Pacific Rubiales has provided an update of its natural gas sales from La Creciente Field located in north eastern Colombia.
Natural Gas Supply Agreements
Since the discovery of La Creciente Field in early 2007, the company has focused on developing a commercial strategy to service the domestic market while concurrently exploring export opportunities in the region. For this reason, the company organized a natural gas auction in December 2008, which was ultimately cancelled due to the uncertain market conditions and volatility in oil and gas pricing.
As a result, Pacific Rubiales entered into bilateral negotiations with interested bidders for the natural gas volumes on offer, and the company entered into the following take or pay contracts, and interruptible contracts, adding up to a total of 60 MMSCFD for the period 2009-2010.
The company will continue monitoring the market with the view that it can explore longer term options as the energy markets stabilize and demand strengthens.
Production Update (as at January 27, 2009)
The company also announces that production in the Rubiales/Piriri block presently stands at 55,029 gross barrels of oil per day (bopd), or 20,642 bopd net to the company, after royalties. Total production from all of the Company's oil fields presently stands at 61,288 gross bopd or 22,632 bopd net.
The company also advises that La Creciente ramped up production to 38.95 MMSCFD. Pending the completion of planned maintenance by a major client, the company expects the natural gas production to return to a level of 60 MMSCFD during the first days of February.
Ronald Pantin, the company's Chief Executive Officer, stated: "The contracts signed for La Creciente natural gas demonstrate our ability to adapt proactively to the uncertain conditions of today's energy market. On the operational front, we continue delivering results to reach our mid-term production objectives."
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