Ecopetrol, Pacific Rubiales to start EOR effort at Quifa oil field in Colombia

Source: Pacific Rubiales

Ecopetrol S.A. (NYSE: EC) and Pacific Rubiales Energy Corp. have agreed to carry out an Enhanced Oil Recovery (EOR) pilot project of the "STAR" (Synchronized Thermal Additional Recovery) technology, provided by Pacific Rubiales, in the Quifa field in los Llanos Orientales in Colombia

After a period of studies and tests in the research laboratories at the University of Calgary, Ecopetrol and Pacific Rubiales have reached the conclusion that the implementation of in-situ combustion based technologies, such as "STAR", is one of the best options to increase the recovery factor in the heavy oil fields of Colombia

Considering the above, the two companies acknowledge the importance of starting as soon as possible a pilot project under field conditions. This pilot project will be carried out in the Quifa field, under the terms, conditions and obligations established in the existing Quifa Association Contract between the two companies. 

The reservoir characteristics in the Quifa field are similar to those of the neighboring Rubiales field. The companies agree that the technology could be extended to the Rubiales field, provided that both the pilot project in Quifa is judged to be successful, and the two parties reach satisfactory commercial terms in addition to all the aspects necessary to its commercial application in the Rubiales field. 

The STAR pilot project in Quifa aims to test the efficiency of the technology, to fine-tune the necessary operational parameters, and to establish the increase in the recovery factor that will lead to the commercial implementation of the technology. 

As part of this agreement, the two companies will proceed in the shortest possible time, to the definition of the required parameters for the implementation of the pilot project, as well as the basis for the following phases, including: 

1. The design, duration and scope of the pilot project, and other tests to be carried out in the Quifa field 

2. The technical conditions under which the pilot project will be judged to be successful as well as other conditions that are deemed necessary to proceed to the implementation of STAR at commercial scale in the Quifa field. 

3. Metapetroleum, PRE's 100% owned affiliate, and the operator in the Quifa field, will start the construction of the production facilities, drilling of wells and equipment movements necessary to put the pilot project into operation 

Ecopetrol and Pacific Rubiales Energy Corp, have agreed to subscribe all the necessary documentation to commence the STAR pilot project.

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