We try to stay away from share price-related issues. There are lots of commentators better suited for that activity. But we do look at share prices in aggregate as an indicator of investor faith in Colombia. Doing that means we need to ‘unpack’ the influence of various performance drivers including oil prices, other broad industry factors, company-specific factors and to get, finally, the influence of Colombia itself.
Frontera Energy Corporation (TSX: FEC) announced its estimated 2018 production with positive results according to its 2018 production guidance. Colombia production in the fourth quarter of 2018 increased. The firm announced its drilling plans for the first quarter of 2019 and the Quifa block plays a key role in this process.
We updated our indices of Colombia-focused, publicly-traded companies and as expected, the slide in Brent had a noticeable impact. We also looked more closely at our composite index, especially the role of the TSX.
Manuel Buitrago, General Director of Gran Tierra Energy (TSX:GTE) in Colombia spoke about the firm’s plans in Putumayo.
Colombia-focused oil companies dutifully did their 2019 planning, a meticulous process requiring formal Board approval, which can take many months to complete. But at the beginning of October, Brent started to slide nearly 37%, from US$84.16 on October 5th to US$53.21 on December 28th, although it was up considerably last week (Jan 4th) to US$57.06.