In case you missed It, Ron Pantin the CEO said yesterday two things worth highlighting: they are looking at buying a light oil player to help with costs of blending their heavy oil. Most importantly, they expect their license on CP6 in the next 3 to 6 weeks and the CEO says he is very optimistic they will be able to get a new license on the main Rubiales field.
Even if the terms are not as favorable I would think a new contract with Ecopetrol on the main Rubiales field would be a huge plus.
(BN) Pacific Rubiales Scouring for Colombia Oil Acquisition, CEO Says
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Pacific Rubiales Scouring for Colombia Oil Acquisition, CEO Says
2013-08-14 04:00:00.11 GMT
By Andrew Willis
Aug. 14 (Bloomberg) -- Pacific Rubiales Energy Corp., the the world's fastest-growing major crude producer, said it's looking to buy a low-density crude producer in Colombia in a bid to reduce the cost of transporting its mostly heavy oil.
The company buys gasoline on the international market and blends it with heavier oil before sending the mix to port at a "huge cost," Chief Executive Officer Ronald Pantin said yesterday in an interview from his Bogota office.
"There are light oil companies in Colombia that it would be a no brainer to get their production," Pantin said. "We are looking. We are not in negotiations. The moment is now but you need two to tango."
Pacific, run by the ex-Petroleos de Venezuela SA executive who left in 2000 as then-President Hugo Chavez stepped up control of the state company, boosted output sevenfold over the past five years by plying the Rubiales field, Colombia's largest. Pantin didn't rule out a bid for Calgary-based Petrominerales Ltd. as he seeks new growth opportunities.
"It's a great company, they have a lot of light oil," he said. "I am not negotiating with them. I am keeping an eye on all of them."
Share Slump
Petrominerales, which produces mostly from fields in Colombia's Llanos basin, reported a 31 percent decline in second-quarter production. July output rose and the company has opportunities to continue growing, Petrominerales Chief Executive Officer Corey Ruttan said in an Aug. 9 interview.
Petrominerales shares have slumped 29 percent this year in Toronto and trade at 10.67 times estimated 2013 earnings, according to data compiled by Bloomberg. Pacific Rubiales has lost 14 percent and fetches 10.78 times forecast profit, the data show. Rubiales' market value is $6.23 billion compared with
$501 million for Petrominerales.
Pacific's compound production growth over the last five years is 47 percent, the fastest among 109 producers with a market value of at least $5 billion tracked by Bloomberg. The group average is 8.4 percent growth, the data show.
The company's shares fell last week after reporting net income of $57.6 million, or 18 cents a share, down from $224 million, or 76 cents, a year earlier. The fall was largely caused by a 5.1 percent drop in the Colombian peso, lower oil prices and a depreciation of assets.
Beating Target
Pacific will surpass its 2013 output target and is "sure"
it will secure soon a license for the CPE-6 block, Pantin said.
The top range of the company's forecast for this year is an average net daily production of 127,000 barrels of oil equivalent. Rubiales accounts for 65 percent of the company's production, according to a July presentation.
"We're going to be higher," Pantin said. "Why am I saying that? Because of Peru, Cajua, Sabanero and CPE-6."
Pacific Rubiales, which had licensing delays for its CPE-6 block in Colombia's Llanos basin, now expects a blanket exploration and development license from Colombia's environmental agency known as ANLA within three to six weeks, Pantin said.
License Expiry
"I'm sure we are going to get it," Pantin said. "I talk to ANLA every day. They are very pleased with the way meetings with local communities went."
Pacific Rubiales has identified CPE-6 as a key area for future production growth. The company's contract at the Rubiales field is set to expire in June 2016. Ecopetrol's board will decide whether to issue a new license in the field.
"I'm very optimistic," Pantin said. "Our proposal for a new contract is a good one. It will be production sharing with Pacific as the operator. It's beneficial for both Pacific and Ecopetrol."
Ecopetrol declined to comment on the contract in an e- mailed response to questions.
For Related News and Information:
Pacific Rubiales news: PRE CN <EQUITY> CN BN <GO> Top Latin American news: TOPL <GO> Most-read news on Colombia: MNI COLOM <GO>
--Editors: James Attwood, Jasmina Kelemen
To contact the reporter on this story:
Andrew Willis in Bogota at +57-1-313-7656 or awillis21@bloomberg.net
To contact the editor responsible for this story:
James Attwood at +56-2-2487-4019 or
jattwood3@bloomberg.net
August 14, 2013
August 13, 2013
August 9, 2013
#AngloGold $AU: 600 000 new oz of #gold @ less than $700/oz from #Kibali and #Tropicana
Revenue-boosting #gold projects in the money in the nick of time for #AngloGold $AU
JOHANNESBURG (miningweekly) – Two revenue-boosting gold projects are in the money for AngloGold Ashanti in the nick of time.
Just when the gold-mining industry is seeing capital-expenditure blowouts, South Africa’s biggest gold producer will be cheering in 600 000 oz of gold costing less than $700/oz from brand new projects.
At the same time, savings of $482-million are also expected to be achieved, which should reposition the company well as it enters 2014.
Current all-in sustaining costs of $1 200/oz for the year are expected to be reduced by another $200/oz from the exploration- and corporate-cost savings and the direct cost savings.
In that way the company will keep ahead of the gold price by taking the company down to an all-in sustaining cost level of $1 000/oz.
Even at the relatively low current gold price of $1 291.80/oz, the $591/oz margin that the new Tropicana project in Australia and the Kibali project in the Democratic Republic of Congo presents is solid and will come on top of the company ensuring that its normal operations meet their targets.
Read the rest of the story online here: Revenue-boosting #gold projects in the money in the nick of time
The MasterMetals Blog
JOHANNESBURG (miningweekly) – Two revenue-boosting gold projects are in the money for AngloGold Ashanti in the nick of time.
Just when the gold-mining industry is seeing capital-expenditure blowouts, South Africa’s biggest gold producer will be cheering in 600 000 oz of gold costing less than $700/oz from brand new projects.
At the same time, savings of $482-million are also expected to be achieved, which should reposition the company well as it enters 2014.
Current all-in sustaining costs of $1 200/oz for the year are expected to be reduced by another $200/oz from the exploration- and corporate-cost savings and the direct cost savings.
In that way the company will keep ahead of the gold price by taking the company down to an all-in sustaining cost level of $1 000/oz.
Even at the relatively low current gold price of $1 291.80/oz, the $591/oz margin that the new Tropicana project in Australia and the Kibali project in the Democratic Republic of Congo presents is solid and will come on top of the company ensuring that its normal operations meet their targets.
Read the rest of the story online here: Revenue-boosting #gold projects in the money in the nick of time
The MasterMetals Blog
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