GeoPark Holdings Limited, the Latin American oil and gas explorer, operator and consolidator with operations and producing properties in Chile, Colombia and Argentina, is pleased to announce the successful drilling, testing and putting into production of two new wells - Yagan Norte 5 and Sauce 1 - in the Tobifera formation on the Fell Block in Chile. GeoPark operates and has a 100% working interest in the Fell Block.
GeoPark drilled and completed the Yagan Norte 5 well to a total depth of 3,138 metres. A production test in the Tobifera formation, at approximately 3,100 metres in an open hole section, flowed at a rate of approximately 810 barrels of oil per day ("bopd") and 0.5 million standard cubic feet per day ("mmcfpd") of gas through a choke of 10 millimetres ("mm"), with a well head pressure of 585 pounds per square inch ("psi"). Further production history will be required to determine stabilized flow rates. Surface facilities and flowlines are already in place and the produced crude oil and gas are now being sold. The Yagan Norte field was discovered in 2009 and has produced over 320,000 barrels of oil to date.
GeoPark also re-entered the previously-drilled Sauce 1 well and deepened the well by 65 metres to a new depth of 3,260 metres to test the Tobifera formation. An open-hole production test in the Tobifera formation flowed at a rate of approximately 220 bopd and 0.5 mmcfpd of gas through a choke of 8 mm, with a well head pressure of 780 psi. Further production history will be required to determine stabilized flow rates. Surface facilities and flowlines are already in place and the produced crude oil and gas are now being sold. The discovery of Tobifera production in this well may lead to a new productive Tobifera trend in the western region of the Fell Block; as well as open up the opportunity to deepen additional existing wells on the block.
GeoPark is currently drilling the Yagan 3 well (in a field located south of Yagan Norte). Preliminary information indicates hydrocarbon-bearing zones in both the Springhill and Tobifera formations and testing will begin in March.
GeoPark has interests in six blocks in southern Chile where it is the first and only independent oil and gas producer. GeoPark also has interests in ten blocks in Colombia and three blocks in Argentina. During 2013, GeoPark will carry out a 35-45 well drilling program in Chile and Colombia - with a total expected work program investment of US$200-230 million.
Commenting, James F. Park, CEO of GeoPark, said: "We are excited by our continuing success in finding oil in the Tobifera formation in southern Chile. Both our geoscience and drilling/operations teams have collaborated to successfully open up and unlock the potential of this new horizon. Our Tobifera successes have enabled GeoPark to increase its total production - now over 14,500 boepd in Chile and Colombia - and to convert its production mix in Chile from primarily gas-based production (approximately 100% in 2006) to primarily oil-based production (currently approximately 70% oil and 30% gas)."
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.
