Ecopetrol confirms oil discovery in the Fauno-1 Exploratory Well in the Cano Sur block in Colombia
July 05, 2011 at 17:56 PM EDT
BOGOTA, Colombia, July 5, 2011 /PRNewswire/ -- Ecopetrol S.A. (or the "Company") (NYSE: EC; BVC: ECOPETROL; BVL: EC; TSX: ECP) reports that it 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.
Ecopetrol is Colombia's largest integrated oil & gas company, where it accounts for 60% of total production. It is one of the top 40 oil companies in the world and the fourth largest oil company in Latin America. The Company is also involved in exploration and production activities in Brazil, Peru and the United States Gulf Coast, and owns the main refineries in Colombia, most of the network of oil and multiple purpose pipelines in the country, petrochemical plants, and it is entering into the biofuels business.
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company's business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
For more information please contact:
Director of Investor Relations
SOURCE Ecopetrol S.A.