OilVoice - Cepsa Farming Out 25% in Bituima Exploration Block

Cepsa Farming Out 25% in Bituima Exploration Block

Monday, April 28, 2008

CEPCOLSA (CEPSA), as part of its ongoing portfolio management strategy, is offering for farmout a 25% interest in the Bituima exploration block located onshore in the Middle Magdalena Valley in Colombia. Cepsa operates the block with a 50% WI. Ecopetrol is a partner with 50%. The exploration contract for the 376 sq km block was awarded on September 1 2006 for an initial 18 months.

A 6 month extension to August 2008 has already been approved. Work to date includes reprocessing of 650 kms 2D seismic and the acquisition of 150 kms 2D seismic. The Company has identified the Quina Deep Prospect, a subthrust structure beneath the Cambao fault with two targets - the Lower Tertiary as the main target and the Upper Cretaceous as the secondary target.

Estimated reserves for the Quina Prospect are in the range 30 to 50 MMBO. CEPCOLSA (CEPSA) is seeking to divest 50% of its interest (50%) in the Bituima Block.