- The block is located in the Llanos Orientales
- Ecopetrol will retain a 100% stake in the block
- The agreement is subject to authorization by the ANH
BOGOTA, Colombia, Feb. 14, 2011 /CNW/ -- Ecopetrol S.A. ("Ecopetrol") (NYSE: EC; BVC: ECOPETROL; BVL: EC; TSX: ECP) and Shell Exploration and Production Colombia Cano Sur GmbH ("Shell") have reached an agreement whereby Ecopetrol will assume all of the stake that Shell previously held in the exploration of Cano Sur block, located in the Llanos Orientales basin.
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Ecopetrol will retain a 100% stake in the block and continue as operator to carry out anticipated investment programs associated with it.
The agreement is subject to authorization by the National Hidrocarbons Agency, ANH, for concession of interests.
The block, which covers an area of about 610,000 hectares, is part of the projects included in the Ecopetrol Business Group's Heavy Crude strategy. Cano Sur block, which is covered under the hydrocarbons exploration and exploitation contract signed in 2005 with the ANH, is still in the exploratory phase and results obtained from evidence recorded in the stratigraphic wells Draco-1 and Mago-1 have confirmed the presence of hydrocarbons.
Ecopetrol will continue to perform intensive exploratory work in order to ascertain the hydrocarbons potential of the eastern region of Meta province, where the Rubiales and Quifa fields are also located.
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 it 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.
Contact us for any additional information:
Media Relations (Colombia)
Phone: + 571-2345377
SOURCE Ecopetrol S.A.
For further information: Investor Relations, Alejandro Giraldo, +011-571-234-5190, firstname.lastname@example.org, or Media Relations (Colombia), Mauricio Tellez, +011-571-234-5377, Fax: +011-571-234-4480, email@example.com Web Site: http://www.ecopetrol.com.co