GeoPark Holdings (LSE:GPK) share price rose 3.72%to 655.00p on the London Stock Exchange this morning on reports of positive exploration results from recently-acquired oil-field blocks in Columbia.
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GeoPark reported on discoveries in the Max and the Tua Oil Fields.
In the Max Oil Field, the Max 1 exploration well is testing about 1,220 bopd of 15° API oil, which is classified as heavy crude. Additional testing will be done to calculate production rates. The company conducted a 35 hour, natural flow, drilling test that yielded 149 bopd of 35.8° API oil, or light crude at the Gacheta formation. In the Guadalupe formation, a 13.5 hour swabbing production test, yielded a rate of 276 bopd of 14° heavy crude. At the Mirador formation, the tests generated an average production rate of 159 bopd of medium oil. GeoPark will begin delineation drilling during the third quarter of 2012
In the Tua Oil Fields, Tua 1 testing is progressing well, with testing necessary to commence to determine production rates. The Guadalupe formation produced 12.8° heavy crude at 362 bopd. The Mirador formation, under a 52 hour production test, generated 1,723 bopd of 18.2° heavy crude. Delineation testing will begin in conjunction with the Max Oil Field.
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The Maniceño exploration well has been put into production. It is generating about 3,000 bopd of 28° medium weight oil. Testing of the Samaria 1 exploration well is expected to begin this month.
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The Mapora 1 exploration well was plugged and abandoned in June 2012 as there was no indication for payout potential. Testing will begin this month to determine potential oil pay at the Celeus 1 well.
Executive Insight
GeoPark CEO, James Park:
“The new Max and Tua oil discoveries . . . demonstrate our ability to build value . . . and represent a significant de-risking of our new Columbian acquisitions by converting exploration potential to new oil production and reserves. We look forward to further results from our 45-50 well drilling programme in 2012 in Chile and Columbia.”
Company Spotlight
GeoPark is an oil and gas exploration and production company operating in Latin America, which it considers to be “one of the richest and most under-explored hydrocarbon regions in the world.” In 2006, GeoPark became the first company to produce oil and gas and operate in Chile. Total proven, probable, and possible oil and gas reserves of 156.8 million BOE have been indentified within its Chilean and Argentine properties. The company currently owns over 4.4 million acres of exploration blocks in Argentina, Columbia, and Chile, 3.9 million of which are under licence.