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Petrominerales Falls Most Since April on Output: Bogota Mover

Petrominerales Ltd. (PMGC), a Calgary-based oil company that operates in the Andean region, dropped the most in three months after reporting declines in production and exploration results that disappointed investors.

Shares fell 17 percent to 13,780 pesos at 12:40 p.m. in Bogota after losing 18 percent for the biggest decrease since April 27. Petrominerales has lost 56 percent this year, compared with a 4.7 return on the benchmark Colcap Index.

Production, which averaged 31,113 barrels of oil a day in the second quarter, was 12 percent lower in July at 27,453 barrels. Second-quarter production was 9 percent lower than the first quarter, the company said in a statement.

July output was 14 percent below RBC Capital’s forecast for the third quarter, analysts Nathan Piper and Theresa Pfab wrote in a report.

“Exploration drilling results continue to disappoint in Colombia, with the initial production test on the key Bromelia well unsuccessful,” they wrote.

The initial interpretation of testing on the first zone of a formation of the Bromelia prospect showed the residual heavy oil found “would not be economic to produce,” the company said in the statement. Petrominerales plans to complete testing in other areas by early in the fourth quarter.

Petrominerales shares traded in Toronto fell to the lowest intraday level since February 2009.

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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