TIDMGPK
RNS Number : 8523Q
Geopark Holdings Limited
12 November 2012
Embargoed for release November 12, 2012
at 7:00 am
GEOPARK HOLDINGS LIMITED
THIRD QUARTER 2012 OPERATIONS UPDATE
GeoPark Holdings Limited ("GeoPark" or the "Company") (AIM:
GPK), the Latin American oil and gas exploration and production
company operating in Chile, Colombia and Argentina, with a
risk-balanced asset portfolio consisting of interests in 19
hydrocarbon blocks covering 3.9 million gross acres, is pleased to
provide an operations update for the Third Quarter 2012.
Highlights
Key achievements and performance indicators during 3Q2012
include:
-- Oil and gas production increased by 21% to 10,723 barrels of
oil equivalent per day ("boepd") in 3Q2012 from 8,883 boepd in
3Q2011.
-- Oil production increased 131% to 7,147 barrels of oil per day
("bopd") in 3Q2012 from 3,088 bopd in 3Q2011. Oil currently
represents 67% of GeoPark's total production.
-- Exploration well Max 1 in the Llanos 34 Block in Colombia was
put into production from the Guadalupe formation in August 2012 and
is currently producing approximately 1,400 bopd. Appraisal well Max
2 will be drilled during 4Q2012.
-- Exploration well Tua 1 in the Llanos 34 Block in Colombia was
tested during July 2012 and put into production from the Mirador
formation at a rate of approximately 1,100 bopd in October 2012.
Appraisal wells Tua 2 and Tua 3 will be tested and drilled during
4Q2012.
-- Exploration well Tatiana 1 in the Otway Block in Chile was
drilled in September 2012 with favourable hydrocarbon shows and
will be tested during 4Q2012.
-- GeoPark received final approval to start operations on its
new Flamenco (GeoPark 50% WI) and Isla Norte blocks (GeoPark 60%
WI) in Tierra del Fuego, Chile. The Company expects to start its
drilling campaign in 1Q2013.
Third Quarter 2012 Drilling and Work Program
GeoPark's 2012 updated work program and budget envisages
drilling 42-46 new wells (gross) with a capital expenditure budget
of approximately US$200-210 million.
The drilling program in 3Q2012 was mainly focused on
exploration, reserve appraisal and development in Chile and
Colombia. Results are set out below:
Block WI Country Well Type of Geological Depth Principal Current
well Formation (Meters) Hydrocarbon Status
Wells Drilled in 3Q2012
============================================== ============ ==================== ========= ============ ===========
On
Fell 100% Chile Maku 1 Exploration Tobifera 3,160 Gas Production
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Cerro
Iturbe Under
Fell 100% Chile Oeste 1 Exploration Springhill 3,222 Gas Evaluation
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Nika Under
Fell 100% Chile Oeste 4 Development Springhill/Tobifera 3,204 Gas Evaluation
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Waiting
Tatiana for
Otway 25% Chile 1 Exploration Agua Fresca 2,202 Gas completion
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Cabo To be
Otway 25% Chile Negro Exploration Gas abandoned
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Waiting
for
Llanos 34 45% Colombia Tua 2 Appraisal Mirador/Guadalupe 3,374 Oil completion
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Cuerva
Cuerva 100% Colombia 5E Development C3 1,280 Oil Dry
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Cuerva On
Cuerva 100% Colombia 10D Development C3 1,405 Oil Production
============== ======== ========= ========= ============ ==================== ========= ============ ===========
On
Arrendajo(*) 10% (1) Colombia Azor 2 Development C5 2202 Oil production
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Completions/Workovers Performed in 3Q2012
============================================== ============ ==================== ========= ============ ===========
Frac
Pampa Springhill
Fell 100% Chile Larga 14 Completion Springhill 3,081 Gas & Tobifera
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Guanaco On
Fell 100% Chile 16 Completion Springhill 2,770 Oil Production
============== ======== ========= ========= ============ ==================== ========= ============ ===========
On
Fell 100% Chile Kiuaku 1 Completion Springhill 3,142 Gas/Oil Production
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Temporary
Fell 100% Chile Tiuque 1 Completion Springhill 2,556 Oil Abandoned
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Municion To be
Fell 100% Chile Oeste 3 Completion Springhill 2,747 Gas Abandoned
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Copihue On
Fell 100% Chile 3 Workover Springhill 2,399 Oil Production
============== ======== ========= ========= ============ ==================== ========= ============ ===========
Water
Llanos 34 45% Colombia Agami 1 Completion Mirador/Guadalupe 3,090 - Disposal
============== ======== ========= ========= ============ ==================== ========= ============ ===========
On
Llanos 34 45% Colombia Tua 1 Completion Mirador/Guadalupe 3,349 Oil Production
============== ======== ========= ========= ============ ==================== ========= ============ ===========
(*) Non-Operated by GeoPark
(1) Subject to submission and approval by ANH of certain
assignments
Drilling Highlights:
-- Exploration well Maku 1 in the Fell Block in Chile (GeoPark
operated with a 100% working interest (WI)) was completed in August
2012 with a successful test in the Springhill and Tobifera
formations. After completing the test, the well was tied-in and is
currently on stream and producing gas at an approximate rate of 0.7
million standard cubic feet per day ("mmcfd") and 6 barrels of
condensate per day. Possible hydraulic fracture in the Tobifera
formation is under evaluation.
-- Exploration well Cerro Iturbe Oeste 1 in the Fell Block in
Chile (GeoPark operated with a 100% WI) was drilled in August 2012.
The well was tested in September 2012 in the Springhill and
Tobifera formations and showed low productivity from both
reservoirs. The Company is currently evaluating hydraulic fracture
in the Springhill formation.
-- Development well Nika Oeste 4 in the Fell Block in Chile
(GeoPark operated with a 100% WI) was drilled in September 2012
with oil and gas shows and favourable petrophysical indicators in
the Springhill and Tobifera formations. Testing will be conducted
during 4Q2012.
-- Development well Guanaco 16 in the Fell Block in Chile
(GeoPark operated with a 100% WI) was completed in August with a
successful test in the Springhill formation. The well is currently
on production at a rate of 44 bopd.
-- Exploration well Tatiana 1, the first well drilled in the
Otway Block in Chile by GeoPark (GeoPark is the operator with a 25%
WI) was drilled in September 2012. Open-hole logs showed favourable
petrophysical conditions in the targeted Agua Fresca formation and
the well will be tested during 4Q2012.
-- Exploration well Cabo Negro 1 in the Otway Block in Chile
(GeoPark operated with a 25% WI) was spudded at the end of
September 2012. The well reached and encountered the targeted Lower
Loreto formation, with some evidence of hydrocarbon presence
according to log analysis interpretation. However, the reservoir
presented the petrophysical conditions of a tight sand The
consortium decided to abandon the well, however some of the area
around the well may be retained to allow for potential future
additional evaluation as an unconventional play.
-- Appraisal well Tua 2 in the Llanos 34 Block in Colombia
(GeoPark operated with a 45% WI) was drilled in October 2012.
Interpretation of petrophysical logs indicate oil bearing
reservoirs in the Mirador and Guadalupe formations. The well is
currently waiting for completion.
-- Development well Cuerva 10D in the Cuerva Block in Colombia
(GeoPark operated with a 100% WI) was completed in July 2012 with a
successful test in the C3 formation. The well is currently on
production at a rate of 59 bopd.
-- Development well Yagan 2 in the Fell Block in Chile (GeoPark
operated with a 100% WI) was drilled in November 2012 with oil and
gas shows and favourable petrophysical indicators in the Tobifera
formations. The well is currently on production at a rate of 400
bopd.
Oil and Gas Production
GeoPark's daily average oil and gas production increased to
10,723 boepd in 3Q2012 from an average of 8,883 boepd in 3Q2011.
This increase resulted from growth in Chile oil production (from
3,018 bopd to 3,474 bopd) and new production from Colombian assets
(3,625 bopd). Oil production accounted for 67% of the total oil and
gas production compared to 35% in 3Q2011.
3Q2012 Total Oil Gas
(boepd) (bopd) (mcfpd)
----------- --------- -------- ---------
Chile 7,025 3,474 21,306
Colombia 3,634 3,625 59
Argentina 64 49 93
TOTAL 10,723 7,148 21,458
----------- --------- -------- ---------
New Project Growth and Strategic Developments
-- New Project Acquisition Efforts:Following its successful
acquisitions in Chile and Colombia, GeoPark continues to actively
review a range of asset and corporate opportunities, from a
risk-reward and shareholder value creation perspective, in Chile,
Colombia, Peru, Brazil and Argentina as part of its partnership
with LG International to develop a portfolio of upstream assets
throughout Latin America.
-- Unconventional Resource Potential Assessment: GeoPark's
acreage in the Magallanes Basin in Chile contains the Estratos con
Favrella shale formation which has previously been tested and
produced oil. GeoPark has initiated studies of diagnostic fracture
injection tests ("DFIT") on a selection of six to eight wells on
the Fell Block to determine fracturability and reservoir properties
of the shale. Preliminary results are expected during 1Q2013.
Fourth Quarter 2012 Outlook and Key Wells
During 4Q2012, the Company will continue its ambitious drilling
program with the addition of approximately 12 new wells. Key wells
in the 4Q2012 drilling program include (pre-drill information):
Block Country WI Operator Prospect Unrisked CoS(*) Well Status
Name Resources / Comment
P90-P10(*)
=========== ========== ===== ========= =========== ============ ======= ===============
Marcou 8/98 Spud Target:
Tranquilo Chile 29% GeoPark Sur 1 Bcf 22% October 2012
----------- ---------- ----- --------- ----------- ------------ ------- ---------------
Palos
Quemados 11/192 Spud Target:
Tranquilo Chile 29% GeoPark 1 Bcf 21% November 2012
----------- ---------- ----- --------- ----------- ------------ ------- ---------------
Ea. Maria
Antonieta 8/138 Spud Target:
Tranquilo Chile 29% GeoPark 1 Bcf 21% December 2012
----------- ---------- ----- --------- ----------- ------------ ------- ---------------
Fell Chile 100% Geopark Konawentru n.a n.a Spud Target:
4 October 2012
----------- ---------- ----- --------- ----------- ------------ ------- ---------------
Fell Chile 100% Geopark Yagan n.a n.a Spud Target:
Norte November 2012
4
----------- ---------- ----- --------- ----------- ------------ ------- ---------------
Fell Chile 100% Geopark Konawentru n.a n.a Spud Target:
3 December2012
----------- ---------- ----- --------- ----------- ------------ ------- ---------------
Llanos Colombia 45% GeoPark Tua 3 n.a n.a. Spud Target:
34 October 2012
----------- ---------- ----- --------- ----------- ------------ ------- ---------------
Llanos Colombia 45% GeoPark Max 2 n.a n.a Spud Target:
34 December 2012
----------- ---------- ----- --------- ----------- ------------ ------- ---------------
(*) Only for exploratory wells
Commenting, James Park, Chief Executive Officer, said: "GeoPark
is closing out a successful 2012 as evidenced by our continuously
improving:
-- Track record of execution and growth;
-- Asset base, including a new platform for growth in Colombia -
which is already providing important new results - and an expanding
platform in Chile - with its consistent growth performance;
-- Capabilities and organization ready for the next opportunities;
-- Balance sheet, resulting from cash reserves and supporting operating cash flows; and
-- Portfolio of attractive new project opportunities.
We believe our Fourth Quarter program will further improve these
results and carry us into 2013 with significant momentum and the
opportunity to increase our rate of growth."
In accordance with AIM Rules, the information in this release
has been reviewed and signed off by Salvador Minniti, a geologist
with 32 years of oil and gas experience and Director of Exploration
of GeoPark. Reserve and resource estimates in this release have
been compiled by DeGolyer and MacNaughton and the Company in
accordance with the 2011 Petroleum Resources Management System
produced by the Society of Petroleum Engineers.
GeoPark can be visited online at www.geo-park.com
For further information please contact:
GeoPark Holdings Limited
Andres Ocampo (Buenos Aires) +54 11 4312 9400
Pablo Ducci (Chile) +56 2 242 9600
Oriel Securities - Nominated Adviser
and Joint Broker
+44 (0)20 7710
Michael Shaw (London) 7600
Tunga Chigovanyika (London)
Macquarie Capital (Europe) Limited
- Joint Broker
+44 (0)20 3037
Jeffrey Auld (London) 2000
Steve Baldwin (London)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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