Pacific Rubiales Rises to Nine-Month High as Reserves Grow: Bogota Mover
Pacific Rubiales Energy Corp. (PRE), the Toronto-based oil producer that operates fields in Colombia, surged to a nine-month high after saying its crude and natural- gas reserves jumped 52 percent last year.
Rubiales shares rose 6.7 percent to 51,940 pesos, the highest price on a closing basis since May 2, at 2:38 p.m. Bogota time.
The company’s 2011 year-end proved and probable reserves grew 52 percent from the year before, driven by an 83 percent exploration success rate as the company diversifies its reserve base, President Jose Francisco Arata said in a statement on the company website.
“These results are positive in that they go beyond just growing reserves and strengthening future sustainability,” Samuel David Garcia, a Bogota-based analyst at Valores Bancolombia, said in an e-mailed statement. “The company has reduced its dependence on the Rubiales field.”
The Rubiales field, which in 2008 accounted for 60 percent of the company’s reserves, now accounts for about 30 percent of reserves as the company boosts reserves in its Quifa, Sabanero and other fields, according to the statement.
The company has shifted the bulk of its reserves from Rubiales, a field where the company has a contract that expires in 2016, to Quifa, said Nicolas Bernal, a Bogota-based analyst at Ultrabursatiles SA.
“Almost 90 percent of the new reserves in this report are in Quifa, where there is no contract that may soon expire,” said Bernal.
The company said Rubiales is a “mature field that will see plateau production in the next several years before natural declines start in 2015.”
Rubiales was raised to “outperform” from “sector perform” by RBC Capital Markets today.
To contact the reporter on this story: Blake Schmidt in Bogota at bschmidt16@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
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