HRT Plunges to Record Low After Abandoning Brazil, Namibia Wells
Bloomberg's businessweek article and headline today are depressing from a number of angles!
HRT Participacoes em Petroleo SA tumbled to a record low in Sao Paulo after the oil and gas explorer abandoned wells in Brazil and Namibia.
The Rio de Janeiro-based company’s shares sank 17 percent to 2.71 reais at 11:10 a.m. local time after plunging to 2.52 reais, the lowest price since its October 2010 initial public offering. Trading volume today was 3.1 times the three-month daily average. The Ibovespa stock benchmark slid 0.3 percent.
HRT is abandoning a well that turned up dry in northern Brazil’s Solimoes Basin and another one in Namibia, where it found non-commercial oil volumes, according to a regulatory filing. The company will continue drilling three additional offshore wells in the African country, Nilo Azambuja, the company’s exploration and production head, said today in an interview.
HRT has declined 44 percent this year while the Ibovespa (IBOV) has fallen 8.9 percent.