Ecopetrol Clarifies Press Reports Concerning Commencement of Procedures to Access Colombia's Public Securities Market

BOGOTA, Colombia, May 19 /PRNewswire-FirstCall/ -- Ecopetrol S.A. (NYSE: EC; BVC: ECOPETROL; BVL: EC) (“Ecopetrol” or the “Company”) hereby issues the following clarification with respect to certain information published by certain media outlets on May 14, 2010 concerning the commencement by Ecopetrol of procedures for issuing up to $2 trillion pesos in fixed-yield bonds in the Colombian public securities market:

1. Petroleum prices since the beginning of the year have substantially helped the Company generate income not only to address its operational needs but also its investment plan without the need to incur debt.
2. If current petroleum prices persist, it is possible that the Company would not have to incur any debt during the first half of the year.
3. Despite not having any short-term liquidity needs, the Company continues moving forward on keeping as many financing options available and approved so that such resources are immediately available if and when the Company needs to make use of them.
4. Authorizations for 2010 and subsequent years are being secured for the Company’s general investment plan; however, these authorizations bear no direct relationship to timing of any financial transactions.
5. In the process of obtaining authorizations, a request is currently before the Colombian Financial Superintendency (Superintendencia Financiera de Colombia) for an eventual bond issuance of up to $2 trillion pesos in the Colombian public securities market.
6. In the event the Company requires financing during the second half of the year, the first option would be a drawdown of up to $500 million dollar, under a $1 billion dollar credit facility that is currently under negotiation with the U.S. Export-Import Bank.

Ecopetrol is Colombia’s largest integrated oil company and is among the top 40 oil companies in the world and the four largest oil companies in Latin America. Besides Colombia, where it accounts for 60% of total production, the Company is involved in exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol has the principal refinery in Colombia, most of the network of oil and multiple purpose pipelines in the country, and it is considerably increasing its participation in biofuels.

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.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20090209/ARM001LOGO )

SOURCE Ecopetrol S.A.

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