Pacific Rubiales slides on concerns Ecopetrol will nix oil recovery technology

|By:, SA News Editor

Pacific Rubiales (OTCMKTS:PEGFF) fell to eight-week lows on concerns that tests of its oil recovery technology won’t be enough to persuade Ecopetrol (NYSE:EC) to use it in Colombia’s largest field.

Pacific execs are meeting with EC officials to discuss the test results of the STAR technology, which is designed to increase flow by heating oil in the well; Pacific is proposing to share production extracted using STAR at the Rubiales field, where it has a partnership with EC that expires in mid-2016.

While Pacific says STAR is effective and safe, the USO oil workers union says it causes water pollution and tremors.