TIDMGPK
RNS Number : 4573W
Geopark Holdings Limited
28 January 2013
Embargoed for release at 7:00 January 28, 2013
am
GEOPARK HOLDINGS LIMITED
FOURTH QUARTER 2012 OPERATIONS UPDATE
GeoPark Holdings Limited ("GeoPark" or the "Company") (AIM:
GPK), the Latin American oil and gas explorer, operator and
consolidator operating in Chile, Colombia and Argentina, with a
risk-balanced asset portfolio consisting of interests in 19
hydrocarbon blocks, is pleased to provide an operations update for
the Fourth Quarter 2012.
Highlights
Key achievements during 4Q2012 include:
-- Oil and Gas Production Increase
Oil and gas production increased by 22% to 10,627 barrels of oil
equivalent per day ("boepd") in 4Q2012 from 8,710 boepd in 4Q2011.
Crude oil production increased by 110% to 7,939 barrels of oil per
day ("bopd") in 4Q2012 from 3,783 bopd in 4Q2011. Yearly average
production was 11,276 boepd in 2012, 49% higher than 2011. Current
production is approximately 13,200 boepd.
-- Drilling Success in Chile and Colombia
Key wells drilled and put into production on the Fell Block in
Chile during the fourth quarter included:
- Yagan 2 (currently producing approximately 610 bopd)
- Konawentru 4 (currently producing approximately 900 bopd)
- Yagan 4 (currently producing approximately 600 bopd)
Key wells drilled and put into production on the Llanos 34 Block
in Colombia included:
- Tua 3 (currently producing approximately 1,100 bopd)
- Tua 2 (currently producing approximately 1,700 bopd)
A complete list of wells drilled and results during 4Q2012 is
provided below.
-- Expansion of LGI Strategic Partnership into Colombia
LG International Corporation ("LGI"), the Korean conglomerate,
acquired an interest in GeoPark's 10 Colombian hydrocarbon blocks
by becoming a 20% shareholder in GeoPark Colombia.
Fourth Quarter 2012 Drilling and Work Program
GeoPark's 2012 work program included the drilling of 44 new
wells (gross) with a capital expenditure of over US$180 million.
The drilling program in 4Q2012 was mainly focused on 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 4Q2012
============================================= ============ ================== ========== ============ ===========
On
Fell 100% Chile Yagán 2 Appraisal Tobífera 3,126 Oil Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
On
Fell 100% Chile Konawentru 4 Appraisal Tobífera 3,102 Oil Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Yagán On
Fell 100% Chile Norte 4 Development Tobífera 3,105 Oil Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
On
Fell 100% Chile Manekenk 2 Development Tobífera Drilling
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Waiting
for
Fell 100% Chile Konawentru 3 Development Tobífera Completion
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Waiting
for
Tranquilo 29% Chile Marcou Sur 1 Exploration Loreto Inferior 1,496 Gas Completion
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Waiting
Palos for
Tranquilo 29% Chile Quemados 1 Exploration Loreto Superior 1,600 Gas Completion
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Waiting
Ea Ma for
Tranquilo 29% Chile Antonieta 1 Exploration El Salto Inferior 1,191 Gas Completion
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Llanos 32 Maniceño Injecting
(1) 10% Colombia 1 Disposal - in C1
=========== ===== ========= ============== ============ ================== ========== ============ ===========
On
Llanos 34 45% Colombia Tua 3 Development Mirador/Guadalupe 3,276 Oil Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Arrendajo On
(1) 10% Colombia Azor 3 Development C5 2,033 Oil Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Completions/Workovers Performed in 4Q2012
============================================= ============ ================== ========== ============ ===========
Plug &
Otway 25% Chile Tatiana 1 Completion Agua Fresca 2,202 Gas Abandon
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Waiting
Springhill / for
Fell 100% Chile Nika Oeste 4 Completion Tobifera 3,204 Gas Fracture
=========== ===== ========= ============== ============ ================== ========== ============ ===========
On
Fell 100% Chile Kosten 1 Workover Springhill Gas Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Waiting
for
Fell 100% Chile Ovejero 2 Deepening Tobifera 3,184 Oil Fracture
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Converted
to
Fell 100% Chile Guanaco 10 Workover Springhill Oil Injector
=========== ===== ========= ============== ============ ================== ========== ============ ===========
On
Fell 100% Chile Maku 1 Workover Springhill Gas Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
On
Fell 100% Chile Guanaco 16 Workover Springhill Oil Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Fell 100% Chile Alakaluf 3 Workover Springhill Oil Injector
=========== ===== ========= ============== ============ ================== ========== ============ ===========
On
Llanos 34 45% Colombia Tua 2 Completion Guadalupe 3,374 Oil Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
Arrendajo On
(1) 10% Colombia Azor 2 Completion C5 1,947 Oil Production
=========== ===== ========= ============== ============ ================== ========== ============ ===========
(1) Non Operated
Drilling Highlights:
-- Appraisal well Yagan 2 on the Fell Block in Chile (GeoPark
operated with a 100% working interest ("WI")) was put into
production from the Tobifera formation in November 2012 and is
currently producing approximately 610 bopd.
-- Appraisal well Konawentru 4 on the Fell Block in Chile
(GeoPark operated with a 100% WI) was put into production from the
Tobifera formation in November 2012 and is currently producing
approximately 900 bopd.
-- Appraisal well Yagan Norte 4 on the Fell Block in Chile
(GeoPark operated with 100% WI) was put into production from the
Tobifera formation in December 2012 and is currently producing
approximately 600 bopd.
-- Appraisal well Manekenk 2 on the Fell Block in Chile (GeoPark
operated with a 100% WI) was drilled and is waiting on completion
and testing in the Tobifera and Springhill formations.
-- Development well Konawentru 3 on the Fell Block in Chile
(GeoPark operated with a 100% WI) was drilled and is waiting on
completion and testing in the Tobifera formation.
-- Exploration well Tatiana 1 on the Otway Block in Chile
(GeoPark operated with a 25% WI) was drilled and completed in
December 2012. The well encountered gas in the targeted objective
but with a tight reservoir (low permeability) and no commercial
production. The well was plugged and abandoned.
-- Appraisal well Tua 3 on the Llanos 34 Block in Colombia
(GeoPark operated with a 45% WI) was put into production from the
Mirador formation in December 2012 and is currently producing
approximately 1,100 bopd gross.
-- Appraisal well Tua 2 on the Llanos 34 Block in Colombia
(GeoPark operated with a 45% WI) was put into production from the
Guadalupe formation in December 2012 and is currently producing
approximately 1,700 bopd gross.
-- Appraisal well Azor 2 on the Arrendajo Block in Colombia
(Non-operated with a 10% WI) was put into production from the C5
formation in October 2012 and is currently producing approximately
580 bopd gross.
-- Appraisal well Azor 3 on the Arrendajo Block in Colombia
(Non-operated with a 10% WI) was put into production from the C5
formation in December 2012 and is currently producing approximately
490 bopd gross.
Oil and Gas Production
GeoPark's daily average oil and gas production increased to
10,627 boepd in 4Q2012 from an average of 8,710 boepd in 4Q2011.
This increase resulted from a growth in Chilean oil production
(from 3,723 bopd to 3,879 bopd) and new production from Colombian
assets acquired (4,018 bopd). Oil production accounted for 75% of
the total oil and gas production compared to 43% in 4Q2011.
4Q2012 Total Oil Gas
(boepd) (bopd) (mcfpd)
----------- --------- -------- ---------
Chile 6,558 3,879 16,080
Colombia 4,027 4,018 50
Argentina 42 42 -
TOTAL 10,627 7,939 16,130
----------- --------- -------- ---------
Relevant Market Announcements and Strategic Developments
-- New Project Efforts
LGI, the Korean conglomerate, has joined GeoPark's operations in
Colombia through the acquisition of a 20% interest in GeoPark
Colombia S.A., a company that holds GeoPark's Colombian assets and
which includes interests in 10 hydrocarbon blocks.
GeoPark and LGI agreed to extend until 2015 their strategic
alliance to build a portfolio of upstream oil and gas projects
throughout Latin America. Following its successful acquisitions in
Chile and Colombia in 2012, 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.
-- Gas Market
Methanex Corporation, which purchases all of GeoPark's Chilean
gas production, announced it expects to idle its Chile operation in
March 2013 and restart it later in the present year due to
anticipated insufficient natural gas supply. Gas supply for the
plant is expected to decrease during the winter months of 2013
given the seasonal gas demand increase from the city of Punta
Arenas, which is 100% supplied by the Chilean State Oil Company
ENAP, and whose gas production is supplemental to GeoPark's gas
supply to the Methanex plant.
Despite this temporary stoppage, Methanex has agreed to continue
to purchase gas from GeoPark in 2013 in accordance with the minimum
committed gas volumes per the Gas Sales Agreement. GeoPark may need
to sell any excess gas to other buyers, such as ENAP or local
distribution companies. GeoPark's total gas revenues for 2013 are
expected to represent less than 5% of total revenues.
-- Portfolio Restructuring
In Argentina, GeoPark, in November 2012, relinquished
approximately 85.6% of the Del Mosquito Concession to the Santa
Cruz Province; resulting in a remaining exploitation area of 17,300
acres.
In Chile in January 2013, GeoPark formally advised the Ministry
of Energy of a decision by the Tranquilo Block JV partners to not
proceed with the Second Exploratory Period of the Tranquilo Block
CEOP. GeoPark and its partners will relinquish the Tranquilo Block,
except for an area of 92,417 acres consisting of protected
exploitation zones for the Cabo Negro, Marcou Sur, Maria Antonieta
and Palos Quemados prospects.
1Q2013 Outlook and Key Wells
Following its successes in 2012, GeoPark will continue its
ambitious drilling program with the addition of approximately 35 to
45 gross new wells with a capital expenditure budget of
approximately US$200-230 million for 2013.
The overall 2013 program is designed to increase oil and gas
production and reserves, increase cash flow, improve project
economics and performance and manage risk through a mix of
exploration and development drilling program.
Block Country WI Operator Prospect Unrisked CoS(*) Well Status
Name Resources / Comment
P90-P10(*)
MMbbl
========= ========== ===== ========== ========== ============ ======= =======================
Llanos Colombia 45% GeoPark Max 2 n.a. n.a. Spud Target
34 Mar/13
--------- ---------- ----- ---------- ---------- ------------ ------- -----------------------
Llanos Taro Taro Spud Target
34 Colombia 45% GeoPark 1 22.6-1.6 43 Mar/13
--------- ---------- ----- ---------- ---------- ------------ ------- -----------------------
Llanos Colombia 10% P1 Energy Bandola n.a. n.a. Spud Target
32 (1) Corp Mar/13
--------- ---------- ----- ---------- ---------- ------------ ------- -----------------------
Potrillo Spud Target
Yamu Colombia 75% GeoPark 1 2.6-0.4 32 Mar/13
--------- ---------- ----- ---------- ---------- ------------ ------- -----------------------
Fell Chile 100% GeoPark Various n.a. n.a. Oil prone -
Tobifera Exploration/Appraisal
Wells
--------- ---------- ----- ---------- ---------- ------------ ------- -----------------------
Fell Chile 100% GeoPark Asetan 5 - 2.3 32% Oil / Gas Prospect
--------- ---------- ----- ---------- ---------- ------------ ------- -----------------------
TdF Chile 50% GeoPark Chercan 1.1 - 0.1 32% Oil Prospect
--------- ---------- ----- ---------- ---------- ------------ ------- -----------------------
(*) Only for exploratory wells
(1) Non Operated
Commenting, James Park, Chief Executive Officer, said: "GeoPark
completed 2012 with a strong fourth quarter resulting from our
successful drilling results in Chile and Colombia and an important
increase in oil and gas production and cash flow. We were pleased
to exit the year producing over 12,500 boepd (now 13,200 boepd),
which is leading us to register our seventh consecutive year of
bottom-line performance growth. This consistent growth has been led
by our success with the drill bit and by our ability to acquire
underperforming assets and convert them into value generating
projects. We are beginning 2013 in a strong position with the
critical pieces in place for an exciting year of both organic
growth and new project expansion."
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 2242 9600
Oriel Securities - Nominated Adviser and
Joint Broker
Michael Shaw (London) +44 (0)20 7710 7600
Tunga Chigovanyika (London)
Macquarie Capital (Europe) Limited - Joint
Broker
Jeffrey Auld (London) +44 (0)20 3037 2000
Steve Baldwin (London)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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