How Much Can You Earn This Year Committed to the shares of Ecopetrol?

How much can you earn this year by betting on shares of Ecopetrol? Buenos Aires, February 2009 Argentina10 oil company Ecopetrol (BVC: ECOPETROL, NYSE: EC) continues to grow and expand internationally despite the rough that is the global economic environment affected by the global financial crisis. Ecopetrol is clear about where it intends to address and in that sense is focusing all their efforts. That is why I see in the Colombian oil company with attractive growth potential it could bring good returns to investors. As part of its expansion plan, and as anticipated in an article two weeks ago What results will the anti-crisis plan in Peru? , Last Friday ECOPETROL finalized in conjunction with National Oil Company of Korea (KNOC acronym in English), Petro-Tech acquisition of Peru in a total of U.S. $ 900 million (50% of the share contributed by Ecopetrol come from the company's own resources), which involves the entry of the Colombian company in the Peruvian oil market, which has an interesting potential. In fact, it is clear that these companies acquired the company Offshore International Group Inc., based in the United States, whose main asset is Petro-Tech Peruana.

Following the joint acquisition of Petro-Tech announced that Ecopetrol and KNOC seek to increase their investments in the coming years to increase production and reserves in Peru. Among the goals set for Petro-Tech will seek to double production over the next three years. In the press release issued by Ecopetrol in relation to the acquisition of oil company Petro-Tech Peruana read that Colombian oil for this acquisition represents "a step in the internationalization process of Ecopetrol and part of the strategy to achieve a production of one million barrels of oil equivalent per day in 2015?.

Worth remembering that Ecopetrol has an investment plan for 2009 in the amount of U.S. $ 6,224 million (35% more than in 2008 and three times the amount invested in 2007), and will devote part of these resources to invest in Petro-Tech. In another of the developments in recent days, Ecopetrol announced the increase of their participation in blocs Fuerte Norte and Fuerte Sur, in the Colombian Caribbean Sea. This increase in participation comes after an agreement with the Colombian subsidiary of BHP Billiton Petroleum Corporation (LSE: BLT; NYSE: BHP; JSE: BIBLT), which provides for the allocation of 25% stake in both blocks of BHP Billiton ECOPETROL. As a result, each company will own 50% of those blocks. These blocks Fuerte Norte and Fuerte Sur contracts are for exploration and exploitation of hydrocarbons, held in April 2006 by BHP Billiton and Ecopetrol with the National Hydrocarbons Agency and joint venture agreements entered into by the parties in June 2007 . Both blocks, with an approximate size of 954,050 hectares, are part of the projects located offshore in the Colombian Caribbean Sea.

While today the Colombian oil was scheduled to announce results for the fourth quarter of 2008, the announcement was postponed for Tuesday February 17, although this delay corresponds to a minor issue securities settlement. One of the significant events in recent weeks produced relates to the amendments made in the Code of Corporate Governance. While it may be a minor issue for some, these modifications tend to increase transparency in the operations of the company and its related companies, which represents an additional benefit to investors, especially small ones, which can more easily monitor the development and projection of the oil. Good corporate governance practices have become relevant since remembered corporate scandals (eg, Enron), since they help to increase the level of transparency in the companies, which limits the possibility of operation unclear them while helping to protect minority shareholders (ECOPETROL has 500,000 small shareholders). The improvement in corporate governance practices will increase the attractiveness of the shares while Ecopetrol will be beneficial in terms of enhancing the profitability that can be perceived misma.Lo about ECOPETROL following regular evolution is that the Colombian oil continues to grow apace fulfilling its strategic expansion plan.

But what it may mean the value of their actions? While actions are short-lived ECOPETROL listed on the stock market, they have won a great attraction in the Colombian stock exchange and currently is focused to win over investors in U.S. stock markets. When passed in 2008 the pace of growth observed in the stock price driven not only by the rise in international oil prices but also by the growth experienced by the company, all which it would be irreparably value of the shares would exceed $ 3,000. But the sudden change of scene in which he entered the world economy plunged into deep recession, changed the outlook for oil whose share price was a sharp drop in conjunction with the collapse of oil prices. In the last days and the product of good news related to the company, the value of shares traded on the upside and closed yesterday at $ 2,150 on the BVC. After playing his least October 27, 2007 to $ 1825, Ecopetrol's role has been showing a slight but steady positive trend since that date has already accumulated a rise of 17.8%.

The prospects of Ecopetrol shares for this year are more positive as the continuation of the realization of investment projects is likely to result in a recovery (even mild), in the price of oil prices towards the end of this year. In this sense it would not be surprising that the value of the shares of Ecopetrol progress toward the $ 3,000 although it is unlikely that this year could break that barrier. However, the present value of the firm, its room for growth in a context where there are many numbers in red, not appear at all negligible.