Geopark Hits Pay Dirt in Nika Oeste and Bump Hill in Chile
GeoPark Holdings Limited has discovered two new gas fields - Nika Oeste and Bump Hill - on the Fell Block in Chile following the successful drilling and testing of two new gas wells. GEOPARK operates and has a 100% working interest in the Fell Block.
GEOPARK drilled and completed the Nika Oeste 3 well to a total depth of 3,023 meters on a geological structure that had been re-defined following the interpretation of GEOPARK's 3D seismic program. A production test in the Springhill formation, at approximately 2,960 meters in an 11.5 meter perforated interval, flowed, without stimulation, at a rate of approximately 4.7 million cubic feet per day (mmcfpd) of gas, 70 barrels per day (bpd) of condensate and 14 bpd of water through a choke of 10 millimeters (mm) and with a well head pressure of 1,470 pounds per square inch (psi). These are preliminary results and further production history will be required to determine stabilized flow rates from this well and the extent of the reservoir. Geological and geophysical interpretations suggest the opportunity for further development drilling locations along a structural trend to the northeast. Construction has been initiated on a gas pipeline to connect the Nika Oeste 3 well to GEOPARK's Kimiri Aike gas process and compression facility which connects with the regional gas infrastructure and the Methanex Corporation's methanol plant located 120 kilometers from the Fell Block.
GEOPARK drilled and completed the Bump Hill 1 well to a total depth of 2,979 meters on a newly defined geological structure following interpretation of GEOPARK's 3D seismic program. A production test in the Springhill formation, at approximately 2,820 meters in a 4 meter perforated interval, flowed, without stimulation, at a rate of approximately 0.9 million cubic feet per day (mmcfpd) of gas, 5 bpd of condensate and 4 bpd of water through a choke of 8 mm and with a well head pressure of 420 psi. These are preliminary results and further production history will be required to determine stabilized flow rates from this well and the extent of the reservoir. Construction has been initiated on a gas pipeline to connect the Bump Hill 1 well to GEOPARK's Kimiri Aike gas process and compression facility which connects to the regional gas infrastructure and to Methanex.
Targeted completion of the two new gas pipelines is July 2008 with an expected increase in total sales production of 900 barrels of oil equivalent per day (boepd). GEOPARK has drilled and successfully put on production seven new wells in Chile since its long term drilling program began in June 2007. Five other new wells have been drilled and are currently waiting for testing, sidetracking or remedial operations. Facilities are now being prepared to begin testing the Aonikenk 1 well at the end of June 2008. GEOPARK is currently drilling the Santiago Norte 5 well with an expected completion date in July 2008. GEOPARK will also begin a test hydraulic fracture stimulation program on the Santiago Norte field in July 2008 upon arrival of the service company frac units. GEOPARK is also mobilizing a second drilling rig for its Chile operations with an expected start-up date on the Fell Block in July 2008.
GEOPARK has been carrying out an aggressive and structured US$100 million capital investment program during 2006 to 2008 to explore for and develop oil and gas in the Magallanes region in Chile, where GEOPARK became the first private-sector oil and gas producer in 2006. GEOPARK's 2008 capital investment program of US$57 million in Chile and Argentina includes the drilling of 17-20 wells and construction of new production and infrastructure facilities. The program represents a balanced mix of production, development, and exploration projects focused on both increasing oil and gas production and adding new oil and gas reserves.
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