Ronald Pantin - CEO of Pacific Rubiales Energy

Ronald Pantin - CEO of Pacific Rubiales Energy

Pacific Rubiales (PRE:TSX) the Colombian oil producer, headed by Co-Chairman Serafino Iacono, announced its second quarter results which were somewhat mixed.  PRE saw its net earnings diminish from $224 million ($0.76 per share) in Q2/2012 to $58 million ($0.18 per share) in Q2/2013.  The reason for the reduced earnings was foreign exchange losses as well as a 6% drop in the realized price of oil.  Even with a lower oil price, the company was able to sustain strong operating netbacks at $64.54/boe versus $60.88/boe in Q1/2013.  The company grew net production by 38% year-over-year to 127,555boe/d

"The Company is delivering on its promise to reduce oil operating costs by approximately $8/bbl pro-forma by the end of 2013, and we expect there will be more to come. During the current quarter the total of oil transportation plus diluent costs decreased by approximately $5/bbl compared to the prior quarter and the same quarter last year,” says Ronald Pantin, CEO of Pacific Rubiales. 

The company intends to continue its cost optimization program while at the same time receiving its permits on some key exploration blocks.  One of these blocks is the CPE-6 Block which the company expects to receive a blanket exploration and development license for in Q3/2013.  The company plans to drill five exploration wells in Q3 with 23 wells to be drilled in Q4, including six on the CPE-6 Block.

News Release here: Pacific Rubiales Announces Second Quarter Results