In initial testing, exploratory well produced 200 barrels per day of 13.5 API oil
Ecopetrol is the operator and owner of 100% of the rights of the Cano Sur contract
This discovery is added to two stratigraphic wells with evidence of hydrocarbons reported in the same block (Mago-1 and Draco-1)
Ecopetrol is announcing the discovery of crude oil in the Mito-1 exploratory well located in the municipality of Puerto Gaitan, in the Meta province.
The exploratory well (A-3) comprises part of the exploration campaign in the Cano Sur block in the Llanos Orientales, where the presence of hydrocarbons had already been reported at stratigraphic wells in 2010 (Mago 1 and Draco-1).
Ecopetrol is the operator and owner of all the rights of the Cano Sur Contract for Exploration and Exploitation signed with the National Hydrocarbon Agency (ANH - Agencia Nacional de Hidrocarburos).
The Mito-1 exploratory well is located in the Eastern sector of the Cano Sur Contract contiguous to the Quifa field, in which Ecopetrol also has participation.
The Mito-1 well was drilled vertically to a depth of 3,310 feet, equivalent to more than one kilometer. It was then completed with an artificial lift system using a progressive cavity pump (PCP).
The accumulation of hydrocarbons has been proven in the basal sands of the Carbonera formation.
The production testing conducted to date brings up a production of crude oil of 13.5o API, with an average flow of 225 barrels per day, a water cut on the order of 10%, and a daily average production of 200 barrels of crude.
In coming weeks the evaluation of the conditions for production and the behavior of the deposit discovered with the Mito-1 well will continue. Additionally, Ecopetrol will proceed with the drilling campaign within the Cano Sur block, which will encompass more than 10 exploratory wells and additional stratigraphic wells in coming months.
This new finding reaffirms the importance of the Llanos Orientales in Ecopetrol´s growth strategy. The Meta province represents about 40% of the company´s crude production, and is one of the focal points of the exploratory campaign in its strategy leading up to 2020.
Bogota, Colombia, May 17, 2011
Ecopetrol is Colombia´s largest integrated oil & gas company, where it accounts for 60% of total production. It is one of the top 40 oil companies in the world and the fourth largest oil company in Latin America. The Company is also involved in exploration and production activities in Brazil, Peru and the United States Gulf Coast, and owns the main refineries in Colombia, most of the network of oil and multiple purpose pipelines in the country, petrochemical plants, and is entering into the biofuels business.
This release contains forward-looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of Ecopetrol. These are merely projections and, as such, are based exclusively on the expectations of management concerning the future of the business and its continued access to capital to fund the Company´s business plan. Such forward-looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Colombian economy and the industry, among other factors; therefore, they are subject to change without prior notice.
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