Aug. 20, 2013, Ecopetrol S.A. makes an announcement that it has proven the existence of hydrocarbons in the Guainiz-1 exploratory well. The well is located in San Carlos de Guaroa, Meta Province, Colombia.

 

A daily average production of 409 barrels per day of 14.4° API crude and a water cut of 8.4%, through an artificial lift system of progressive cavity pump is yielded by the initial tests.

 

Ecopetrol made the third discovery in the CPO-10 block. The first Pastinaca discoveries was announced in March and Cusuco discoveries in May 2013. The CPO-10 Exploration and Production Contract was signed by Ecopetrol and the National Hydrocarbons Agency on December 18, 2008. And the three discoveries are under it.

 

 The three discoveries are under Drilling began on the Guainiz-1 well last June and culminated on July 14 at a depth of 7,975 feet in Paleozoic rock. Initial tests were made on the intermediate deposit of late Eocene Age basal sandstone beds at a perforated interval of 16 feet. Positive results besides those of the tests were also obtained from fluid samples in the top of the sand packages from the Late Cretaceous period.

 

Ecopetrol will analyze and get the results over the next months. In order to get more production to the future fields, it will drill more new delimitation wells in the CPO-10 block.

 

To the expecting date, the company has made four discoveries in the 5 exploratory drilling wells, and it gets a success rate of 80%.

 

Making up 60% of total production, Ecopetrol is Colombia's largest integrated oil & Gas Company. It is the fourth largest oil company in Latin America, and one of the top 50 oil companies in the world. The Company also takes part in the exploration and production activities in Brazil, Peru and the Gulf Coast in United States. Also, it owns the main refineries in Colombia. Besides, it has most of the network of oil and multiple purpose pipelines in the country, petrochemical plants. Now it is entering into the biofuels business.

 

The prospects of the business, estimates for operating and financial situation, and those related to growth prospects of Ecopetrol are included in the release. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business. And Ecopetrol has to fund the Company's business plan through access to capital. Changes in market conditions, government regulations, competitive pressures, are depended on such forward-looking statements substantially. The performance of the Colombian economy and industry is also among other factors. Therefore, they are subject to change without prior notice.