BOGOTÁ, Colombia, Nov. 7, 2019 /CNW/ -- Ecopetrol reports that its US subsidiary, Ecopetrol America LLC, has participated in the drilling of the Esox-1 well under a Farmout Agreement with Chevron U.S.A. Inc. The well which resulted in the discovery of light oil is located in Mississippi Canyon Block No. 726 in the deep waters of the Gulf of Mexico (USA).
Ecopetrol has elected to participate in the completion of the Esox-1 well earning a 21.43% interest in the well and the Esox Prospect (restricted to depths above the Tubular Bells Field pay sands).
As a result of the collective effort, last week Hess announced that the Esox-1 well was drilled in 1,405 meters (4,609 feet) of water, and 58 meters (191 feet) of net sand with light oil were found.
The well is located approximately 10 kilometers (6 miles) from the Tubular Bells production facilities, which will allow production to begin in the first quarter of 2020 with competitive costs, and solid financial returns are also expected, as reported by the operator.
"This transaction, with a partner such as Chevron allows us to strengthen our presence in one of the basins with the greatest potential in the world, the Gulf of México, in the United States, and maintain a strategy focused on production and reserves growth. This acquisition formalizes an exploratory operation in which we have participated from its inception, and for which Hess, another world-class partner, recently reported a high-quality oil discovery, one that will be in production in a few months," said Felipe Bayón, President of Ecopetrol.
Ecopetrol has an interest in 51 blocks in the Gulf of Mexico (USA). Between January and September of 2019, Ecopetrol America's production reached 13,200 barrels of oil equivalent per day (kbped), which represented an increase of 14% compared to the same period over the previous year.
Ecopetrol is the largest company in Colombia; it is a comprehensive oil chain company, one of the 40 largest oil companies in the world, and one of the top four in Latin America. In addition to Colombia, where it generates more than 60% of domestic production, it has exploration and production activities in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the country's oil and pipeline network and is significantly increasing its participation in the biofuel sector.
This press release includes statements on business prospects, estimates for operating and financial results and statements related to Ecopetrol's growth prospects. All of them are projections and, as such, are based solely on its Director's expectations on the future of the Company and their continued access to capital in order to finance the Company's business plan. The future realization of these estimates depends on market behavior, regulations, competition, and performance conditions of the Colombian economy and industry, among other factors; and as such, they are subject to change without notice.
For more information please contact: Media Relations (Colombia) Jorge Mauricio Tellez Telephone: + 571-234-4329 Fax: +571-234-4480 Email: [email protected]