Maurel & Prom Reports Colombia Discovery

Maurel & Prom (operator, 100%) on Monday announced a new oil discovery through its 100% owned Colombian subsidiary, Hocol S.A., on the Guarrojo permit. The permit was signed in February 2006 with the National Hydrocarbon Agency of Colombia (ANH). The Ocelote-1 exploration well in the Llanos central region, 300 km east of Bogota, stopped at 4,816 ft and pumped out 600 b/d of an oil at 23.6 degrees API.

Maurel & Prom considers that the proven and probable reserves (P1+P2) after royalties should be 11.4 Mbbls at 100%, to be compared to a Maurel & Prom production of 5.2 Mbbls for 2006 in Colombia.

Maurel & Prom holds 100% of this exploration permit; a sliding scale royalty, starting at 8%, is applicable on the oil production from the block. This percentage (before royalties) will remain unchanged during the development phase.

The company is planning a 3D seismic survey and an extended test to appraise the Ocelote discovery of which 3P reserves are estimated at 35 Mbbls. A long period test will start and the production will be transferred by truck.

Maurel & Prom and Hocol S.A. are very pleased with these results, within weeks of the announcement of La Canada Norte-1 oil discovery in the San Jacinto/Rio Paez permit, Upper Magdalena Valley, also operated by Hocol.

The Ocelote discovery significantly highgrades the strong acreage position held by Maurel & Prom in the Llanos basin, with three adjacent blocks being operated by the company at 100% working interests.