GeoPark Signs $40 Million Gas Agreement with Methanex
GeoPark Holdings has signed a natural gas pre-sale agreement for US$40 million with the Methanex Corporation of Canada. This six-year financing is designed to support the acceleration of GeoPark's gas development activities in Chile and to increase the volumes of natural gas supplied to Methanex's Chilean plant.
GEOPARK and Methanex signed a Memorandum of Understanding in March 2007 to facilitate the long term supply, development and acquisition of new natural gas reserves in Chile which included a ten year gas supply and purchase commitment of GeoPark's Fell Block gas production in southern Chile. Methanex's methanol plant site in Chile produces approximately 10% of the world's methanol supply. GeoPark is the only private sector oil and gas producer in Chile and has been supplying natural gas to the Methanex plant in Chile since May 2006. GeoPark is currently mid-way through a three-year approximately US$100 million exploration and development program on the Fell Block in Chile.
James F. Park, CEO of GeoPark, commented: "This significant agreement strengthens both Methanex and GeoPark. It secures an increase in the supply of natural gas in Chile for Methanex – and it secures an economic long term market for all of GeoPark's gas production, as well as, a new source of financing to accelerate GeoPark's development and exploration activities."
Methanex's Latin America Senior Vice President, Paul Schiodtz, added, "This prepayment agreement represents an important step to restore secure, long term gas supply to our plants in Chile. We are delighted to be working closely with GeoPark who have been very successful both discovering new gas and investing in infrastructure to increase natural gas deliveries to our plants."
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Company: GeoPark Holdings Limited more info
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