Ecopetrol Builds on Cano Sur Success

- Ecopetrol Builds on Cano Sur Success

Monday, September 12, 2011
Ecopetrol S.A.

Ecopetrol on Monday announced the initial test results of the CSE-8 ST1 exploratory well in the Puerto Gaitan jurisdiction, a municipality in the Meta Province, in areas belonging to the eastern block of the Exploration and Exploitation Cano Sur contract.

Production test to date show a stable average production of 532 barrels per day of API 13.8 grade oil, with water cut around 18.5%.

The exploratory well was designed with a deviated wellbore that allowed contact with a thicker net oil pay and a better location within the deposit. Drilling operations began on August 11, 2011 and reached an average depth of 4,594 feet in 7 days.

This new exploratory success brings to four the number of oil findings in Cano Sur Block during 2011, including Mito-1, Fauno-1 and Pinocho-1. This constitutes an important milestone in the exploration of this block, taking into account its importance for Ecopetrol's heavy crude oil growth strategy.

Results of initial tests show that this well has the highest productivity among the recently drilled wells in this region. Test were undertaken using an artificial lift system with an electric submersible pump.

This contract was signed in June 2005 with the National Hydrocarbon Agency (ANH, Agencia Nacional de Hidrocarburos). Ecopetrol is the sole operator and holder of 100% interests.

"Ecopetrol has identified a huge potential for heavy crude oil commercial production in the Llanos Basin. We are very pleased with this new discovery" said Ecopetrol's CEO Javier Gutierrez Pemberthy.

In the coming months, Ecopetrol will continue to evaluate production conditions and the performance of the deposit found, maintaining simultaneous exploratory efforts in the area of the Cano Sur Block in order to make a prompt commercial viability statement.

Oil & Gas Post

Promote Your Page Too
LINK

Canacol Awarded Contract by Ecopetrol for Colombian Field

- Canacol Awarded Contract by Ecopetrol for Colombian Field

Thursday, September 01, 2011
Canacol Energy Ltd.

Canacol announced that Canacol Energy Colombia S.A., a subsidiary of the Corporation, has been awarded a contract by Ecopetrol S.A. for a 100% working interest in the associated gas and gas liquids stream from the Rancho Hermoso Field, located in the Llanos Basin of Colombia. Under the terms of the contract, awarded to Canacol by Ecopetrol S.A. on August 31, 2011, the Corporation will purchase the produced gas from Ecopetrol S.A. at a price of US $6.50 per thousand British Thermal Units (US $15.48 per thousand standard cubic feet per day), which includes the associated liquids, those being naphtha, propane and butane. The gas is very liquids rich, with 1 million standard cubic feet per day (mmscfpd) yielding approximately 160 barrels of naphtha, 126 barrels of propane, and 118 barrels of butane per day. In Colombia naphtha, propane, and butane all sell at a premium to West Texas Intermediate. The contract will be effective on January 1, 2012, and the Corporation anticipates adding approximately 2,300 net barrels per day of naphtha, propane and butane to its existing oil production stream from the approximately 5.7 mmscfpd of gas production forecast for January 2012.

Charle Gamba, President and CEO of the Corporation, commented "We are very pleased to have been awarded this contract for the associated gas at Rancho Hermoso, which will add a very healthy amount of liquids production to our oil production stream in Colombia. The Corporation will also be able to book proven, probable and possible reserves associated with the associated gas and gas liquids under the terms of the contract. Meanwhile, the Corporation has spudded the first of four new development wells to be drilled in the field during the remainder of 2011."

The Corporation anticipates awarding a contract for the construction of a gas and liquids separation facility in mid-September, 2011, which will be ready to receive the gas and associated liquids on January 1, 2012. The remaining dry gas will be utilized to generate electricity in the field, thereby lowering operating cost associated with the purchase of diesel, which is currently being used to generate electricity in the field.

The Corporation also announced that the spud of the Rancho Hermoso 11 development well on August 29, 2011, approximately 1 month behind schedule due to a delay in obtaining the environmental license for the well. All of the relevant licenses for the remaining wells to be drilled in the field have been obtained.

Oil & Gas Post

Promote Your Page Too
LINK

Ecopetrol 2Q Profit Climbs 89% to $1.93B

- Ecopetrol 2Q Profit Climbs 89% to $1.93B

Thursday, July 21, 2011
Dow Jones Newswires
BOGOTA
by Darcy Crowe

Colombia's state-controlled energy company Ecopetrol reported robust second-quarter net profits Thursday, fueled by higher oil prices and rising production.

Net profits last quarter were 3.4 trillion Colombian pesos ($1.93 billion), an 89% jump from COP1.8 trillion in the second quarter last year.

"In the first half of 2011 we had historically high financial and operating results," said Ecopetrol President Javier Gutierrez in a statement.

The company's earnings before interest, taxes, depreciation and amortization, or Ebitda, was COP7.57 trillion last quarter, a 111% jump from a year earlier, the statement said.

Ecopetrol's production, without its affiliates, rose to 674,400 barrels a day of oil equivalent in the second quarter, a 21% gain from that quarter of last year, it said.

Analysts attribute the increased oil output by Ecopetrol to higher recovery rates in mature fields and new projects coming into line.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too
LINK

Colombia Well Delivers for Ecopetrol

- Colombia Well Delivers for Ecopetrol

Wednesday, July 06, 2011
Ecopetrol S.A.

Ecopetrol has proven the presence of hydrocarbons in exploratory well Fauno-1, located in the Municipality of Puerto Gaitan, in the Meta province (Colombia).

This well, part of the exploratory campaign carried out by the Company in the Cano Sur block in the Llanos Orientales, is in addition to three other wells in the same block that were previously announced as successful (Mito-1, exploratory; Mago-1, stratigraphic; Draco-1, stratigraphic).

Ecopetrol S.A. is the operator and owner of all the rights to the Cano Sur Hydrocarbon Exploration and Operation Contract that was signed with the National Hydrocarbon Agency of Colombia (ANH), which covers an area of approximately 611,343 hectares.

The Fauno-1 well results confirm the potential of the Cano Sur block, where the company is continuing with an exploratory campaign, which includes the drilling of more than 20 exploratory and stratigraphic wells in 2011.

The Fauno-1 well, located in the eastern sector of the block, was drilled vertically to a depth of 3,256 feet. Technical data indicates that the well was completed with an artificial lifting system using a progressive cavity pump (or PCP), and that the hydrocarbon accumulation is located in the basal sands of the Carbonera formation.

Production tests carried out show production to date of 12.3 degrees API crude oil (heavy), with an average flow of 170 barrels per day, and a water and sediment of 22%, leaving an average daily rate of 132 barrels of crude oil. In initial tests the well produced 695 barrels.

Production conditions and yield for the deposit discovered in Fauno-1 will continue to be evaluated during the coming weeks.

The Company believes the results obtained from this block and from others in the area confirm the importance of the Llanos Orientales for Ecopetrol's growth strategy, and for achieving the goals proposed by the Company in the coming years, which include reaching one million barrels in equivalent production in 2015.

Oil & Gas Post

Promote Your Page Too
LINK

Ecopetrol Makes Oil Discovery in Colombia

- Ecopetrol Makes Oil Discovery in Colombia

Tuesday, May 17, 2011
Ecopetrol S.A.

Ecopetrol announced the discovery of crude oil in the Mito-1 exploratory well located in the municipality of Puerto Gaitan, in the Meta province.

The exploratory well (A-3) comprises part of the exploration campaign in the Cano Sur block in the Llanos Orientales, where the presence of hydrocarbons had already been reported at stratigraphic wells in 2010 (Mago 1 and Draco-1).

Ecopetrol is the operator and owner of all the rights of the Cano Sur Contract for Exploration and Exploitation signed with the National Hydrocarbon Agency (ANH – Agencia Nacional de Hidrocarburos).

The Mito-1 exploratory well is located in the Eastern sector of the Cano Sur Contract contiguous to the Quifa field, in which Ecopetrol also has a participation.

The Mito-1 well was drilled vertically to a depth of 3,310 feet, equivalent to more than one kilometer. It was then completed with an artificial lift system using a progressive cavity pump (PCP). The accumulation of hydrocarbons has been proven in the basal sands of the Carbonera formation.

The production testing conducted to date brings up a production of crude oil of 13.5o API, with an average flow of 225 barrels per day, a water cut on the order of 10%, and a daily average production of 200 barrels of crude.

In coming weeks the evaluation of the conditions for production and the behavior of the deposit discovered with the Mito-1 well will continue. Additionally, Ecopetrol will proceed with the drilling campaign within the Cano Sur block, which will encompass more than 10 exploratory wells, and additional stratigraphic wells in coming months.

This new finding reaffirms the importance of the Llanos Orientales in Ecopetrol's growth strategy. The Meta province represents about 40% of the company's crude production, and is one of the focal points of the exploratory campaign in its strategy leading up to 2020.

Oil & Gas Post

Promote Your Page Too

Ecopetrol Hits Hydrocarbons in Huila Province

Ecopetrol Hits Hydrocarbons in Huila Province

Monday, April 25, 2011
Ecopetrol S.A.

Ecopetrol has found the presence of hydrocarbons in the Nunda-1 well, located in the municipality of Tello in Huila province.

The well is part of the Cuisinde Exploration and Exploitation Agreement of 2006 between Ecopetrol and the National Hydrocarbons Agency, ANH in which the company holds a 100% stake.

Drilling at the well began on January 27, 2011, reaching a total depth of 7,371 feet three weeks later, the equivalent of 2.25 kilometers from the surface.

Preliminary testing on the Honda formation showed a flow volume of 318 barrels, with a 71% water cut, yielding an average of 92 barrels of oil per day. The quality of the crude is 30 degrees API.

Ecopetrol will begin appraising the find in the weeks ahead, with extensive tests planned in order to determine the production potential of the Honda formation and the volume of recoverable hydrocarbons.

The discovery opens up a new era for Ecopetrol by branching out to new types of exploration activities involving stratigraphic traps (those in which hydrocarbons accumulate due to variations in the deposit environment) in the Valle Superior del Magdalena and helps increase reserve inventories in this area of the country.