Ecopetrol's Board of Directors Approves Dividend Distribution Proposal for Fiscal 2011

-- Proposal establishes distribution of 70.0% of 2011 net income as ordinary dividend, plus 9.85% of 2011 net income as extraordinary dividend

-- The ordinary dividend will be Col$263.00 per share and the extraordinary dividend will be Col$37.00 per share

BOGOTA, Colombia, Feb. 21, 2012 /CNW/ - Ecopetrol S.A. (NYSE: EC; BVC: ECOPETROL; TSX: ECP) announces its dividend distribution proposal for fiscal 2011 approved today by its Board of Directors and to be presented for consideration by the General Shareholder Assembly on March 22, 2012.

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DIVIDEND DISTRIBUTION PROJECT FOR 2011

(Figures in Col$)

Net income after income tax provision and others

15,448,333,037,939



- Less appropriation for current year statutory reserve


Appropriation for Legal Reserve (10%)

(187,957,834,023)

Regulatory Decree 2336/95 Reserve (valuation at market prices)

(1,829,361,798,444)


13,431,013,405,473

+ Plus release of prior reserve commitments


For new explorations taxed portion

1,117,437,667,069

non taxed portion

1,477,674,767,575

Unrealized prior year income of Corporate Group companies (non taxed)

1,086,069,693,726

Prior year Regulary Decree 2336/95

96,695,147,855

For payment of new dividend installments (non taxed) for prior year

449,904,384,322


4,227,781,660,547



Income available to Shareholder General Assembly

17,658,795,066,020



It is proposed that the distribution be carried out as follows:


For payment of ordinary dividend debited to income of period (70% of 2011 Net Income)

10,813,691,693,980

For payment of extraordinary dividend debited to income of period (9.85% of 2011 Net Income)

1,521,317,842,879

Prior year unrealized income reserve for Corporate Group companies (non taxed)

711,387,633,994

Unrealized 2011 income reserve of Corporate Group (non taxed)

1,412,150,080,648

New exploration reserves taxed portion

1,117,437,667,069

non taxed portion

1,477,674,767,575

Reserve to strengthen integrity of transportation infrastructure

605,135,379,875



Ordinary Dividend to be paid per share

$ 263.00

Total extraordinary dividend to be paid per share

$ 37.00

Total Ordinary + Extraordinary Dividend to be paid per share

$ 300.00



It is proposed that the ordinary dividend be paid in three (3) equal installments starting on April 25, August 27, and December 17 of 2012. The extraordinary dividend will be paid in the twelve months following the Shareholder Assembly.

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.

Contact us for any additional information:

Investor Relations
Alejandro Giraldo
Phone: +571-234-5190
Email: investors@ecopetrol.com.co

Media Relations (Colombia)
Mauricio Tellez
Phone: + 571-2345377
Fax: +571-2344480
Email: mtellez@ecopetrol.com.co

Website: www.ecopetrol.com.co

SOURCE Ecopetrol S.A.

For further information:

http://www.ecopetrol.com.co

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