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Ecopetrol ADR Representing 20 Ord Shs V.EC


Primary Symbol: EC

Ecopetrol S.A. is an oil company. The Company operates in Colombia, Peru, Brazil and the United States Gulf Coast. The Company's segments include Exploration and Production, Transportation and Logistics, and Refining, Petrochemicals and Biofuels. The Company's Exploration and Production segment includes exploration, development and production activities in Colombia and abroad. The Company's Transportation and Logistics segment includes the transportation of crude oil, motor fuels, fuel oil and other refined products, including diesel and biofuels. The Company's main crude oil pipeline systems' operating capacity is approximately 1.34 million barrels per day (BPD). The Company's main refineries are the Barrancabermeja refinery, which it directly owns and operates, and a refinery in the Free Trade Zone in Cartagena that is operated by Reficar S.A., a subsidiary of the Company. The Company also owns and operates two other minor refineries: Orito and Apiay.


NYSE:EC - Post by User

Comment by petesky1on Mar 06, 2010 2:22am
325 Views
Post# 16850906

RE: Scenarios pointing to shiny gold.

RE: Scenarios pointing to shiny gold.Very well thought out Swiss. I will suggest that we are most likely heading towards your Scenario A, based on my conversation with Daniel a few days ago.

He did directly imply that they weren't expecting to find alot of gold in hole #5 (first hole), rather it was to confirm the geology they are working with. That being said, nobody will know for sure if there will be a return of gold on that hole until lab results are back. I think the best we can hope for is some sort of grades at depth, but probably not a huge hit. But he did enthusiastically state that the results were "exactly what they were hoping for". I take this as confirming FDN geology (which is great) but little/no gold, since they would probably HAVE to promptly report a substantial gold find in a news release as they would any material change to the company.

NOW the impression I got on the second hole was MUCH more positive. Again without lab results, who knows "for sure". But he basically said based on his geologist's reaction to the cores, they were "extremely" pleased in their findings and that gold is quite likely. I will suggest gold for sure (based on conversation), but who knows until lab results. We're all just hoping for the best with some large grades.

The other interesting thing I forgot to add in my previous summary message is that they are drilling the third hole at a completely different angle than originally planned - going in the opposite direction as opposed to parallel. This was my understanding over the phone. He indicated that a gold discovery in this hole will imply a much larger strike length. So we REALLY will have our fingers crossed for that one!...

And besides all this possible gold, we still have them stating they are confident that Condor will sell, and that permits in Brazil are just a matter of time for moving the huge manganese stockpiles. It would take something drastic from here to drop the share price significantly. I left the call feeling extremely good about my investment, and did free up money and bought more shares. Any stock is risky but I feel this one has a much larger upside than downside at this point. Just my thoughts!!

Petesky.
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