Rubiales Hits Two-Week High on Brazilian Oil Block Deal

Pacific Rubiales Energy Corp., the biggest Latin American non-state oil producer by market value, rose to a two-week high on plans to buy a stake in a Brazilian exploration block.

Shares advanced 0.5 percent to 38,700 pesos at 1:28 p.m. in Bogota, the highest level on a closing basis since March 18. The IGBC benchmark index retreated 0.5 percent.

Rubiales will exercise an option to acquire a 35 percent interest in the S-M-1166 oil exploration block in Brazil’s Santos basin from Karoon Gas Australia Ltd., Karoon said in a statement March 28.

“The blocks are located in areas with high prospectivity,” Valeria Marconi, an analyst at Correval SA, said in a telephone interview from Bogota. “It increases Pacific Rubiales’s exposure to Brazil, which is a good thing.”