CEPSA and Petrobrás, through a consortium in which CEPSA holds a 30% working interest, have discovered oil in the Balay-1 exploration well, located in Colombia’s Llanos Basin. The field is situated in the Mirador formation, one of the key productive areas of the region.

The discovery was made at a depth of 4,652 meters. Results of the first production tests performed confirmed the existence of crude with a medium density (API gravity of 28º), and an initial flow rate of 1,314 BOPD. Once testing in progress is completed, more accurate information will be available on the potentiality of this field.

CEPSA has been operating in Colombia since 2001, with crude oil exploration and production activities throughout the Llanos Basin and Upper Magdalena River Valley region.

The Company currently has working interests in 19 exploration and production licenses in the country, operating 12 of them. Plans are to carry out a drilling campaign of more than 25 wells in 2010, 7 of which will be exploratory wells and the rest, development wells in already-producing fields.

CEPSA’s total output in Colombia presently amounts to over 20,000 BOPD.