Geopark Holdings Limited Exploration success Tierra Del Fuego Chile (0790I)
June 28 2013 - 2:01AM
UK Regulatory
TIDMGPK
RNS Number : 0790I
Geopark Holdings Limited
28 June 2013
Embargoed for release 28 June 2013
at 7:00 am
GEOPARK HOLDINGS LIMITED
FIRST EXPLORATION SUCCESS IN TIERRA DEL FUEGO IN CHILE
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
Chercán 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 Chercán 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 Chercán
1 well to the existing pipeline infrastructure.
The Chercán 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 Chercán 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
Juan Pablo Spoerer (Chile)
Pablo Ducci (Chile) +56 2 2242 9600
ENAP
Christian Grossmann +56 2 2280 3000
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
Steve Baldwin (London) 2000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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