GeoPark All Smiles over 2Q Operations
GeoPark provided an operations update for the Second Quarter 2011. Financial results for the interim period ended June 30, 2011 will be released during September 2011.
During 2011, GeoPark is carrying out an aggressive 26-30 well drilling and investment program with expectations of achieving its sixth successive year of continuous performance growth. Currently, GeoPark's assets and operations include:
- Six petroleum blocks (operated by GeoPark) in Chile and Argentina covering a gross area of approximately 3.8 million acres - with a balanced portfolio of production, development and high-impact exploration opportunities.
- Proved and probable (2P) reserves of 49.6 million barrels of oil equivalent (boe).
- Current oil and gas production of approximately 8,000 barrels of oil equivalent per day (boepd).
- Fully-funded 2011 work program of US $80-90 million with three rigs in operation.
- Cash of approximately US $150 million and a strategic partnership with LG International from Korea to support new project acquisitions.
- Proven technical and management team built for expansion.
- Drilling operations resumed in late February 2011 on the Fell Block in Chile after the late arrival of a drilling rig and since that time GeoPark has drilled or is currently completing the drilling of nine wells - of which six have been completed, with four being put on production, and three wells are remaining to be completed and tested.
- Results of new wells are summarized below:
|Well||Geological Formation||Depth (Meters)||Principal Hydrocarbon||Current Status||Approximate Production|
|Nika Sur 2 (Fell Block)||Springhill||2,983||Gas/Oil||Suspended||--|
|Monte Aymond 35 (Fell Block)||Springhill||2,404||Gas||On Production||8.8 mmscfd gas 100 bpd condensate|
|Copihue 1 (Fell Block)||Springhill||2,472||Gas||On Production||8.1 mmscfd gas 160 bpd condensate|
Williche 1 (Fell Block)
|Springhill||3,074||Gas/Oil||Waiting on Further Evaluation||--|
|Monte Aymond 36 (Fell Block)||Springhill||2,551||Oil||On Production||12 bopd|
|Konawentru 1 (Fell Block)||Tobifera||3,030||Oil||On Production||2,000 bopd|
|Alakaluf 10 (Fell Block)||Springhill||2,296||Oil||On Completion||Testing Beginning|
|Municion Oeste 2 (Fell Block)||Springhill||--||Gas/Oil||Drilling||Not Yet Reached Objective|
|Renoval 1 (Tranquilo Block)||Morro Chico||--||Gas||Drilling||Not Yet Reached Objective|
Recent wells to be noted include the Konawentru 1 well which had an initial short term test in excess of 2,000 bpd of oil from the Tobifera formation (a non-conventional volcanic clastic formation underlying the Springhill) and the Williche 1 well which had an inconclusive well test with only minor hydrocarbons recovered and is now under further evaluation.
- Renoval 1, the first well to be drilled on the Tranquilo Block in Chile, has reached total depth of 3,027 meters and is now being logged and completed. Renoval 1 is targeting a 715 bcf (unrisked mean resources) prospect.
- Seismic data acquisition on the Tranquilo and Otway Blocks continued throughout the first half of 2011 - with 293 km of 2D seismic and 165 km2 of 3D seismic being shot in total. Additional seismic will be carried out in Otway during 4Q11.
- Geophysical processing and interpretation of these surveys are now underway to develop additional drilling prospects on these high potential blocks.
- GeoPark's oil and gas production increased to approximately 8,000 barrels of oil per day equivalent (boepd) at the end of June led by the drilling results detailed above -- with an average for the first half of 2011 of approximately 6,400 boepd. For the first half of the year, oil production averaged approximately 1,600 bpd of oil and gas production averaged 29 mmscfd of gas.
- GeoPark continued to invest in surface facilities to commercialize its drilling successes on the Fell Block and render its operations more efficient by continuing implementation of its performance management processes.
Strategic Developments and New Projects
- GeoPark closed the sale of a 10% stake in its Chilean upstream business to LG International for US $70 million in May 2011. This development cements the strategic relationship between GeoPark and LGI, demonstrates the value of the business GeoPark has built in Chile and creates a strong foundation for a significant expansion of GeoPark's footprint in Latin America.
- As part of its partnership with LGI to acquire a portfolio of upstream assets throughout Latin America, GeoPark has been actively reviewing a range of asset and corporate opportunities, from a risk-reward and shareholder value creation perspective, in Chile, Colombia, Peru, Brazil and Argentina.
- Consistent with its objective of building access to multiple capital markets, GeoPark is evaluating the possibility of a full listing on the Santiago Stock Exchange in Chile.
Commenting, James Park, Chief Executive Officer, said, "We are pleased with our continuing progress and improvement during the Second Quarter, including the impactful Konawentru discovery, and look forward to further results throughout the remainder of the year from our active drilling program. Importantly, GeoPark has now positioned itself with, and provided funding for, three exciting growth platforms: 1. steady low risk organic growth from the Fell Block; 2. high-impact exploration opportunities from the Tranquilo and Otway Blocks; and 3. new project acquisitions in Latin America."
- GeoPark Touts First Exploration Success at Tierra Del Fuego (Jun 28)
- GeoPark Holdings Touts Tua Field Success (Jun 13)
- GeoPark Starts Up Production at Colombia Wells (Mar 20)