GeoPark Holdings Limited ("GeoPark"), the Latin American oil and gas explorer, operator and consolidator with operations and producing rights in Chile, Colombia and Argentina, is pleased to announce the beginning of new exploration drilling in Tierra del Fuego in Chile in its partnership with Empresa Nacional de Petroleo de Chile ("ENAP") with the spudding of the Chercan 1 well on the Flamenco Block.
Chercan 1 is the first of 21 exploratory wells on the Flamenco, Campanario and Isla Norte Blocks in Tierra del Fuego as part of an approximately US$100 million investment commitment during the First Exploration Period. As part of this program, approximately 1,000 sq km of 3D seismic have been carried out over the three blocks; out of a total 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, the Chilean state-owned company, owns the remaining working interests in each Block.
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 pleased to announce the start-up of the exploratory drilling campaign in Tierra del Fuego in partnership with ENAP. Similar to our experience on the Fell Block in Chile, we believe this region represents a high potential opportunity to discover and produce oil and gas in a stable and economically-prosperous country. Our partnership with ENAP adds an additional value-adding dimension by allowing our two companies to work together and collaborate in exploring, developing and investing in the Magallanes region."
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.
