Ecopetrol Approves the Commercial Viability of the Quifa Field

USA - English

• USA - English
• USA - English

BOGOTA, April 21 /PRNewswire/ -- The Board of Directors of Ecopetrol approved the commercial viability of the Southwest Quifa Field, located in the Meta district, within the Quifa Partnership Contract Area.

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The commercial viability declaration means that, after evaluating the field's potential and the results obtained during the exploration and testing stages, Ecopetrol has decided to take part in the commercial development of the field together with the operator, Meta Petroleum.

The Quifa Partnership Contract was signed on December 22, 2003. Ecopetrol covers 30% of all costs and investments, and receives a minimum share of 40% of the hydrocarbons after royalties.

The Southwest Quifa field has a commercial area of approximately 40 thousand hectares (99 thousand acres) with 11 producing wells to date that yield over 2,300 barrels of heavy crude per day. The development plan estimates an average daily production of 30,000 barrels a day by 2011.

The Quifa field is adjacent to Rubiales, a field in which Ecopetrol and Pacific Rubiales (producer and owner of Meta Petroleum) have shares.

At present, Ecopetrol has an average daily production at the Meta district of approximately 198 thousand barrels per day, mainly from direct fields and shares in fields run jointly with other companies.

The commercial viability of the Southwest Quifa field is part of Ecopetrol's strategy to incorporate reserves in adjacent areas to production fields and contributes towards reaching a production of one million equivalent barrels (oil and natural gas) by 2015.

Ecopetrol is the largest company in Colombia, one of the world's 40 largest, and among the four largest in Latin America. Apart from Colombia -- where it is responsible for over 60% of the nation's oil production -- it has a presence in exploration and production activities in Brazil, Peru, and the United States (Gulf of Mexico). Ecopetrol has the two largest refineries in Colombia, most of that nation's oil and poli-product pipelines, and is significantly increasing its share in biofuels.

This release contains statements relative to business prospects, estimates of production and financial results, and declarations associated to Ecopetrol's growth prospects. All these are projections, and as such are based only in expectations of Ecopetrol's high executives with reference to the future of the company and its constant access to capital to finance the company's commercial plan. The materialization of such estimates in the future depends on market conditions, regulations, competition and Colombian economy and industry performance, among other factors, due to which they are subject to change without prior notice.

    For further information, please contact the following:

    Investors Relations Office
    Alejandro Giraldo
    Phone: +571-234-5190
    E-mail: [email protected]

    Media Relations (Colombia)
    Mauricio Tellez
    Phone: +571-2345377
    Fax: +571-2344480
    E-mail: [email protected]

    Website: www.ecopetrol.com.co

SOURCE Ecopetrol S.A.