienced team of professionals. ExploreCo will be a growth-oriented exploration and resource development company," Petrominerales said. EFE