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HIGHLIGHTS AND SIGNIFICANT TRANSACTIONS DURING THE FIRST QUARTER
(Comparisons are first quarter 2012 compared to the first quarter of 2011 unless otherwise noted)
-- Our operating netbacks increased to $79.74 per barrel in the first quarter, a 15 percent increase over the first quarter of 2011, primarily due to higher world oil prices and savings achieved from our OCENSA pipeline acquisition. Compared to the fourth quarter of 2011, operating netbacks increased 10 percent, largely due to higher world oil prices.-- We had two new oil discoveries; Tucuso on our Mapache Block and Chilaco on our Corcel Block.-- Funds flow from operations was $199.8 million or $2.01 per basic share, representing ten and 14 percent increases over 2011.-- Adjusted net income was $80.3 million or $0.81 per basic share, representing six and 11 percent increases over 2011.
OPERATIONAL REVIEW
Production (bopd)
---------------------------------------------------------------------------- April First Quarter Fourth Quarter 2012 2012 2011----------------------------------------------------------------------------Deep Llanos 20,248 23,596 26,237Central Llanos 5,255 4,416 3,226Neiva 3,462 3,746 3,993Orito 1,857 2,226 1,897Heavy oil 14 63 -----------------------------------------------------------------------------Total production 30,836 34,047 35,353----------------------------------------------------------------------------
Production averaged 30,836 bopd during April, nine percent or 3,214 bopd lower than the first quarter primarily due to our Yatay-1 well off-line for nine days in April for a pump replacement. May production to-date has averaged 33,103 bopd and reflects additions in late April at Yenac-4 and Chilaco-1, which is partially offset by approximately 750 bopd of production that was temporarily off-line due to community disturbances in the Central Llanos and is expected to be back on-line in the next few days.
First quarter production averaged 34,047 bopd, 1,306 bopd or 4 percent lower than the fourth quarter of 2011. Our Deep Llanos production decreased 2,641 bopd or 10 percent mainly due to natural declines, offset partially by our Yatay-2 development well that was brought on production in mid-January. Our Central Llanos production increased 1,190 bopd or 37 percent due to the addition of Yenac-5 in February and our Tucuso-1 discovery well in mid-March.
Deep Llanos Basin (Corcel, Guatiquia and South Block 31), Colombia
During the quarter, we drilled four wells (Yatay-2, Iboga-1, Tente-1 and Chilaco-1). We also drilled five Corcel water disposal wells (ASWD-3, CSWD-2, CSWD-3, DSWD-1 and DSWD-2).
On our Guatiquia Block, the Yatay-2 well was drilled to a total measured depth of 11,960 feet on January 1st. The well targeted by-passed pay in the Guadalupe formation encountered in the original discovery well. The well was placed on production in late January and averaged 519 bopd for the remainder of the quarter.
On Block 31, the Iboga-1 well concluded our initial exploration drilling program on the southern portion of Block 31. In the final test of a Lower Sand 2 interval, the well tested uneconomic quantities of 23 degree API oil.
