GeoPark Holdings Limited, the Latin American oil and gas exploration and production company with producing properties in Chile and Argentina, is pleased to announce the successful drilling and testing of a new oil well in the Guanaco oil field on the Fell Block in Chile. GeoPark operates and has a 100% working interest in the Fell Block.
GeoPark drilled and completed the Guanaco 6 well to a total depth of 2,760 meters. A production test in the Springhill formation, at approximately 2,551 meters in a 12 meter perforated interval, flowed at a rate of approximately 1,578 barrels per day (bpd) of oil through a choke of 12 millimeters, with a well head pressure of 654 pounds per square inch. These are preliminary results and further production history will be required to determine stabilized flow rates and the extent of the reservoir. Projected production rate for the well is 600-800 bpd. Surface facilities have been constructed and the produced crude oil is now being marketed.
The drilling results from this well and preliminary interpretations of available seismic data provide evidence that the Guanaco structure is approximately 6 square kilometers in area with a preliminary 2P reserve estimate (internal) of approximately 6-7 million barrels of oil, approximately 3-4 million barrels higher than previous estimates, and with the possibility of multiple drilling opportunities. The Guanaco field is located in the south-central area of the Fell Block and the new 3D seismic survey conducted during 2010 also suggests the possibility of finding traps and additional resources to the south of the structure.
In other drilling operations, the Dicky 18 well was completed in the Springhill formation with inconclusive results. Hydraulic fracturing stimulation is planned after production tests recovered low hydrocarbon flow rates.
Commenting, James F. Park, Chief Executive Officer of GeoPark, said: "We are pleased with the results from the Guanaco well which confirms the Guanaco oil field as an attractive new development opportunity and further opens the Fell Block's south-central area to additional exploration possibilities. GeoPark remains committed to investing in our effort to find and develop oil and gas reserves in the Magallanes Basin in Southern Chile".
In accordance with the AIM Rules, the information in this report has been reviewed and signed off by Mr. Carlos Portela, MSc, Petroleum Engineer, (33 years of oil and gas experience) and Managing Director of GeoPark.
