Petrominerales Cases Candelilla-3 as Potential Producer

Petrominerales updated on exploration activities highlighted by the decision to case Candelilla-3 as a potential oil well.

Candelilla Structure, Guatiquia Block

Candelilla-3 is the third well drilled into our major discovery, Candelilla, on our Guatiquia Block. The well began drilling operations on February 18, 2010 and was drilled to a total measured depth of 12,162 feet in under 30 days. Well logs indicate 50 feet of potential net oil pay in the Lower Sand 3 and 46 feet of potential net oil pay in two separate intervals in the Guadalupe formation. The log analysis of Candelilla-3 suggests that the well encountered an interpreted oil water contact. Analysis of all the data from the three Candelilla wells is ongoing and will be incorporated into the geological and geophysical evaluation of the structure. The well will be cased and is expected to be on production by the end of March.

The Candelilla structure has provided a step-change in 2010 total Company production. The initial two Candelilla wells contributed an average of 23,888 barrels of oil per day ("bopd") to February total Company production of 41,102 bopd.

The drilling rig will now move to the northeast section of the Corcel Block to drill our first exploration well in the area, Amarillo-1. While this rig is on the Corcel Block, we will continue to review additional prospectivity on the Guatiquia Block, including an evaluation of the potential net oil pay in the Mirador and Guadalupe formations at Candelilla.

Central Llanos Exploration (Casanare Este, Casimena, Castor, Mapache)

Yenac-1, the first exploration well of our 13 well Central Llanos exploration program, was cased as a potential oil well based on well logs that indicated 42 feet of potential net oil pay in the Mirador formation. We now have a completion rig on-site to conduct a multi-zone testing program and expect to have results by mid-April.

The second well in the program, Capybara-1, began drilling operations on March 1, 2010 and we expect to have initial log results by the end of March. Following Capybara-1, the drilling rig will move to the Casanare Este Block to drill the third exploration well in the program, Cerillo-1. Following this program, we plan to move the rig to the central portion of the Corcel Block, starting with drilling the C-2 development location.

On the Mapache Block, we are adding a fifth drilling rig that will execute our 10-well exploration drilling program. The first well in this program, Mapana-1, is expected to commence drilling in July.