The privatization process of Gas Natural E.S.P., in which Ecopetrol sold 60.6% of the outstanding shares of the company came successfully to an end on the 4th and 5th of June when the public auction for the sale of such participation took place. During the first phase of the privatization, in which shares were offered at a fix price of $6.667 per share to the "Sector Solidario", Ecopetrol sold 10.3% of its participation to some pension funds and cooperatives.

The second phase was carried out through a public auction in the three Colombian Stock Exchanges. British Petroleum, Techint and Amoco, Gas de France, Noram, and Gas Natural de Espana were among the initial participants to the public auction.

After two days of competition, when the price per share had come from $6.667 to $19.902, for an increase of 198%, Corregan was the only broker dealer to present an offer in the name of Gas Natural de Espana, who acquired thus the control of Gas Natural (53.74%) for a price of approximately US$160.5 millions.

Gas natural is expected to participate in the bidding process for the concession of the exclusive area of La Sabana, having the possibility to render the service in various localities and to supply gas to industrial consumers located in this area.

Prepared by Alejandro Linares C. and Maristella Aldana from Gomez Pinzon & Asociados.

These notes are intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

GOMEZ PINZON & ASOCIADOS
Carrera 9 No. 73-24 Pisos 1,2,3 y 5
Santafe de Bogota, Colombia

Telephone : 571- 3107055/ 5066
Facsimile : 571- 3106646/6657
http://ourworld.compuserve.com/homepages/GOMEZP_LAW