GeoPark Holdings Limited ("GeoPark"), the Latin American oil and gas producer and explorer, is pleased to announce that it has signed three participation agreements with Empresa Nacional del Petr?leo (“ENAP”), the State Oil Company of Chile, corresponding to the Campanario, Flamenco and Isla Norte hydrocarbon blocks located on Tierra del Fuego, in Chile.
In December 2010, the Board of ENAP initiated a process of inviting international oil companies to become partners with ENAP for hydrocarbon exploration on five blocks located on Tierra del Fuego. After evaluating the offers, ENAP selected GeoPark to become its partner on the Campanario, Flamenco and Isla Norte blocks, with 50% participation for the first two and a 60% participation in the last block. GeoPark will be the Operator of the three blocks and will carry ENAP for its participation during the initial exploration period. ENAP and GeoPark have jointly requested from the State of Chile, a Special Petroleum Operations Contract with respect to each of the hydrocarbon blocks.
In its proposal, GeoPark committed to invest a minimum of USD 101 million over three years and execute an aggressive exploration and development program on the three blocks. The new blocks cover an area of approximately 414,400 acres and are geologically contiguous with the Fell block, where GeoPark has successfully built a production and reserve base.
Commenting, James Park, Chief Executive Officer, said: “The opportunity to acquire these new blocks represents a significant step forward in GeoPark's growth strategy. The potential, geology and location of these new blocks enable GeoPark to follow a proven technical plan with an established team to explore and develop the blocks. GeoPark is also pleased to be working with ENAP, the State Oil Company of Chile, on these blocks and we look forward to creating a mutually beneficial and long term partnership.”
