SANTIAGO, Chile, June 28, 2013 /PRNewswire/ -- GeoPark Holdings
Limited ("GeoPark"), the Latin American oil and gas explorer,
operator and consolidator with operations and production in
Chile, Colombia, Brazil and Argentina (AIM: GPK), is pleased to announce
the discovery of a new oil and gas field on the Flamenco Block in
Chile following the successful
testing of the Chercan 1 well – the first well drilled by GeoPark
in Tierra del Fuego. GeoPark operates and has a 50% interest in the
Flamenco Block in its partnership with Empresa Nacional de Petroleo
de Chile ("ENAP"), the Chilean
state-owned company.
GeoPark drilled and completed the Chercan 1 well to a total
depth of 2,066 metres. A production test in the Tobifera formation,
following stimulation, at approximately 1,920 metres, flowed at a
rate of approximately 4.0 million standard cubic feet per day of
gas and 35 barrels of oil per day through a choke of 8 millimetres,
with a well head pressure of 1,800 pounds per square inch.
Further production history will be required to determine stabilized
flow rates and the well is continuing to clean up. Efforts have
been initiated to design and construct flowlines to connect the
Chercan 1 well to the existing pipeline infrastructure.
The Chercan 1 well is the first of approximately 21 exploratory
wells to be drilled on the Flamenco, Campanario and Isla Norte
Blocks in Tierra del Fuego as part of an approximately US$100 million investment program by GeoPark
during the First Exploration Period. Two additional wells – Omeling
1 and Yakamush 1 – have completed drilling on the Flamenco Block
and will be tested in the following weeks.
As part of the Tierra del Fuego work program, approximately
1,200 sq km of 3D seismic have been surveyed over the three blocks;
from a total committed 3D seismic program of approximately 1,500 sq
km.
In its partnership with ENAP under the framework of the Special
Operation Contracts signed with the State
of Chile, GeoPark operates and has a 50% working interest in
the Flamenco and Campanario Blocks and a 60% working interest in
the Isla Norte Block. ENAP, owns the remaining working interests in
each Block.
GeoPark has interests in 27 exploration, development and
production blocks in Colombia,
Chile, Argentina and Brazil (subject to local regulatory approval).
During 2013, GeoPark plans to carry out a total 35-45 well
drilling program with an expected work program investment of
US$200-230 million.
Commenting, James F. Park, CEO of
GeoPark, said: "A new field discovery with our first well drilled
in Tierra del Fuego is an encouraging start to our US$100+ million
work program in this new region. Our team is confident in the
hydrocarbon potential of our new acreage in Tierra del Fuego -
which we believe will allow us to replicate the success of our
properties nearby to the north across the Magellan Straits. The
Chercan 1 well test represents initial confirmation of this
potential and our opportunity to continue to build our reliable
Chilean production, reserve and cash flow base. We are also pleased
to work and be in partnership with ENAP in exploring and developing
these exciting opportunities."
In accordance with the AIM Rules, the information in this
announcement has been reviewed by Salvador
Minniti, a geologist with 32 years of oil and gas experience
and Director of Exploration of GeoPark.
GeoPark can be visited online at www.geo-park.com
For further information please contact:
GeoPark Holdings
Limited
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Juan Pablo Spoerer
(Chile)
Pablo Ducci
(Chile)
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+56-2-2242-9600
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ENAP
Christian
Grossmann
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+56-2-2280-3000
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Oriel Securities –
Nominated Adviser and Joint Broker
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Michael Shaw
(London)
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+44(0)20-7710-7600
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Tunga Chigovanyika
(London)
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Macquarie Capital
(Europe) Limited – Joint Broker
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Steve Baldwin
(London)
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+44(0)20-3037-2000
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SOURCE GeoPark