Our Operations

oil-gas-header

Oil & Gas

In 2004, Drummond began oil and gas exploration in Colombia to provide gas supply to our power plant facilities in the Mina Pribbenow mining complex and to participate in Colombia’s gas market. Potential of the existing projects forecasts an excess of production beyond our current gas needs, which today is close to 13 MMCFGD. The excess production will be either sold in the Colombian gas market or exported.

Drummond owns two oil and gas assets in northern Colombia. These two properties encompass the two largest coal basins in the northern portion of the country and a generous basin with shale-gas proven potential.

The ANH La Loma block includes rights to explore and produce coalbed methane gas and other hydrocarbons. It has a total acreage of 392,515 acres (613 sq. mi.), and is located in the Cesar coal basin, where all Drummond mining operations are located. This basin has been extensively explored by Drummond for coal, coalbed methane gas, and more recently, shale-gas.

In 2006, a second block for CBM exploration and production was acquired from a local company). With a total of 77,833 acres (121.6 sq. mi.), this block encompasses the majority of the Guajira coal basin. Ecopetrol controls 30% of the asset. Total accumulated coal thickness column is approximately three times thicker than in the Cesar basin.

Colombia has a total of 8.45 TCF of known gas reserves. A deficit in the internal Colombian gas market is expected in the coming years. Drummond gas projects hold a massive amount of potential gas resources positioned to take the place of the market left by the declining fields.

In order to develop its CBM operations in Colombia, Drummond has its own technical and operations staff. We conduct our own drilling, stimulation and well testing, as well as surface-facilities, construction, and operations and maintenance of our fields.