Geopark Puts 2 Fell Block Wells in Chile On-Stream
Geopark Holdings Limited has announced the successful testing and placing in production of the new Estancia Zunilda-1 well and the new Santiago Norte-5 well on the Fell Block in Chile. Geopark operates and has a 100% working interest in the Fell Block.
Geopark drilled and completed the Estancia Zunilda well to a total depth of 3,156 meters on a new geological structure that had been defined following the interpretation of Geopark's 3D seismic program. A production test in the Springhill formation, at approximately 3,070 meters in an 8 meter perforated interval, flowed, following hydraulic fracture stimulation, at a rate of approximately 4.2 million cubic feet per day (mmcfpd) of gas, 25 barrels per day (bpd) of condensate and 35 bpd of water through a choke of 14 millimeters (mm) and with a well head pressure of 661 pounds per square inch (psi). These are preliminary results and the well is continuing to clean-up following the fracture stimulation. Further production history will be required to determine stabilized flow rates from this well and the extent of the reservoir. A gas pipeline was constructed to connect the Estancia Zunilda-1 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) and the well is now on production.
In the Santiago Norte Field, also on the Fell Block in Chile, Geopark drilled and completed the Santiago Norte-5 well to a total depth of 3,058 meters. Following a successful production test in the Springhill formation, at approximately 2,955 meters in an 8 meter perforated interval, a pipeline was constructed and the well is now producing at a rate of approximately 0.9 mmcfpd of gas, 6 bpd of condensate and 60 bpd of water through a choke of 10 mm and with a well head pressure of 219 psi. These are preliminary results and further production history will be required to determine stabilised flow rates from this well and the extent of the reservoir.
Geopark has also begun a long term hydraulic fracture stimulation program on the Santiago Norte and other Fell Block fields to increase gas production. A large hydraulic fracture test was carried out in the Santiago Norte-4 well in August 2008 and clean-up of this well is currently underway. Frac consultants working on this project have recommended a 30 to 60 day clean-up period. The Santiago Norte field contains over 60 million boe of possible gas reserves which could be upgraded and developed in the event of a successful reservoir stimulation program.
To date in 2008, Geopark has successfully drilled and put on production 6 new wells in Chile, including 4 new field discoveries. An additional well drilled this year has tested water and hydrocarbons but requires further testing or remedial operations. Geopark has also just completed drilling and casing the Ovejero-2 development well, which will now be tested for gas production. In August 2008, Geopark began operating a second drilling rig and is currently drilling on the Monte Aymond field. This well represents the Group's ninth new well this year in Chile.
Commenting, Gerald O'Shaughnessy, Chairman of Geopark, said, "We are pleased with the results from Estancia Zunilda and Santiago Norte, which will increase revenues and reserves of the Group. We are encouraged by the beginning of our fracture stimulation effort on the Santiago Norte field which has the potential, if successful, to upgrade and develop substantial P3 reserves and contingent resources. Our drilling success thus far in 2008 also underscores our confidence that we will continue to add new oil and gas production and reserves in 2008. "
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