The Republic of Colombia was notably featured on the world stage at the start of Q2-2012. Unfortunately, the country`s hosting of the Sixth Summit of the Americas in Cartagena was somewhat overshadowed by the behaviour of US Secret Service agents prior to the event. However, outside of the obvious news flow created by this event, the country featured prominently in Time Magazine in April, where President Santos was featured in three issues, including the cover story of "The Colombian Comeback". In addition, the country was active in the world and the region, participating in May in the formation of the "Pacific Alliance", presenting at the G-20 meeting in Mexico in June as to how the country was able to avoid the world financial crisis and signing two new Free Trade Agreements at the end of the quarter; one with the Republic of Korea and the second with the European Union. President Santos also signed a series of bilateral agreements with the Chinese government to boost political and economic relationships between the two countries while travelling in Asia.
The equity markets were not kind to the oil companies with operations focussed on the country, with an average of 24% decline in share prices in Q2-2012. Only four of 34 companies saw positive share price movement through the quarter (although world events at the end of Q2-2012 were supportive of capital markets). And similarly, there was a drop in the approval rating for President Santos as highlighted in polls at the end of June, as politics and security concerns remain in the country. All around, a rather tough quarter as Colombia again experienced the impact of the negative world sentiment.
Inside the document, you will find a summary of statistics on the country as well as relevant news on events in the country and selected news summaries for some of the larger public oil and gas companies that operate in Colombia. Companies mentioned in the report include Ecopetrol SA (NYSE:EC), OGX Petroleo e Gas Participaco (OTCPK:OGXPY), Talisman Energy Inc (NYSE:TLM), Pacific Rubiales Energy Corp (OTC:PEGFF), Etablissements Maurel et Prom (OTC:MRELF), Gran Tierra Energy Inc (NYSEMKT:GTE), Petrominerales Ltd (OTCPK:PMGLF), Parex Resources Inc (OTC:PARXF), C&C Energia Ltd (OTC:CNCEF), Amerisur Resources PLC (OTC:ASUXF), Canacol Energy Ltd (CAAEF), GeoPark Holdings Ltd (OTC:GPRKF), PetroMagdalena Energy Corp (ALNGD), Petroamerica Oil Corp (OTCPK:PTAXF), Petrodorado Energy Ltd (OTC:PTRDF), Shona Energy Co Inc (OTC:SHOAF), PetroNova Inc (OTC:PRVAF), Azabache Energy Inc (OTCPK:AZBCF), GeoGlobal Resources Inc (GGR), Suroco Energy Inc (OTC:SROYF), Houston American Energy Corp (NYSEMKT:HUSA), Sintana Energy Inc (OTC:DRFLF), Gold Oil PLC (OTC:GDOLF), Brownstone Energy Inc (OTCPK:BWSOF), Santa Maria Petroleum Inc (QUEZF), Petro Vista Energy Corp (OTC:PTVYF), Sagres Energy Inc (COSPF), Vast Exploration Inc (VSTFF), Stetson Oil and Gas Ltd (OTC:SSNOF), Woburn Energy PLC (OTC:WOBUF), La Cortez Energy Inc. (OTCPK:LCTZ)
This article is extracted from "Kozak's Quarterly Review: Colombia", published on July 9, 2012. The full 34-page document may be downloaded at no charge from the website: www.fredkozak.com