HRT Heads to Record Two-Day Drop After No Oil Found in Well Test

HRT Participacoes em Petroleo SA (HRTP3), a Brazilian oil and gas company, headed to its biggest two-day decline since it first sold shares in October 2010 after failing to report a commercially viable oil discovery in tests of a well in the Amazon basin.

HRT fell (HRTP3) 9.9 percent to 455.02 reais at 1:03 p.m. in Sao Paulo trading, bringing the two-day decline to 22 percent. The Bovespa benchmark index fell (IBOV) 0.3 percent today.

HRT said yesterday in a regulatory filing that its 1-HRT-4- AM onshore well in Brazil’s Solimoes basin may produce as much as 250,000 cubic meters of natural gas. It didn’t mention oil discoveries in the statement.

“Productivity levels were weak, in our view, and no oil production was observed,” Banco Santander analysts Christian Audi and Vicente Falanga Neto wrote in a report to clients dated today. The news was particularly disappointing given the negative results on another well in the same area that the company announced in September, the analysts said.

To contact the reporter on this story: Fabiola Moura in New York at fdemoura@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net Helder Marinho at hmarinho@bloomberg.net

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