Arias, Fábrega & Fábrega acted as counsel to Canacol Energy Inc., Shona Energy (Colombia) Limited S.A., Canacol International Investments S.A., and Carrao Energy S. A., all companies organized and existing under the laws of the Republic of Panama, in connection with the refinancing of existing senior secured credit facility with BNP Paribas.

The lenders (BNP Paribas as administrative agent, Banco Davivienda, Citibank, Banco de Occidente and Banco Latinoamericano de Comercio Exterior) agreed to make available to Canacol Energy Ltd. a term loan in the principal aggregate amount of US$200 million, to repay debt to Credit Suisse and for oil and gas exploration and distribution in Colombia, Panama and Ecuador.

The loan required changing Canacol’s existing loan agreement with Credit Suisse, which is guaranteed by the oil company’s subsidiaries and concessions in Colombia, Canada, the US, Panama, Spain, and BVI. Collateral for the loan with Credit Suisse included agreements over shares, assets and exploration rights from concessions in Colombia granted to Canacol by Colombia’s Agencia Nacional de Hidrocarburos and state-owned oil company Ecopetrol.