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.