Ecopetrol and Pacific Rubiales announce decision concerning the Quifa SW STAR pilot project

Ecopetrol and Pacific Rubiales announce decision concerning the Quifa SW STAR 
pilot project 
TORONTO, July 24, 2014 /CNW/ - Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: 
ECP) ("Ecopetrol") and Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; 
BOVESPA: PREB) ("Pacific Rubiales") announced at a meeting yesterday of 
Ecopetrol's board of directors in which the Synchronized Thermal Additional 
Recovery ("STAR") pilot project being developed in an area of the Quifa SW 
field was considered;  and based on the technical analysis of the pilot a 
decision was made to adopt the recommendations included in the technical 
report prepared on June 6, 2014, entitled: "Joint Pacific Rubiales Energy - 
Ecopetrol S.A meeting, a review of the technical results of the STAR project" 
(the "Report"). 
The Report was prepared by technical teams appointed by Ecopetrol and Pacific 
Rubiales on April 22, 2014 to jointly examine the results of the STAR pilot 
project. The Report is limited to the results of the pilot project and does 
not constitute a ruling on the assessment of the STAR technology. 
The recommendations contained in the Report are as follows: 
In light of the fact that Ecopetrol and Pacific Rubiales are in agreement to 
consider that the STAR pilot project has provided sufficient information 
required for the evaluation of the technology and has reached the final 
approved date, both companies agree to recommend that: 


        --  The STAR pilot project be concluded.
        --  That the process of closing the project should be carried out
            by reducing on a scheduled basis the injection of air in the
            IV2 well in order to obtain additional information concerning
            the extinction of the thermal front in the area of the STAR
            pilot project in the Quifa SW field. In the time that remains
            of the authorized injection approved by the Agencia Nacional de
            Hydrocarburos ("ANH"), the injection air flow should be reduced
            until it has reached zero flow by the authorized end-date. The
            closing process should be carried out in a manner that ensures
            the operational continuity of the Quifa partnership, safety
            conditions and environmental regulations.
        --  A technical team be appointed to conduct a comprehensive
            post-pilot study.

Ecopetrol and Pacific Rubiales will closely monitor the conclusions resulting 
from this post-pilot study. The pilot project allowed the companies to acquire 
valuable knowledge and experience concerning the use of technologies based on 
in-situ combustion recovery.

The two companies reiterate their interest in continuing to work together on 
the analysis and development of these and other initiatives that will help 
increase recovery factors and hydrocarbon production in joint operated fields 
to the benefit of both companies and the country.

Pacific Rubiales, a Canadian company and producer of natural gas and crude 
oil, owns 100% of Meta Petroleum Corp., which operates the Rubiales, Piriri 
and Quifa heavy oil fields in the Llanos Basin, and 100% of Pacific Stratus 
Energy Colombia Corp., which operates the La Creciente natural gas field in 
the northwestern area of Colombia.  Pacific Rubiales has also acquired 100% of 
Petrominerales Ltd, which owns light and heavy oil assets in Colombia and oil 
and gas assets in Peru, 100% of PetroMagdalena Energy Corp., which owns light 
oil assets in Colombia, and 100% of C&C Energia Ltd., which owns light oil 
assets in the Llanos Basin.  In addition, the Company has a diversified 
portfolio of assets beyond Colombia, which includes producing and exploration 
assets in Peru, Guatemala, Brazil, Guyana and Papua New Guinea.

The Company's common shares trade on the Toronto Stock Exchange and La Bolsa 
de Valores de Colombia and as Brazilian Depositary Receipts on Brazil's Bolsa 
de Valores Mercadorias e Futuros under the ticker symbols PRE, PREC, and PREB, 
respectively.

Ecopetrol is the largest company in Colombia and is integrated into the oil 
chain; it is among the 50 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 
bio-fuels.

Advisories

Cautionary Note Concerning Forward-Looking Statements

This press release contains forward-looking statements. All statements, other 
than statements of historical fact, that address activities, events or 
developments that the Company believes, expects or anticipates will or may 
occur in the future (including, without limitation, statements regarding 
estimates and/or assumptions in respect of production, revenue, cash flow and 
costs, reserve and resource estimates, potential resources and reserves and 
the Company's exploration and development plans and objectives) are 
forward-looking statements. These forward-looking statements reflect the 
current expectations or beliefs of the Company based on information currently 
available to the Company. Forward-looking statements are subject to a number 
of risks and uncertainties that may cause the actual results of the Company to 
differ materially from those discussed in the forward-looking statements, and 
even if such actual results are realized or substantially realized, there can 
be no assurance that they will have the expected consequences to, or effects 
on, the Company. Factors that could cause actual results or events to differ 
materially from current expectations include, among other things: uncertainty 
of estimates of capital and operating costs, production estimates and 
estimated economic return; the possibility that actual circumstances will 
differ from the estimates and assumptions; failure to establish estimated 
resources or reserves; fluctuations in petroleum prices and currency exchange 
rates; inflation; changes in equity markets; political developments in 
Colombia, Peru, Guatemala, Brazil, Papua New Guinea or Guyana; changes to 
regulations affecting the Company's activities; uncertainties relating to the 
availability and costs of financing needed in the future; the uncertainties 
involved in interpreting drilling results and other geological data; the 
impact of environmental, aboriginal or other claims and the delays such claims 
may cause in the expected development plans of the Company and the other risks 
disclosed under the heading "Risk Factors" and elsewhere in the Company's 
annual information form dated March 13, 2014 filed on SEDAR at www.sedar.com. 
Any forward-looking statement speaks only as of the date on which it is made 
and, except as may be required by applicable securities laws, the Company 
disclaims any intent or obligation to update any forward-looking statement, 
whether as a result of new information, future events or results or otherwise. 
Although the Company believes that the assumptions inherent in the 
forward-looking statements are reasonable, forward-looking statements are not 
guarantees of future performance and accordingly undue reliance should not be 
put on such statements due to the inherent uncertainty therein.

In addition, reported production levels may not be reflective of sustainable 
production rates and future production rates may differ materially from the 
production rates reflected in this press release due to, among other factors, 
difficulties or interruptions encountered during the production of 
hydrocarbons.

Translation

This news release was originally prepared in the Spanish language and 
subsequently translated into English and Portuguese. In the case of any 
differences between the Spanish version and its translated counterparts, the 
Spanish document should be treated as the governing version.



SOURCE  Pacific Rubiales Energy Corp. 
Christopher (Chris) LeGallais Sr. Vice President, Investor Relations +1 (647) 
295-3700 
Roberto Puente Sr. Manager, Investor Relations +57 (1) 511-2298 
Kate Stark Manager, Investor Relations +1 (416) 362-7735 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/July2014/24/c8608.html 
CO: Pacific Rubiales Energy Corp.
ST: Ontario
NI: OIL  
-0- Jul/24/2014 10:00 GMT
 
 
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