Pacific Rubiales has reached the historical milestone of exceeding the 100,000 barrels of oil equivalent per day (boepd) of gross operated production, equivalent to 41,138.14 boepd net after royalties.
Mr. Ronald Pantin, Chief Executive Officer, commented, "This milestone is the result of the growth strategy that the company has been pursuing since the merger in January 2008 with Pacific Stratus. On the strength of our technical knowledge, our high quality assets and an ongoing focus on low-cost and rapid production growth, we were able to achieve this milestone. This success is a clear signal of our management team's ability to deliver on our objectives now and going forward, as the pre-eminent independent operating company in the Colombian basin."
The 100,000 boepd milestone is a result of the sharp growth in production of heavy oil in the Rubiales/Piriri blocks, principally as a result of the ODL pipeline now in full use, and the volumes coming out of the exploratory wells in the Quifa Block. It also incorporates the development of the light and medium oil blocks and the natural gas volume produced from La Creciente block and other smaller fields.
Corporate Development Update
Management estimates that for the three months ended September 30, 2009, the company produced approximately 2,363,692 barrels (bbl) of oil and 642,141 boe of natural gas. Average daily production for the month of September 2009 was approximately 24,390 bbl/d of oil and 6,669 boe of natural gas. Average prices for the third quarter of 2009 were approximately US $64.01 per barrel of oil and US $23.89 per boe of natural gas.
Third quarter 2009 financial statements are still in the process of preparation and therefore financial statements for this period are not yet available. However, based on information reviewed to date, management estimates that net sales for the third quarter of 2009 were approximately US $156.5 million.
Construction of the ODL Pipeline
The ODL joint venture company was initially financed through capital contributions. The joint venture company has obtained bank and capital markets financing and, as a result, it is now able to distribute back to the company and to Ecopetrol a portion of the initial capital contributions. The company expects to receive US $21 million in the last quarter of 2009 and an additional US $21 million by early 2010.
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