HRT Rallies as Gas Discovered Onshore in Brazil’s Solimoes Basin

HRT Participacoes em Petroleo SA, a Brazilian oil and gas exploration and production company, was poised for the biggest gain in two weeks after saying it discovered hydrocarbons in a Solimoes Basin field.

Shares rose 6.5 percent to 4.28 reais at 3:58 p.m. in Sao Paulo. A close at that level would be the steepest advance since Aug. 6. The benchmark Bovespa index added 0.5 percent.

HRT discovered gas in an onshore well, according to a regulatory filing today. Together with three other finds, the discovery represents an “important advance in HRT’s objective to monetize the natural gas of the Solimoes Basin,” the company said in the statement.

“Good news for the company, but what the market is really waiting for is an oil discovery,” Marcelo Varejao, an analyst at brokerage Socopa Corretora, wrote in a note to clients dated today.

HRT lost 65 percent this year through Aug. 17, while the Bovespa rose 4.1 percent in that same period.

The oil company has drilled at least two dry holes in the Solimoes Basin in the Amazon since it started exploring last year, according to information on its website.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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