Bloomberg News

Rubiales to Gain Most From Colombia Oil Pick-Up, BTG Says

January 17, 2013

Pacific Rubiales Energy Corp. (PRE), the operator of Colombia’s largest oil field, is poised to gain because the country might speed up the process of granting permits, Banco BTG Pactual SA analysts said.

“We might see the hardship for getting licenses in Colombia greatly diminishing,” analysts Gustavo Gattass and Natalia Agudelo wrote in the report today. Bogota-based Rubiales has “production being held back by lack of licenses, either for water injection, drilling or production.”

Shares (PREC) fell 0.4 percent to 39,860 pesos at the close in Bogota. The Canadian-traded shares fell 0.4 percent to C$22.20.

The Canadian-traded shares could gain about 76 percent to a C$39 target price, the analysts wrote.

To contact the reporter on this story: Christine Jenkins in Bogota at cjenkins28@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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