July 5 (Bloomberg) -- Pacific Rubiales Energy Corp., the operator of Colombia’s largest oil field, headed for its fourth weekly drop as it awaited permits needed to add to output.
The shares declined 2.3 percent to 32,920 pesos at 12:01 p.m. in Bogota, which would be the lowest closing level since March 2010. The stock extended its weekly slump to 3.7 percent. The Colcap index fell 0.7 percent today.
The company plans to seek renewal of its contract for the namesake Rubiales field, which expires in 2016, and is awaiting environmental permits for work in an adjacent area.
“The big problem with Pacific Rubiales has been these permit delays,” said Ray Zucaro, who helps oversee $350 million of emerging-market debt at SW Asset Management in Newport Beach, California. “They’ve done a great job acquiring assets, putting them together, building a beautiful little company, and you don’t see it reflected in current valuations.”
Chief Executive Officer Ronald Pantin said in a February interview that he is confident that his company will retain the license after 2016 because of its success drilling in the Rubiales field. A company official didn’t reply to an e-mailed request for comment today.
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