News and AnalysIs for

Source: MinEducation, Hydrocarbons Colombia
October 11, 2012
For the second straight year, petroleum engineers lead the Ministry of Education’s annual survey of outgoing graduates. The study looks at 2010 graduates and how they fared in 2011, whether they had a job, whether their education served them in their work and how much they were paid. The above chart shows that petroleum engineers were closely followed by geologists which shows how important mining and hydrocarbons are to Colombian growth. The two groups were nearly tied in starting salary — 31% higher than the third-ranked profession. They were nearly tied as well in success at finding a job: only about 5% failed to get a job in their first year.

Source: January-June MinMinas, Hydrocarbons Colombia; September 2012 from Parex
A Parex Resources press release says that September production was 11,850bpd versus 10,300bpd in 2Q12. The company expressed confidence in hitting at least 13,000bpd assuming current operating conditions continue, especially the assumption that proven wells get approvals for production and that existing wells decline at the current observed rate.

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.