Petrominerales Gains on Bets Pipeline Sale Closer: Bogota MoverChristine Jenkins
Petrominerales Ltd., a Calgary-based oil producer with operations in Colombia, rose to its highest in two months on speculation it is moving closer to a deal to sell its stake in a pipeline to raise cash.
The shares increased 2.6 percent to 12,500 pesos at 12:43 p.m. in Bogota, the highest level on a closing basis since June 18. The company was the best performer on the Colcap index, which rose 0.3 percent.
Petrominerales said last month that it was joining three other oil companies to sell their combined 27 percent stake in the country’s Ocensa pipeline, with a closing projected for the fourth quarter. Petrominerales has said the proceeds are needed to help make debt payments.
“We should hear news soon on the pipeline disposition, and maybe people in Colombia are buying for that reason,” Darren Engels, an analyst at FirstEnergy Capital Corp. in Calgary, said in a telephone interview.
The sales processes are “well-advanced,” Petrominerales said in an August presentation on its website.