GeoPark provided an update on its drilling activities on the Fell Block in Chile including the successful testing of two new wells - Aonikenk Sur 1 (new pool gas discovery) and Alakaluf 7 (new oil producer). GeoPark operates and has a 100% working interest in the Fell Block.
The Aonikenk Sur 1 well was drilled and completed to a total depth of 2,348 meters. A production test in the Springhill formation, at approximately 2,266 meters in a 4.5 meterperforated interval, flowed at a rate of approximately 11.3 million cubic feet per day (mmcfpd) (or 330,000 cubic meters per day) of gas with 207 barrels per day (bpd) condensate and no water through a choke of 16 millimeters (mm) and with a well head pressure of 1,556 pounds per square inch. These are preliminary results and further production history will be required to determine stabilized flow rates from this well. A gas flow line will be constructed and it is expected to connect the well to the main pipeline and marketing infrastructure before the end of May 2010. From 3D seismic interpretations, it appears there will be further development opportunities on this new field which has an estimated area of 5 square kilometers.
The Alakaluf 7 well was drilled and completed to a total depth of 2,270 meters. A production test in the Springhill formation, at approximately 2,220 meters in a 12.5 meterperforated interval, flowed at a rate of approximately 1,006 bpd of oil with no water through a choke of 14 mm and with a well head pressure of 290 pounds per square inch. Surface facilities have been constructed and oil is now being produced at a rate of approximately 640 bpd of oil (through a 10 mm choke) and sold. Alakaluf 7 was an appraisal well drilled in a P2 reserve area (down-dip from the existing producing Alakaluf wells) and the results from this well are expected to increase the Company's P1 reserves.
The Alakaluf 9 well was drilled in a new compartment of the Alakaluf field and completed to a total depth of 2,246 meters. The well was cased and an initial production test in the Springhill formation, at approximately 2,170 meters, recovered small volumes of oil. Petrophysical logs indicate the well is hydrocarbon-bearing and the well will be hydraulically-fractured and tested once the necessary frac equipment becomes available.
The exploration well Tetera 4 has just reached a total depth of 3,056.5 meters and, following petrophysical logging, is now being cased and completed. A production test is scheduled during May 2010. Tetera is a prospect located in the north central part of the Fell Block near the Dicky field. The drilling rig will next be moved to begin drilling the exploration well Cerro Iturbe 1 located to the west of Tetera.
During 2010, GeoPark is carrying out a work and investment program totaling US$50-60 million and consisting of a 14-18 well drilling program, 2D and 3D seismic surveys and an expansion of its production infrastructure. GeoPark owns and operates 6 blocks in Chile and Argentina with a total of 3.7 million gross acres.
Commenting, James F. Park, Chief Executive Officer, said, "We salute our technical team for this new gas pool discovery in Aonikenk Sur and the continuing good results from the Alakaluf oil field. Our 2010 drilling program represents a balance of development, appraisal and exploration wells allowing us to both increase oil and gas production and reserves and to open up new prospective areas on the Fell Block. The completion of two new 3D seismic surveys on the Fell Block also allows us to expand our prospect and drilling inventory. The new 2D and 3D seismic surveys on the Tranquilo and Otway Blocks in Chile are currently in progress - and drilling on Tranquilo is expected to commence in late 2010. These developments are underpinning what we expect will be another year of strong growth for GeoPark in 2010."