Lorito-1 represents another recent proven well for Ecopetrol as it looks to increase its reserves. (Credit: Ecopetrol)

Ecopetrol (BVC: ECOPETROL, NYSE: EC) has confirmed the presence of heavy crude at its Lorito-1 well in the department of Meta.

The well, located in the municipality of Guamal, is 55% owned by the state-controlled Colombian oil company with the remaining 45% stake held by Talisman Colombia Oil & Gas Ltd, a subsidiary of Spanish giant Repsol.

Lorito-1 sits within the CPO Block-9, which had its first discovery in 2010 and now produces 6,000 barrels of oil per day at the Akacías well, according to Ecopetrol.

As it moves into production — and combined with three recently proven wells that added 2,800 barrels per day — the 2,500-meter-deep well will represent another uptick in oil reserves for a company that averaged 715,000 barrels per day in 2017.

Ecopetrol has greatly expanded its exploration and production investment plan for 2018, expecting to spend up to $4 billion. The company’s production goal this year is between 715,000 to 725,000 barrels per day, the company said in a recent conference call with investors.

“The presence of crude in Lorito-1 confirms the potential of heavy hydrocarbons that exists in this area of ​​the eastern Los Llanos, where we produce around half of the country’s oil, and opens a great opportunity for growth,” said Felipe Bayón, president of Ecopetrol.

The company’s top executive added that “it is satisfying to add another discovery to the ambitious exploration campaign that we are carrying out in Colombian territory to increase the reserves of Ecopetrol and the country.”

The Trogón well will be drilled in a land holding that Ecopetrol obtained when it acquired PIO XII, and as with the Lorito well, its goal is to confirm the potential for further exploration in the area. Currently, Ecopetrol produces 271,000 barrels of oil per day within the department of Meta.

Both prospects are part of a contract between the company and Talisman, a subsidiary of Spanish energy company Repsol, according to Ecopetrol.

The location of the Lorito well has been altered from the company’s original plan at the request of local residents, said the company. Ecopetrol added that it has had 78 meetings with various stakeholders in the area prior to announcing its plans to start drilling.

“These meetings have explained in detail the different prevention, mitigation, and environmental compensation measures that are included in the license that gave Ecopetrol the right to advance the exploratory activities,” said the company in a statement.

Ecopetrol said that it has also partnered with local officials in Guamal to advance conservation and restoration efforts in the Humadea river basin, which has been damaged in the past by oil exploration.