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  PR Newswire  TORONTO, July 24, 2014  TORONTO, July 24, 2014 /PRNewswire/ - 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.  Contact:  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  
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