Ecopetrol announces important hydrocarbon discovery in Colombian Caribbean ultra-deepwater

-- Presence of hydrocarbons at a depth of 3720 meters (12200 feet) was verified at Kronos-1 well, proving proposed geological model.

-- The Kronos discovery is of great significance for Colombian offshore exploration, confirming the high prospectivity of a new petroleum province in south Caribbean.

-- Once operations are finished at Kronos-1, the same drillship, of latest technology, will be used to drill Calasu-1, located 145 Kilometers (90 miles) north east in Fuerte Norte Block.

News provided by

Ecopetrol S.A.

Jul 28, 2015, 06:00 ET

BOGOTA, Colombia, July 28, 2015 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC; TSX: ECP) informs that at a depth of 3720 meters, the Kronos-1 well verified the presence of hydrocarbons in ultra-deepwater of Colombian south Caribbean area. This discovery proves the geological model proposed for an unexplored area with high hydrocarbon potential.

Kronos-1 is located in block Fuerte Sur, 53 Kilometers (33 miles) offshore, where partners Anadarko, operator, and Ecopetrol, each hold 50% interest.

According to Operator's quarterly operations report, after drilling at a water depth of 1584 meters (5195 feet), the well reached total depth of 3720 meters (12200 feet) and encountered a net pay thickness between 40 to 70 meters (130 to 230 feet) of gas bearing sandstones. Ecopetrol and Anadarko's integrated technical teams are continuing to evaluate the Kronos discovery results. Nowadays the drilling operation continues, aiming to reach a deeper target to determine possible additional results.

"We are pleased to announce this discovery in Colombian Caribbean deepwater, this time accompanied by Anadarko. This discovery adds to the one accomplished in December at the Orca-1 well, located in the deep water of Tayrona block offshore Guajira, where we are partners with Petrobras, Repsol and Statoil. These results are very important and confirm the potential of the Colombian Caribbean petroleum system in a vast area and are aligned with Ecopetrol´s new strategy, in which one of the key areas is the exploration on high potential marine basins," Ecopetrol president Juan Carlos Echeverry said.

In 2012, the Ecopetrol – Anadarko partnership undertook exploration in the South Caribbean in blocks Fuerte Norte, Fuerte Sur, COL5, URA4 and Purple Angel.

Our partner, Anadarko, is one of the most recognized companies worldwide for its experience in deepwater and ultra-deepwater exploration, project management and execution. Currently Anadarko is executing the biggest seismic acquisition campaign in the history of the Colombian Caribbean with an extension of more than 16000 square kilometers.

Once activities at Kronos-1 are concluded, the drillship Bolette Dolphin, employed in this operation, will move to Fuerte Norte Block to continue drilling Calasu-1 well, located 145 Kilometers or approximately 100 miles north east of Kronos-1.

Ecopetrol is the largest company in Colombia and is an integrated oil and gas company; it is among the top 40 oil companies in the world and among the top four oil companies in Latin America. Besides Colombia – where it generates over 60% of the national production – it has exploration and production activities in Brazil, Peru, and the US (Gulf of Mexico). Ecopetrol owns the largest refinery in Colombia, most of the pipeline and multi-product pipeline network in the country, and is significantly increasing its participation in bio-fuels.

This release contains statements that may be considered forward looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. All forward-looking statements, whether made in this release or in future filings or press releases or orally, address matters that involve risks and uncertainties, including in respect of the Company's prospects for growth and its ongoing access to capital to fund the Company's business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil and gas, our exploration and production activities, market conditions, applicable regulations, the exchange rate, Ecopetrol's competitiveness and the performance of Colombia's economy and industry, to mention a few. We do not intend, and do not assume any obligation to update these forward-looking statements.

For further information, please contact:

Head of Corporate Finance and Investor Relations (A)
Maria Catalina Escobar Hoyos
Phone: (+571) 234 5190
E-mail: [email protected]

Media Relations (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
e-mail: [email protected]

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SOURCE Ecopetrol S.A.