News and AnalysIs for

For the past several months, we have been publishing the Friday closing prices for WTI and Brent. Nothing radical there but we have also been making qualitative and quantitative comments about Colombian oil prices.

Congress approved the presentation of a project (004, 2012) which intends that the oil and gas sector pay the industry and commerce tax (ICA). The industry is currently exempt from this municipal tax because royalties are presumed to fulfill the same role.

RCN reports a scandal over modifications at the wastewater treatment plant of Yopal (Casanare). The work has been the responsibility of the consortium Inisa since August 5, 2011, when the consortium signed a CoP$7.711B (US$4.25M) contract in which it committed to deliver results ten months later.

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.