CEPSA Scores E&P Rights for Colombia's Caracara Block

CEPSA, through its subsidiary CEPSA Colombia, S.A., has completed the acquisition process to secure exploration & production rights on the Caracara Block, located in the Los Llanos Basin in the central portion of the country.

This deal fits into the key targets set out in CEPSA's 2008-2012 Strategic Plan as regards its upstream activities, namely to raise the company's present level of crude oil reserves and production.

Output from the Caracara Block, measuring approximately 47,200 hectares, currently amounts to over 20,000 BOPD, with estimated reserves of 40 million barrels. This prospect is technically considered to be one that offers significant growth potential through new investments in both development and exploration.

After having received all the requisite regulatory approvals, CEPSA Colombia has assumed operatorship of the aforementioned Block, which is governed by an Association Contract with ECOPETROL. According to the terms and conditions of the contract, CEPSA holds a 70% interest, whereas the Colombian national oil company owns the remaining 30% of the concession.