Repsol YPF has discovered gas at the Sipororo 2X exploration well in the Barrancas Project, which spreads over the states of Barinas, Portuguesa and Trujillo in southwest Venezuela. This well is the first of eleven to be drilled in the aforementioned Barrancas project, which was awarded to Repsol YPF in 2001 under a concession for the exploration and exploitation of non-associated gaseous hydrocarbons (free gas).

Gas was discovered at a depth of approximately 3,000 meters. A flow of approximately one million m3 per day was registered in production tests, which is a much higher level than that initially estimated.

Gas from this well will initially feed an 80 megawatt (MW) power station in the state of Portuguesa, scheduled to go into operation during the second quarter 2005.

Production from the Barrancas block is expected to reach 2 million m3 per day by 2006, (12.6 thousand boepd) and will be used to supply a thermo-electric power station of up to 450 MW that is to be installed in the Obispos municipality, in the state of Barinas. This project will help reduce the power and gas deficit in the region, providing a competitive alternative in terms of price, thus benefiting west Venezuela.

This exploration success consolidates Repsol YPF as the leading private gas producer in Venezuela, where the Company currently produces 100,000 barrels of oil equivalent per day (boepd), mainly from the Quiriquire, Quiamare – La Ceiba, Guárico Occidental and Mene Grande fields.