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  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:  CO: Pacific Rubiales Energy Corp. ST: Ontario NI: OIL  
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