Cheapest Oil Exploration Target Is in Colombia: Real M&A

Petrominerales Ltd.’s debt load and 50 percent stock drop has created a bargain for energy companies looking to acquire assets in South America’s third-biggest oil producing country.

The oil explorer, based in Calgary with most of its operations in Colombia, has lost more than half its market value in a year as it sought to tap new finds amid declining output. That’s left Petrominerales’s equity and net debt valued at the cheapest multiple to profit among any oil and gas explorer in the world with a market value higher than $250 million, according to data compiled by Bloomberg.