HRT Falls on Abandoned Dry Hole in Brazil’s Amazon: Rio Mover
HRT Participacoes em Petroleo SA, the oil company exploring Brazil’s Amazon and offshore Namibia, fell the most in about two weeks after failing to find commercial volumes of crude and natural gas at its most recent well.
HRT, as the Rio de Janeiro-based company is known, fell 1.8 percent to 6.14 reais, the most since June 27. The stock has fallen 46 percent this year, more than the 5.4 percent drop in Brazil’s benchmark Bovespa index.
HRT abandoned a well in the Solimoes basin after a reservoir had less natural gas than expected, HRT said in a statement today. HRT has found commercial volumes of natural gas in Solimoes to date, which is more expensive to transport and sells for a lower price than oil.
“Investors are worried the company will continue to spend capital on uneconomic prospects,” Matthew Portillo, an analyst at Tudor Pickering Hold & Co., said in a telephone interview from Houston.
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