Worldwide Petroleum Consulting
Ecopetrol increased its proven reserves to 1,727 million barrels equivalent

Ecopetrol increased its proven reserves to 1,727 million barrels equivalent

February 22, 2019

Ecopetrol (BVC: ECOPETROL, NYSE: EC) today announced its proven reserves of oil, condensate and natural gas (reserves 1P), including its participation in subsidiaries and subsidiaries, on December 31, 2018.

The reserves were estimated based on the standards and methodology of the Securities and Exchange Commission (SEC) of the United States. 99% of the reserves were audited by four recognized independent specialist firms (Ryder Scott Company, DeGolyer and MacNaughton, Gaffney, Cline & Associates and Sproule International Limited).

At the end of 2018, the net proved reserves of the Ecopetrol Group were 1,727 million barrels of oil equivalent (Mbpe). The reserve replacement index was 129% and the average life of reserves equals 7.2 years.

Of the total balance of reserves, 70% is crude and 30% corresponds to gas. On the other hand, the average life of crude oil and gas reserves is equivalent to 6.3 years and 11.1 years, respectively.

98% of the total balance of proved reserves is in Colombia. It should be noted that Ecopetrol SA has an average reserve life of 7.4 years.

In 2018, the Ecopetrol Group incorporated 307 Mbpe of proven reserves, continuing the positive trend of incorporation of reserves in 2017. The cumulative total production of the year was 239 million barrels of oil equivalent.

The price defined by the SEC used for the valuation of the 2018 reserves was US $ 72.2 per Brent barrel compared to US $ 54.93 in 2017. Ecopetrol estimates that due to the effect of a higher price, approximately 47 Mbpe was recovered. On the other hand, about 260 million barrels of oil equivalent are the product of the technical management and economic optimization of the assets.

It is important to highlight the record increase in proven reserves associated with the results of the recovery factor increase program (129 Mbps), whose main achievements have been in fields such as Chichimene, Castilla y Teca. Also, the incorporation of 57 Mbpe for extensions and discoveries, the largest addition for this concept in the last 5 years.

The increase in reserves achieved in 2018 is one of the pillars of the Ecopetrol Group strategy that seeks to guarantee its long-term sustainability.

This Ecopetrol release was published using an automatic translation system.