Ecopetrol Hits Hydrocarbons at Tempranillo North-1

Ecopetrol S.A. has confirmed the presence of hydrocarbons in the Tempranillo North-1 well located in the Unified Production Agreement in the Pijao-Potrerillo area, signed between Ecopetrol and the National Hydrocarbons Agency (ANH) of Colombia.

The Tempranillo North-1 well is located in the township of Aipe, Huila.

Well drilling began in the final week of October and by December 2009 had reached a total depth of 10,235 feet, equivalent to over three kilometers.

The well drilled through two layers of the Caballos Formation, where accumulations of hydrocarbons were found at three intervals. Upper layer sands revealed two intervals at depths below 8,500 feet, with a net hydrocarbon thickness of 40 feet. Lower layer sands are located below 9,700 feet and revealed a net hydrocarbon interval of 16 feet.

Short Drill Stream Tests (DSTs) performed during the month of January 2010 revealed that the Caballos Formation produced crude oil of 24 degrees API, with an average volume of 1,000 barrels per day supported by an artificial lift system, a low gas-oil ratio, and water cut of about 1%.

This new finding increases our reserves inventory in this region of Colombia. Tempranillo North-1 is the fourth discovery made in the Pijao-Potrerillo area during the last 2 years, after the discovery of Tenax, Arrayan and Tempranillo.