Petrominerales share dividend program avoids current taxation of participants

Petrominerales is adopting a share dividend program.  Electing participants will receive their dividends through the issuance of further common shares at a 5% discount to the 5-day VWAP price, rather than in cash

Although economically similar to a DRIP, the amount of the dividend for Canadian tax purposes is equal to the nominal stated capital of the shares issued.  Bonavista, CAE, Enerplus and Husky already have similar programs.

Neal Armstrong.  Summary of Petrominerales Circular under Other - Share Dividend Program.