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Oct. 11 (Bloomberg) -- OGX Petroleo & Gas Participacoes SA rose to a two-week high in Sao Paulo trading after the oil- exploration company’s controlling shareholder, Brazilian billionaire Eike Batista, said he will increase his stake.
OGX rose 31 centavos, or 3.4 percent, to 12.32 reais at 11:55 a.m. New York time, more than the 1 percent rise in the Bovespa index. Earlier, the stock climbed to 12.35 reais, the highest since Sept. 27. OGX is the second-biggest gainer on the Bovespa today, after LLX Logistica SA, Batista’s logistics company.
Batista bought 545 million reais ($311 million) of structured notes that can be converted into OGX shares, which will boost his stake in the Rio de Janeiro-based company to 62.5 percent from 61 percent, according to a regulatory filing yesterday. The stock has fallen 38 percent this year after the company postponed the start of oil output to as late as December from the middle of the year because of delays receiving a production platform.
OGX has had 100 percent success exploring for oil in Brazil’s Campos Basin and aims to reach output of 750,000 barrels a day in 2015. OGX has oil assets in Brazil and Colombia and plans to buy additional exploration areas in Brazil.
--Editors: Jessica Brice, Carlos Caminada
To contact the reporter on this story Peter Millard in Rio de Janeiro at Pmillard1@bloomberg.net
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