Petrominerales Posts Record Gain on New Well Flow: Bogota MoverChristine Jenkins
Petrominerales Ltd. rallied the most on record after the Canadian driller said output jumped by at least 8.8 percent from first-quarter levels as a new well in Colombia added to production.
Petrominerales rose 12 percent to 12,500 pesos at 12:29 p.m. in Bogota after early increasing as much as 16 percent, the biggest intraday gain since the shares started trading in August 2011. The stock was the biggest winner today on the Colombian Colcap index, which rose 0.9 percent.
The Curito-1 exploration well in central Colombia produced an average 5,973 barrels of oil per day initially with an electric pump, the company said in a statement yesterday. Under natural conditions without the pump, the well has been flowing at a stabilized rate of more than 2,700 barrels a day. The company said its total output is now more than 24,000 barrels a day, up from an average of 22,063 barrels a day in the three months through March.
Rising output “should modestly ease” concern about funding challenges, Jared Dziuba, an analyst at BMO Capital Markets, wrote in a research report today.
Petrominerales, which is selling assets after its cash balance tumbled by 89 percent over the past year, has received interest from prospective buyers in stakes in Colombian oil pipelines, Chief Executive Officer Corey Ruttan said in a telephone interview yesterday. Holders of convertible bonds are expected to exercise an option to demand repayment of about $200 million in August, he said.
Petrominerales, which reported a 35 percent drop in first-quarter output from a year earlier, is seeking to “maintain and modestly grow production this year,” Ruttan said.