Bloomberg News

OGX Leads Bovespa Rise as Investors Accept Latest Output Delay

December 20, 2011

Dec. 20 (Bloomberg) -- OGX Petroleo e Gas Participacoes SA, the oil company controlled by billionaire Eike Batista, gained for the first time in more than a week as investors recovered from the company’s most recent production delay.

OGX rose 4.9 percent to 13.39 reais at 4:07 p.m. in Sao Paulo trading, the most of any member of Brazil’s benchmark Bovespa index. Earlier the stock climbed as much as 5.6 percent to 13.49 reais. OGX dropped 13 percent in the previous six trading sessions.

OGX said Dec. 14 that it was postponing production until January 2012. The company, based in Rio de Janeiro, hasn’t yet produced oil and delayed starting production at the offshore Waimea field several times this year.

“The share suffered a lot in the last few days because of the company’s delay in starting commercial production,” Luiz Broad, an analyst at Agora CTVM SA brokerage, said in a telephone interview from Rio de Janeiro today. “It’s a natural rebound.”

OGX has dropped 33 percent so far this year, more than the 19 percent decline in the Bovespa index.

The company has a long-term production target of 750,000 barrels a day in 2015.

--Editors: Robin Saponar, Jessica Resnick-Ault

-0- Dec/20/2011 18:32 GMT

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net -0- Dec/20/2011 18:05 GMT


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