Rubiales to Reach Upper 2013 Output Target, Raymond James Says

Pacific Rubiales Energy Corp. (PRE), the operator of Colombia’s largest oil field, will reach production this year at the upper end of the company’s goal, Raymond James Ltd. said.

Rubiales targets 15 to 30 percent average daily production growth this year, according to a Jan. 8 statement. We “would not be surprised if the company were to revise its guidance upwards partway through the year,” Raymond James analysts led by Rafi Khouri wrote in a report today.

Rubiales is trading at a level where exploration this year and beyond should be considered a “free option,” according to the report. They rate the stock a “strong buy.”

Pacific Rubiales operates the Rubiales field, which includes the Rubiales and Piriri blocks in the Eastern Llanos Basin of eastern Colombia. Ecopetrol SA (ECOPETL), Colombia’s state- controlled oil company, has a 50 percent stake in Piriri and 60 percent of the Rubiales block, according to the company’s website.

Shares (PREC) fell 0.2 percent to 40,160 pesos at the close in Bogota. The Canadian-traded shares were little changed.

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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