SA News • Wed, Dec. 17
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Pacific Rubiales: An Intriguing South American Oil Play
- Pacific Rubiales has seen fantastic production,reserve and revenue growth in the last few years.
- Increased net income by 200% in Q2 versus last year and 92% from Q1.
- Holds 95 blocks in 7 countries with a total land position of 32 million acres and lots of exploration upside in Colombia.
Wed, Dec. 17, 3:44 PM
- Pacific Rubiales Energy (OTCPK:PEGFF +13.4%) agrees to sell 43% of its interest a Colombia pipeline and power transmission unit to the World Bank's International Financial Corp. and a group of investors for $320M.
- The agreements will provide PEGFF with $240M cash to be received by year-end, another $80M in Q1 2015, plus a commitment for an additional $60M to develop future infrastructure projects.
Mon, Dec. 8, 4:55 PM
- Canada's S&P/TSX Composite Index suffered its biggest one-day loss in more than three years, plummeting as much as 462 points before settling for a 350-point beat-down, as resource stocks took a deep dive amid weakening crude oil prices.
- Purpose Investments' Som Seif says the selloff suggests investors are growing even more worried about how the resource heavy-Canadian economy will fare in light of the collapse in oil prices: "We still have lower to go for oil, and so there is the potential for energy stocks to see an even further decline from these levels.”
- Among today's worst performers: Lightstream Resources (OTCPK:LSTMF) -19%, Surge Energy (OTCPK:ZPTAF) -14.2%, MEG Energy (OTCPK:MEGEF) -14.1%, Crew Energy (OTCPK:CWEGF) -12.3%, Pacific Rubiales Energy (OTCPK:PEGFF) -11.2%.
- ETFs: EWC, FCAN, QCAN
Thu, Dec. 4, 11:42 AM
- Pacific Rubiales Energy (OTCPK:PEGFF -16.1%) plunges after late yesterday's announcement of a 50-50 joint venture with Alfa, its biggest shareholder, which analysts say may delay the chances of a takeover.
- “Our preferred scenario would be that this passive investment evolved into an operational partnership, as it would represent an opportunity for Alfa to get access to heavy oil expertise," Credit Suisse writes.
- The JV will study bidding in the opening round of oil and gas blocks the Mexican government is expected to begin tendering early next year, and pursue other energy projects in the country.
- Pacific Rubiales also provides its 2015 outlook, saying it expects to raise output by 5%-8% next year, generating an estimated EBITDA of $1.9B-$2.1B.
Fri, Oct. 17, 10:42 AM
- Pacific Rubiales Energy (OTCPK:PEGFF +2.9%) signs a three-year agreement with Mexico's state-run Pemex to analyze oil and natural gas ventures, including potential deepwater and onshore heavy oil projects, as the country opens up its energy industries to private investment for the first time in decades.
- Pacific Rubiales has more than $1B ready to invest in Mexico with the aim of doubling oil output by 2020, CEO Ronald Pantin has said.
Fri, Aug. 29, 12:38 PM
- Barclays regards Russian oil and gas companies as too risky for now, with no reason to assume any resolution to the Ukrainian crisis in the near term, but it sees Latin American energy stocks offering a more appealing set of risk/rewards.
- Of the firm's two Overweight ratings among emerging market energy stocks, the firm says Pacific Rubiales (OTCPK:PEGFF) offers a combination of relatively small size, expertise in heavy oil and is positioned to take part in Mexico's energy reform.
- The firm also likes Petrobras (NYSE:PBR), expecting near- to medium-term positive momentum following the Brazilian presidential election in October, but it remains concerned about production and reserve replacement at Ecopetrol (NYSE:EC).
- In South Africa, Barclays believes Sasol (NYSE:SSL) is entering a period of sustainable positive momentum, with a number of potential near- to medium-term catalysts which could boost valuation.
Wed, Aug. 13, 6:36 PM
- Colombia's Bicentenario crude oil pipeline has been shut down after being damaged in a bombing by leftist rebels, the latest of regular explosions carried out by guerrillas on the country's oil infrastructure.
- The consortium that owns the pipeline, led by state-run Ecopetrol (NYSE:EC) and Pacific Rubiales (OTCPK:PEGFF), does not know when the pipeline could reopen, although repairs to frequent attacks on Colombia's oil pipelines usually take place within a few days once the zone is secured.
- Colombia is Latin America's fourth biggest oil producer with output of nearly 1M bbl/day, but the country has been hit by 67 attacks in H1 of the year following a total of 259 in 2013.
Thu, Jul. 24, 4:59 PM
- Ecopetrol (NYSE:EC) and Pacific Rubiales (OTCPK:PEGFF) agree to recommend the end of the pilot project testing the Synchronized Thermal Additional Recovery technology, and that a technical committee should carry out a study of the results.
- PEGFF has been seeking a new contract in the Rubiales field, where its license will expire mid-2016, and proposes to share oil extracted using STAR under a future deal with EC, but critics say the technology causes tremors and water pollution.
- Tudor Pickering downgraded its rating on PEGFF to Hold from Buy after the decision to end the STAR pilot program, saying the stock may struggle to perform in the near term amid constrained production growth.
Tue, Jul. 15, 7:02 PM
- 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.
Fri, Apr. 11, 5:43 PM
- Pacific Rubiales (PEGFF) says it will spend as much as $200M to build its pipeline in Colombia to export liquefied natural gas, with a contract to supply Russia's Gazprom (OGZPY) for five years from 2015.
- Pacific Rubiales is Colombia's biggest private oil producer, with output last year of ~129K bbl/day, and plans to export LNG using the 52-mile pipeline starting sometime next year.
- At the same time, state-run Ecopetrol (EC) is looking into the viability of building a gas pipeline that would be capable of moving gas both directions to allow for both exports and imports at different times.
Wed, Apr. 2, 10:55 AM
- WSJ profiles plans by an increasing number of natural gas producers to pack entire gas production plants onto superships bigger than aircraft carriers instead of building expensive land-based industrial complexes.
- The new fleet of FLNGs demonstrates how the global race to provide cheaper gas supplies to Asian economies is pushing the boundaries of technology in the oil and gas sector.
- The world's first FLNG vessel likely be the joint gas project off the coast of Colombia from Pacific Rubliales (PEGFF) and Excelerate Energy, set to start in Q1 2015.
- The most talked-about project at last week's annual Gastech conference in Seoul was the 1,600-ft. long Prelude FLNG project led by Shell (RDS.A, RDS.B); expected to be the largest floating structure ever built, production capacity is seen at 3.6M metric tons/year of LNG.
- ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, BNO, KOLD, UNL, NAGS, DCNG
Mon, Mar. 24, 8:59 AM
- Pacific Rubiales Energy (PEGFF) is working with Bank of America to review its strategic options and could lead to the sale of the company, according to a Bloomberg report.
- The review reportedly includes defense advisory, market analysis and the sale of midstream assets; Repsol (REPYF, REPYY) is said to have considered an acquisition of Pacific within the past year though it decided for the time being not to pursue a deal, and the two companies held exploratory talks last year about potential joint ventures in Colombia, Venezuela and Mexico.
Wed, Feb. 12, 3:49 PM
- Shares of BPZ Resources (BPZ +3.4%) are strong after the company announced new production from its CX15-2D well offshore Peru.
- The block is producing a total of 5,425 bbl/day from the Corvina and neighboring Albacora fields, where BPZ is operator with a 51% stake and Pacific Rubiales (PEGFF) holds 49%.
- The well extends a "positive well streak" for BPZ, Global Hunter analysts say.
- Also, BPZ plans $86M in capital spending for 2014, $71M to be directed offshore.
Dec. 23, 2013, 8:18 AM
- Pacific Rubiales Energy (PEGFF) agrees to sell its 5% interest and transportation rights in the Ocensa oil pipeline in Colombia for $385M to a consortium led by Darby Private Equity, the P-E arm of Franklin Templeton.
- PEGFF also announces successful oil flow from two wells drilled in the CPE-6 heavy oil block in Colombia's Eastern Llanos Basin; PEGFF is operator of the block and holds a 50% share, with Talisman Energy (TLM) also owning 50%.
Nov. 4, 2013, 10:25 AM
- Pacific Rubiales (PEGFF +4.5%) says it received environmental licenses for its planned exploration and development activities in two blocks in Colombia.
- CEO Ronald Pantin says the new permit on CPE-6 block is a “global environmental license" that green-lights both exploration and future development drilling.
- PEGFF operates CPE-6 on a 50/50 basis with Talisman Energy (TLM +0.2%); proven and probable reserves of 44.5M barrels on the block have been booked.
- PEGFF also gained environmental approvals for development of its wholly-owned Guama gas block in the Lower Magdalena Valley basin.
Sep. 30, 2013, 8:49 AM
- Pacific Rubiales Energy (PEGFF.PK) agrees to acquire Colombian oil producer and explorer Petrominerales (PMGLF.PK) in a deal totaling $1.6B, including the assumption of ~$640M in net debt.
- The transaction includes 18 exploration and development properties in Colombia and four blocks in Peru, covering a total of nearly 40K gross sq. km and producing ~19M bbl/day of net oil in H1 2013.
Jun. 25, 2013, 10:04 AM
PEGFF vs. ETF Alternatives
Pacific Rubiales is a public company listed on the Toronto and Colombian stock exchanges. The Company is the largest independent oil and gas exploration and production company in Colombia. Pacific Rubiales owns 100% of Pacific Stratus and Meta Petroleum Limited, two Colombian oil & gas operators... More
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