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Ecopetrol (ticker: EC) said that the Coyote-1 well confirmed the presence of oil in the Middle Magdalena Valley basin in Santander. The finding was recorded between 2,042 and 2,177 meters in depth, confirming the presence of medium crude. The API ranges between 25°-28°, which is lighter and more liquid than heavy Colombian crudes in the Esmeraldas formation.

The Coyote-1 is one of the exploratory projects that Ecopetrol and Parex Resources Inc. (ticker: PXT) are sharing 50-50 in the De Mares block. This is the two companies’ second finding in Santander this year.

Ecopetrol Makes 2nd Oil Discovery in Columbia, $3.5-$4 Billion Investment Plan

Ecopetrol Map of Operations

“The new finding will ensure synergies and competitive advantages in the region, thanks to installed capacity and operations at the La Cira-Infantas, Lisama and Colorado fields, as well as the proximity of the Barrancabermeja refinery,” said Ecopetrol. “All of this production, transport and refining infrastructure is within a distance of 26 kilometers.”

The company’s first Santander discovery was announced back in March 2017. The Boranda-1 well confirmed the presence of medium crude (20° API) in the Middle Magdalena Valley basin in Santander.

Boranda-1 reached a depth of 3,657 meters, where it found medium crude (20° API) in the Esmeraldas formation. There were four intervals of oil sands with a total thickness of 40 meters. Similar to Coyote-1, this well is operated by Parex and Ecopetrol, with a 50-50 ownership split.

Nearby crude receiving stations include Payoa at 30 km, Provincia at 40 km, and the Barrancabermeja refinery at 90 km.

Ecopetrol Makes 2nd Oil Discovery in Columbia, $3.5-$4 Billion Investment Plan

Ecopetrol Projected Exploration Timeline

Ecopetrol $3.5-$4 billion 2018 investment plan

The company said that it plans to invest $3.5 to $4 billion in 2018. The plan aims to increase reserves and hydrocarbon production. 85% of the 2018 budget will go towards the company’s E&P sector, $1 billion more invested than in 2017.

In 2018 the company plans to drill over 620 development wells and at least 12 exploratory wells using 28 rigs and by acquiring over 41,000 km of seismic data. The new plan increases well count by 140 and uses 16 additional rigs compared to 2017.

96% of the investment will be executed in Columbia, with the remainder allocated to other projects in the Gulf of Mexico, Mexico, Brazil and Peru. There are approximately 20 pilot projects planned to implement improved recovery technologies.

2018 production is projected to be 715,00 to 725,000 BOEPD.

The plan includes the benefits of the 2016 Colombian tax reform. The effective tax rate will decrease between 7% to 11% as a result of the elimination of the wealth tax and a lower income tax rate from 40% to 37% and operating results of the subsidiaries.


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