After a few mixed and a few very disappointing 4Q12 results presentations this quarter, it is nice to read one that seems like good news from beginning to end. The graph tells the story with Parex production increasing sequentially from 2Q12 onward, with the trend continuing into 2013. That kind of growth pulls revenue and profit along for the ride.
Gulfsands is a newcomer to the Colombian scene having entered the market really only a few weeks ago when the blocks it won at the 2012 Round last October were finally signed, sealed and delivered by the National Hydrocarbons Agency (ANH). The company operates principally in the Middle East and North Africa with properties in Morocco, Tunisia and Syria. It recently updated its investor presentation to reflect the assignment of the blocks in Colombia.
Business magazine Dinero reports that 500 truckers threatened to go on strike and, to avoid it, asked companies like Ecopetrol and Pacific Oil Tech help them to find a solution to the problems that left them paralyzed in the Cartagena free trade zone, fact that made them lose about US$800 a day per truck.
It has been widely reported in the Colombian press that the arbitration commission has found in favor of Ecopetrol in its dispute with Pacific Rubiales. The result is an increase in Ecopetrol’s participation in the Quifa field, Pacific Rubiales’ second largest from the point of view of both reserves and production. This Portafolio article suggests that the wrangling is not over since the arbitrators declared they were not able to order Pacific to pay Ecopetrol the accumulated back payments. Pacific’s lawyer Nestor Humberto Martínez also spoke the newspaper about potential court action.
The ‘Qifa case’ has acquired a life of its own. This lawsuit between Pacific Rubiales and Ecopetrol turns on a clause that triggers an increase in Ecopetrol’s participation once production hits a certain level. The fight is over whether the trigger is defined by total production or just Pacific Rubiales’ net production. So much has been published on such little understanding that a number of ‘myths’ have arisen that Pacific has gone public to deny.
Interoil, operator of a number of Colombian oil blocks got approval from its shareholders to raise US$35M from existing and other investors. The equity is necessary to meet the requirements of bondholders to restructure and extend the company’s debt. The equity will be raised through a crash private placement that will close March 13, 2013. According to a company presentation, Interoil had US$97M of debt and US$10M in cash as of December 31, 2012 and it is using all of the proceeds from production in Peru and Colombia to pay for its debt. It is unable to invest in expanding production because of the debt load.
Ecopetrol continues its publicity campaign about local employment and procurement. This time it is the turn of employment, highlighting how many jobs the company creates and how many are filled with local people. With local hiring being a developing community issue, this Ecopetrol press release is timely. Translated and with commentary by Hydrocarbons Colombia.
Petrominerales announced its 2012 results this morning and had its conference call at 10:00 am Eastern. At the close, the share price in Toronto was down 8.4%. The company declared a Net Loss of US$54M in 4Q12 versus a profit of US$77M in 2011. For the year the company turned a profit of US$102M but that was 69% less than in 2011. The problem was production which was down 29%. This was offset by higher oil prices and better netbacks so funds from operations were only down 18%. As the graph shows, additions to reserves were minimal meaning 1P (proven) reserves are down 15%.
Talisman published its annual guidance for 2013 as a consequence of its annual investor open house. Although the company is looking to divest assets with longer-term payoffs, it seems to like its Colombian properties, giving them prominence in the presentation and directing significant CAPEX to 2013 activities in the country. The company also highlighted its investment in Ocensa, which has recently changed its business model from a cost center to a profit center, but this is one of the assets which Talisman would consider selling.
As business newspaper La Republica reported, the Panamanian company Petro Rubiales Corp., a subsidiary of Pacific Rubiales, acquired the majority of shares (50,19%) of the also Panamanian company, Pacific Infrastructure Inc. Petro Rubiales Corp. invested a total of US$2,207,802.85 for 2,324,003 shares at a value of US$ 0,95 each. Thus, Pacific Rubiales gained control over Pacific Infrastructure Inc.
2025, Hydrocarbons Colombia, All Rights Reserved.
