OGX Declines to Four-Year Low on Reduced Well OutputPeter Millard
OGX Petroleo & Gas Participacoes SA, the oil company controlled by billionaire Eike Batista, fell to a four-year low after reporting a drop in average production at its main field.
OGX dropped 3.1 percent to 4.02 reais at the close in Sao Paulo, the lowest since Dec. 10, 2008.
Average daily production per well at OGX’s Tubarao Azul offshore field in the Campos Basin fell to 4,900 barrels a day of oil and natural gas in January, from 5,100 in December, the Rio de Janeiro-based company said today in a presentation.
Production from a third well began in early January, lifting total output at the field to 13,200 barrels a day from 10,100 in December, OGX said.
OGX withdrew long-term production targets last year after the first two wells at Tubarao Azul pumped less than initial expectations. The stock fell 68 percent last year.