Ecopetrol acquires Hocol (Colombia) for US$ 600M

Agreement on Acquisition of Hocol Colombia by Ecopetrol
The acquisition will consist of a purchase price of US$580 million inaddition to an approximate amount of US$168 million of working capital. Hocolis currently producing close to 22 thousand barrels of oil per day and itsoperations are concentrated in Huila and the Llanos (Plains) regions.
Ecopetrol S.A. reported the agreementreached today with Maurel & Prom for the acquisition of Hocol, a companyengaged in exploration and production of hydrocarbons in Colombia. The transaction will amount to US$580 million in addition to anapproximate amount of $168 million of working capital. The transaction has anearn-out based on the level of 2P reserves of the potential Huron field in theNiscota license and an earn-out linked to the level of the future oil price. The acquisition includes high impact exploration blocks and shares in theUpper Magdalena Pipeline (36.12%) and in Oleoducto de Colombia (21.72%).