News and AnalysIs for

As always, the Pacific Rubiales conference call was full of interesting insights on the company and the industry. The Quifa arbitration result warranted an US$62M provision to Pacific Rubiales Net Income and drew multiple questions from analysts. The company had not adjusted its reserves but said it only amounted to “4 or 5Mbl”, some 4 or 5% of Quifa 2P reserves and so a much smaller percentage of overall 2P reserves. But results of the STAR (Synchronized Thermal Additional Recovery) test in Quifa SW drew almost as much interest considering its potential for increasing production without additional water cut. Results, by contrast, got less attention even though both Revenues and EBITDA hit records. Another stunning fact was that production was up 30% in 2013 versus December of 2012.