C.A.T. Oil AG, Russia’s largest provider of hydraulic fracturing services, surged to the highest in almost five years in Frankfurt trading after holding meetings with investors.
The shares rose as much as 11 percent to 9.88 euros, the highest since May 2008, before paring gains and trading at 9.4 euros as of 2:40 p.m. local time. Trading volumes were about 70 percent greater than the three-month daily average.
Management have concluded meetings with about 30 different funds and financial institutions in New York and London, Leonid Mirzoyan, the company’s chief corporate financial officer, said by telephone from Moscow today.
OAO Rosneft, OAO Lukoil and OAO Gazprom Neft are spending billions of dollars to boost horizontal drilling and hydraulic fracturing, which splits underground rock by blasting it with a pressurized mixture of water and sand, after the technology increased crude output in the U.S.
More than 90 percent of this year’s forecast revenue of as much as 425 million euros ($549 million) are already secured in C.A.T. Oil’s order book, Mirzoyan said.