GeoPark Holdings has agreed with its partners, and submitted a request for Chilean government approval, to restructure and strengthen the participating interests of the Otway and Tranquilo blocks in southern Chile.
Subject to approval of the Ministry of Energy in Chile, the new ownership of the Otway and Tranquilo blocks shall consist of partners Pluspetrol Chile S.A., Wintershall Chile Limitada, International Finance Corporation, a member of the World Bank Group, Methanex Chile S.A. and GeoPark Magallanes Limitada. The objective of the restructuring was to create equal consortia with similar long term objectives in the region. The working interest of each partner shall be the same in each block and GeoPark shall be the Operator of both blocks. IPR Chile Tranquilo Limitada and Manas Energía Chile Limitada have agreed to assign their working interests in the Tranquilo Block to the new consortium.
Tranquilo and Otway represent large attractive exploration hydrocarbon blocks totalling over 12,000 square kilometers. In 2010, approved budgets by the consortia for the two blocks total over US $37 million and include 2D seismic surveys of 553 kilometers, 3D seismic surveys of 362 square kilometers and the drilling of three wells on the Tranquilo block.
Commenting, James F. Park, CEO of GeoPark, said, "A key to successful long term exploration projects is the alignment and strength of the partners in a project. Consequently, we are pleased by this improved structure for the Tranquilo and Otway blocks that brings together a group of partners with a strategic commitment to developing and exploring in the Magallanes region in Southern Chile. Each partner adds value to the overall effort and the similar partner combination in both blocks affords a synergistic and more effective approach in evaluating and operating the blocks. We also appreciate the efforts of IPR and Manas, the original Tranquilo block participants, to help achieve this new partner structure."
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