News and AnalysIs for

In a press release, Sintana Energy announces a farm-out arrangement with ExxonMobile Exploration Colombia. The farm-out is for block VMM-37 in the Middle Magdalena Basin but only applies to unconventional plays on the block. For these ExxonMobile will earn a 70% interest on completion of the agreed work plan. Sintana retains 30% of an unconventional play and 100% of conventional production.

CyC Energia aka C&C Energy reported results for 3Q12. Production was up just under 9% but revenue was up over 1/3 because the company managed to reduce inventories by over 3,000 bpd.

Interoil reported its October 2012 production results for Colombia without commentary. Colombia’s oil production rose in September and October but Interoil’s share dropped. In fact, except for a brief blip in July, production has dropped continuously since March.

French oil and gas company, Maurel and Prom, has a small amount of production in Colombia (498 bpd net of royalties in 3Q12). It is in an exploration agreement with Pacific Rubiales in a 49.99:51.01 deal whereby Pacific picks up the exploration expenses. The company’s description of its production in the country is unusually specific so we thought it interesting to publish. In this case the challenge is not environmental approval but approvals from the ANH to put a confirmed well into production.

CEO Ronald Pantin was giving almost real time production measurements during the 3Q12 conference call to show that the company’s quarterly results were not only sustained in the fourth quarter but getting stronger. Production, revenue, EBITDA and cash flow were all up in 3Q12 year-over-year, showing Pacific Rubiales strong operating performance. In particular, oil and gas production was up over 5% sequentially in Colombia while production for the industry as a whole was down 1%.

Equion – a joint venture between Ecopetrol and Talisman – reports the presence of dry gas in the Mapale-1 well. From an Ecopetrol Press Release in English with commentary by Hydrocarbons Colombia.

Colombian oil company – Mansarovar – a joint venture between Chinese state-owned company Sinopec and Indian NOC ONGC Videsh – announces it has received permission from partner Ecopetrol to develop Abarco Phase II, Under River Fase III and Moriche Phase III.

The Interbolsa drama deepened yesterday with news that it was virtually certain to be liquidated. Existing shareholders in the brokerage firm are likewise virtually certain to have their investments wiped out. The surprising news was that oil company Mansarovar is listed in various press reports as the brokerage’s largest single shareholder.

GranTierra reports high quarter-over-quarter and year-over-year growth in Colombian production for 3Q12 despite problems with the TransAndino pipeline. These pipeline interruptions raised operating expense and so unfortunately higher revenue did not translate into higher profits. The company’s press release also gave an extensive update on its exploration activities in Colombia including plans for the blocks it has been (provisionally) awarded in the 2012 Round of auctions.

In the context of the Colombian Association of Petroleum Services Companies, Campetrol’s Expo Oil and Gas, various association officials spoke to the Colombian press. Campetrol has worked with economic think tank, Fedesarrollo to characterize the sector and provide a view into its potential.