Pacific Rubiales Energy Corp. (PRE), the operator of Colombia’s largest oil field, rose the most on record in Bogota after reporting daily output in the first quarter was close to the upper end of its target range.
Shares rallied 7.9 percent to 37,420 pesos at 12:42 p.m. in Bogota, the best performance on the Colcap (COLCAP) index, which fell 0.7 percent. Rubiales earlier rose 9.6 percent, the biggest intraday gain since it began trading in Bogota in December 2009. The stock pared its drop over the past month to 16 percent.
Chief Executive Officer Ronald Pantin said today in a statement that the company will try to cut operating costs by about $8 per barrel for the rest of the year by trimming spending on production, transportation and diluents. The company said last month that operating costs for 2012 jumped 17 percent from the prior year to $39.77 per barrel.
“The underperformance in the last month or so has really been driven by their reported increase in operating costs, and the market has been reacting in a very negative way,” Justin Anderson, a Calgary-based analyst at Salman Partners, said in a telephone interview. “This release seems like an attempt to calm the market.”
Rubiales’s net production after royalties in the first quarter was 126,000 to 128,000 barrels of oil equivalent per day, a 30 percent increase from last year’s average, according to a statement today. Pacific said in a presentation at the beginning of the year that it was forecasting 115,000 to 130,000 barrels a day for 2013, which Pantin said at the time was “conservative guidance.”
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