Maurel & Prom Reports Upper Magdalena Discovery

Maurel & Prom announced a significant discovery, through its subsidiary Hocol (operator, 36.67%) on the San Jacinto/Rio Paez permit. The La Canada Norte-1 (LCN-1 ST) exploration well in upper Magdalena 250 km southwest of Bogota and close to the production field of La Hocha (Hocol, 100%), stopped at 1 006 m after passing through six impregnated levels in the Monserrate and Caballos formations.

Three intervals of the Caballos formation were tested and revealed an aggregate output of 700 b/d of an oil at 33-34degrees API.

The Monserrate formation was tested and revealed a flow of 200 b/d of an oil at 17-18 degrees API after fracturation.

Maurel & Prom considers that the proven and probable reserves should be 41 Mbbl at 100%. For Maurel & Prom, this would be 7 Mbbls of proven and probable reserves after royalties and Ecopetrol's stake rising to 50%, to be compared to Maurel & Prom's production in Colombia of 5.2Mbbls for 2006. The first estimate indicates a potential of the field's possible reserves of 83 Mbbls at 100%, to be validated through additional work.

Maurel & Prom's partners on this exploration permit are Cepsa (33.33%) and Petrobras (30%).

Maurel & Prom and Hocol, its 100% Colombian subsidiary, are very happy with this new discovery that emphasizes the potential of the San Jacinto/Rio Paez permit operated by Hocol.

The program for assessing this discovery is being studied with the partners and a long period test has already been scheduled.