Pacific Rubiales Energy Corp., the Toronto-based oil producer that operates fields in Colombia, fell to a 19-month low as oil dropped for a third day and as the market waits for the results of a tax agency investigation of the company’s contractors and service providers.
Rubiales shares fell 3.7 percent to 36,940 pesos, the lowest since March 2010.
Rubiales said the tax agency visited its offices on Nov. 3 as part of an investigation of the company’s contractors and service providers, according to a Nov. 4 statement on PRNewswire.
“That continues to cause a lot of noise in the market,” said Juan David Pineros, analyst at Interbolsa SA. “We still don’t know what it will mean since the tax agency has yet to give results of the investigation.”
Rubiales said there is no direct probe of the company and that these types of investigations are a “normal occurrence.” The company said it is in full compliance with its disclosure obligations and gave the tax agency full access to its files, according to the Nov. 4 statement.
Oil dropped for a third day in New York on signs that U.S. lawmakers won’t agree on cutting the budget deficit and on concern that Europe’s debt crisis will send the region’s economy into a recession.