Pacific Rubiales Energy Corp. (PRE) rose the most in five weeks after forecasting that production at Colombia’s largest oil field will rise “very quickly” after the Bogota-based company was granted a water injection license.
Shares (PREC) gained 4.2 percent to 40,000 pesos at 10:41 a.m. in Bogota and climbed as much as 5.1 percent, the biggest intraday advance since July 3. State-run oil producer Ecopetrol SA (ECOPETL), which has a stake in the field, rose 0.8 percent to 5,200 pesos.
Production from the Rubiales field in eastern Colombia will climb to 190,000 barrels a day at year-end from about 172,000 barrels a day now, Chief Executive Officer Ronald Pantin said on a conference call today with analysts. The environmental license probably will enable the company to achieve its annual growth guidance, according to Banco Itau BBA SA analyst Paula Kovarsky.
“This is an important milestone for the company, enabling it to increase its oil production,” Kovarsky wrote in a research report.
Colombian regulators probably will step up the pace of awarding licenses, Pantin said. Delays in granting permits to expand oil fields and exploration, combined with guerrilla attacks on infrastructure, have slowed production this year, said analyst Mauricio Hernandez at Corredores Asociados SA.
Colombia’s oil output slid to 934,000 barrels a day in June, from 939,000 barrels a year earlier, the government said last month. Colombia, which targets 1 million barrels a day this year, is South America’s third-largest crude supplier after Venezuela and Brazil.
Pacific Rubiales had second-quarter profit of $224 million. Adjusted earnings from operations were $187 million, according to a statement distributed after the close of trading yesterday. Two analysts surveyed by Bloomberg had an average forecast of $185.5 million for net income.
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