Ecopetrol Group increases its hydrocarbon reserves, proven reserves mount to 1,727 million barrels of oil equivalent at 2018 close
Ecopetrol (BVC: ECOPETROL; NYSE: EC) today announced its proven reserves of crude oil, condensate and natural gas (1P reserves), including its interest in affiliates and subsidiaries, as of December 31, 2018.
The reserves were estimated based on US Securities and Exchange Commission (SEC) standards and methodology.
Ninety-nine percent of the reserves were audited by wellknown specialized independent companies (Ryder Scott Company, DeGolyer and MacNaughton, Gaffney, Cline & Associates, and Sproule International Limited).
At the 2018 close, the Ecopetrol Group’s net proven reserves totaled 1,727 million barrels of oil equivalent. The reserve replacement ratio was 129%, with average reserve life equivalent to 7.2 years.
Of the total reserves balance, 70% are crude oil and 30% natural gas. The average life of crude and gas reserves is equivalent to 6.3 and 11.1 years, respectively.
Ninety-eight percent of the total balance of proven reserves is located in Colombia. Ecopetrol S.A. has an average reserve life of 7.4 years.
In 2018, the Ecopetrol Group incorporated 307 million barrels of oil equivalent of proven reserves, continuing its positive trend of incorporating reserves that began in 2017. Total cumulative production for the year was 239 million barrels of oil equivalent.
The SEC price used for the valuation of 2018 reserves was USD 72.2 per Brent barrel, versus USD 54.93 per Brent barrel in 2017. Ecopetrol estimates that approximately 47 million barrels of oil equivalent were recovered as a result of the higher price effect. Further, approximately 260 million barrels of oil equivalent were recovered due to the technical management and financial optimization of assets.
We note that much of the increase in proven reserves (129 MBOE) was due to the results of the Enhanced Oil Recovery program, the principal achievements of which were seen in fields such as Chichimene, Castilla and Teca.
Moreover, 57 MBOE were incorporated as a result of extensions and discoveries. This increase is the highest of the past five years.