News and AnalysIs for

October 3, 2012 From an Ecopetrol press release published on the MinMinas site. Translated and with commentary by Hydrocarbons Colombia.

October 2, 2012 Petroamericas issued a press release updating its Colombian operations both exploration and production. Highlights include

Gold Oil published its 1H2012 results and it is clear that it needs partners quickly. The company has an interest in the Azar block (operated by Gran Tierra) and operates the Nancy Burdine block under an arrangement with Ecopetrol. Both blocks are in Putumayo. The company also has interests in Peru.

Chile-based GeoPark reported its first half 2012 results in a press release, highlighting acquisitions in Colombia that increased production and successful exploration in Colombia as well.

The company closed two acquisitions in Colombia in the first half and that contributed 88% of the 194% increase in revenues that the company recorded. The price was US$105M and revenue contribution for the first half was US$36M which should make the CFO and the shareholders happy.

In a press release, Canacol updated its exploration activities in Colombia and plans for the rest of the calendar year.  The company is one of only four listed on the Colombian stock exchange. It has yet to publish its calendar 2Q12 results but since this is the company’s fiscal 4Q12 period, it has until the end of this month legally to do so. The company has been subject to sale rumors over the past few months. Last week the company published its fiscal 2012 update to reserves announcing that these had nearly doubled although most of this was due to the acquisition of properties in Ecuador. Organic growth due to Colombian properties was a still healthy 38%. Some key items:

The Colombian Petroleum Workers Union (USO) has called for an industry-wide strike or day of protest in the oil-important department of Meta on October 3, 2012. The union is in a bitter battle with CEPCOLSA and its subcontractor Termtecnica Coindustrial but has been trying to widen the dispute to include Pacific Rubiales. A few weeks ago, it told reporters from RCN Radio that riots in the city of Puerto Gaitan were directed at the company, something that spokesperson Ferderico Restrepo had to deny publicly. The union says the march, strike or day of protest has the goal of raising awareness on the following:

Canacol reported that the company’s proven reserves (1P) increased by 98% over fiscal year-end (June) 2011. As the chart shows, this was primarily due to the acquisition of contracts in Ecuador (3.2MMbbl) although Colombian reserves still grew a substantial 38% year-over-year.

In a Global Energy Development PLC press release, the company announced its plans for both conventional and non-conventional operations in Colombia, through its subsidiary Colombia Energy Development.

Colombia’s two largest oil and gas companies scored well in the Dow Jones Sustainability Index-World as compiled by the Swiss firmSustainable Asset Management (SAM). In a press release, Ecopetrol announced that

Petroamerica reports in a press release that the Las Maracas-4 well Los Ocarros Block Llanos Basin was producting 1,500 bpd of 30 degree API oil. They say it could produce 2,000 bpd but the trucks cannot get in and out fast enough because of a rig coming in for exploratory drilling and a workover rig moving out.