UPDATE 2-Brazil's OGX falls as January oil output misses mark
* OGX shares have plummeted 76 percent in past year * January production data fell short of expectations (Adds comments, updates share performance in paragraphs 2-6) By Guillermo Parra-Bernal and Danielle Assalve SAO PAULO, Feb 4 (Reuters) - Shares of OGX Petróleo e Gas Participações SA, the Brazilian oil producer controlled by billionaire Eike Batista, dropped for the third day in four on Monday after output fell short of expectations in January. The stock shed as much as 4 percent to 3.99 reais, the lowest intraday price in three sessions. It recouped some of the losses and was trading 2.1 percent lower by 3 p.m. local time (1700 GMT.) The decline followed the release of average daily output data for January that came in below recent monthly levels in terms of average output per well. Analysts say lower-than-expected productivity readings for OGX's newly inaugurated third well in the Campos Basin, coupled with a slip in January output at two longer-established wells, is fanning concerns about potential depletion rates. The Rio de Janeiro-based company produced 16,400 barrels of oil equivalent per day (boepd) in January, with offshore production up to 13,200 boepd after the third well in the Tubarao Azul field in the Campos Basin began producing in early January. Investors expected offshore output to reach as high as 17,000 boepd in January. "The lower productivity brings negative read-through that OGX's depletion rates could be worse than expected, while removing the perception of potential upside from higher peak production rates," wrote Pedro Medeiros, an oil analyst with Citigroup GB&M. The data was dismal based on the expectations that markets had been building up regarding output, Lucas Brendler, an oil analyst with Geração Futuro Corretora said. Despite average output per well falling, January's total output was the highest OGX has achieved one year after it began pumping oil. Production was boosted by its first onshore oil output last month which added an average 3,200 boepd from the Gaviao Real field over a 12-day period, as well as the new output from the third Tubarao Azul well. Analysts say a slump in the stock reflects the lack of clarity in the company's strategy that "has fueled risk aversion" and raised questions over OGX's ability to deliver on goals. Disappointing production trends and a deterioration of the company's cash position could further pressure the stock, Deutsche Bank Securities analyst Marcus Sequeira said on Friday. Monday's decline in shares comes as OGX in recent days failed to find oil-bearing reservoirs in its Cozumel prospect in the offshore Campos basin. (Additional reporting by Gustavo Bonato and Peter Murphy; Editing by Grant McCool, Chizu Nomiyama and Sofina Mirza-Reid)
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