Geopark Spuds New Well at Santiago Norte

Geopark Holdings Limited on Monday announced the start of its 2007 drilling program with the spudding of a new well on the Santiago Norte field on the Fell Block in Chile.

Geopark's drilling program for 2007 is targeting the drilling of 8 new wells - with 5 wells in Chile and 3 wells in Argentina - representing a mix of development, appraisal and exploration prospects designed to achieve both near term reserve growth and production increases. In Chile, the program includes further development of the Pampa Larga, Nika, Kimiri Aike, Santiago Norte and Ovejero fields. In Argentina, the program includes the exploration of the Campo Leandro and Zanja Dinero prospects and the further development of the Del Mosquito Norte field.

Geopark is continuing to build its inventory of drilling opportunities and its drilling program is expected to be expanded into 2008 and 2009. Geopark has contracted one drilling rig for three years with a two year extension option (which is currently operating on-site) and is acquiring another drilling rig through the conversion of its workover rig (scheduled for completion in the third quarter 2007).

James F. Park, Chief Executive Officer of Geopark, commented:

"The beginning of our long term drilling program represents an added dimension to our capabilities and an important new stage in the growth of Geopark. The basics are all in place -- including seismic, production infrastructure and rigs -- and we have proven our ability to increase production from stranded fields through our well workover and rehabilitation program. Now we are embarking on a higher impact program of drilling new wells to both develop known fields and explore for new fields - with a good balance between increasing oil and gas production and growing reserves."

Geopark is a Latin American oil and gas producer with operations in Argentina and Chile.