-- 1P net reserves amounted to 1,714 million barrels of oil equivalent
(BOE) as of December 31, 2010
-- Reserve replacement ratio was 193% in 2010
-- Reserves to production ratio was 9.1 years
-- 98% of total proved reserves were audited by three independent firms
BOGOTA, Colombia, Jan. 24, 2011 /CNW/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; BVL: EC; TSX: ECP) ("Ecopetrol" or the "Company") announced its consolidated proved reserves of oil, condensed and natural gas as of December 31, 2010 according to the Securities and Exchange Commission (SEC) technical standards and prices. 98% of the reserves were audited by three specialized independent firms: Gaffney, Cline & Associates, Ryder Scott Company and DeGolyer and McNaughton.
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Ecopetrol's proved net reserves of hydrocarbons at the end of 2010 amounted to 1,714 million BOE (1,878 BOE of gross proved reserves, including royalties), which represents an increase of 11.4% compared to 1,538 BOE at the end of 2009 . In 2010, there was an increase of 365 MMBOE of proved reserves and net production was 189 MMBOE, which means that 1.93 barrels were added to proven reserves for each barrel of oil equivalent produced.
Reserve replacement ratio was 193% for 2010 and the reserves to production ratio was 9.1 years, assuming constant production levels in the future. 72% of proved reserves correspond to crude and 28% to natural gas.
For the 2007 - 2010 period, Ecopetrol increased its net reserves by 42% from 1,210 MMBOE as of December 31, 2007 to 1,714 MMBOE as of December 31, 2010. In the same 3-year period, net production grew 56%, from 121 MMBOE in 2007 to 189 MMBOE in 2010. Despite the larger production, the reserve replacement ratio for the 3-year year period was 197% with an average reserve life of 9 years.
The increase in the Ecopetrol's proved reserves comes mainly from the revisions and the extensions made in Ecopetrol's current fields as well as the contribution resulting from Ecopetrol's enhanced recovery projects and exploratory results. The main increases came from the following fields: Rubiales, Casabe, Cusiana, Chuchupa, Pauto, Cupiagua and the discoveries in Quifa Southwest and South Casabe.
Net Proved Reserves as of December
31, 2009 1,538.2
Enhanced recovery 47.4
Extensions and discoveries 232.4
Production/sales year 2010 -188.9
Net Proved Reserves as of December
31, 2010 1,714.0
Of the 1,714 MMBOE of proved reserves, Ecopetrol accounts for 95%, Hocol for 3% and Ecopetrol's stake in Savia Peru for 2%. The reserves from BP assets in Colombia were not included in the Ecopetrol Corporate Group's reserves as the acquisition did not close in 2010.
The results in Ecopetrol's reserves addition during 2010 evidences that the Company is in the proper path in order to accomplish its strategic goals.
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, email@example.com; or Media Relations (Colombia), Mauricio Tellez, +011-571-234-5377, +011-571-234-4480, firstname.lastname@example.org Web Site: http://www.ecopetrol.com.co