Ecopetrol and Talisman announce the commercial viability of the Akacias area
in Block CPO-09
- 55% of the production is owned by Ecopetrol and 45% by Talisman
- The original oil in place is initially estimated at 1.3 billion barrels and
a recovery factor of at least 10% is estimated.
- Ecopetrol estimates an initial incorporation of 35 million barrels of
- 1.5 million barrels of heavy crude were produced in the tests.
BOGOTA, Colombia, Dec. 9, 2013
BOGOTA, Colombia, Dec. 9, 2013 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL;
NYSE: EC; TSX: ECP), operator of the CPO-09 heavy oil block, which is jointly
developed with the Canadian firm Talisman Energy Inc., informs that it
declared the initial commercial viability of the Akacias area to the National
Hydrocarbons Agency (the "ANH").
(Logo: http://photos.prnewswire.com/prnh/20090209/ARM001LOGO )
The area, located within the block CPO-09, is in the Acacias municipality in
the Meta Department.
The original oil in place is estimated to reach at least 1.3 billion barrels
with an estimated minimum 10% recovery factor.
Pursuant to Ecopetrol's development plan, as initially approved, we estimate
an initial incorporation of 35 million barrels of reserves (including
royalties). 55% of such reserves are owned by Ecopetrol, under its
participating interest in the contract.
With the declaration of commercial viability and upon obtaining the applicable
environmental permits, the development and production is expected to begin in
an area covering 9,825 hectares. The extension of Akacias makes up for 4.7% of
the total CPO-09 Block (208,248 hectares), whose partners continue their
exploration activity in search of more hydrocarbon reserves.
Akacias is adjacent to Ecopetrol's major direct-operations area, with its
fields Castilla, Chichimene and Apiay currently producing 215,000 boe. which
represents an important synergy for the development of the new area whose
commercial viability was declared.
Ecopetrol's CEO, Javier Gutierrez Pemberthy stated that "Akacias constitutes
one of the major exploration achievements in recent years in Colombia and
clearly shows the heavy crude potential in the area of Llanos, which is the
focus of the exploratory campaign to reach Ecopetrol's target of producing 1
million of clean barrels in 2015 and 1.3 million barrels in 2020. We should
continue working together with our partner, Talisman Colombia, in the
assessment and development not only of Akacias, but also of the potential
existing across all the licensed area."
Hal Kvisle, President and CEO of Talisman stated that "we are very pleased to
work with Ecopetrol, as our partner and operator of Block CPO-9, in the
important Akacias oil field discovery, and we are very encouraged by the
results already obtained. We should proceed to agree a development plan and to
obtain the required environmental permits. This important milestone reflects a
significant step towards the realization of our business in Colombia."
Nine wells have been drilled up to now as part of the the Akacias area
delimitation campaign. The discovery well (Akacias-1) was drilled at the end
of 2010, while extended production tests began in May 2011 reaching an average
production of 2,000 Bpd. The cumulative production reached 1.5 million barrels
of crude with API gravity between 7 and 9.
The total current average production of the tested wells is 5,500 boe and
Ecopetrol estimates reaching a production volume of 25,000 boe by the end of
Foreseen activities for the development of the block should continue being
performed with the highest environmental and social standards, in line with
the corporate social responsibility policies in place at both partner
The reserves corresponding to Ecopetrol should form part of the Company's
total reserves by the end of December, once the certification is completed by
the independent firms responsible for this process. It is worth clarifying
that the audited volume of reserves shall be officially submitted in the
Resource & Reserves Statement (IRR, for its acronym in Spanish) to the ANH in
the first quarter of 2014.
Ecopetrol is the largest company in Colombia and is integrated into the oil
chain; it is among the 40 major oil companies in the world and among the four
main ones in Latin America. Besides Colombia - where it generates over 60% of
the national production - it is present in exploration and production
activities in Brazil, Peru & US (Gulf of Mexico). Ecopetrol owns the largest
refinery in Colombia and most of the pipeline and multi-product pipeline
network in the country, and is significantly increasing its participation in
This report contains statements associated with the business perspectives,
estimates for operational and financial outcomes and affirmations associated
to Ecopetrol's growth. All the above are projections, and as such are solely
based on the expectations of its directors with respect to the future of the
company and its ongoing access to capital to fund the company's commercial
plan. The realization of such estimates in the future depends on market
conditions, regulations, competitiveness, performance of Colombia's economy
and industry, to mention a few; therefore, they are subject to changes without
SOURCE Ecopetrol S.A.
Contact: Media Relations (Colombia), Jorge Mauricio Tellez, Phone: +
571-234-4329, Fax: +571-234-4480, e-mail: email@example.com;
Investor Relations Director, Alejandro Giraldo, Phone: +571-234-5190, Fax:
+571-234-5628, e-mail: firstname.lastname@example.org
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